Video summary

My 1R Trading Strategy (71% Winrate in My Backtest)

Main summary

Key takeaways

Finance

Finance-focused summary (trading strategy)

The video presents a 1:1 risk-reward (1R) day/swing forex trading strategy built on:

  • Market structure (bullish vs bearish)
  • Rejection candlesticks

The creator emphasizes improving sustainability and mental resilience, contrasting it with prior habits of using 2R–4R trades that produced a lower win rate and tougher psychology.

Performance / testing results (as stated)

  • Backtest win rate: ~70%
  • Trades tested: ~42 wins and 18 losses
    • The video also mentioned “44 wins” earlier, suggesting a possible counting discrepancy.
  • Win rate claim: “almost a 70% win rate”

Instruments / tickers mentioned

  • USDJPY (main focus; repeatedly referenced)
  • No other specific tickers/ETFs/crypto/bonds/commodities mentioned.

Timeframe

  • Uses only the 15-minute (15m) timeframe.

Core methodology (step-by-step framework)

  1. Determine market structure

    • If structure remains bullish (higher highs / higher lows): focus on longs only
    • If structure shifts to bearish (lower lows / lower highs): focus on shorts only
    • Key trigger: when prior swing levels are broken, the structure “shifts” and the trading bias flips.

  2. Entry trigger = rejection candlestick

    • Enter on a rejection candle after a pullback within the active structure regime.
    • Preferred candlesticks:
      • Hammer
      • Doji (described as the creator’s favorite)
    • Rationale: the candle forms a wick, signaling rejection after the prior move, aligning with the current bullish/bearish structure.

  3. Stop-loss and take-profit (fixed R:R)

    • Uses a static stop-loss and static take-profit, sized to 100 pips / micro-pips (also described as 10 normal pips).
    • Sometimes adjusts to 130–140, keeping TP matched to maintain 1:1, mainly when the entry placement relative to the wick/level requires “more room.”
    • Explicit intent: keep it one riskreward (i.e., 1R).

  4. Ongoing management via structure trailing

    • Mentions trailing using evolving higher highs/higher lows (or lower low/lower high) consistent with the active structure regime.
    • Bias changes again when the structure breaks (switch longs ↔ shorts accordingly).

Key numeric / operational details

  • Risk-reward: 1R
  • Default SL/TP size: 100 pips (or described as 10 normal pips, depending on naming convention)
  • Alternate SL/TP size (when needed): 130–140
  • Primary timeframe: 15m
  • Example cadence described: repeated cycles of:
    • bullish structure → rejection candle → buy
    • then bearish shift → rejection candle(s) → sell
    • continues as structure breaks

Explicit recommendations / cautions

  • Not financial advice. Encourages doing your own research.
  • Positioned as simple (structure + rejection candles + one timeframe).
  • Encourages viewers to test it and implies it “should be” broadly profitable, while noting they haven’t tested it across other markets beyond USDJPY.

Disclosures / disclaimers

  • “This is not financial advice. Just do your own research.”
  • Mentions a copyright limitation regarding showing a related reference book (candlestick resource).

Presenters / sources

  • Presenter: the video’s author/creator (name not provided in the subtitles)
  • Referenced source (non-author): “the candlestick bible” (mentioned as a guide for candlesticks).

Original video