This is creating “the world’s worst trading strategy episode 1.
To create the worst trading strategy, we will have to go shopping. Don’t forget the mask. Now let’s see. If we visit the Trading Rush Website and look at the TR Scores of the Trading Strategies we have tested so far, we will notice that the top three high win rate strategies are MACD, Donchian Channels, and Bollinger Bands strategy. Now we know MACD got the highest win rate. But hold on, the MACD strategy we tested 100 times was a trend-following strategy. It gave good entry signals in the direction of the trend. Since it performed so good, why don’t we use the MACD indicator and mess it up?
It’s time to create the worst trading recipe ever. So first we take our sweet MACD indicator and put it in. Since MACD strategy got a high win rate as a trend trading strategy, we will still use it as a trend following strategy, but instead of taking entry in the direction of the trend, we will take entry in the opposite direction. So when MACD says sell, we will buy like a boss, and when MACD says buy, we will sell like we own the market. Now to top it all up, we break the MACD strategy even more by breaking the zero line rule. If you don’t know what I’m talking about, check out the MACD trading Strategy video on the Trading Rush Channel, because that strategy is one of the highest win rates trading strategies you will ever make money with.
Now we created a potential worst trading strategy ever, before we test it 100 times, I mean before we cook it, here’s what it looks like. When MACD gives a buy crossover in an uptrend, we won’t buy. Instead, when the price is in an uptrend, we will sell at every single sell crossover. Stoploss goes above the swing high. Buy setup is just the opposite of sell setup. Instead of selling in a downtrend, we will buy with no regrets.
So now that we understand the recipe, let’s test it 100 times and see if we have successfully created the worst trading strategy or not. Let’s see if it blows up the account.
Well, at least now we know we suck at cooking, and unfortunately, the worst trading strategy we tried to create got a 38 percent win rate which is actually close to breakeven. The risk-reward ratio was 1.5 to 1, so the breakeven percentage is 40 percent. This strategy didn’t even come close to blowing up the account.
Maybe we did something wrong. We need to go back to the shopping mall and buy some more ingredients.
Mask.
Let’s see. Last time we bought in a downtrend and sold in an uptrend. That should work and we should get a lower win rate because we are buying and selling in the opposite direction of the trend, but it didn’t. But it is possible that the strategy got a low win rate when the market was trending, but got a higher win rate in a range market. So what we need to do is filter the range market so we only lose money in the trending markets by taking trades in the opposite direction of the trend.
Well, look what they got here. It’s the Trading Rush Moving Average that we created in one of the previous videos. It disappears in the range markets so you won’t lose your hard-earned money. And look at that, you can get it for absolutely free. Check out the Disappearing moving average video on the Trading Rush Channel to learn more.
In our case, instead of increasing the chances of making money with it, we will use it to lose more money. So let’s create a new worst trading recipe with it.
So put the MACD indicator. Buy and sell in the opposite direction of the trend, but this time, we add the Trading Rush EMA to filter the range market. Let’s see if we were winning more trades in the range market before. Let’s take another 100 trades.
Okay, we are horrible at cooking. Last time the range market was not a problem because the strategy got the same win rate, same loss number, and even got the same number of winners and losers in a row like last time. Maybe it’s the main ingredient, maybe the MACD indicator is just good at showing the momentum change. After all, it got the highest win rate ever when we tested it with a proper strategy.
If we come to the Trading Rush Website again and look at the TR scores of strategies, we will see that Zero Lag MACD is the worst Trading Strategy at the moment. So why don’t we use that instead? We need to go shopping.
First, we add the Zero Lag MACD indicator. Since we need to get a lower win rate than what the MACD zero lag got in the MACD zero lag video, we need to take slightly different entry signals. Last time we took entry signals in the direction of the trend just like the normal MACD strategy. But this time, we will enter at every crossover that the Zero Lag has to offer. Furthermore, we will use the Trading Rush Moving Average, not to filter the range market, but to find the range market so we lose money in them.
So let’s give it one last try. Let’s see if we can create the world’s worst trading strategy and let’s see if we can blow up the account.
Well.
We really suck at cooking. This random strategy we created actually made a small profit and got a 41 percent win rate.
What’s interesting is, no matter how hard we try, the trading strategy we created didn’t lose more than 5 percent of the account even after 100 Trades. There is a saying that most traders blow their trading accounts and around 90 percent of traders lose money in trading, but here we tested 3 bad strategies 100 times. So even with 3 bad strategies and 300 trades later, we failed to blow up the account. We didn’t even get close to negative 50 percent.
I think we have proven that trading strategy is not the main reason for blown up accounts. If that was the case, I have tested many different trading strategies 100 Times on the Trading Rush Channel, at least one of them should have blown up the account or came close to the negative 50 percent mark.
Imagine that there is Bill the first and Bill the second. There is a train track. At one point there is a right turn where the track ends. Just before the turn, there is a big sign that says, “learn money management”, “Trading Psychology”, It’s the key to success in trading, turn right to learn more.
This track is like a trader’s journey. Bill the second is an experienced trader who takes the right turn and focuses more on money management and trading psychology. On the other hand, Bill the first is new to trading and gets excited when he sees an Instagram Ad that claims to get a 90 percent win rate with no proof. Bill the first could have become a profitable trader like Bill the second if he had made the right choice, but bill the first is looking for that holy grail. Unfortunately, this track never ends, because the holy grails don’t exist. If someone says they get a 90 percent win rate in trading, run in the opposite direction and don’t look back, because they are using a lower reward risk ratio to get that high win rate and to sell you thousands of dollars of courses. A high Win Rate doesn’t always mean good money.
Casinos make millions upon millions of dollars with just a slightly higher than 50 percent probability of winning. If they can make a lot of money with just above 50 percent win rate, it is not really a good idea to look for a 90 percent win rate that even your dog knows most likely doesn’t exist with a good reward risk ratio.
I have tested many different trading strategies 100 Times to find their win rates. Go to the Official Trading Rush Website, pick and understand the strategies that actually got a high win rate even with a 1.5 to 1 reward risk ratio, and focus more on the right thing, because even if you are bad at cooking, money management is going to save you from blowing up your trading account.
That’s all. Like the video, if you liked it. Subscribe to the Trading Rush Channel and ring the notification bell to see win rates of trading strategies that we test and have tested 100 times. Support Trading Rush on Patreon and get trade opportunity signals and see In-depth trade analysis. Thanks for watching.
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