Tag: trading indicator

Tag: trading indicator

Is the Awesome Oscillator really that awesome in trading? Can you actually make money with it as a trader? I mean it is a momentum indicator, and momentum indicator combined with the trend, have worked really well on the Trading Rush Channel. To find out if the Awesome Indicator works or not, I tested it 100 times. Furthermore, I got curios after seeing the results, and tested the MACD strategy 100 times again, to compare it with the awesome indicator. So in this video, I tested the Awesome Oscillator and the MACD strategy 100 times, and here’s what happened.

The Awesome Oscillator was created by Bill Williams, and you have probably heard this name before on this channel, because some of the useful indicators we have tested on the Trading Rush channel, were created by Bill Williams. The alligator indicator was one of them, and it is one of the most useful indicators to identify the trend. Awesome Oscillator is used to find the trend direction and the possible reversal points. It uses the simple moving averages to calculate its values, and calculates the difference of a 34 and 5 period Simple Moving Averages, but here’s a twist. Unlike the usual simple moving averages where values are calculated using the closing price of the candles, simple moving averages in the awesome oscillator uses the mid point of the candle to calculate it’s values.

This is how the Awesome Oscillator looks like on the TradingView Platform, and since the awesome oscillator is an oscillator, it oscillates between values that are above and below the zero line. At the first glance , an Awesome Oscillator looks very similar to the histogram of the MACD indicator. So will it work as good as the MACD strategy? In the Awesome Oscillator, a green bar appears if the value is higher than the previous value. And a red bar appears if the value is lower than the previous value. So when the Awesome Oscillator value is below the zero line, it indicates a downtrend. And if the Awesome Oscillator value is above the zero line, it indicates an uptrend, Simple as that.

Now, there are 3 popular trading strategies that are based around the Awesome Oscillator. In this video, the strategy that I have tested 100 times, is called the zero line cross. As you can tell by the name, this Awesome Oscillator Trading Strategy is really simple. The entry signal in the strategy is generated using the zero line of the Awesome Oscillator. The Buy signal is when the awesome oscillator crosses above the zero line, and the sell signal is when the awesome oscillator crosses below the zero line. Pretty straight forward, but if you have been watching the Trading Rush Channel for a while, you know that pretty straight forward strategies like these are not that good on their own, because they don’t consider the long term trend direction. So we will use the 200 exponential moving average with the awesome oscillator, to make sure we take entry signals only in the direction of the long term trend direction.

So here’s how the modified awesome oscillator trading strategy goes. The long entry signal is when the awesome oscillator crosses above the zero line, only if the entry candle is above the 200 period moving average. And the short entry signal is when the awesome oscillator crosses below the zero line, and if the entry candle is below the 200 period moving average. In this example, price was above the moving average which indicates an uptrend. In this uptrend, the awesome oscillator crosses above the zero line, so the long entry is at the closing price of the candle, and stop loss is below the pullback. In this short example, price was below the moving average which indicates a downtrend. And in this downtrend, the awesome oscillator crosses below the zero line, so the short entry is at the closing price of the candle, and stop loss is above the pullback of the trend.

So I tested the Awesome Oscillator, Zero Line Cross Trading Strategy 100 times, here’s what I found out.

Number 1. Now I test and have tested many different trading strategies on the same pair and on the same timeframe. Furthermore, I use the same 1.5 to 1 reward risk ratio, so when I test a new strategy, it is tested in almost the same market structure and conditions as the previous strategy. In the last testing video, I tested the fractal breakout strategy. Now, both the awesome oscillator, and the fractal breakout strategy, took their first few trades when the price was in a strong long term uptrend. If you look at the profit graph of the fractal trading strategy in the Trading Rush App, you will see that it went up, which means that the entry signals given by the fractal indicator were profitable. But if you look at the profit graph of the awesome oscillator in the Trading Rush App, you will notice that the awesome oscillator didn’t make much money in the same uptrend. Furthermore, the profit line instead of going up, went down. Why the awesome oscillator couldn’t make money like the fractal breakout strategy, even though the market conditions were almost the same? Well, while testing, I noticed that the awesome oscillator gives entry signals way too late. When I say way too late, I’m not exaggerating, because while testing, I realized that Awesome Oscillator gives entry signals similar to MACD trading strategy.

So I tested the MACD strategy 100 times, again, in the same market conditions, but this time, I didn’t follow all the MACD rules that I mentioned in the previous MACD videos. And after testing the MACD strategy in the same market conditions like the awesome oscillator, the MACD got a win rate of approximately 60 percent, whereas Awesome Oscillator only got a win rate of approximately 42 percent. MACD, without following all of its rules, still managed to get a win rate of 60 percent. Just don’t focus on the profit graph of the MACD this time, because I added trades in bulk to make testing faster. But after testing both MACD and Awesome Oscillator on the same market structure, I found out that the Awesome Oscillator gives way to late entry signals than the MACD signals. Just look at this example. Here, price is in a downtrend, but MACD and the awesome oscillator, give entry signals at very different points. One is way too late than the other. Because of the late signals, the probability of price reaching the 1.5 to 1 reward risk profit target becomes lower. Now one can say, if the price can’t reach the 1.5 to 1 reward ratio profit target easily, why not reduce the size of the stoploss, that way, we can achieve a good reward risk ratio even if the price makes a small move. Setting a smaller stop loss using the ATR indicator can be a good idea, and it can increase the win rate of this strategy, but the fact still says that the entry signals given by the awesome oscillator are late. Since there is a big difference between a 42 percent win rate, and the 60 percent win rate, you are always better off with a strategy that gives more than 60 percent win rate even with a 1.5 to 1 reward risk ratio.

In the Trading Rush App, the awesome oscillator didn’t make much profit, it got more losers in a row than the number of winners it got in row, and the profit graph also doesn’t look that good compared to some other trading strategies we have seen on the Trading Rush Channel. For example, here’s the profit graph of the original MACD strategy that followed all the MACD rules, as you can see, this is more consistent than the awesome oscillator achieved here. But, that’s just the zero line cross strategy. It made money in the end, but not like some other indicators. In the future videos, we will test the two other strategies that are also based on the Awesome Oscillator.

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Trading Psychology – How these 5 Trading Habits can ruin your Trading Career?

Post author By Trading Rush
Post date November 28, 2020
20 Comments on Trading Psychology – How these 5 Trading Habits can ruin your Trading Career?

trading psychology

Tag: trading indicator

How these bad trading habits can ruin your Trading career? What’s the big deal with Trading Psychology? Let’s find out! After watching many different trading strategies tested 100 times on the Trading Rush channel, you probably know what trading strategies are good and what strategies will make you lose money. As a trader, we always want to make money, that’s obvious. But if you make 200 random traders use the same profitable trading strategy, there is a good chance that at least half of the traders will lose money, and the rest half will be profitable. Why is that? Let’s say you see your favorite trader use a strategy that gives more than a 70% win rate, but when you try it, it gives completely opposite results. Why can’t you make money with the same strategy? Answer me this. Do you find trades every time you open the trading charts? If your answer is yes, then you might have a bad trading habit, that can stop you from becoming a successful trader!

There are 3 main things you need in order to make money in trading. Number One is a profitable trading strategy that you know actually works. If you have watched other videos on this channel, you know what trading strategy to choose. The second thing you need, which is just as important as a good strategy, is proper money management. I have talked about this in more detail in one of the recent videos. And the third most important thing you need to become a profitable trader, is the proper trading mindset. As you probably know, many people come to trading with a get rich quick mindset. Trading is not a get rich quick scheme, for most people, it’s a lose money quick scheme. You see, on the internet, people like to watch exciting stuff. So if one person makes a ton of profit in a very short period of time, luckily or by using a strategy, it’s common for people to show interest in that story compared to someone who made the same amount slowly but consistently. Because of this, someone who has never traded in their life, can think that the stock market and forex is the place where people get rich quickly. But the truth is, trading is just like any other business or profession. Now don’t get confused and apply what I just said on the recent market crash. Because many noobs made more money than some experienced traders during the recent stock market crash. All you had to do was add 2 + 2 and money appeared like magic, and that’s how many people who never traded in their life made money during this market crash. But the stock market does not crash every single day. So in normal market conditions, trading is just like any other profession. For example, to become an engineer, you first have to spend time studying engineering right? But in trading, people don’t think like that, many people don’t want to spend time understanding something they have never traded before. Everyone wants to get rich quick. Sure, you can get rich, but first spend time understanding why 90 percent of the traders lose money. If you do that, you will realize that most unsuccessful traders don’t follow proper money management, and they think with their emotions.

Now thinking with emotions is a very common thing among beginner traders. Before I started making money consistently in trading, I was also thinking with emotions. At the beginning, if a trade was lost, I couldn’t wait to take the next trade to recover the current loss, and because of this, I was taking stupid trades that I wouldn’t have taken if I wasn’t trying to recover my previous loss. So I did a little trick, and you can do a similar thing as well. Since I was not thinking clearly after a loss, I created a simple app that was based on the if or else statements. You see trading strategies are basically if or else statements. For example, if one indicator is giving a crossover signal, and if the price is above a moving average, it’s a buy signal. So what I did was, made an app that showed my strategy rules. It had a text and a single button. The text asked a question like, to go long, is the price above moving average? If Yes, press the button, if not, don’t do anything and sit back and relax. If the price is above the moving average, press the button, and then it shows the next rule of the strategy. The point is, if you think with your emotions while trading, write your strategy rules in a notepad, and read it like an if or else statement. This can help you stay focused on your strategy rules even if you lose multiple trades in a row, because writing my strategy rules down definitely helped as a beginner.

Now another thing professional traders do that beginners don’t, is play the waiting game. You see when you decide to wait for a good trading opportunity, you are deciding to save the money that you could have lost on a bad trade. If you are a beginner, and if you realize that you are not finding trades frequently even on a smaller time frame, then you might be on the right track. Because if you are not finding trades frequently, then you are most likely analyzing the market and are filtering bad market conditions. In other words, you are very close to becoming a profitable trader. If you don’t know how to filter bad markets and take high probability trades, you should watch the “5 steps trading strategy video” on the Trading Rush Channel. If you follow the steps mentioned in that video, you can increase the win rate of your trading strategy, and have less number of losses in a row.

Since we are talking about loss in trading, there is one thing you have to get used to in trading, which many beginner traders struggle with. You see, when you do a job, you get paid for the number of hours right? So in a job, you are not used to directly losing money out of your pocket right? In a normal scenario, you go to work, and get paid. But in trading, if you put in the work to take a position, there is a good chance of you losing the money you just had in your hands. Many people who are not used to risking money in order to make more money, get very uncomfortable after placing the trade. This can lead them into taking bigger losses and smaller profits. As a beginner trader, you have to understand that this is completely normal. If you follow proper money management with a good strategy, your chances of making money in the long run even after losing multiple trades in a row, are really good. For example, look at these different trading strategies you have seen tested 100 times on the Trading Rush Channel. Many of these strategies have multiple losing trades in a row, and still managed to make money in the end. So don’t focus on few winners and losers, focus on the big picture where proper money management and a profitable trading strategy makes you more money in trading.

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How this Trading Strategy has MORE than 70% WIN RATE with Proof… Intraday Trading Strategies

Post author By Trading Rush
Post date November 25, 2020
7 Comments on How this Trading Strategy has MORE than 707 WIN RATE with Proof… Intraday Trading Strategies

best win rate intraday trading

Tag: trading indicator

How does this Trading Strategy has more than 70% win rate? Is this the most consistent trading strategy? Let’s find out. When I tested different Trading Strategies 100 times on the Trading Rush Channel, the highest win rate we saw a strategy get was approximately 63 percent. Strategy was the MACD strategy, and the rules were pretty simple. Trade with the trend, and take more profit than the potential risk. The MACD strategy followed a 1.5 to 1 reward risk ratio rule, and because of that, the MACD strategy made a very good amount of profit. Now many traders recommend trading with the trend and following a strict reward risk ratio that is higher than 1. In fact, I have tested all trading strategies on this channel with this strict rule. But you know what? let’s break the rules. It’s time we test the trading strategy with a horrible reward risk ratio, and see what actually happens if we don’t take more profit than the risk. What if all this time, you were trading with the wrong reward risk ratio. Before that, you should watch the Beep Boop strategy video on the Trading Rush Channel. In that video, and the AI trade video before that, I created a custom trading indicator. This video is heavily based on what I talked about in that Beep Boop Video, so watch it as well.

The Beep Boop indicator had a win rate of approximately 48 percent, and even though 48 sounds like a bad win rate in trading, it’s actually not. Because the 48 percent win rate was achieved with a 1.5 to 1 reward risk ratio. And if you do the math, that’s a good profit. In the Trading Rush app, the beep boop indicator made a profit of 2000, and the profit graph was also a lot better than many other trading strategies I have tested on this channel. In this video, we are keeping the trend following rule, but we will break the reward risk ratio rule. We will take the entry signals the same way we took in the last video, but instead of taking a 1.5 times more profit than the risk, we will take 0.5 times more profit than the potential risk. That’s right, we will take less profit than the potential risk, half to be exact. So what do you think will happen? If we break the rules, will we lose money? Watch this. I tested the Beep Boop Trading strategy 100 times with a 0.5 to 1 reward risk ratio, and here’s what happened.

First of all, let’s get a few things straight. When you take more profit than risk, you are creating a chance of making more profit, than what you might lose if the trade doesn’t go in your favor. So in case you lose one trade, and then make a profit in the next trade, your total profit will be positive, because your second trade covered the loss of the previous trade, and still had some money left over. Now that’s kind of obvious. But when you use a reward risk ratio higher than 1, lets say 2 to 1, you are actually decreasing your chances of making a profit, because then price has to move twice the distance to reach your profit target, than it has to move to reach your stop loss, and price doesn’t do that every time. So why does everyone recommend using a higher reward to risk ratio? Well, the answer is pretty easy. Even though price doesn’t magically move in your favor every time you take a high reward risk ratio trade, there is one kind of market, where price has a higher chance of moving in your favor even if you have a high reward risk ratio. Is during the trending market.

Now let’s say you are completely new to trading. Let’s say you randomly take new trades in the market with a reward risk ratio lower than 1. You don’t have any trading strategy, so when you randomly take trades when the market is moving sideways, you sometimes make a loss because the price goes in the opposite direction, and you make a profit when the price does move in your entry direction. But since profit is always less than your loss, you will have a high chance of making a loss in the long run. In this scenario, where you randomly took trades, because you are new and don’t have a profitable strategy, you win most of the trades when the market was moving sideways, and win less trades when price was moving in one direction.

Now lets say, you take more profit than your risk, lets say 2 to 1. Now if the random trades don’t go in your favor, you will lose less money than what you will make when the price does go in your favor. In this scenario, you lose most of the trades during the range market, because the price couldn’t reach your bigger profit target. In the trending market, you win almost same number of random trades as you did with a lower reward risk ratio, but this time, because you were booking double profits, the random trades that were in the direction of the trend, made a lot more profit than the same trades achieved last time with the lower reward risk ratio. If you calculate the total profit of these two scenarios, you will see that the second scenario where reward risk ratio was higher than one, made a profit. Obviously, taking random trades is probably not going to make you a profit in the long run even with a high reward risk ratio. But what a good reward risk ratio can do is stop you from blowing up your account quickly even if you take random trades. And if you use a profitable trading strategy in a trending market, and have enough experience to identify and avoid the sideways market, you can make more money with a higher reward risk ratio.

But hold on a minute, what if you are a beginner and can’t always detect a range market easily. What do you do then? According to the theory we discussed in these two scenarios, trade with a lower reward risk ratio has a higher chance of making money in the sideways market. and the only reason it didn’t make money was because the random trading strategy was not taking the trend direction into consideration. So what if? What if we create a trading strategy, that will follow the trend direction, and will have a lower reward risk ratio like 0.5 to 1, so it will also have a higher chance of making money in the range market.

So that’s what I did. Since I already created a profitable trend trading strategy in the beep boop indicator video, I tested the same strategy 100 times with a 0.5 to 1 reward risk ratio. And in the end, it got the highest win rate we have gotten on the Trading Rush Channel ever. In the Trading Rush App, it got a win rate of approximately 71 percent. Now obviously the high win rate is because the win rate goes up if the reward risk ratio goes down. Look at the profit graph and the number of winners and losers. In the Trading Rush App, the Beep Boop trading strategy made a small profit. The account size was 10000, and it made a profit of less than 10 percent. That’s less than 10 percent profit gain, which is pretty bad. If we compare it with the previous results we got in the last beep boop video with a 1.5 to 1 reward risk ratio. The new Beep Boop Trading Strategy gained another 20 percent plus win rate, but couldn’t even make half of the profit it made last time. This time, the strategy only gave 3 losers in a row, and gave 14 winners in a row. Even though we took less profit than the risk, the end result with the beep boop trading strategy was profitable, but not good enough like the result we got with the 1.5 to 1 reward risk ratio. Now remember, I created the Beep Boop indicator to follow the strong trends. Furthermore, the beep boop indicator gives multiple good entry signals in a single trend. These rules played an important role during the backtest, because most trades that were lost last time at the extreme end of the trends, and during the weak range market, were won this time. So if you reduce the reward risk ratio on some other indicator that doesn’t follow the trend direction like the beep boop indicator does, you can have different or bad results. With a 1.5 to 1 reward risk ratio, a lot of you are getting win rates more than 60 percent and up to 80 percent with the beep boop strategy by only taking beep boop entry signals in a trend. Keep it up! If you want to learn more about the beep boop trading strategy, and if you want to get the beep boop indicator for free, check out the previous beep boop indicator video.

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I tested FRACTAL Breakout Trading Strategy 100 TIMES and then this happened…

Post author By Trading Rush
Post date November 18, 2020
2 Comments on I tested FRACTAL Breakout Trading Strategy 100 TIMES and then this happened…

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fractal breakout trading strategy

Tag: trading indicator

Does Fractal Breakout Trading Strategy even work? Is this indicator worth trading in the long run? Will it even make money in forex and stock market trading? Well, I have tested the Fractal Indicator before, and it didn’t have a good win rate. In fact, when I tested the Fractal Indicator 100 times, it actually didn’t give a profitable win rate at all. The profit graph in the Trading Rush App was negative and the profit graph didn’t look good either. The strategy that we used in the last fractal video, was based on the trend direction, and in that strategy, the long entry signals were taken when a down arrow appeared in an uptrend. Similarly, the short entry signals were taken when the up arrow appeared in a downtrend. In simple words, we used the fractal indicator to create a trend following strategy, where fractal fractal was trying to give entry signals at the end of the pullback. And as you already know, the fractal indicator failed horribly at that because it gave too many entry signals in a short amount of time. But today’s fractal trading strategy is different. It is better, and here’s how to use it.

This Fractal Trading Strategy is better than the previous fractal strategy, because while testing the strategy 100 times, I found some really good advantages of using this strategy over the previous one. In the last fractal video, we took trades as soon as the fractal arrow appeared, but in this strategy, we wait for the price to break above or below the candle that has a fractal arrow. Let me explain. This fractal strategy is more of a fractal breakout strategy. A fractal arrow appears on a candle when two more candles after it are closed. The buy entry is at the closing price of the candle, that crosses above the high of the candle with the fractal arrow. Get it? Similarly, Once a down arrow appears on a candle, the sell entry is at the closing price of the candle, that closes below the low of the candle that has the fractal arrow. Very simple. For example, here, first an up arrow appears, then price crosses and closes above the entire candle with the up arrow. Your entry is at the closing price of the first candle that crossed and closed above the fractal candle. And in the second example, first the down arrow appears, then price crosses and closes below the entire candle that had the down fractal arrow. Your entry is at the closing price of the first candle that crossed and closed below the fractal candle. In simple words, in a long setup what the price is really doing is, breaking above a high point that made the price move down. If a price level makes the price move down, it means there is a selling pressure near that level. If price breaks through that level, the sellers will probably get out of the market, which will result in more buying pressure. Similar thing applies to a short setup, just the opposite. I will explain more about how buyers and sellers play an important role in a future video, maybe subscribe to see that. In this video, the fractal breakout strategy that we have seen so far, is not that good, because it is not a trend following strategy. As I have always said on the Trading Rush Channel, if you want your trades to have a higher probability of winning, take trades in the direction of the trend and not against it.

So, lets use a 200 period moving average to find the direction of the long term trend direction. Price above it indicates an uptrend, and price below it indicates a downtrend. So here’s how the modified fractal breakout trading strategy goes. If price is above the 200 period moving average, and if an up fractal arrow appears on a candle, the buy entry is at the closing price of the candle, that crosses above the high of the candle with the fractal arrow. Stop Loss goes below the candle with the down fractal arrow. If the price is below the 200 period moving average, and if a down arrow appears on a candle, the sell entry is at the closing price of the candle, that closes below the low of the candle that has the fractal arrow. Stop Loss goes above the up fractal arrow.

In this example, price is above the moving average, and crossed above the entire fractal candle. So the entry is at this candle, and stop loss below the pullback indicated by the fractal. And in this example, price is below the moving average, and crossed below the entire fractal candle. So the entry at this candle and stop loss above the pullback indicated by the fractal indicator. Just remember that pullback indicated by the fractal indicator won’t be always right. Furthermore, it is a good idea to only take trades, where both the fractal and the entry candles are on the same side of the moving average. This will help you avoid the range market, because in the range market when the moving average is flat, the fractal and the entry candles are usually on the opposite side of the moving average.

So, I tested the Fractal breakout trading strategy, and here’s what I found out.

Number 1. This fractal breakout strategy is nothing like the previous fractal trading strategy. This one is better and actually gives proper entry signals. Now, since this is still a fractal indicator, it gives a lot of entry signals in a short period of time. But the best thing I liked about this strategy when compared to the previous one, is that it doesn’t try to predict the end of pullback multiple times in a row. The previous fractal strategy gave multiple long entry signals, when price was still going straight down in a pullback. While testing the fractal breakout strategy 100 times, I have found out that most of the time, this strategy will give entry signals when the pullback is actually over. It won’t spam you with multiple entry signals when the price is clearly not preparing to go in your favor.

Number 2. The fractal breakout strategy filters some of the false signals on its own. For example, when the previous fractal strategy gave a buy signal, there was still a high chance that price could go sideways after the end of a pullback. But since the current fractal strategy gives buy entry signal when a candle closes above the previous swing high, you are kind of buying above a price level, where price had a high chance of going sideways because of the selling pressure. If it sounds confusing, look at the chart for reference.

Also, if I haven’t mentioned already, you only have to look at the latest fractal candle to find the entry signals. For example, when price is giving a bigger pullback in an uptrend, you might see multiple up fractal arrows in a row. But only the latest fractal candle is valid. So your long entry signal is when a candle closes above the last fractal candle with the up arrow. Forget all the candles before that.

So when you are buying with the fractal breakout strategy, you are actually buying at the candle that broke above the previous swing high, which is a good thing as breaking above the previous swing high can indicate a buying pressure. During the testing, when the overall trend direction was good and price was not moving sideways, the fractal breakout trading strategy gave a lot of valid entry signals. But when the long term trend direction was flat, it gave couple of false signals, but not like the previous fractal strategy. The previous one gave a lot of false signals during a range market. This one performed much better, because in this strategy, price has to break above or below the previous swing of the trend, and in the sideways market, many times price didn’t break through a new swing for the strategy to give an entry signal.

So after testing the fractal breakout trading strategy 100 times, I found out that the win rate of the Fractal Breakout strategy is approximately 48 percent. That’s right, similar to the beep boop indicator we tested in the last video. But this is much better than the previous fractal strategy. If we compare the two, you will see that the last fractal strategy only gave an approximate win rate of 38 percent, which is way lower than what we got here. The price graph of the breakout strategy also looks a lot cleaner and one sided. But since the fractal indicator gives a lot of entry signals, you should make sure that you always take trades when the market is in a trend, because if you don’t, you will end up taking multiple losing trades in a sideways market.

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BEST Money Management Trading SECRETS using 10 Coin Tosses…

Post author By Trading Rush
Post date November 15, 2020

money management trading strategy

Tag: trading indicator

What’s the best trading indicator out there? I get a lot of comments and emails like these, and to find the best one I have even tested many different trading strategies 100 times on the Trading Rush channel. But still, what’s the best indicator out there? In almost all the testing videos I have made, especially the ones that were removed because of YouTube, I repeatedly said that money management is the key to a successful trading, and without it you might very well be a sitting duck that is waiting to be hunted by the market. Money management is one of the most important concepts you should understand as a beginner trader, but instead of explaining how proper money management can change your trading results for good, I took 10 trades by flipping a coin. That’s right ladies and gentlemen, I tossed a coin and took 10 trades to show you the importance of money management in trading. So what do you think happened?

In this experiment, when the coin landed on heads, I took a long position. And when the coin landed on the tails, I took a short position, simple as that. Some of the wonderful Patrons at Patreon also participated in this experiment, so 7 out of 10 coins were tossed by Patrons and here are the results. The first coin landed on heads which means buy, so let’s take a long position on the Euro USD pair. Let’s set the stop loss at a good enough distance from the entry, and let’s set the profit target size 2 times more than the stop loss. For example, if the stop loss is 10 pips, the profit target will be of 20 pips. As you can see, we are using a 2 is to 1 Reward to Risk ratio. In simple words, if we win, we will make 2 times more profit than our potential loss on the trade.

You see, trading is a simple game as long as you see it as any other business. For example, let’s say there is bill the business man. He runs an apple store where apples degrade in quality as time passes. Bill the business man magically gets $119 worth of fresh apple stock in the morning for free. But here’s the twist, if he can’t sell all the apples before midnight, he will have to pay for the remaining apples from his own pocket. Since the apple will become pretty much worthless at midnight, his goal is to sell all the apples before midnight. Obviously, not everyone is going to buy all of his magical apples every day, some of them will become worthless at midnight. So why would Bill the businessman risk his money in such a risky business? well well well, bill the businessman is a smart businessman. He has somehow observed that there is a high chance that people will buy 40 percent of his magical apples before midnight. So if he sells the apple for twice the price, bill the businessman will make some profit. If 100 apples are worth $119, 1 apple is worth $1.19 for bill the business man. But if he sells 40 apples out of those 100 before midnight for $2.38 each, in other words for twice the price, Bill the business man will make a guaranteed profit before midnight. Because if he only sells 40 apples out of 100, 60 apples become worthless at midnight. 60 apples are worth $71.4, which means bill the businessman made a loss of around 71 dollars. But since he sold 40 apples for twice the price, Bill the businessman made a total profit, because 40 apples worth $2.38, equals $95.2, and if we minus the $71.4 bill the businessman lost from not selling the 60 apples, total profit will be $23.8. So if Bill the business man continues to book double profits everyday, he will always make money in this business even when his win rate is only 40 percent.

This is the kind of mentality you need as a trader which many beginners lack at the beginning. The first trade I took on the Euro USD pair was lost. The price went straight through the stop loss. The next trade on the GBP USD pair was also lost. Price hit the stop loss in literally the next candle. GBP JPY also followed a similar pattern. So far we are down 3 trades and that’s not a good start. But in the next trade which was on USD CAD, price did go in the entry direction and hit the profit target. Since the profit target was set 2 times the distance of the stop loss, we made a 2 times more profit. Now, we are only down 1 trade in total. Luckily, the next trade on the USD CHF pair also made a profit. Now we are no longer in a loss and are up by 1 trade in total. But then the trade on EUR AUD was lost, but since we risked half the amount than the potential profit, the total profit was back to breakeven. Unfortunately the trade on EUR CAD was lost, so we are back in total loss. But then the trade on AUD CAD made a profit, and because of the double profit, instead of breaking even, we are back in the profit. But then the GBP CAD trade was a loser, and the total profit was 0. But then, the 10th and last trade that was taken on CAD JPY, made a profit, so in the end, we are up in profit without even using a proper trading strategy. Now obviously, you are not going to make money in trading in the long run by flipping a coin. But in this experiment, we made a profit and we didn’t even consider the trend direction while taking the trades.

Price has a higher chance of making a big move in the direction of the trend. Imagine if you simply use a proper money management technique with a decent trading strategy, you are almost guaranteed to make a profit as long as you take trade with your brain and not with your emotions. Even if your heart rate goes up while taking trades, you are not going to blow up your account if you book more profits than your potential loss with a decent strategy. Just remember, that the win rate goes up if the reward to risk ratio goes down, and win rate goes down if the reward to risk ratio goes up. So if you are going to use a high reward to risk ratio like 3 is to 1, just remember that you can easily lose multiple trades in a row because the win rate of the strategy will go down. And just because you are getting a high win rate, doesn’t always have to mean you are going to make a profit in the long run if you are taking less profit than your potential risk. You should always prefer taking trades in the direction of the trend, because even if you have a bad strategy, it will perform a little bit decently with proper money management in the trend direction. In the strategies I have tested 100 times on the Trading Rush Channel series, I tested most of the trading strategies in the direction of the trend, and with a good reward risk ratio. And because of that, most of them made a profit in the end. So be like Bill the business man, and manage your money.

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I made a trading indicator and it actually WORKS after testing 100 TIMES – Beep Boop Strategy

Post author By Trading Rush
Post date November 10, 2020

beep boop trading rush

Tag: trading indicator

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.

I taught my computer to trade with EMOTIONS and it WORKED! Intraday Trading Strategies with AI

Post author By Trading Rush
Post date November 7, 2020
1 Comment on I taught my computer to trade with EMOTIONS and it WORKED! Intraday Trading Strategies with AI

intraday trading strategies day trading AI

Tag: trading indicator

I taught my computer to trade with emotions, and it worked! For the last two weeks I have been teaching my computer to take trades in forex with emotions. Now hold on a minute, what do you mean by emotions you ask? Well I say that’s a good question. You see, there are many trading bots out there, most of them are dull. So I thought while reading your angry comments on the Fibonacci video, what if I can teach my computer to take trades so I can watch some of that wolf of wall street on my second monitor. Now don’t you think that we are going to build a normal trading bot in this video, no no no. We are going to teach my computer to look at a trading chart, analyze it, calculate everything and tell the broker to execute the trade. Let’s call the computer Bill the computer for this video. Now you might think that bill the computer is going to simply read the charts, process it, and send that information to the broker? Well here’s the twist. Bill the computer is a little bit smarter than that. You see in the last two weeks, I have tried to make my computer mimic a human trader, and I have failed literally 60 times at that. But after more than 60 failed attempts, Bill the computer can finally think like a beginner trader. How you ask? Well ladies and gentlemen, just like a novice trader, Bill the computer gets happy when he sees profits in his trading account, and gets really angry when his profits are in the negative for a long time. So ladies and gentlemen, do you think our bill the computer can make money in trading? Well, before we let Bill the computer take over, we will first have to teach him how to look for trades, for that, we will have to create our very own trading indicator. So, I created a custom indicator, and gave it a completely professional name, beep boop. That’s right, our bill the computer is going to read the data using the beep boop indicator. There are two versions of the beep boop indicator, actually there are other failed versions, but there are two main working versions. One is this one, and there is an improved one that you will see later in the video when Bill the computer tries again and succeeds.

The Improved Version of the Beep Boop Indicator for FREE : https://www.patreon.com/tradingrush

I wanted to give the computer a worst case scenario for the first time. So this version of the beep boop indicator, is basically a histogram of the MACD indicator. To make things even more difficult for Bill the computer, let’s tell him to trade on a 1 minute chart where spreads will be a lot bigger. And while we are at it, let’s tell him to take one trade every minute. Now you might think that bill the computer will lose this way, well you are not wrong, but remember, bill the computer has a trick up his sleeve. Since Bill is like a beginner trader who doesn’t know anything about money management in trading, when he gets angry after seeing negative profits for a long time, he will increase his position size by 10 times. The only way bill the computer is going to make a profit, is if he gets angry in a range, and if the price makes a move in the entry direction after that. So what do you think is gonna happen? We are intentionally setting the odds against bill the computer to see what happens, or maybe improve it in the next try.

In this version bill the computer is continuously looking for the beep boop indicator. If it sees that the last closed bar is green in color, and if the bar before that is also green in color, it tells the broker to take a long position. If he sees that the bar color is red, and if the bar before that is also red in color, it will tell the broker to take a short position. Usually it will do this with a calm state of mind. But while executing the trade, if he notices that the profit is negative for a long period of time, there is a chance that bill the computer can get angry and take a long trade if the last closed bar is green, or take a short trade if the bar is red. You can see if the trade was taken with a calm state of mind, or an angry state of mind on the right side on the screen.

Since this is a demo account for obvious reasons, I set the account size to almost half million. Since bill the computer is taking trades every minute, a bigger account will help with its higher margin. After failing 60 times, when I started the experiment where everything was working as expected, the beep boop indicator was giving red bars. At first, Bill the computer was calmly taking trades, but after seeing a negative balance in his account, he got angry and took some really bad trades. It risked 10 times more than usual. This went on for a while, but in this version, since we didn’t tell him to take trades in the direction of the trend, bill the computer took trades, but the price went sideways. Most of the time when bill the computer risked 10 times more after getting angry, the price went sideways. But at one point after a range market, price did make a move down, and bill the computer was in profit at one point, but it only lasted for two candles because price then reversed completely. When few green bars appeared on the beep boop indicator, bill the computer had to close all the trades. In the first test, bill the computer didn’t make any profit. One of the reasons it didn’t make profit, was because we didn’t tell him anything about the trend direction.

So I took a break from this project, and came back a few days later. This time, I modified the beep boop indicator to only give entry signals in the direction of the trend. This time, the green candle only appears if the price is above the 50 period exponential moving average, So this time bill the computer will take trades in the direction of the trend. Furthermore, this time I started this experiment during the overlap of the London and New York session, because price action during this overlap is a lot better and price has a higher chance of making a big move during this overlap session because of the increased volatility. If you don’t know anything about market sessions in trading, checkout the best time to trade video on the Trading Rush channel. This time when I started this experiment, the price was in an uptrend and the beep boop indicator was making green bars. As usual, bill the computer was risking 10 times more when he got angry. But this time, bill the computer only got angry once. It was at the beginning when he was in a loss, but after that, since we were testing during the overlap market session where spread was a lot smaller, price kept going up and bill the computer kept making profits. At one point, bill the computer was up by around 1300. When few red bars appeared on the beep boop indicator, bill the second closed all of his trades with a total profit. Furthermore, it looks like bill the computer exited the trades at the right time, because the price made a big move down. This time, the beep boop indicator we created for this fun experiment, gave good entry and exit signals. Does this mean the beep boop indicator has potential? Well, maybe I should test it 100 times in future Trading Rush videos to see if it works or not in the long run, so subscribe and ring that notification bell to see that. If you want to try out the beep boop indicator, maybe I will share the code on the Trading Rush Patreon Page for free. You can simply go there using the link in the description and checkout how it was written for free without becoming a patron. But if you do want to see the in-depth trading analysis on the trades that I took, maybe consider becoming a Patron at Patreon. Thanks a lot for watching!

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taking 100 TRADES with Chaikin Money Flow Trading Strategy – Is this the BEST indicator for…

Post author By Trading Rush
Post date November 2, 2020

chaikin money flow