Summary of The Stupid Simple Strategy That Makes Me $156,943/Month (Backtested Results)

Summary of "The Stupid Simple Strategy That Makes Me $156,943/Month (Backtested Results)"

This video presents a straightforward, repeatable trading strategy that the presenter claims has generated over $156,000 in a single month. The core philosophy emphasizes focusing on accurately predicting price movements with high probability rather than fixating on making money directly. The strategy is built around identifying key market levels, confirming trend reversals and continuations on lower time frames, and executing trades with disciplined risk management and psychology.

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Main Financial Strategies and Market Analyses Presented

• Core Trading Philosophy:
  • Trading is about accurately predicting price direction with high probability, not just making money.
  • Detach emotionally from profits and losses; focus on skill development in market prediction.
  • Consistency, discipline, and psychology are crucial for success.
• Key Levels Identification:
  • Use 1-hour and 4-hour highs and lows.
  • Session highs and lows (e.g., London, Asia sessions).
  • Occasionally data highs and lows (e.g., news-driven levels).
  • These levels represent liquidity zones where institutional money manipulates retail traders’ positions.
• Daily Bias Establishment:
  • Mark key levels first.
  • Determine daily market bias based on interaction with these levels.
• Lower Time Frame Analysis:
  • Scale down to 5-minute chart after a key level is hit.
  • Look for confirmation confluences indicating a potential reversal:
    • Break of structure
    • Inverse fair value gap
    • SMT (Smart Money Tool) divergence
    • 79% Fibonacci extension closure
  • Then look for continuation confluences to confirm trend continuation:
    • Order blocks
    • Breaker blocks
    • Equilibrium zones
    • Fair value gaps
• Execution on 1-Minute Time Frame:
  • Once continuation confluence is confirmed on 5-minute, scale down to 1-minute chart.
  • Look for one-minute confirmation confluences (break of structure, SMT divergence, inverse fair value gap, 79% extension closure) to enter trades.
• Trade Exit Strategy:
  • Use previously identified key levels in the opposite direction as profit targets.
  • Manage stops above/below liquidity sweeps or recent highs/lows.

Step-by-Step Methodology

1. Identify Key Levels:
   • Mark 1-hour and 4-hour highs/lows.
   • Mark session highs/lows.
   • Mark data highs/lows if applicable.
2. Establish Daily Bias:
   • Determine market bias based on key levels and price interaction.
3. Wait for Key Level Interaction:
   • Monitor price approaching and interacting with these key levels.
4. Scale Down to 5-Minute Chart:
   • Look for confirmation confluences signaling a reversal off the key level:
     • Break of structure
     • SMT divergence
     • Inverse fair value gap
     • 79% Fibonacci extension closure
5. Look for Continuation Confluences on 5-Minute:
   • Order blocks, Breaker blocks, equilibrium, fair value gaps.
6. Scale Down to 1-Minute Chart:
   • Confirm entry with one-minute confirmation confluences (break of structure, SMT divergence, inverse fair value gap, 79% extension closure).
7. Execute Trade:
   • Enter based on 1-minute confirmation.
   • Place stop loss above/below liquidity sweeps or recent highs/lows.
8. Exit Trade:
   • Target opposite key levels for profit-taking.
   • Use partial profit-taking and move stops to break-even as appropriate.

Additional Important Points

• Practice and Repetition:
  • The strategy requires consistent practice, ideally on demo accounts before risking real money.
  • Success comes from skill-building and repetition, not instant profits.
• Trade Journaling:
  • Keep detailed records of trades, including pre-trade thoughts, emotions, post-trade outcomes, and mistakes.
  • Use journaling to identify recurring errors and improve.
• Avoid Overeducation and Analysis Paralysis:
  • Focus on mastering one simple, proven strategy instead of jumping between multiple strategies.
  • Avoid mixing different strategies that cause confusion and inconsistent results.
• Mentorship and Coaching:
  • The presenter offers coaching to help traders identify personal mistakes, improve psychology, and fast-track profitability.
  • Personalized feedback is emphasized as a key to overcoming common trading pitfalls.

Presenter / Source

• The video is presented by a trader known as TJR (The Trading Rookie).
• TJR shares live trade recaps and daily P&L transparently via YouTube and Instagram.
• Offers personal coaching through a program called "The Blueprint."

In summary, this video delivers a clear, methodical trading approach centered on key level

Category

Business and Finance

Video