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My Incredibly EASY Trading Strategy Made Me $31k This Month

Craig Percoco · 5,454 words · 25 min read

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Intro

0:00If I can figure out where a move to here

0:01is more likely than a move to here a few

0:03times per day, I now have a simple,

0:05repeatable, systematic approach to

0:07trading to be able to capitalize on

0:08opportunities. Okay, I've been trading

0:10for over 8 years. I've tested out

0:11hundreds of strategies and spent

0:13thousands of hours figuring out what the

0:15most simple and effective way to trade

0:16is using the model that I'm going to be

0:18sharing with you in today's video. Not

0:19only did I hit my largest single day P&L

0:22last week and clocked one of the best

0:23starts to my trading month in my career,

0:25but I've also got a ton of amazing

0:26amount of feedback. So, I'm going to

0:27outline the strategy fundamentals in the

0:29steps to follow. Then, I'm going to run

0:31through a mock trade example and show

0:32you all of the setup criteria and how I

0:34actually execute on these trades. Then,

0:36I'm going to show you live examples of

0:37me taking these trades in real time so

0:39you can see inside my decision-making.

0:41Then, at the end, I'm going to show you

0:42the extra layers of confidence that I

0:44use on each trade called confluences and

0:46how I use those to push up my win rate

0:47and be a little bit more selective on

0:49the trades that I do take. It doesn't

0:50have to be that complicated. You don't

0:51need to learn a thousand different ICT

0:53models or use any level of guesswork as

0:55long as you lock in and process the

0:56information that I'm going to give to

0:57you. So, you'll get a full look inside

0:59some of the strategy and framework that

1:01I've been using over the past couple

1:02months to have some of the best trading

I Made $12,723 In 2 days of trading

1:03of my career. So, let's get into it. All

1:05right. So, like I said, over the past

1:06several weeks, I've had some of the best

1:08trading of my entire career. This is the

1:10largest single trade that I've made

1:12using this strategy that I took just a

1:14few days ago. and understanding some

1:16simple analysis allows me to pick out

1:18perfect spots, let the market trade into

1:20my direction. And like I said, that's

1:21basically how I've been able to crush it

1:23just in a few days. Now, it doesn't mean

1:24that this is a straight line and this

1:26just happens every single day. Of course

1:27not. But the goal is to be able to put

1:29yourself in a position where you're

1:31repeatable, you have a strategy, and

1:32then you follow that daily so you can

1:34optimize over time and actually have

1:36proof of concept and execute on it. One

1:38of the most important things to

1:39understand and something to make sure

1:40that you're not doing is to keep your

1:42trading from being too abstract. So, an

1:44easy mistake to make is that have

1:46strategies that are way too confusing

1:48and you're not able to measure it

1:49properly and you're also not able to be

1:51repeatable. Just like any elite person

1:53at a sport, they're able to keep their

1:55process so refined and repeatable that

1:56they're able to execute it when their

1:58nerves are up and they're able to fall

1:59back on their systems. Okay? And when

2:01we're talking about professional

2:02trading, we need to be able to do the

2:03same exact thing. So, obviously, the

2:04trading strategy can't be too simple

2:06because then it's not going to be

2:07effective because you're not filtering

2:08through the data enough. that the more

2:10simple you can get once you get to that

2:11successful threshold, the easier it's

2:13going to be to be able to be repeatable.

2:15So having a simple checklist that you

2:16follow that you go through your

2:17repetitions each time is better than

2:19having too much abstraction where you're

2:20like, I think this is going to happen. I

2:22have a feeling this is going to happen

2:23and having way too much on your chart.

2:25You need to keep it simple. And if you

2:26look at professional traders, their

2:28charts are going to be very minimal,

2:29most hardly use many indicators and

2:31they're mostly reading price action.

2:33This is something that you'll realize as

2:34you get further into the game.

2:35Everyone's trading the same information,

2:36has the same access to basically all of

2:39the tools. So the only thing that's

2:40going to separate a successful trader

2:41from a trader that is not successful is

2:43how they're able to structure themselves

2:46inside of this whole free world where

2:47you have infinite ways to try to make

2:49money. It's up to you to create that

2:50framework, that discipline, and then get

2:52the desired result out of that

2:53framework. So that's what I'm going to

2:54be sharing with you today. So after 8

2:56years of doing this, I can tell you that

2:57even though trading is advanced, you can

2:59really boil it down to three simple

3:01general things. And if you focus on

3:03this, it's going to sort of be your

3:04northstar from you getting too confused.

3:06So that's observing patterns, average

3:08riskreward and winning percentage. So

3:09the first step, observing a pattern, is

3:11basically if then conditions in your

3:13mind. If this happens, this is likely to

3:15happen. This is what I call

3:16observational level tendencies. So we're

3:18really not putting pen to paper trying

3:19to analyze that information on a deep

3:21level. We're just looking at it, seeing

3:23what happens, and seeing if we can start

3:25to develop ways to mathematically

3:27quantify the probability. And the next

3:28thing is calculating average riskreward

3:31and winning percentage. So whenever

3:32we're putting risk on the table, how

3:34much when we're right are we winning

3:36versus how much we're risking. So if you

3:37see say we're risking $100 on a

3:40position, we enter the market at a

3:41certain area. If the price moves down to

3:43this level first, we're losing $100.

3:46That's our risk on the position. If the

3:48market moves like this, it moves to this

3:49level before this level. So we're making

3:51say for example 300. So now we have a

3:543:1 riskreward. And that mixed with

3:56winning percentage. So how often are you

3:58getting price to move here versus here

4:00first is going to be your winning

4:02percentage which is represented up here.

4:04So you can see in this scenario where we

4:06have a 3:1 all we need is a 30% winning

4:09rate in order to be profitable. If you

4:11have 40 then you're definitely

4:12profitable 50 definitely profitable.

4:14This is truthfully how you can very

4:16simply boil down trading to make sure

4:17that you're staying on the right path.

4:19And this is almost always what we're

4:20focusing on with our private members.

4:21You can see they're always referring to

4:23trades in units of R, right? We're

4:25focused on the process, not necessarily

4:27just showing off big profits or talking

4:28about wins, right? We're talking about

4:30if I'm risking $100, this is $1,250.

4:33If I'm risking $100, this is $3,200.

4:3623r, 2,300, risking 100. 230, risking

4:3910. That's really what you're going to

4:40see more advanced traders talking about

4:42as percentage gains or riskreward units.

4:44Then it becomes more of a game. And

4:45that's really what we're trying to focus

4:46on here. So, let's get into some of the

4:48detailed framework of the strategies

Strategy Concepts & Steps

4:49that I've been using over the past

4:51several weeks. Before we get on to the

4:52charts, I'm going to go over in a

4:54diagram and sort of drill in the sort of

4:56observation level identity to the

4:58strategy and then we're going to get

4:59more into the technical with the tools

5:01and the charts and everything. So, first

5:02let's understand where these trade

5:04opportunities are coming from. So, say

5:05we have a chart that's moving up in a

5:07normal trend pattern like this obviously

5:09moving up and moving down. Every time we

5:11have these sort of corrective pull downs

5:13in trends, we can actually find

5:14opportunities to enter, play the move

5:16up, and continue playing into these sort

5:19of pullbacks in trends and ride the

5:20trend all the way back up. You can see

5:22we have trade opportunity 1 2 3 4 5 6 7.

5:26Okay. Often times with this trade

5:28strategy, if the market conditions are

5:29right, we can have a lot of

5:31opportunities in a single day. Sometimes

5:32I've had almost 10 individual trades on

5:35one single trading session, which if

5:37we're following all our rules and our

5:38confluences, can add up really, really

5:39quickly. So really dialing in on this

5:41can allow for a lot of ground to be

5:43covered in a short amount of time as

5:45long as we're actually containing risk,

5:46approaching it responsibly and in a

5:48smart way, and making sure that we're

5:49finding ideal market conditions. And

5:51we're going to dive more into that in a

5:52second. So that's step one is

5:53understanding that each what's called

5:55impulse and corrective wave is going to

5:57open up opportunities for us to be able

5:58to enter into trends, play into the

6:00dips, and play into continuations. We

6:02can do that so long as all of the

6:03criteria is allowing us, and we can play

6:05into the ups and the downs of the

6:07market. So, let's get into the second

6:08part of the strategy, which is going to

6:10be the tools and indicators that we're

6:12going to need to actually deploy this on

6:13our charts. So, the first thing that I

6:15add to my chart is a simple moving

6:17average. So, I call this simple moving

6:18average alignment. So, what that's going

6:20to be is plotted average lines here,

6:22which is going to track the general

6:23movement of price on a chart. That's

6:25going to show us the general direction.

6:27And you'll notice we have a shorter term

6:29and a longer term ones, which will show

6:31us critical levels of price can often

6:33times pull down to and the strength of a

6:35general trend in the market. The next

6:36thing that we're going to be using is

6:37something called a custom fib. And this

6:39is a simple tool on Trading View. I'm

6:41going to show you how we can set it up

6:42on Trading View in a second. So, this is

6:44the top of our fib, our one level. And

6:46this down here is going to be our zero

6:48level. This is the golden ratio in

6:50Fibonacci

6:52382.17

6:54and then.05

6:55level, which is going to act as our

6:57entry. So, if price is trading up here,

6:59that's going to be considered our entry.

7:01This is going to be our dip by one. If

7:03price continues to move down, this will

7:04be our dip by two. and we have our stop

7:06loss up here and up here is going to be

7:08our original takeprofit. So depending on

7:10how these markets sort of chop around is

7:12going to determine which levels were

7:14either adding to taking profit and we're

7:15going to be able to adjust it and sort

7:17of be responsive to the market to be

7:18able to simply follow these trends. The

7:20way we're going to do that is by using a

7:22simple calculation and this is something

7:23that we've tested over thousands of

7:25pieces of data without getting into too

7:27much of the nuances. We're basically

7:29able to put in the amount we're trading

7:30with. Then I can put in my entry, my

7:32original takeprofit, my stop loss, which

7:34is all being told to me by this custom

7:36fib. And then I can add in my dip by

7:38levels like this. And it shows me how

7:40much I need to enter with at each dip by

7:42level, where I need to move my new

7:44takeprofits. And this is going to be how

7:45I'm actually executing on the chart. And

7:47like I said, once I'm doing this on the

7:49chart, it's going to start to make a

7:50little bit more sense. So let's go over

7:51to the charts now and look at some mock

7:53examples so that you can understand the

7:55actual setup and the execution for this

7:57style of trading. And while we're going

7:58through this trading strategy, I want

8:00you to really remember this table right

8:02here as it relates to our riskreward.

8:04And every time we're making one of

8:05these, this is called one unit of R. So

8:08that would be 3 R. This is 5 R. We can

8:11also have fractional R. So say we were

8:13to make.5R,

8:15risking 1 R. But say our winning

8:17percentage was 75%. Even though we're

8:20risking more than our potential winning

8:22because we're right more often, this

8:23combination here is truthfully all that

8:25matters. So keep that in your mind as

8:26we're going over this example. So I'm

8:28going to go through this step by step

Real Trade Examples

8:29and as we go through it, I'll show you

8:30how I'm setting things up and why so

8:32that it starts to make a little bit more

8:33sense. So to start off, I have something

8:35called the IT Foundation Indicator,

8:37which if you also want access to, go in

8:38the description, follow me on Instagram,

8:40DM me the word tools, and I'll have that

8:42sent over to you automatically. But what

8:43this allows me to do is a few things.

8:45First, it allows me to toggle on and off

8:47the New York session open time, which

8:50pre-market starts around 8 and then 9:30

8:52here is when the market opens, which

8:54tends to, as we can see, drive a lot of

8:56volatility and a lot of volume into the

8:58market, which is something that we have

8:59to take note of with this style of

9:00trading. The second biggest thing is

9:02something called the EMA alignment here.

9:04So, you'll notice as I toggle these on

9:06and off, these lines are going to appear

9:08and disappear on the chart. So, we have

9:09our longer term and then our shorter

9:11term, which are obviously more

9:12responsive to temporary moves in the

9:14market. and we'll often times have

9:15response levels off these lines as well.

9:17So it can guide us in the general

9:18direction and give us critical areas to

9:20consider. So these are two things that

9:22I'm adding to my chart. So the next

9:23thing that I'm going to do is sort of

9:24follow this checklist. So the first

9:26thing I'm doing is waiting for 9:30 to

9:28open. So once this happens, I'm going to

9:30wait and see what direction generally is

9:32the market playing into. And I'm sort of

9:33going to mark off the highest the price

9:35went starting at 8 and the lowest the

9:37price went during that session. And

9:38that's going to give me a range to see

9:40where price is starting to move through

9:42and consolidate which is then going to

9:43allow me to establish a direction. So

9:45you can see here price kind of broke

9:47underneath that level but quickly sucked

9:49back up for this strategy. I'm really

9:50looking for price action to sort of go

9:52in one direction and commit to it. This

9:54swept out this level and reversed over.

9:56So I'm not really interested in taking a

9:58trade like that. If we look at this same

10:00exact level here, we've had a bunch of

10:02candles closing underneath this level

10:04which confirms to me a proper downtrend.

10:06So, I can kind of use that to understand

10:07like generally that the trend has sort

10:09of smoothened out and picked enough of a

10:11direction for me to be able to play into

10:13swings in that direction. The third

10:14thing that I'm going to be looking for

10:15is waiting for moving average alignment.

10:17So, you can see we have green here. The

10:19top one is still red. Once this sort of

10:21rolls over and pulls here, we have our

10:2320 or 50 and our 200 day EMA all

10:25aligning to the same color. So, once we

10:27have a direction picked in moving

10:29averages aligned, I'm going to basically

10:30consider this a range. So this whole

10:32thing is a range that I'm going to be

10:34looking to potentially take a trade in

10:36that direction. This is where I'm

10:37starting to use the fib. So in trading

10:38view, you can go over into your

10:40trendbased fib extension like this. And

10:42these are the settings that I'm using if

10:43you want to take a screenshot and sort

10:44of match it and save it as a template

10:46here. Then I'm going to take from this

10:47swing low point up to the most recent

10:49high before the moving averages started

10:51changing in one direction. So you can

10:53see they're green here. All of a sudden

10:54they start to turn red here. So I'm

10:56taking from this swing point to this low

10:58swing point. So now I'm going to be

10:59evaluating confluences and doing extra

11:01analysis. So I'm going to get into that

11:03a little bit later after a few examples

11:04because I'm going to show you how I

11:06understand this overall concept. So what

11:08I'm looking to happen is basically for

11:09price to make a push, come into this

11:11entry level and then roll over into our

11:14takerit level here and continue that

11:16trend. Now if that doesn't happen, we

11:19now have dip by one, dip by two, and our

11:21stop loss outside of this general

11:23movement on the trend. So if price is to

11:25move into this level and or this level

11:27now we're basically going to be dip

11:29buying into our position and moving our

11:31average up. So that now all we need even

11:33if the market changes direction on us

11:35completely is for a slight pullback in

11:36price to be able to exit the position

11:38still maintaining a win even if we're

11:40wrong about the trend direction. What I

11:42do is like to maximize the movement when

11:43I am right about these. But if I'm wrong

11:45this is a way that we can get out while

11:46maintaining a high winning percentage.

11:48Now there is a catch to this. So when

11:50we're entering a position like we were

11:51talking about our risk profile before

11:53this is our original riskreward ratio

11:55which you can see is basically one

11:57right. So our stop loss is back here

11:58take profit is here. So we'll play this

12:00forward. Price doesn't continue moving

12:02actually comes up and hits on this dip

12:03by one level. Now our average is going

12:06to move somewhere up to here and our new

12:07take-profit is going to be somewhere

12:09around here. Same thing is true if it

12:11comes up to this level. then our average

12:13will move somewhere up here and our new

12:15take-profit will be somewhere around

12:16here which is now at the end of the

12:18trade is going to make it so that we're

12:19actually aiming to make about 2R per

12:22trade while risking one unit of R. So

12:24once again higher probability of winning

12:26but lower amounts of reward per trade

12:28and you still have that full one unit of

12:30risk if you lose the entire position.

12:32But what I've found in my trading is

12:33that if we're able to use all of the

12:35confluences and rules that I'm about to

12:37show you and with controlled risk and

12:38proper management, this can allow us a

12:40really cool strategy to be able to play

12:42into dips and trends and have a ton of

12:44trade opportunities on any given day.

12:46And actually, the way I was able to have

12:47one of the best trading sessions that

12:49I've ever had with this strategy was by

12:51adding another layer of confluence and

12:53sort of letting a trade run, which I'm

12:54also going to explain a little bit more

12:55on in a second. But you can see our dip

12:57by one level was filled and then price

12:59came back down to this level which

13:01allowed us to get out because of setting

13:03up our position with this calculator

13:05correctly which once again if you DM me

13:07on Instagram tools this will be sent

13:08over in a whole tool suite for you to

13:10also play around with. So you can see

13:11price definitely cleared that level and

13:13definitely clear this level which would

13:14result in a winning trade. So now I'm

13:16going to continue with the session and

13:17we're going to find several other

13:18opportunities. So once again we're

13:19waiting for 930 which is over. So really

13:21what we're looking for now is for a

13:23direction to fully be established again

13:24in the opposite direction and then we

13:26need to find a range and evaluate. So

13:28based off of trend analysis, this level

13:30is the level that needs to be broken. So

13:31price moves up, has a adverse reaction

13:34off of that level and continues to move

13:35down. So we still don't have an

13:37established direction. And you'll notice

13:38off of this level, we finally start to

13:40consolidate above that before making a

13:42pull back down. So once again, I could

13:44take my fib from this high level down to

13:46this swing low level. So once again we

13:48have directional confirmation. We find

13:50our trend which is here. Set up our

13:52fibs. And even though this breaks down

13:54now we have our entry filled which sets

13:56our position up like this. Price

13:58continues to move down against us. Fills

14:00our dip by one and our dip by two which

14:02puts our average somewhere around here.

14:04New profit somewhere in here. And then

14:06price oftent times responds off of these

14:08critical fib levels and support levels

14:10over here. Bounces up and we're able to

14:12once again using that mathematical

14:14strategy be able to pull off another

14:15win. So now we have a downtrend in this

14:17direction which gives me a new range.

14:19The trend level breaks off of here

14:21creates a new range. I can draw from

14:22this level here. Enter our position. We

14:24enter right here. We add dip by one, dip

14:27by two, comes back down, fills us once

14:29again for another full win. Now this can

14:32get even juicier as we add confluences

14:34to this which allows me to basically

14:36play the market to the upside once I

14:38have an even deeper order if I get an

14:40initial response which is how I was able

14:41to have that massive trade that I took

14:43last week. Even though with these trades

14:44you're typically making say 0.2 for

14:47every unit of risk, I was actually able

14:48to make 1.25R

14:50off of one single trade even though my

14:52win rate is like up over 90%. So let's

14:54find a few more. So now once again we're

14:56waiting for a direction to be

14:57established. Now we're looking at the

14:59lowest swing to the highest swing which

15:01would be here to here. And as you get

15:03good at trading, start to add

15:04confluences and you can start to do

15:05general analysis like what we do on the

15:07private side of our team. We're actually

15:09able to say like this is a really strong

15:11area of support. So if price is able to

15:13break through it and come down and

15:14retest it and then continue, there's a

15:16high probability of a win on this trade.

15:18So price comes down, fills our first

15:20entry level. So we're in, comes off of

15:22that level, fills our second one. You

15:23can see this is where price dipped down

15:25to before having a rebound and once

15:26again getting us out for a nice solid

15:29consistent win. Now we're once again

15:30waiting for a new level to break. You

15:32can rinse and repeat this cycle. But you

15:34can see over the course of say a 10-hour

15:36session, I've been able to find 1 2 3 4

15:39trades. Sometimes there's going to be

Live Trade Examples

15:40five, six, seven, even more potentially.

15:43So, let's take a look at me actually

15:44executing some of these trades in real

15:46time. And then I'm going to show you

15:47some of the added confluences and extra

15:49analysis that tend to push up my

15:51conviction, allow me to allow trades to

15:53run and get my win rate up higher. All

15:54right, so you can see I've done my

15:56analysis. I've waited for my moving

15:58averages to align. I've entered and set

16:00up my position. Okay, so I have my entry

16:01level here. Then you can see price

16:03starts to move down against me and break

16:05underneath this trend level. And that's

16:06where my dip by two level hits. And so

16:09price starts moving against me and fills

16:10me on that sort of dip by. And so here

16:12I'm assuming that the price is going to

16:14react on the underside of this trend,

16:15which is something I call an underside

16:17overside retest. But price continues to

16:19move really really strongly up, which

16:21puts me, you can see, up $2,600 now,

16:24just off of that one flip, even though

16:25my original entry was right here. Okay,

16:27so I'm going to dive a little bit more

16:28into some of the other confluences, but

16:30I'll just sort of show you some of the

16:31stuff that I do look for as this trade

16:33sort of playing out. So, this trend

16:34level I was assuming would catch some

16:36level of support. Since it broke through

16:38it, I actually expect a bearish

16:40sentiment to basically respond off of

16:42this level and then continue moving

16:43down. If that was the case, I would hope

16:45for a dip by off of this support level

16:47and then a correction up and I'd get out

16:49of the trade as normal. But once I was

16:51well into profit at this level and I

16:53started to see that the price was moving

16:54through that level, that shows an

16:56extreme amount of strength. And so, I

16:57deployed something called an L1 bomb.

16:59Okay? And so, that L1 bomb allows me to

17:01have now a dip by one fill. But now I'm

17:03going to be taking profit at the

17:05original take-profit level. So I'm

17:06actually going to play for a full move

17:08with a slightly deeper retracement.

17:09Okay? That way if the price continued to

17:11move down, I'm still getting out as

17:12normal. But if it plays in my direction,

17:14I can sort of gauge it and allow it to

17:15run. And you can see now I'm up 5500.

17:18And I'm really playing this into my

17:19advantage. Okay. And you can see it sort

17:21of pushes from there, reclaims that

17:22trend. We're up 8,200. All right. We

17:24started to get some consolidation. And

17:26this is where we started pushing over

17:27this high range. And that's where

17:29Unrealized was up over $10,000, which is

17:32more than my entire risk on the entire

17:34trade. Even though I was assuming to get

17:3602, now I'm up over a whole risk factor.

17:38So, it's actually 5x more than I was

17:40expecting to make on profit. Okay? So, I

17:42wanted this high level to break. I moved

17:43my stop loss up and then we started to

17:45consolidate up in this range. Then I

17:46ended up taking the trade off for a

17:48little under 10,000 in full profit. So,

17:50I kind of teased some of the confluences

17:51there, but there's a lot more to it that

17:52I'll get into in just a second. Let's

17:54take a look at this second trade. Okay,

17:55so once again, we have the New York open

17:57happening. we have a full consolidation

17:59under the range and all of our moving

18:00averages starting to align. This is

18:02where I take my initial entry. Okay? And

18:04you can see another confluence that I'm

18:06using is something called that underside

18:07overside retest. So, I'm doing analysis

18:09on this trend trying to figure out where

18:11we could have a possible test of the

18:13trend that was being supported before

18:15price breaks underneath it and then

18:17tests off of critical levels like right

18:20here. So you can see I knew my dip by

18:22two was going to happen right into that

18:24critical level which added to my

18:25conviction in the statistical

18:27probability of this trade working out.

18:28So you can see dip by two fills responds

18:30beautifully off of that level. Okay. So

18:32you can see now I'm getting a response

18:34off of that area. I'm already up 1,900.

18:37Right? There's going to be slippage in

18:38fees in there. Right? So it's not

18:39actually 1,900 realistically. It's a

18:41little bit less. Price pushes back down.

18:43We're up 23 24 and the trade gets taken

18:46off the table. So even though once again

18:48I was playing this level, we got a push

18:50up break through this level. I was

18:52aiming for my response here. I actually

18:54meant to hold this trade longer because

18:55we did get such a good response off this

18:57level in strength. I was going to sort

18:58of play into the strength a bit, right?

Extra Confluences

19:00That's just personally what I do. Ended

19:01up screwing something with the orders.

19:03So I took the trade off the table for

19:04about $2500. And like I was showing you,

19:07you can basically go do the repetitions

19:09and follow trends this way and find a

19:11ton of trade opportunities. Okay, I

19:12can't share everything here because I

19:14have to be fair to the private side of

19:15the team who has the education, but I do

19:17want to provide value to you guys and

19:18show you that you can even further

19:20refine this down. So, we did talk about

19:22support and resistance, oversight,

19:24underside. This is something that I'm

19:25applying to all of my trading basically.

19:27Okay, I did go a little bit over the L1

19:28bomb. I want to talk about some of the

19:30other confluences that I like to see,

19:32which are RSI avoidance and something

19:34called Elliot wave avoidance. Okay, this

19:35is getting a little bit more

19:36complicated, but it's something that

19:37personally improves my trading. Okay, so

19:39there's something called Elliot wave

19:40theory which basically assumes that

19:42trends move in five wave patterns. All

19:44right, so you have 1 2 3 4 5 followed by

19:48something called a ABC wave which is our

19:51corrective pattern A B C. So there's

19:54overall rules and a ton of ways to read

19:55this that I'm not going to get into in

19:56this video, but effectively one thing

19:58that I'm doing with this strategy is

20:00making sure that I avoid trading into a

20:02wave that has a fivewave, right? because

20:04this is going to indicate we could have

20:06a pullback and then a corrective pattern

20:08which is not in the direction of our

20:09trend. So I'm always avoiding five waves

20:11and I'm taking this type of analysis

20:13into consideration to be able to get in

20:15on low volatility areas that have a high

20:17probability of continuing in my

20:19direction. Okay, so as an example, the

20:21first trade that we took, I was kind of

20:22biting my tongue showing the examples

20:24because I actually wouldn't have

20:25probably taken this trade because if we

20:27look, we have our 1 2 3 4 down to five,

20:31which indicates to me we could have A B

20:34C and have a counter move in that

20:36direction. And you can see that's

20:37exactly what happened where price ended

20:39up flipping. still got us in and out

20:41luckily of the trade but ended up

20:43reversing completely in the direction

20:45where something like this trade breaks

20:46out of that previous trend as a 1 2 3

20:50this would be four and then a five

20:51assumption down and you'll notice even

20:53though this did eventually change

20:55direction moved well within our range to

20:58get us out multiple times without having

20:59to be super precisely accurate. Okay, so

21:02when I'm trading the strategy, I'll go

21:03into my trading view, click on this bar

21:05replay, and just go back through tons of

21:07historical data, do all of my analysis,

21:09learn what works for myself, build up

21:11these confluence rules. That way, I have

21:13my systematic approach in terms of R,

21:15and now all I need to do is follow the

21:17process and follow my training. Okay?

21:19And that's basically all we're working

21:20on with our community is being able to

21:22work in terms of R and focus on the

21:24proper process. Okay? And once again,

21:25month is off to a crazy start with this

21:28strategy. also another strategy. I'm

21:29going to be going over other trades on

21:31the channel. So, make sure if you're

21:32still here, you hit the like button, you

21:33subscribe to the channel if you want to

21:34know when we put videos out in the

21:36future. If you need the resources, go in

21:38the description, follow me on Instagram,

21:39DM me the word tools. I'll have

21:41everything sent over to you. Okay? Check

21:42out the resources on the screen here.

21:44And until next time, I will see you all

21:46in the next video.

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