The Error.

 

To understand how I ended up making money, we will have to start from the beginning. If we look up the profit loss report from the start of this year till today, you will see that I started this year in the negative. The first trade of the year was lost. But if you have watched one of the previous videos, you probably remember me saying that these two trades are actually one. While I was setting up my trade, the price made an unexpected move. In simple words, the price made a sudden move down in just a few seconds that multiple green candles took a lot of time to make. I was in the middle of setting up the trade, and when the price made a move down, my higher than 1 reward risk ratio trade was suddenly a 0.1 reward risk ratio trade. So I exited the position with a loss and created a new position that had an okay reward risk ratio. And as you can see, the second trade I took with a higher than one reward risk ratio, recovered the loss and made some money. If we look at the profit graph, you will see that this year started with a loss, but the next trade brought everything back in the profit.

 

The View.

 

In the Forex and stock market, your overall view of the market is really important. If you have been trading for a while, you most likely heard someone say that trading only a few pairs and stocks is a good idea. That couldn’t be further from the truth. You see, when you trade one or few selected pairs, you get to know how they normally move, how they have been moving for the n number of days, and what movement you can expect from them. Many traders like to trade a single stock like “apple” or the index itself. And if you ask them about their stock, they can tell everything about it from memory even in their sleep. I’m bringing this up, because the overall view of the market you get from looking and trading the same thing every day, can be a game-changer. In the last two months, I have traded the same thing, and it was one of the main reasons I got such a high win rate.

 

The Profitable strategy.

 

On the Trading Rush channel, I have tested many different trading strategies 100 times to find their approximate win rates. One of the strategies that got more than a 60 percent win rate while testing, was the MACD Trading Strategy. Subscribers of the Trading Rush Channel already know about this strategy and are probably using it. But there is another trading strategy that I have talked about that doesn’t get a lot of attention. After losing and making money in these two days respectively, I had 5 green days in a row with the MACD and V WAP Trading Strategy. Furthermore, I shared the 13th and 14th-day trades in the form of a live trading video. There are a lot of trading strategies out there, and after testing most of them 100 times on the Trading Rush Channel, we saw that most of them don’t even have a good win rate. I traded with the MACD Trading Strategy and the V WAP trading strategy in the direction of my overall view of the market. I have tested the MACD strategy 100 times but not the V WAP strategy. Unlike the MACD indicator, the V WAP indicator is more of a tool and doesn’t generate entry signals on its own. So it can’t be tested. But if you understand it properly, you can spot the potential buying and selling areas on a chart. On an intraday chart, it was one of the key indicators used during this week. To learn more about the highest win rate strategy and the V WAP strategy, check out other videos on the Trading Rush Channel, and while you are at it, subscribe and ring that notification bell to see win rates of other trading strategies that we have tested 100 times. After all, you don’t want to end up with a strategy that doesn’t have a good win rate in the first place.

 

The Big Loss.

 

There are different ways of entering a trade in the forex and stock market. Similarly, there are different ways of managing money in the financial markets. If you pay attention, you will notice that compared to other red days, this day has the deepest red. If you connect the dots, you will notice that on this day I had a big loss. If you remember, in one of the videos I said I use different risk amounts for different kinds of trades. On the profit loss report, you will see that some green days are light green and some are dark green. This means that some days the profit was big, and some days the profit was small. Since I trade stock and index options mostly, it is sometimes difficult to enter and exit trades properly when the volume is low and the spreads are big. Furthermore, while day trading on smaller time frames like 2 minutes, for some reason, if the broker freezes, cancels your stop loss, and stops taking new orders, you can lose a lot of money with a bigger position if the price makes a sudden move. These things are rare, but they do happen, and I’ve seen this happen multiple times now, and almost lost a lot of money because of the broker’s fault. So I don’t risk a lot of money while trading on a  smaller time frame. Instead of risking the same amount of money every single time, I take three kinds of trades in a month. The first type is an intraday trade with small position size. The second type of trade is a weekly trade with a big amount, and the third type of trade is a monthly trade with a bigger position size. In the month of January, the monthly trade that had the biggest position size lost money, and that’s why you see a big red day near the end of this month.

 

But if you look at the profit graph, you will notice that I only made a small loss in total at the end of the month.

 

The Probability.

 

Most trading strategies work in the long run. If you increase the reward risk ratio, your win rate will go down, and if you decrease the reward risk ratio, your win rate will go up. The intraday trades I take have around 1.5 reward risk ratios, and the weekly and monthly trades I take have a lower reward risk ratio of around 1. So what ends up happening is, when I lose the intraday trades, the weekly trades that have a high probability of winning cover the loss of the intraday trades. If weekly trade makes a loss, the intraday trades cover the loss of the weekly trades. And if both intraday and weekly trades lose money, the monthly trades end up covering the loss of the entire month because it has a higher probability of making money. With a profitable trading strategy, losing most or all trades in a month is very unlikely. But it can happen, and that loss is covered usually by the next month. In the month of January, the monthly trade made a loss, but the intraday and weekly trades covered the loss of the monthly trade. 

 

The Backup Plan.

 

You see, when we take a monthly trade, there is a view. For example, we take a monthly trade because we think that price will go in an upward direction. But what if the price doesn’t go in your entry direction. Let’s say, after entering the trade, your original view changes because of breaking news or something. One can simply close the position or wait for the price to reach the stop loss. But since we take different kinds of trades, if we think that the price is not going to go in the entry direction of the monthly trade, we will take the weekly trade in the opposite direction of the monthly trade. So if the price makes a big move against the monthly position, the weekly trades end up covering the loss. And that’s exactly what I did in the month of February when the price was going against my entry direction. For some reason, beginner traders focus too much on winning that single trade. Trading is all about probabilities, and one can easily lose money in the short term, but if you are booking more profits than your risk, or have a high win rate trading strategy, you will most likely make money in the long run. Instead of focusing on a single trade, focusing on the big picture is a good idea.

 

The Biggest Winning Streak.

 

Since the January month only made a small loss, that small loss was quickly recovered by the intraday and weekly trades in the first week of February. Then with MACD and V WAP Trading Strategies combined with support and resistance areas, I was able to get a few more green days in a row. I think I shared one or two trades in the form of a live trading video. Check those out if you want. In the February monthly trade, I bought when I was expecting the price to move in the upward direction. Took a short trade when the price was at resistance and booked a partial profit when the price was at support. This can sound very confusing, but all I’m doing is buying and selling at the support and resistance, and I’m using the MACD and V WAP trading strategies to enter in the direction of my overall view of the market.

 

At this point, I had booked the monthly trade profit, made more money than lost in the previous month, and since there was still one week remaining, I took a weekly trade when the price was near a support level, and that trade made a profit as well. By trading with profitable trading strategies near the support and resistance areas, I got a decent win rate. The profit graph also went in the upward direction. But I don’t like it.

 

The Problem.

 

Most people like winning multiple days in a row, and having no losing days in the entire month. But this can create a big problem. I had an excellent win rate in the last two months, but this is not my long-term win rate. My long-term win rate is somewhere between 55 and 65 percent. Let’s say if my long-term win rate is around 60 percent, and if I have won too many trades in a row, there is a good chance that there will be some red days in the following months.

I have had multiple green days in a row before, but I prefer not getting a really long winning streak, because it can make you overconfident about your trading style or strategy. And when the losing streak starts, watching the downward spike on your profit graph can affect your trading psychology.

 

The Profit.

 

Trading with MACD and V WAP trading strategies near the support and resistance area while keeping the overall view of the market in mind, made me money with an excellent win rate. I have already taken the next week and next month trades. The weekly trade has a good probability of winning, but as of writing this, the monthly trade doesn’t look that great. I will try to cover that loss with the weekly and intraday trades, but if the monthly trade is won, it will most likely make around 1.5 times more profit than the profit of all the trades of February month combined.

 

So if you want to see that and want to learn about the strategies that got me an excellent win rate, subscribe to the Trading Rush Channel and ring that notification bell, after all, you don’t want to risk your money on a strategy that has a bad win rate. Support the Trading Rush Channel on Patreon and get to see in-depth trade analysis and some good trading opportunities signals. Thanks for watching.