Category: Must Watch Videos

Category: Must Watch Videos

I made a trading indicator and it actually works after testing 100 times. In the last video I taught my computer to trade on its own, and in that video, we created an indicator called the beep boop indicator, I know. If you haven’t watched that video, consider watching it before this video, because in that video, Bill the computer actually made a profit with the beep boop indicator. Since, bill the computer made money with the beep boop indicator, can we make money with it as well? Well, why don’t we find out after we test it 100 times! I mean imagine if it works and gets popular and people start writing articles about it.

The Improved Version of the Beep Boop Indicator for FREE : https://www.patreon.com/posts/trading-rush-52806962

Since the last video, I have improved the beep boop indicator even more. This is how the beep boop indicator looks like on TradingView. It is based on the MACD indicator and comes with green and red bars. When a green bar appears on the beep boop indicator, it indicates a buying pressure. When a red bar appears on the beep boop indicator, it indicates a selling pressure. Furthermore, the beep boop indicator uses a 50 period exponential moving average to calculate its values. If you watched the previous video, you probably noticed that this beep boop indicator looks a little bit different. In the last video, the buy entry signal was when two green bars appeared in a row, and the sell entry signal was when two red bars appeared in a row. Exit signal was when two opposite bars appeared in a row. Furthermore, the red and green bars only appeared in a short term uptrend. In other words, if the price was above the 50 period moving average.

The new version of the beep boop indicator is better, because it gives buy and sell signals at the same time. In the new version, the long entry signal is when the first green bar appears, and the sell signal is when the first red bar appears. Furthermore, an exit signal is when the white bar appears for the first time. Also in the new version of the beep boop, price doesn’t always have to be above or below the 50 period moving average, you can change it anytime you want.

Since we have tested other trading strategies 100 times with a fixed reward to risk ratio, I have tested this strategy with a fixed reward to risk ratio as well. Furthermore, I used the 200 period exponential moving average to find the long term trend direction.

So here’s how the complete beep boop trading strategy goes. If the beep boop indicator gives a green bar, and if the price is above the 200 moving average, the long entry signal is at the first green bar. Stoploss goes below the pullback.

Similarly, If the beep boop indicator gives a red bar, and if price is below the 200 period moving average, the short entry signal is at the first red bar. Stoploss goes above the pullback.

So I tested the beep boop indicator 100 times, here’s what happened.

Number 1. At the beginning, the beep boop indicator gave 10 winning trades in a row, and till the 28th trades, the profit on the profit graph was almost going straight up. The beep boop gives a decent amount of entry signals in a short time period. It is heavily based on the MACD indicator. MACD strategy had an excellent win rate, but one of the reasons it worked so well, is because it didn’t give many entry signals in a short time. At the start when price was trending strongly, the beep boop indicator performed really well. Most of the time, the entry was not too late, but was also not too early, so the stop loss that was set near the pullback, was at a good enough distance from the entry, especially in a trend.

Number 2. The win rate in the Trading Rush App was pretty high at one point even with multiple trades, but when the trend started to change direction, the beep boop indicator started to give false signals. The only time you should consider using the beep boop indicator, is when the market is giving relatively smaller pullbacks in a one sided market. For example, the MACD strategy had an excellent win rate of more than 60 percent, and in that strategy the MACD crossover has to be below the zero line in a buy setup, and that does not happen if the price does not give a relatively bigger pullback. Since the beep boop indicator is based on the MACD indicator, it’s like taking entry signals with the MACD strategy but with few extra conditions and without following the zero line rule. When MACD or some other strategy is not giving an entry signal in a strong trend, and you feel like you are missing out on a big move, the beep boop indicator can be useful because it gives multiple entry signals even in a strong trend.

Number 3. The beep boop indicator is excellent for finding the trend direction. If my computer can learn to find the trend direction with it, it should be pretty easy for everyone. You can even use it while doing multi timeframe analysis. For example, you can use the beep boop indicator on a higher timeframe to find the trend direction. If the beep boop indicator is forming green bars, the trend direction on the higher timeframe is up. So it is a good idea to look for long trading opportunities only on the entry time frame.

So after testing the beep boop indicator 100 times, I got an approximate win rate of 48 percent with a reward risk ratio of 1.5 to 1 which is pretty good. It gave 10 winners in a row when the price was trending in one direction for a long time. And it gave 7 losers in a row when the price was changing the trend direction or was in a range. But as you can see in the Trading Rush App, during the backtest, it managed to make a profit of 2000. The custom indicator with a professional name that we created for Bill the Computer in the last video, actually works.

Since this is a custom indicator, and if you want to try it yourself, here’s how to install it on TradingView. This is a free indicator but you won’t find it on TradingView under the public library, because I’m not publishing there for two reasons. Number 1, it will show some of my account information and I don’t want that in the long run. Number 2, not everyone uses Trading View. So I will share the source of the Beep Boop indicator on the Patreon Page or on the Official Trading Rush Website for free. This way people who use different trading platforms can read and understand how the Indicator was written without signing up for trading View. I have already shared the previous version of the beep boop indicator on Patreon for free. To Install it on TradingView, just copy the source code from the Patreon page, and paste it in the Pine Editor on TradingView. Click save and add it to your chart. It will be available under the “My scripts” section.

Now, like I said before, the Indicator uses MACD and Exponential moving average to calculate its values, and if you click on the indicator settings, you can change some of those values. For example, by default, it gives a buy signal if there is a short term uptrend going on, and gives a sell signal if there is a short term downtrend going on, and it uses a 50 period moving average to find that short term trend. You can change that value if you want to experiment with it on your own.

All Videos Must Watch Videos Trading Strategies Uncategorized

5 Pro Rules to Find the Profitable Trades in Day Trading Forex that WORK

Post author By Trading Rush
Post date October 29, 2020

day trading forex profitable

Category: Must Watch Videos

How to make sure the trades you take while day trading forex, will have a high probability of making money? Well, here are some steps that can not only make you more money in trading, but also help you find some of the best trading opportunities quickly.

Number 1. If you have watched other videos on the Trading Rush channel, you know we always like to trade in the direction of the trend. And as a trend trader, what we usually look for is the pullback of a trend. In other words, we are looking for the market to give a discount. Most of the time in an uptrend, you will buy at this point, because no one likes to take trades at the top, unless if you are trading the breakout. For example, if there was an apple that went on sale up to 90 percent off every afternoon, many people will buy during the sale right?

Most trend trading strategies will try to give entry signals near this area. If you don’t have a profitable trend trading strategy, check out other videos on the Trading Rush channel. We have even tested them 100 times to find their win rates.

One of the strategies that performed well after testing hundred times was the alligator trading strategy. In this strategy, we use a 200 period moving average to find the trend direction, because even your dog can easily identify the trend direction with a moving average. Furthermore, moving averages acts as a support and resistance on a trading chart, especially the 200 moving average. So your trade will not only have a higher probability of making a profit, but by adding the 200 moving average on your chart, you will make sure not to trade against it.

The second thing you should do to have a high probability of winning, is avoid charts like this. Here, the price looks like a mess. Price action should be easier to read, otherwise your entry signal indicator will give a lot of false signals. On this chart, price is below the moving average and is not flat. Your probability of making money is already pretty good if you trade with the trend, but if the price action is choppy, your trade will have a lower probability of making money. Here, price is making sudden big candles, and these big candles can easily hit your stop loss. Yes you can set your stop loss far away, but then you will have to set your profit target far away as well to get a good reward risk ratio. Setting a big stop loss is not a problem if price actually moves in your favor, but if momentum slows down and if price starts to go sideways, you will be stuck in a trade for a while.

This is very common with low liquidity stocks and forex pairs. Furthermore, you should be very careful, as forex pairs and stocks can have big gaps and can make sudden moves because the buying and selling pressure can greatly vary. To have a higher profitability of success, it is a good idea to stick with major forex pairs and stock with high volume.

And if you are a beginner, trading on major forex pairs only can be highly beneficial as the price action on these pairs are usually smoother and easier to read. Your indicators will also work better.

Third thing that can significantly improve your chances of making more money, is the time of the day. Even though the forex market is open 24hrs on a trading day, you can’t trade all day. There are different market sessions that play an important role in liquidity. During the Asian session, price usually moves sideways and is less active. Price tends to make relatively bigger moves during the London and US sessions. So you will have a higher chance of finding higher quality trading setups. You can even achieve higher reward risk ratios during these sessions. I have already made a detailed video on this topic. Check it out to learn more.

One of the most important things you can do to improve your strategy is to take trades where people are interested in buying and selling. In other words trade near the supply and demand zones. If the price reverses from a price level strongly, there is a high chance that price will react from the price level again, because traders are most likely to buy and sell near that level.

You can use multiple timeframes to draw support and resistance, and I have made a video on how to draw strong support and resistance areas properly, check it out if you want.

The most important thing you need to make money in day trading is a profitable strategy. That’s obvious, but even if you have a strategy that gives a high win rate, you shouldn’t ignore other signs of reversals or trend continuation, especially the candlestick patterns. Candlestick patterns near a support and resistance level, can provide more information about that level. For example, if price forms an engulfing pattern near a support or resistance level, there is a high chance that price will reverse or will move in the opposite direction for a short period of time.

But how do we apply all of these things in the live market? Let’s look at the live market then.

Here, one can say that this is a great chart for trading. The price is smooth enough and the 200 moving average is also indicating a down trend. Furthermore, MACD is also giving an entry signal. And if you analyze the chart even more, one can say that this is the best trading setup and the trade will have a higher probability of making money. You are not half wrong. This trading setup is screaming to take a short position, but if you switch to a higher timeframe such as the 4 hours, you will notice that price is near a strong support area. Almost everyone on higher time frames can see it. In other words, if you take a short position by only looking at your entry time frame, there is a high chance that your trade will go in the opposite direction of your entry. In the 5 steps strategy video, I talk about how to trade using multiple timeframes. So maybe check that video out as well.

Now if we look at this chart, you can tell that this also has a smooth price action. Furthermore, the price is above the moving average, so it’s an uptrend, and MACD is about to give an entry signal. And, if we switch to a higher timeframe, we can see that the next strong resistance is far away. Right now, price is reacting from this weak resistance. When the MACD gives a signal, price has enough room to move up before touching the support area. This setup has a higher probability of making money.

So here’s the key points to note from this video.

Number 1. Trade with the trend, because trend is your friend.

Number 2. Avoid trading on less liquid stocks and forex pairs. If you are a beginner, trading only on major forex pairs is a good idea.

Number 3. Time of the day makes a big difference in forex trading. Forex spreads can change and markets can become more or less volatile depending on the market session.

Number 4. Buy and sell where people are already buying and selling. In other words, take trades near the support and resistance areas.

Number 5. Use other indicators like the candles patterns and the multi timeframe analysis to filter some of the bad trades.

Tags day trading, day trading forex, day trading rules, find the profitable trades, find trades, trading, trading rush, trading strategies, trading strategies forex, trading strategies that work, trading strategy, trading strategy forex

All Videos Must Watch Videos Trading Strategies Trading Tips and Mistakes Uncategorized

5 MACD Strategy MISTAKES you should avoid in Trading Forex Stocks… or…

Post author By Trading Rush
Post date October 21, 2020

macd strategy mistakes

Category: Must Watch Videos

Since the first MACD video on the Trading Rush channel, many have emailed me about how they are getting win rates as high as 68 percent. Many are getting multiple green days in a row, but then there are few people who are only getting win rates around 50 to 55 percent. First of all, you are getting more than 50 percent win rate with a reward to risk ratio of 1.5 to 1, there are people who spend a lot of money on courses to get win rates like that. If you do the math, a 55 percent win rate with a 1.5 to 1 reward ratio, is a really good win rate to make money in trading. Of course it is not good as many of you guys are getting, and not even close to the win rate we saw in the MACD strategy video. So I compared the MACD setups with 50 percent win rates, with setups of the people getting around 60 to 65 percent win rates, and found 5 common mistakes in almost all the 50 percent setups, that are keeping them away from making more money in trading.

The first mistake the 50 percent win rate setups made, that people with more than 60 percent win rates avoided, was not following all the MACD strategy rules. In the MACD video and the videos after that, I clearly said that while backtesting, I didn’t take trades that had confusing or bad entries, and you should avoid them as well. This rule was ignored by couple of people. I have taken many trades with the MACD strategy in the liive markets over the years, when I made the MACD strategy video, which was also the first video on this channel, I explained the strategy and added few rules that I personally found useful. Over the years, I noticed some downsides and advantages of the MACD strategy. So when I made that video, I added my personal rules to make the MACD strategy even more effective. One of those rules that was implied in that video was not taking trades when price has already made a big move in your favor.

One of the drawbacks of the MACD strategy, is that price sometimes makes a big move exactly on the MACD candle, or one or two candles before it.

For example, this is one of the trades I shared with the wonderful Patrons who support the Trading Rush on Patreon. In this trading setup, I did other analysis using multiple timeframes and was waiting for the MACD to give a crossover. But exactly on the MACD signal candle, the price made a big move in my favor. This makes the signal invalid, and I didn’t take it because the price already made the move I was anticipating. Furthermore, even if I had taken the entry after this big candle, the stoploss would have been so big, that price would have had to travel a lot of distance to get a decent reward to risk ratio. In other words, the probability of these setups are really low, and that’s exactly why I added the “don’t take when entry looks confusing rule”, and ignored the trades that had way too big stoplosses and other similar issues, and added 0 in profit when the entry was confusing while backtesting.

The second mistake I see a lot of people make, is using a bot or script to test the strategy. In the MACD strategy, there is a reason why I recommend setting the stoploss below or above the pullback of the trend. The pullback in the MACD strategy is really important, I will explain why in detail in a future video, maybe Subscribe to see that, and ring that notification bell so you don’t miss it. In the MACD strategy we set the stoploss just above or below the pullback. Now if you can exactly identify the end of a pullback while backtesting with a bot, there is no problem. But many people find it difficult to find a pullback. And in many of the less performing MACD setups that you guys have sent me, the stoploss is set at the wrong place. People use Fractals and other similar indicators to find the pullback while auto backtesting. A pullbacks according to the fractal indicator won’t be always right, because price action during a reversal is not always that smooth. Price can get choppy and go sideways before goin back in the direction of the trend. When this happens, indicators that you are using to find the pullback, will probably give a lot of false signals, or in other words, will turn a profitable strategy into a losing one.

One of the reasons I manually backtest instead of using scripts, is because every trade is different and setting a proper stoploss and profit target is much easier when I can see the obvious end of a pullback.

The third mistake is not trading the trend. If the price is moving sideways for a while, most indicators, except the Indicators that are designed for range market trading, will give false signals. The MACD strategy is a trend following strategy, so it works really good when the market is trending. if you get low win rates with the MACD strategy, make sure the moving average is not looking flat while entering the trades. When the moving average is flat, you should probably avoid trading on that stock or forex pair with the MACD strategy.

The fourth mistake, and it’s not really a backtesting mistake, that gave win rates around 55 percent to some, when many people got win rates as high as 68 percent, was not analyzing the market structure. If you have watched the 5 steps strategy video, you know how important multi timeframe analysis can be. In my liive trading videos, and in the trades I share on Patreon, I almost always use the multi timeframe analysis to get the big picture. Multiple timeframe analysis can help you identify price points where MACD can give a good entry signal. Multi timeframe analysis is one of the most important things you can do before taking a trade. MACD strategy gives around 62 percent win rate on its own, but multi timeframe analysis is one of those things that helped many achieve win rates high as 68 percent. If you are struggling with a strategy, try multi timeframe analysis. You can watch the 5 steps strategy video on the Trading Rush channel to learn more about that.

The 5th mistake that is seen among beginner traders, is taking 10 trades to find the win rate of a trading strategy. To see if a strategy is a profitable trading strategy or not, you will need to find its approximate win rate. 10 trades is not enough, 100 trades or more are good enough to see if something works in trading or not. Remember, the accurate win rate and approximate win rate are two different things. There is probably no such thing as an accurate win rate of a trading strategy, because the market is always changing. Stock trading many years ago was a little bit different than what it is now, that’s because of the change in liquidity. To see if a strategy works or not, you only need to find its approximate win rate, which you can do by testing it 100 times or more.

For example, if a strategy with a 1.5 to 1 reward risk ratio gives around 60 percent win rate after testing 100 or more times, there is a very high chance that the strategy is a profitable strategy as we have seen after taking 10000 virtual trades in one of the other videos. And remember, win rate of a strategy goes up if the reward to risk ratio goes down, and vice versa. A strategy can have a very high win rate and still lose money, if the reward to risk ratio is bad. Similarly, one can have a strategy with a very low win rate such as 20 percent, and still make money in the long run if their reward to risk ratio is very high. In other words, if they are taking more profit than the risk per trade. So next time when someone says that their strategy has this and that win rate, ask them with what reward to risk ratio. Because they might be taking lower profits than the risk, just to get a high win rate, and to fool you into buying their paid trading courses. Don’t fall for that.

All Videos Must Watch Videos Trading Strategies Trading Strategies Tested 100 Times Uncategorized

I tested Fibonacci Trading Strategy 100 TIMES to find the truth about Fibonacci Retracements

Post author By Trading Rush
Post date October 8, 2020

Fibonacci Trading Strategy

Category: Must Watch Videos

Does Fibonacci trading strategy even work? Should you trade using the Fibonacci retracement tool? I have tested many strategies on the Trading Rush channel, and almost every other day, there is a comment about testing the Fibonacci trading strategy or to give my thoughts on it. Until now, I have avoided making a video about the Fibonacci trading strategy, because the idea of Fibonacci in trading sounds really stupid. But that’s my personal preference, and as you know, on the Trading Rush channel, we keep personal preferences aside and only talk with the real world data. In this video I’ve tested the Fibonacci retracement tool 100 times to see if it works or not, but unlike other indicators we have tested on the Trading Rush channel, Fibonacci can’t be backtested. Let me explain.

You see, there are many people who believe that the fibonacci tool is really good for trading, but then there are traders who believe that fibonacci levels are just some useless lines on a chart. Now remember, almost 90 percent of retail traders lose money in trading. So instead of believing other people, let’s look at the real data and understand how fibonacci actually works.

Fibonacci was a medieval mathematician, and came up with a sequence that goes something like this. 1+1=2, 2+1=3, 3+2=5, 5+3=8, and so on. Here, each new number is sum of the 2 numbers before it.

Now, if you take any number from this sequence, and divide it with the next number, you will get a value of 0.618.

If you divide any number with every other number on this sequence, you will get the value of 0.382.

And if you divide any number with 3rd number next to it, you will get a value of 0.236. Furthermore, if you divide 1 and 2, you will get a value of 0.5.

You probably noticed that these are the same numbers you will find on a fibonacci tool. On many charting platforms, these numbers are turned into percentages. So the 0.382 becomes 38.2 percent. 0.618 becomes 61.8 percent, and so on.

These fibonacci numbers are found almost everywhere in the nature. From the shape of the galaxy to the number of petals on a flower. Since the fibonacci is found almost everywhere in the nature, many traders believe that fibonacci can also be applied in trading.

So, people started applying the fibonacci tool when the charting platforms provided.

It is widely believed, that since price doesn’t go in the straight line in one direction, when the price is in a trend, the price will retrace at the fibonacci level, hence the name fibonacci retracement tool.

So in an uptrend, if you take the fibonacci tool from the swing low to the swing high, it is said that the price has a higher probability of reversing near the fibonacci levels. Some traders like to give higher importance to the 50, 61.8 and 38.2 levels.

Now here’s a big problem, unlike other indicators who actually take real market data to calculate their values, fibonacci draws levels that have almost no relation to the actual market data. Many fibonacci fan boys will buy stock or a forex pair because the number of petals on a flower or the shape of the snail’s shell is based on the fibonacci.

For example, the V WAP tool that I have recommended many times on this channel, takes the real volume traded on a stock to calculate it’s value, fibonacci doesn’t do anything similar to that.

One might say, that fibonacci does take market data like the swing low and swing high into consideration. Well yes, but that’s actually a problem.

You see fibonacci numbers have almost no real useful value in Trading. It has great importance outside of the financial markets. The only reason why fibonacci works, is because people believe it works. If enough people believe that the 50 percent retracement level works as a reversal point, many people will enter trade near that level, which will make the price go in the desired direction.

The reason why normal strong support and resistance levels work so great, is because almost everyone is going to see them at the same price.

But in trading where every trader looks at the swing low and swing high differently, the fibonacci value is not going to be at the exact same level. Furthermore, fibonacci has so many levels that some traders can get confused about which level is giving the real reversal sign, in other words, from what level is the price reacting. This makes fibonacci trading really inefficient when compared to other trading tools like the V WAP indicator.

Furthermore, backtesting the fibonacci tool can be really difficult because fibonacci requires you to draw from the swing low to the swing high and vice versa. When you try to backtest, this swing low and swing high will become very biased.

In the other trading strategies I have tested 100 times on the Trading Rush channel, I took trades by looking at the indicators and not the price itself, and since non repainting indicators look exactly the same on live markets and while backtesting, the backtesting data was unbiased.

Now, one can recommend using the zig zag indicator while backtesting the fibonacci levels. This way, you won’t have to think about the swing low and swing high while backtesting. And That’s what I did. Since many traders believe that most of the time price retraces near the 50 fibonacci level, I tested the fibonacci trading strategy 100 times to find the truth.

Although the zig zag indicator was able to show proper swing lows and swing highs most of the time, it is not a perfect indicator. Some swing lows and swing highs according to the zig zag indicator were not accurate, but since swings of a trend can differ from trader to trader, this small number of less accurate swings were fine. And when the zig zag lines were looking like a mess, no swings of a trend were considered while backtesting.

Since price does not react at the fibonacci levels exactly, I only considered a fibonacci level if price had reversed near it. By near I mean, if price reversed from 5 percent above or 5 percent below it.

Since fibonacci is mostly used in a trending market, I used the 200 period moving average to find the trend. When most part of the swing low and swing high was on the one side of the moving average, I consider the fibonacci level. Furthermore, in an uptrend, the swing high has to be higher than the previous swing high. Similarly in a downtrend, the swing low has to be lower than the previous swing low.

So after backtesting the fibonacci tool 100 times, here’s what I found out. Only 6 percent of the time price reacted near the 23.6 level. 18 percent of the time near the 38.2 level. 14 percent of the time near the 50 level. 15 percent of the time near the 61.8 level. 14 percent of the time near the 78.6 level. And 33 percent of the time price either reacted from the 100 level or went straight through all the fibonacci levels. That make sense since price is in a range most of the time, but one thing to consider from this data, is that except from the 23.6 level, price reacted from all other levels the same way. That is not a good thing. In an uptrend, since the price is going to reverse with a higher swing low anyway, and since there is no significant difference between the levels, one can say that the fibonacci levels hold almost no significant value in trading, especially when compared with other things like normal support and resistance.

The only reason people think fibonacci works in trading, is because they believe it works.

One can argue that this data was not enough to be judged on. Maybe, but after testing many different trading strategies 100 times on the Trading Rush channel, and taking virtual trades 10000 times to see how close are we to the actual win rates, we have seen that the strategies that actually perform good, give very good profit numbers after backtesting only 100 times. For example, popular trading strategies like the MACD, Ichimoku cloud, bollinger bands, that are trusted and used by many professional traders, gave very good win rates after we backtested them 100 times.

It will take many months to take 100 trades for many traders in live markets anyway. The question is, will you keep using a strategy that doesn’t make profit even after multiple months, when there are strategies that have the potential to make almost 50 percent in the same time period. Most probably won’t use a strategy that keeps them in a loss in the long term.

If you want to see the best trading strategies that performed really well, you should check out other trading videos on the Trading Rush channel.

That’s all. Now you know a little bit more about fibonacci trading. Like the video if you liked it. Subscribe to the Trading Rush channel and ring that notification bell to see more trading strategies tested 100 times. Check out the Trading Rush app using the link in the description. Maybe consider supporting the channel on Patreon. Thanks a lot.

All Videos Must Watch Videos Trading Strategies Uncategorized

3 Advanced Trading Techniques that Pro Traders Use to EXIT Trades with more profit

Post author By Trading Rush
Post date September 26, 2020

Best Trading Techniques trading rush

Category: Must Watch Videos

What are some advanced profit booking techniques that can make you better at trading? If you have watched other videos on the Trading Rush Channel, you know I recommend using a fixed stoploss and profit targets for beginner traders. But at some point, once you gain enough experience in trading, you should probably switch to different trade management techniques that have higher probability of making more money. In this video we are going to see some of those trading techniques, so you can make more money as well.

If you have watched the small account challenge series, and the liive trading videos on this channel, you know I use very different profit booking methods in those series. In the small account challenge series, where we tried to double the Trading account, I mostly used the fixed profit target. But in the liive trading videos, I had no profit target, instead, I was trailing the stoploss candle by candle. That’s because sometimes it is better to use a profit booking technique based on the market movement.

For example, lets say you have found a stock or a forex pair that is moving strongly in one direction because of a strong catalyst. When the price gave a pullback in this strong up trend, you found a trading opportunity and take a trade according to your entry strategy. Normally, in a fixed stoploss and profit setup, you will book a limited profit. But in this example, since we know that the price has potential to move strongly in the upward direction, we can simply avoid setting a profit target, and move the stoploss below the candle that is making the new high. This aggressive stoploss trailing technique was used in the liive trading videos. This strategy is most effective when the price is less noisy.

For example, lets say you enter at this candle according to your trading strategy. As you can see, there is less noise on this chart and the price movement is easier to read. Since we know that the price movement is good and has a potential to go higher, we can set the stoploss just below the entry candle if it is big enough, and trail the stoploss below the candle that is making the new high.

Here, after taking the entry, you can see that price went sideways. Since none of the candles made a new high, we cannot trail the stoploss. When the candle makes a new high, we can modify the stoploss, and set it just below the candle that made the new high. Now, if the price reverses from this point, you are only going to lose a small amount of money compared to your original stoploss. When the next candle made a new high, your stoploss is in profit. From now on, the trade is not going to make a loss.

These kinds of trades have potential to make a big profit. In this example, the stoploss was hit when the candle broke the low of the previous candle. The reward to risk ratio on this trade was 4.5 to 1. In other words, you made a profit that is 4.5 times more than your initial risk. I have used the same strategy in the liive trading videos, and have gotten multiple green days in a row because the potential loss per trade was reduced as the trade went higher in the entry direction.

But what if the price movement is noisy? How can you book a big profit? Well, if you think that the price has potential to move in one direction, you can simply use the ATR indicator to set the stoploss. I have already made a detailed video about it. Check it out if you want.

If we apply the ATR stoploss on our previous example, you can see that we would have exited the trade at a much higher point. But this doesn’t mean you would have gotten a better reward to risk ratio than the previous trade. That’s because the initial stoploss in this example was way bigger than the last stoploss. When we trailed the stoploss candle by candle, we got a 4.5 to 1 reward to risk ratio. With the ATR stoploss however, we only got 4.2 to 1 reward risk ratio. This doesn’t mean that one is better than the other. One is made for less noisy price movements, and other one works by taking price volatility into consideration.

But what if you don’t want to continuously stare at the chart. Well, you can simply take partial profit as the trade moves higher.

Lets look at an example. Here, lets say the price has potential to move higher upto the clearly visible resistance level. But between the entry and the strong resistance level, there is another resistance level. We don’t know if the price is going to reverse from this weak resistance level or not. So instead of guessing, you book partial profit, and move your stoploss to breakeven. In this example, you exit 25 percent of your trade when the price reaches 1 to 1 reward risk ratio, and move the stoploss to breakeven. This way, even if the trade goes in the opposite direction after touching the weak resistance, you will not lose money, because you have already booked a small profit and your stoploss is at the breakeven point. But, if your trade reaches your next profit target, you will book a big profit, just like we did in the previous 2 examples.

Instead of booking 25 percent partial profit, some traders also like to book 50 percent or 75 percent profit when the trade reaches 1 to 1 reward risk ratio. The choice depends on the probability of price making a big move in your favor. If you think price has a higher chance of reaching higher reward risk ratios because of a strong catalyst, it is better to only book 25 percent at the first profit target and let the rest ride. If you think there is a strong resistance that can reverse the price in between, it is probably a good idea to take more than 25 percent off at the first profit target.

So here are some key takeaways you should note.

Number 1. When the price is trending and if the price move is cleaner, trailing the stoploss below the candle that is making the new high can be more profitable.

Number 2. If the price action is noisy but the price is trending, you can use the ATR stoploss to trail the stoploss. Again, I have already made a video about it, check it out to learn more.

Number 3. If you have doubt that price could reverse before reaching your profit target, you can book a partial profit when the trade reaches 1 to 1 reward risk ratio, and move your stoploss to breakeven. This way you will not lose money, and still have a chance to make big profit.

Now, instead of taking partial profits at the 1 to 1 reward risk ratio, some traders will only move the stoploss to breakeven. Moving the stoploss to breakeven at 1 to 1 reward risk ratio only, is not a strict rule. You can move the stoploss to breakeven anytime you think there is chance the price will reverse before reaching your stoploss.

Number 4. If you didn’t understood anything what I just said, and are even more confused than before, just use the fixed stoploss and profit targets to get consistent profit. As we have seen in the strategies tested 100 times series, fixed stoploss and profit targets also make a big and consistent profits in the long run.

That’s all. Now you know more about booking bigger profits. Like the video if you liked it. Subscribe and ring that notification bell to see more Trading Videos. Check out the Cool Trading Merch to support the Trading Rush Channel. And thanks to everyone for watching.

All Videos Must Watch Videos Trading Strategies Uncategorized

2 BEST Forex Trading TIMES that can make you BIG PROFIT as a Day Trader

Post author By Trading Rush
Post date September 22, 2020

best time to trade forex

Category: Must Watch Videos

What is the best time to trade the forex market? Unlike stocks that are only open for trading for few hours, Forex market is open 24hrs a day, but not really. Forex market is open from 5 pm EST on Sunday to 5 pm EST on Friday, but not every trading hour in this time period are worth trading. There are times where Forex Market is more active, this is where you can get a very good reward to risk ratio, and there are times where Forex Markets are simply not worth trading.

Let me explain.

In Sydney Australia, the Forex market officially opens at 5 pm Eastern Standard Time and closes at 2 am EST. You can sometimes see some good price movements when this session opens, but most of the time, the price action is not that good compared to other sessions we are going to see.

In Tokyo Japan, session begins at 7 pm Eastern Standard Time and ends at 4 am EST. This is where Forex pairs like USD JPY and GBP JPY give a good price movement.

Then there is the London session that starts at 3 am Eastern Standard Time and ends at 12 pm EST, and is one of the preferred sessions by technical traders. London session is the most active forex session, and is also called the central trading capital of the world.

Just like the London session, the New York which opens at 8 am and closes at 5 pm, also gives some great opportunities for traders. In fact, it is the second largest platform in the world. In this session. you can find some really good trading opportunities on the Forex pairs that involve the US dollar.

But why am I talking about these Forex sessions? Why are they so important?

Well, you see, for price to make big move in your favor and to increase your profit potential in trading, the Institutional money has to be involved. When these session open, their respective banks also show interest. For example, in the London Session, the Britain’s central Bank has a heavy impact on the Forex Market.

Now one can say, that the best time to trade forex, is when the London session or the New York session is open because they have relatively good price movement. But if you look at the opening and closing timings of these sessions, you will notice that there is a overlap. There are few hours where both London and New York sessions are open. Since both of these sessions have a high trading interest, you can say that the overlap of these sessions is the best time to trade.

Lets see an example. On this chart, you can see how the market is in a range and the volume is low in the Japan and Sydney Sessions. But when the London session starts, you can spot the increase in volume. Even the price movement is a lot better than the previous session. When the New York session opens, you can see the volume rising even more. During the overlap of the London and New York sessions, you can see how price made a very big move. And if you compare this movement with the Asian Session movement, you can easily tell that the price action during the overlap is much better, and give some of the best trading opportunities.

But how can you actually use this information to enter trades? Obviously, not everyone is going to find the London and US overlap time suitable for trading, because everyone most likely lives in different corner of the world. If you can’t trade during the US and London overlap, which is from 8 am Eastern Standard Time to 12 pm EST, you can trade in the Sydney and Tokyo overlap hours. Most of the time this period is not that volatile compared to US and London, but it still gives some decent trading opportunities. The worst overlap among the 3, is the London and Tokyo overlap. You will rarely see a high volume price action in this period, and because this overlap is only 1 hour long, many traders will not participate.

But if you can participate during the US and London overlap hours, make sure you look out for any upcoming news. Price can make a huge sudden move in one direction when there is a big news release. Since price action gets volatile during the overlap hours and in the London session, you should probably plan your stoploss ahead of time. When the price starts making sudden moves, you don’t want your stoploss to be taken out. If you set your stoploss by taking the price volatility into consideration, when a new session starts, don’t make the mistake of setting your stoploss using the volatility of the previous session. It is good idea to wait and analyze the movement of the new session. For example, if you set your stoploss considering the volatility at the end of the Asian session, there is high chance your stoploss will be taken out if the volatility rises in the London session. If you don’t know how to use the price volatility to set your stoploss, you can use the ATR indicator. I have already made a video about it, check it out to know more about the ATR stoploss and how it can be better.

Some say news trading can also be very profitable in forex, but in reality, predicting the price direction before a news release is a difficult task to do, and new traders should probably avoid it, but not completely. For example, if there is a big news that has the potential to increase the volatility, you should wait for the first few sudden moves, and take advantage of the high volume price action that will follow for a while. Unemployment rates, Central Bank meetings, and interest rates are few examples of news events that can give a decent trading opportunities.

Overall, the best time to trade the Forex market and to find some of the best trading opportunities, is during the overlap of the London and New York sessions. If you can’t take trades during the overlap, the London session can be the next best one, followed by the New York session. If possible, you should aim to take most of your trades during the overlap of the forex sessions, and when the price is more volatile. Otherwise the price will stay flat and you will be stuck in a trade for a long period of time.

You should also be careful while trading in the New York session, as there can be a late news release from the previous sessions. These unexpected price movement can turn your profit into a loss. Furthermore, it is a good idea to avoid taking trades at the very start and at the very end of a forex session, that’s because traders from the previous session could be exiting the trades, this can sometime lead to a noisy price action at the start of the next session.

You can even trade in session overlap hours only, this way you will only take trades when there is a movement in the market, and trading only for few hours will also avoid you from over trading, which in other words, will avoid you from blowing up your account.

And If you find it confusing to convert your local time to find the timing of the Overlap sessions, you can change the time zone on your charting platform to use the New York time, or the Eastern Standard Time. All the Forex market hours mentioned in this video were in Eastern Standard time as well.

So that’s all. Now you know a bit more about trading. Like the video if you liked it. Subscribe and ring that notification bell for more trading videos. Check out other trading strategy videos on the Trading Rush channel. And if you find this video helpful, you will find the 5 steps trading strategy video helpful as well. In that video, I show how you can filter bad forex pairs, and take trades on quality setups using 5 proper steps. Thanks a lot for watching.

All Videos Must Watch Videos Trading Strategies Uncategorized

5 Simple Steps Complete Trading Strategy that PRO Traders Know but Beginners Ignore…

Post author By Trading Rush
Post date September 16, 2020

5 step complete trading strategies forex stock market trading rush

Category: Must Watch Videos

Can these 5 steps make you more profitable in Trading Well, In this video, I’m not only going to show you some of the most useful trading techniques, but I’m also going to execute it in live market, so you can actually see how it will look when you will trade with real money. Also, checkout other strategies videos in the strategies tested hundred time series, where we tested different strategies 100 times to find their win rates, because some of the data mentioned in this video is based on that series, and don’t forget to subscribe to the Trading Rush channel, after all you don’t want to use a strategy that doesn’t even work.

If you have been trading for a while, you have probably realized that not all trading charts are worth trading. There are times when you should take more trades, because the market is perfect for booking big profits. But then there are times when you should completely avoid trading, because if you do, you might end up with multiple losing trades in a row.

Instead of immediately looking for new trades, the first thing you should do is analyse if the market is worth trading or not.

So when I started recording this video, the forex pairs were not really that good for taking trades. As you can see, on the Euro USD pair the 200 period moving average was looking flat, and the price was crossing it multiple times in a short amount of time.

If you have watched my previous videos, you know I use and recommend using a 200 period exponential moving average to find the long term trend, because it’s the easiest way to find the trend, and if we take trade in the direction of the long term trend, we can achieve greater reward to risk ratios, in other words, we can make more money.

So, on these forex pairs, I’m looking for a chart, where price is staying above the 200 period moving average for a while, and where the moving average is not looking flat. Furthermore, the price action should look cleaner. For example, look at these two charts. Here, the first chart looks much cleaner than the second chart. On the first chart, the price is staying above the moving average, and is not looking flat. This kind of chart is perfect for beginner traders, as the price action is easier to read, and your stoploss won’t get taken out because of a choppy price movement.

Just like the Euro USD pair, the GBP USD and GBP JPY were also looking choppy. Even though they were below the moving average, the price action was not cleaner like the price action we saw in the example.

Many people lose money by taking too many losing trades in a bad market. If your charts look similar to these, you should probably avoid trading at that time.

When I started recording this video, most of the forex charts were looking like this. So instead of taking trades in these choppy conditions, I closed the charting platform and came back later when the price action was smoother.

Few hours later, the price action on the NZD USD pair was much cleaner. The price was above the moving average. Furthermore, the 200 period moving average was not looking flat.

Once you filter the bad charts, and find a good forex pair, it’s time for the step 2, where we will use the multi-time frame analysis to find more information about the chart. By more information I mean the points of interests where price has a higher probability of reacting. Sometimes, when you trade on a smaller timeframe, you might end up taking long trades, at a strong resistance level that is clearly visible on the daily time frame. This lack of information can make you lose money.

In this example, I’m on the 5 minutes timeframe. So to find the important levels that many people can easily see, I will switch to the daily timeframe. Here, I will draw the strong support and resistance levels that I can see. Since we are using the 5 minutes timeframe to enter trades, switching to the daily is not really necessary according to some people. But I like to do it to make sure I don’t end up taking short trade on a smaller timeframe at a strong daily support.

If you don’t know how to draw strong support and resistance areas, check out the support and resistance level video on the Trading Rush channel, it has some good examples that you will find helpful.

As you can see, the price couldn’t cross the resistance level, and also reacted to the support level. Since we are trading on a 5 min timeframe which is much smaller than this, we can say that there is enough room for us to take long and short trades on the 5 min timeframe. Right now, we are not on a strong support or resistance level.

Once we have identified the areas on the daily timeframe, switch to the 4 hours timeframe, and look for other clearly visible areas. As you can see, the price is currently near a support level.

If we switch to the 30 min timeframe, we can clearly see that the price reacted to that support level.

Now if we switch to our entry timeframe which is 5 minutes, we will have more information than before. First we only knew that the price was in an uptrend. But now, we also know that the price is near a support level.

Now in the third step, we will use an entry signal indicator. I’m using the MACD indicator in this example. MACD strategy was one of the best trading strategies, that we have tested in the strategies tested 100 times series. If you want to learn more about it, check out the MACD video on this channel.

As you can see, the MACD has not given an entry signal yet. But we can tell that it is going to, because the momentum is slowing down. I have also made a second MACD video, where I explained how to use the Histogram to our advantage. Check that video as well.

Since patience is the key, I waited for the MACD to give an entry signal which was around 20 minutes later. As you can tell by looking at the histogram value, the MACD has given a crossover. It is a small crossover, so it can be difficult to see on some mobile screens. The entry according to the MACD strategy, is at the closing price of the crossover candle, or at the opening price of the next candle. If you use a different entry signal indicator at this step, take entry according to your entry strategy. Now remember, in the third step, we are not executing the trade yet, because there is one more thing you have to calculate.

In the fourth step, you have to calculate the position size by looking at your stoploss strategy. A lot of new traders make the mistake of setting a bad stoploss. Your stoploss has to be far enough from the entry so the price have enough room to wiggle around before going in your favor. And you have to decide where you want to set your stoploss before taking the trade. That’s because to get a consistent loss amount, you have to calculate your position size using your stoploss distance.

I have explained more about this in my ATR indicator video, and in the part 7 of small account challenge series. Check them out if you want to learn more.

According to the MACD strategy, the stoploss goes just below the swing low, which also happens to be below the support area in this case.

In the step 5, it’s time to set the profit target. In this example I’m going to use a fixed profit target, which will be 1.5 times greater than my risk. To get a 1.5 to 1 reward to risk ratio, I can simply multiply my stoploss by 1.5 to get my profit target.

Once you have calculated all of these values, you can enter the trade. It might look like it takes a lot of time to calculate the stoploss, position size, and profit target before executing the trade, but it only takes few seconds once you get a hang of it. Furthermore, even if you are trading on a smaller timeframe like 5 minutes, you will have enough time to calculate everything properly.

Once you have taken the trade with a stoploss and profit target, you can simply close your trading platform if you are not looking for new trades. Once you have taken a trade, there is not really a point in staring at your chart. The price is either going to touch your stoploss, or your profit target.

In this case, the live trade I took using the MACD strategy was profitable. Furthermore, it went exactly how we predicted, and even reacted to the resistance area we drew using the daily timeframe. With only 5 simple steps, we were able to execute a profitable trade.

That’s all. Now you know a little bit more about trading. Liked the video if you liked it. Subscribe and ring that notification bell for more trading videos, and check out other videos on the Trading Rush Channel to find some of the best trading strategies that actually work. And thanks to all the Patrons for supporting the Trading Rush channel on Patreon. Thanks a lot.

All Videos Must Watch Videos Popular Trading Rush Videos Trading Strategies Trading Strategies Tested 100 Times Uncategorized

BEST Donchian Channels Trading Strategy EVER tested 100 TIMES…

Post author By Trading Rush
Post date September 12, 2020

Donchian Channels trading strategies forex stock market indicator trading rush

Category: Must Watch Videos

Does Donchian Channels trading strategy even work? Can this popular strategy make you money in trading? Well, I took 100 trades with Donchian Channels Indicator to find just that. In this video, you will learn about the Donchian Channels trading strategy with its win rate, so we all can see if this indicator is good or not. Since the Bollinger Bands trading strategy had the second highest win rate in this series, and since the Donchian Channel indicator is very similar to the bollinger bands, it will be interesting to see if the Donchian Channels trading strategy can surpass the bollinger bands strategy. If it does, we will have a new second best indicator in this series.

If you don’t know what I’m talking about, On the Trading Rush channel, we have tested many different trading strategies 100 times to find their real win rates. Check them out if you want. Also if you are new to trading, don’t forget to subscribe to the Trading Rush Channel, after all you don’t want to risk your real money on a indicator, that doesn’t even work.

This is what the Donchian Channels indicator looks like on Trading View. It will come with 3 lines, and they are called the upper band, the basis, and the lower bands respectively. Even though this indicator looks like a bollinger band, the trading strategy is quite different. The Donchian Channels indicator is used to find the trend, so the popular trading strategy based around it, is a trend following strategy.

When there is an uptrend going on, the upper and lower bands of the Donchian Channels, will make higher highs and higher lows. Similarly, when a down trend is going on, the upper and lower bands of the Donchian Channels, will make lower highs and lower lows.

Now the basic Donchian Channels strategy goes something like this. You buy, when the upper band of the Donchian Channels makes a new higher high, after making lower lows. Similarly, you sell, when the lower band of the Donchian Channels makes a new lower low, after making higher highs.

Now there are a lot of problems with this basic setup. So to make this indicator even more effective, I have modified the strategy a little bit by adding few more rules. Also remember, the 100 times tested data you are about to see, is based on this modified strategy.

Here’s how the modified and better Donchian Channels strategy goes. To filter false signals given by the Donchian Channels, I have used the 200 period moving average. If price is above the moving average, we will only take buy signals given by the Donchian Channels. and if price is below it, we will only take sell entry signals.

Furthermore, in the new modified setup. the long entry signal is when, the upper band makes a new higher high, after lower band had made a lower low. Since in an uptrend, price rarely crosses below the lower Donchian Channels band, set your stoploss just below the lower band.

Similarly, when the lower Donchian Channels band, makes a new lower low, after upper band had made a higher high, it is a sell signal. Set your stoploss, just above the upper band.

So, I tested Donchian Channels trading strategy 100 times using this modified setup, here’s what happened.

Number 1. Since we used the 200 period moving average to find the long term trend, on an indicator that is already a trend following indicator, the end results were looking very promising, that’s because in the beginning, the profit graph in the Trading Rush App was going almost straight up. The only time I remember the profit graph and win rate going this high at the start, was when I tested the MACD strategy. MACD strategy was the best performing trading strategy we have tested on this channel, and it was looking like the Donchian Channels was going to surpass it. By the way, I’m using the Official Trading Rush App for backtesting. You can use it to test your trading strategy as well. It will calculate profit graph, win rate and other useful data in just one click. Saves a lot of time. You can download it from the Play Store, or using the link in the description.

Number 2. Another thing I noticed that was pretty interesting, was the stoploss. The stoploss that was set using the upper and lower bands of the Donchian Channels, was actually at a good enough distance. It was not easily hit by small price movements, and it also gave a decent reward to risk ratio. Now obviously, I have used a fixed stoploss and profit target while back testing, because we have tested all other strategies the same way on the 30 minutes timeframe. But since, this is a trend following strategy, you can use a trailing stoploss if you are a trader that likes to catch the big moves. Just remember that the win rate you will get will be different than what I got here.

When there is a trend going on, the price is rarely touch the lower band of the Donchian Channels. Furthermore, in a strong uptrend, the lower Donchian Channels band keeps making higher lows. So if you want to trail the stoploss only using the Donchian Channels, you can use the lower band. Just set the stoploss below the lower band, and trail it as the band moves higher.

Similar thing applies in a down trend. If you want to trail the stoploss in a down trend, set it above the upper Donchian Channels band, and trail it as the band moves lower. Due to a sudden or bigger price movement, if the entry and stoploss according to the Donchian Channels strategy, are far away from each other, you can simply skip that trade. Otherwise the probability of getting a better reward to risk ratio will be a little bit low.

Number 3. To be honest, this is one of the better indicators we have tested on this channel. Unlike other indicators, that were showing multiple problems while testing, this indicator is works perfectly with the modified trading strategy we created in this video. Since it shows where to set the stoploss, and also shows the direction of the trend, it can be easily picked by most new traders.

So, the win rate I got after testing the Donchian Channels trading strategy 100 times, was approximately 58 percent. Which is one of the best win rates we have gotten on the Trading Rush Channel. The bollinger bands trading strategy had an approximate win rate of 55 percent. So this strategy is not bad at all. The Donchian Channels strategy is a profitable strategy. As you can see in the Trading Rush app, I lost 42 trades, and won 58 trades. Since I was using a 1.5 to 1 reward risk ratio, the account was up by 4500. The profit graph in this example looks much better when compared to some other indicators we have tested so far. The maximum number of winners I had, were 6, and max number of losing trades were 7. But in the end, the Donchian Channels trading strategy, turned out to be one of the best trading strategies, that we have tested in the strategies tested 100 times series.

Like the video if you liked it. If you want to see other trading strategies tested 100 times to find their win rates, Subscribe to the Trading Rush Channel and ring that notification bell. After all, you don’t want to trade using a strategy that doesn’t even make money. Also, don’t forget to check out the Official Trading Rush app. Thanks a lot for watching, and special thanks to all the Patrons who make these videos possible, by supporting the Trading Rush Channel on Patreon. Thanks a lot.

All Videos Must Watch Videos Trading Strategies Trading Strategies Tested 100 Times Uncategorized

100 Trades WITH Stoploss vs WITHOUT Stoploss vs NO Profit vs NOTHING to find the best for Trading…

Post author By Trading Rush
Post date September 10, 2020

100 forex and stock market trades stoploss vs no stoploss

Category: Must Watch Videos

If you don’t set a stoploss in trading, how much money can you actually make or lose? Surely you have heard almost everyone recommend using a stoploss while trading in forex and stock market, but how bad can a trade really get if you don’t use a stoploss? Well, to find out, I took 100 live trades on different forex pairs and let them ran for 24 hours straight. These 100 trades were divided into 4 types. 25 with stoploss and profit target, 25 without any stoploss but with a profit target, 25 with stoploss but no profit target, and 25 trades with nothing.

So, which kind of trade do you think made most money?

The trades with no stoplosses should make the most money right? as only thing they can achieve is the profit? Well, you are not half wrong, because the first trade I took on the Euro USD pair with a stoploss, was lost. But same trade without the stoploss was in profit. Remember, I took all trades in the direction of the long term trend. I used the 200 period moving average to find the long term trend and took 4 different types of trades at the same time on a single pair and on the 3 minutes time frame. Stoploss was set at a good enough distance from the entry by using the trading views position tool, and in this paper trading example, I’m using a 10000 dollars account, and only risking 1 percent of that account per trade.

So the first trade with the stoploss and profit order was lost, and the trade with no stoploss was won. It made a profit, but at one point, the no stoploss trade was down almost 200 dollars, which is two times more drawdown than the last trade. Nevertheless, after 24 hrs, the trade was in profit. The trade with no profit order on the other hand, had made a loss. Looks like the trades with no stoploss orders were making money, because the last type of trade with no profit and no stoploss order, was up by almost 1350 dollars at one point.

Now obviously, not everyone is going to exit at the maximum profit. In reality, not everyone is going to stay in a trade till the exact time of the reversal. But just for this experiment, lets assume that there was a genius 400 IQ trader, Bill the first, who was able to exit at the max profit. Even though Bill the first is happy, because he made money where other traders didn’t by using a stoploss, do you really think he can handle the max draw down in the up coming trades?

The first few trades that had no stoploss and profit targets, were really lucky for bill the first. The trades that were lost by using stoploss orders, were actually profitable and made more than 2000 dollars. Now remember, the maximum profit potential for a normal 1.5 to 1 reward risk ratio trade, is 150 dollars. So it appears that the trades with no profit or stoploss orders were actually making a lot more profit, at least for now. Bill is probably bursting with happiness. On GBP USD pair, the trades with a fixed profit targets made 150 dollars, whereas the trades with no profit targets, had a profit potential of 2100 dollars, which is 14 times more than the max potential of fixed profit orders trades.

But don’t be fooled by looking at these good profit numbers yet, and don’t let your mind change about the usefulness of the stoploss orders. Because after looking at the rest of the results, you will not wish to be a trader like Bill.

If we look at all the trades that had stoploss and profit orders, you will notice that highest loss potential these trades had, was only 100 dollars. 100 dollars in this example, is only 1 percent of the entire 10000 dollars account.

But if you look at the results of the trades with profit target but no stoploss, you will notice that the maximum profit potential is same as the previous type of trade, but not everything is same. Here, the maximum loss potential was more than the potential profit. and even though almost all trades were winners, the total profit the winning trades made, was not very high compared to the losing trades. 24 out of 25 trades were in profit, but because one losing trade made a loss of 3440 dollars, the total loss skyrocketed. 3440 dollars loss is around 34 percent of the total account balance. If you think 34 percent is very high for a potential loss, you will be shocked after looking at the rest of the results.

The trades with stoploss but no profit target had the highest profit. Since the max loss per trade was capped at only 100$, the trade with stoploss but no profit target, was most effective among the last three types. This kind of trade is very similar to a trailing stoploss trade. In a trailing stoploss trade, you trail the price as long as possible to catch a bigger profit. I did similar thing in my live VWAP trading videos. Instead of setting a profit order, I was simply trailing the price as it went in my favor.

This kind of trading style can be a lot profitable if you know what you are doing. It was profitable in this case. But if you are absolutely new to trading, you should probably stick to the fixed profit and stoploss orders. That’s because you don’t want to continuously look at your running trades as a new trader, otherwise there is a chance that you will end up booking a small profit after thinking with your emotions. In this case, the strategies with fixed reward to risk ratios didn’t make the highest profit, but they are very much profitable with a good trading strategy, as we have seen in the strategies tested 100 times series on this channel. Check them out if you are new.

As we saw earlier, the trades that had no profit and stoploss, were looking very profitable at the start. And in the first half, they were the most profitable kind of trades than the rest. They were easily crossing maximum potential that was 20 times higher than the fixed profit trades. But then, there was this one trade.

At one point, when all other trades were in profit. The trade with no profit and stoploss targets, had a max potential loss of 22800 dollars, in just 24 hrs. 22800 loss is 228 times more than the normal fixed stoploss trades, and 22800 is 228 percent of 10000 dollars. 10000 dollars was the total account size in this paper trading example, so basically, Bill the first, just blew up his account.

In this example, the trades with no profit or loss orders, had the highest amount of profit potential, but also had the highest amount of potential loss. and because of that, the trades with nothing, gave the worst performance in this example.

Now, if you look at the data carefully, you will notice that the same trade with profit target but no stoploss, didn’t made the same loss, because it had reached its profit target first. But if it had not touched it first, and if price had reversed immediately after taking the trade, this trade would have also blown up the account.

So the conclusion of this experiment is something that you have heard many people say, use a stoploss if you don’t want to end up like bill the first with negative balance in the account.

The point of this video was to demonstrate and show the beginner traders, what trading without a stoploss looks like. I hope this gave you a perspective.

Like the video if you liked it. Subscribe and ring that notification bell for more trading videos. And if you want to learn about setting a proper stoploss, or if you want to see the real win rates of trading strategies that we have tested 100 times, check out other videos on this channel, or in the Trading Rush App. Thanks a lot for watching.

All Videos Must Watch Videos Trading Strategies Trading Tips and Mistakes Uncategorized

4 USEFUL Trading Breakout Tips that can Make You MONEY in TRADING

Post author By Trading Rush
Post date September 6, 2020

4 breakout strategies trading rush