I will show you a day trading strategy. It is one of the most powerful strategies. I have ever seen the strategy has the potential to make 2000x what you started with the initial account balance, if done right within the first 200 trades. I’m actually using it myself on a daily basis today trade Solana, Bitcoin and the crypto market I first came across the strategy whilst looking through a thread on trading view where user trade society posted a link to his google spreadsheet .He had developed this strategy to track and test over one thousand different indicators from the past ten years of price data working out their effectiveness in predicting future trends. The majority of day trading strategies are based on market support and resistance levels or momentum strategies. The strategy one I’m about to show you is none of those things.
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The strategy is based on a pure simple strategy. This strategy works on any financial market stock options futures. It doesn’t matter, this strategy will make you money, you own, your wealth. This is proven inside the rules of the game in this video. I want to show you how the strategy works and I also want to go through a few key elements to the strategy. A couple of critical pitfalls that you need to avoid, if you’re trying this strategy out.
Half Trend Now: Solana, Bitcoin, ETH
Let’s jump right into the strategy. There are two indicators, I will be using in this video to show you how to set them up. I will also show you how to run the indicators and the settings I use in the first indicator. We would have to bring out the half trend indicator. You can assess this indicator by going to this section right here where it shows the indicator button. If you click on this you can search for half a trend. The first results right here is the indicator we are going to use by everget. So, you click on this, this is the first indicator. We are going to use it in this video when we look at this indicator. This indicator comprises three lines. The middle line right here which is the actual half trend. The upper dotted line is the upper band of this indicator while the lower dotted line is the lower band of this indicator. We are not going to use this upper band and lower band right now. We would have to remove these two bands from this indicator to do that. We would have to go over to this section and go to the settings of this indicator. We will have to untick this show channel section now. This will remove the upper band and the lower band as we are not going to use that in this video.
How this strategy works?
There is a second thing we would have to change in this setting section. We will have to change the amplitude from 2 to six. So that it can be more reliable in this strategy and also change the channel deviation to three now. That we have changed the amplitude and the deviation we can go over to save the settings by clicking on. Now let me walk you through how this indicator works when price starts to close multiple candles above this half trend line. You would get a blue arrow now. This small blue arrow is the signal you’re going to get these blue arrow shows that the price is in an uptrend and when you get this blue arrow the half trend line would also turn blue this signifies that the price will be going up in the nearest future. But when this half trend line turns red at this point. You would get a red arrow to the downside what this means is that the trend is changing from an uptrend to a downtrend.
Indicator
Prices would continue to go lower in the near future. This is basically how this indicator works. Let me show you how exactly you know when to buy and when to sell and how exactly you plan to take your profit and set your stop loss. I am going to show you all this information in this video, sometimes using this strategy. You may get a blue arrow signal which indicates price movement to the upside and immediately you may get a red cell signal which indicates price movement to the downside. This kind of price movement can be really frustrating. You may not know exactly what to do, as you can see blue signals red blue red now that is why we are going to use a second indicator in this video. The second indicator would guide you to exactly when to buy. Also when to sell, placing a stop loss is one way you manage your risk when trading.
As you know, managing your risk is a key part in trading once you manage your risk accordingly. That will begin your journey to become a successful trader over time. The second indicator we are going to use in this video is the exponential moving average to get this indicator. We would have to go to the indicators section and you search for the first result. You see, here is what we are going to use.
Confirmation
Now let’s go over right here and click on settings for this indicator. Let’s change this length to 16. In order for this strategy to work, I have to configure this indicator. Also I would go over to the style section and change the column go ahead and click on ok. Now I am going to show you exactly how to place your trades when using these two indicators. How you can profit over time the way. I use these two indicators is I wait for confirmation on both indicators. The first confirmation I would have to wait for is this blue arrow signal. When this blue arrow signal flashes this indicates to me that the trend is changing. You can see the color is blue. That means that trend would be in the upward direction for me to enter a trade on this first confirmation. I would have to wait for the price to close above the 60 exponential moving average. These exponential moving averages are going to guide me as to when to enter and exit a trade. What I would do is I would wait for consecutive candle closes above this exponential moving average. That is a good time for me to place myself in a long position before I show you exactly where you’re going to take your profit first. I would love to show you where you are to place your stop loss when you enter a position based on these two confirmations, if you’re familiar with candlestick trading. You will know that when a trend makes a low and a lower low that means the price is in a downtrend and when the candlesticks makes a high and a higher high that means it is in an uptrend.
Results
Now if you take these two pieces of information in your trades, you will be able to plan exactly when to exit your trade. What I will do is if I plan on entering a position at this level my stop loss would be at the previous swing low. This is exactly where my stop loss would be. Now, let me show you where exactly you would take profits. I will take my profit two times the stop loss.
So, that what i’m gaining will be more than what I am losing now. This is exactly what we did we enter the position at around this level. We placed our stop loss at a lower level and we placed our take profit at a higher level. Let me show you the percentage gain based on the confirmations of these indicators. If you place your entry at around this level. You would have made 8.2 percent on your trading if the trend was to go against you and your stop loss was triggered. Now what you would have lost using this strategy you would have lost a three point nine percent. If these trades had gone against you. Now you can see that the risk reward ratio with this strategy is very reasonable. So, to the upside you make more to the downside you lose less in trade like this, where your stop loss is high, always use smaller leverage like 5 to 10x leverage. If you are trading futures. Now let us try some other examples. As you can see in this chart we have the blue arrow down here. The next step is to wait for a few candles to close above the exponential moving average and we enter our trade, set the stop loss at the previous swing low and our take profit at two times the stop loss.
This article is a transcription of a video made by Crypto Giant
Original video: https://youtu.be/C_hmcFYvM0Q
