The Only Mechanical Trading Strategy You Will Ever Need (Tutorial from Beginner to Advanced)

00:32:00
https://www.youtube.com/watch?v=PgoZxIzY7YM

الملخص

TLDRThe video talks about the pitfalls of emotional trading and the common misconception that traders can accurately predict market movements. It contrasts the demeanor of professional gamblers who maintain control over their strategies with emotional traders or 'degenerates' who act impulsively, often leading to losses. The speaker emphasizes the need for a trading plan that centers on managing risks rather than focusing on being right all the time. The suggested mechanical trading strategy revolves around Fibonacci retracement levels, particularly entering trades around the 0.618 level and setting profit targets at 0.236. By executing trades mechanically and adhering to a daily plan, traders can reduce emotional involvement and improve their performance over time. The speaker encourages backtesting to solidify strategies and stresses that maintaining emotional detachment and focusing on a systematic approach is crucial for long-term success in trading.

الوجبات الجاهزة

  • 🎲Trading requires emotional control over impulsive decisions.
  • 📈Use Fibonacci retracement for standardized entry and exit points.
  • 🔄Losses are part of potential trading outcomes; accept them.
  • 📝Consistency in strategy execution is crucial for success.
  • 🌱 Progress in trading comes from taking calculated risks.
  • 📉 Avoid the trap of predicting every market movement.
  • 🔍 Focus on systematic trading rather than emotional responses.
  • 🚀 A well-defined daily plan increases focus and effectiveness.
  • 📊 Regular backtesting helps improve strategy performance.
  • 👩‍🏫 Emotional detachment leads to better trading decisions.

الجدول الزمني

  • 00:00:00 - 00:05:00

    The speaker introduces a dialogue filled with humor and frustration regarding trading and gambling, hinting at the emotional rollercoaster that traders often experience. They insinuate that some individuals may seem professional but are actually caught in a spiral of emotional trading instead of disciplined decision-making.

  • 00:05:00 - 00:10:00

    The speaker further elaborates on the characteristics of a professional gambler, emphasizing the need for control over time, money, and energy in gambling. They suggest that many traders chase every market move without understanding that not every pivot can be predicted, leading to potential insanity and loss.

  • 00:10:00 - 00:15:00

    Using insights from Mark Douglas, the speaker stresses the importance of understanding market psychology rather than relying solely on technical patterns. They indicate that the ability to predict market moves varies and that successful trading relies on understanding the behavior of other traders and managing oneself effectively.

  • 00:15:00 - 00:20:00

    The idea of a false breakout is introduced, where traders can be misled by chart patterns that don't represent the underlying market sentiment. The speaker emphasizes that true control and market predictions come from understanding the intentions and actions of significant market players, such as hedge funds.

  • 00:20:00 - 00:25:00

    As the discussion progresses, the speaker emphasizes a systematic trading approach. They suggest that adopting a mechanical trading strategy, such as using Fibonacci levels for entries and exits, can help mitigate emotional trading behaviors and create consistency in profits over time.

  • 00:25:00 - 00:32:00

    Finally, the speaker concludes with their simplest mechanical trading strategy, focusing on placing limit orders at specific Fibonacci levels and maintaining a strict exit plan. They argue that mastering such a simple and disciplined approach is vital for long-term trading success, along with the understanding that trading should not dominate one's life.

اعرض المزيد

الخريطة الذهنية

فيديو أسئلة وأجوبة

  • What is the mechanical trading model discussed?

    It uses Fibonacci retracement, entering trades at the 0.618 level and exiting at the 0.236 level.

  • How should traders handle losses?

    Traders should accept that losses are a part of trading and focus on risk management.

  • What does the video suggest about predicting market movements?

    The video states that it's unrealistic to predict every market movement and emphasizes the importance of adaptability.

  • What is the significance of emotional control in trading?

    Emotional control helps prevent irrational decisions and maintains a consistent trading strategy.

  • How can traders improve their models?

    By backtesting and focusing on executing a consistent trading plan without jumping between strategies.

  • What is the importance of a daily plan in trading?

    Having a daily plan helps maintain focus and prevents overtrading based on emotions.

  • What kind of traders does the speaker mention succeed?

    Professional traders who consistently execute the same model without getting swayed by emotions.

  • What is the difference between professional gambling and degenerate gambling?

    Professional gamblers have control over their approach, while degenerate gamblers act emotionally and unpredictably.

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الترجمات
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التمرير التلقائي:
  • 00:00:02
    somebody's about to punch punch the air
  • 00:00:03
    oh you son of a [ __ ] I was trying to
  • 00:00:05
    fade IC [ __ ] him he's a fraud I can't
  • 00:00:08
    show the video now it failed on
  • 00:00:10
    me [ __ ]
  • 00:00:13
    you [ __ ] you very
  • 00:00:15
    [Laughter]
  • 00:00:17
    much give me some more I see I'm here
  • 00:00:20
    all week baby tip your bartender tip
  • 00:00:22
    your [ __ ] bartender who's doing it
  • 00:00:24
    like this Patrick come on baby
  • 00:00:30
    get the [ __ ] out of here does this
  • 00:00:32
    person sound like a professional Gambler
  • 00:00:35
    or does he sound like a total degenerate
  • 00:00:38
    who is excited about his call playing
  • 00:00:41
    out a professional Gambler is someone
  • 00:00:44
    who has complete control over the time
  • 00:00:47
    money and energy they spend on gambling
  • 00:00:51
    they are seen to be more skilled at
  • 00:00:53
    gambling than other gamblers and are
  • 00:00:56
    considered at a low risk for addiction I
  • 00:00:59
    don't know about you but ICT doesn't
  • 00:01:02
    strike me as a professional Gambler he
  • 00:01:06
    strikes me more as a emotional
  • 00:01:09
    degenerate that finally got a winning
  • 00:01:12
    trait after losing multiple times and I
  • 00:01:16
    believe that I is slowly going insane
  • 00:01:19
    with each year passing by where he
  • 00:01:22
    promises to win Robin's cup but never
  • 00:01:25
    does and I put out this uh amazing tweet
  • 00:01:29
    uh recently ly on my Twitter if you are
  • 00:01:32
    trying to explain every single pivot in
  • 00:01:35
    the market you are going to go insane
  • 00:01:38
    focus on taking a piece of the market
  • 00:01:41
    and go touch some grass which is I
  • 00:01:45
    believe the best trading advice that
  • 00:01:47
    anybody can give you in instead of
  • 00:01:50
    trying to figure it out every single
  • 00:01:52
    move in the market and most Traders
  • 00:01:55
    intuitively know this but yet most of
  • 00:01:58
    them fall in to the Trap trying to
  • 00:02:01
    predict every single move in the market
  • 00:02:04
    and it just not possible here I will let
  • 00:02:07
    you watch the OG Mark Douglas is so that
  • 00:02:11
    you understand with with no uncertain
  • 00:02:13
    terms that there are there a whole
  • 00:02:16
    category of Traders out there people out
  • 00:02:19
    there Traders people who have both the
  • 00:02:22
    financial and the Psychological
  • 00:02:23
    Resources the bid markets up and offer
  • 00:02:25
    them lower and what's the point that I'm
  • 00:02:27
    making the point that I'm making is that
  • 00:02:29
    any particular
  • 00:02:30
    technical methodology that you use to
  • 00:02:33
    determine a pattern is present that
  • 00:02:36
    gives you a higher probability of one
  • 00:02:37
    thing happening over another until you
  • 00:02:39
    can get into the minds of the people who
  • 00:02:41
    actually move prices you will never know
  • 00:02:43
    for sure what's going to happen next the
  • 00:02:46
    only people that know for sure are the
  • 00:02:47
    people who are willing to do
  • 00:02:49
    it and that's what you got to you got to
  • 00:02:52
    burn that in your
  • 00:02:53
    brain you will never know for sure
  • 00:02:56
    what's going to happen
  • 00:02:58
    next unless you can read the minds of
  • 00:03:00
    the people who are going to do it and
  • 00:03:03
    there are people who will do it and they
  • 00:03:05
    do it all the time that's the only way
  • 00:03:06
    you end up in a winning trade most of
  • 00:03:09
    the time when you end up in a winning
  • 00:03:10
    trade is because of what these other
  • 00:03:12
    Dynamic Traders are doing so to convince
  • 00:03:14
    you that there are people who are
  • 00:03:16
    willing to do this if I'm a hedge fund
  • 00:03:19
    manager and I've got to
  • 00:03:20
    unload if I've got to unload a huge
  • 00:03:23
    position and the market happens to be
  • 00:03:24
    sitting right here in in relative to
  • 00:03:26
    this chart pattern
  • 00:03:30
    how might I maximize my profits what
  • 00:03:34
    might I do now remember I've got a sell
  • 00:03:37
    I'm going to be a seller but what might
  • 00:03:39
    I do to make sure that I get the best
  • 00:03:42
    price what drive it up and sell yeah
  • 00:03:45
    drive it up in other words I will do the
  • 00:03:47
    opposite of what I want to do to get a
  • 00:03:50
    better price and I will drive it up but
  • 00:03:52
    how much risk am I taking by doing
  • 00:03:55
    that probably not a lot selling a little
  • 00:03:59
    dry
  • 00:04:01
    well yeah I mean if I drive the price up
  • 00:04:03
    by taking out these offers and then
  • 00:04:05
    bidding up taking out it off take in
  • 00:04:07
    other words I can look with with
  • 00:04:09
    depending on the kind of software I have
  • 00:04:10
    I can find out what depth uh the depth
  • 00:04:13
    of the market meaning that that you know
  • 00:04:15
    and I'm not saying these are hard hard
  • 00:04:16
    offers because people pull their offers
  • 00:04:18
    all the time but I can look at this I
  • 00:04:20
    can look at this high and I say you know
  • 00:04:23
    what what if how much money might it
  • 00:04:25
    take for me to drive the market from
  • 00:04:27
    here to just pass these highs right here
  • 00:04:31
    here how many offers do I have to take
  • 00:04:33
    out to do it just tally it up just tally
  • 00:04:36
    it up and see if you want to spend the
  • 00:04:39
    money because in essence how much risk
  • 00:04:42
    you actually taking see by by by driving
  • 00:04:45
    it up what you're doing is you're you're
  • 00:04:47
    increasing the asset value of your
  • 00:04:50
    portfolio so in that sense you're not
  • 00:04:52
    taking any risk you're actually making
  • 00:04:55
    money if I if I continue to drive the
  • 00:04:57
    price up
  • 00:05:00
    I am actually making the trades that I
  • 00:05:02
    made down here winners every tick that I
  • 00:05:05
    drive the price up I'm making myself a
  • 00:05:07
    winner on the trades that I made at
  • 00:05:08
    lower prices to actually drive a price
  • 00:05:11
    up because you are making yourself a
  • 00:05:13
    winner at the prices that you know what
  • 00:05:15
    you bought at lower prices if for an
  • 00:05:17
    example by me driving this price up it
  • 00:05:20
    draws other people into the
  • 00:05:22
    market that will help will it not
  • 00:05:24
    because it creates more of an
  • 00:05:27
    imbalance now that's the real thing what
  • 00:05:29
    I want to do is I want to get more
  • 00:05:31
    buyers into the market and the reason
  • 00:05:32
    why I want to get more buyers into the
  • 00:05:34
    market is so somebody is there to take
  • 00:05:36
    the other side of my sell orders because
  • 00:05:38
    that's ultimately what I'm doing here
  • 00:05:41
    what I'm doing is I want to sell so what
  • 00:05:43
    I'm doing is creating a bigger pool of
  • 00:05:46
    of of of orders to come into the market
  • 00:05:49
    to I can sell into so that my my sell
  • 00:05:51
    orders don't drive the price down
  • 00:05:55
    down and so I will purposefully do the
  • 00:05:58
    opposite of what I want to do
  • 00:06:00
    ultimately with respect to my position
  • 00:06:02
    now what the reason why I'm selling has
  • 00:06:04
    nothing to do with this chart pattern
  • 00:06:06
    absolutely nothing to do with the chart
  • 00:06:07
    pattern itself I'm just using the chart
  • 00:06:10
    pattern as a means to maximize my
  • 00:06:13
    profits now what if I managed to drive
  • 00:06:17
    it
  • 00:06:18
    up to
  • 00:06:21
    resistance chances are there's going to
  • 00:06:23
    be a lot of sell orders coming in that
  • 00:06:24
    I'm going to have to compete with that's
  • 00:06:27
    that's a risk that I that's a risk that
  • 00:06:28
    I that I'm that I'm taking here but what
  • 00:06:30
    if I can drive it a little past that
  • 00:06:33
    resistance what I'm going to have is a
  • 00:06:36
    situation where all the people the other
  • 00:06:38
    traders who sold at this level right
  • 00:06:40
    here that came into the market because
  • 00:06:43
    it was approaching this previous High
  • 00:06:45
    they're going to put their stops a
  • 00:06:46
    little bit above the market now what
  • 00:06:47
    kind of stops are they going to be
  • 00:06:48
    they're going to be buy stops if they
  • 00:06:50
    sold to get out at a loss they have to
  • 00:06:53
    be buyers if I can drive the market to
  • 00:06:57
    those buy stops I have given myself an
  • 00:06:59
    instant pool an instant pool of orders
  • 00:07:03
    to take the other side of my trades and
  • 00:07:05
    and get me out at at maximum profits
  • 00:07:08
    this is typically what you see in a
  • 00:07:09
    chart pattern as a false
  • 00:07:12
    breakout because what'll end up
  • 00:07:13
    happening is that as soon as my order
  • 00:07:15
    hits the market at so large and and then
  • 00:07:18
    because there really weren't that many
  • 00:07:20
    other traders that were willing to bid
  • 00:07:21
    continue to bid the market up what it'll
  • 00:07:23
    do it is will'll take out all the bids
  • 00:07:25
    and then drive the price right
  • 00:07:28
    down that's called called a false
  • 00:07:31
    breakout it's it's being done at
  • 00:07:34
    different at different uh time frames
  • 00:07:36
    all of the time and so the point that
  • 00:07:39
    I'm making is that what you you're
  • 00:07:41
    trading off of a mathematical formula
  • 00:07:44
    literally you're trading you're in this
  • 00:07:45
    mathematical formula what technical
  • 00:07:47
    analysis does is it gets into the
  • 00:07:49
    collective mind of the market in other
  • 00:07:52
    words every tick every uptick and every
  • 00:07:54
    down tick is information that
  • 00:07:56
    information is accumulated in
  • 00:07:58
    mathematical principles are applied to
  • 00:08:00
    it there are there are actual patterns
  • 00:08:03
    that that that emerge that repeat
  • 00:08:07
    themselves over and over and over
  • 00:08:09
    again that you can identify with
  • 00:08:12
    mathematical formulas or with these
  • 00:08:14
    visual price patterns but the problem is
  • 00:08:17
    that there's no mathematical formula
  • 00:08:18
    that can get into the mind of the
  • 00:08:20
    individual traders who actually are
  • 00:08:22
    driving prices up or offering them
  • 00:08:24
    lower but if you don't know that you
  • 00:08:27
    somehow or another if you happen to if
  • 00:08:29
    you're trading on a smaller time
  • 00:08:32
    frame you're trading on a smaller time
  • 00:08:34
    frame and you get a little uh a little
  • 00:08:37
    pullback right here okay and based on
  • 00:08:40
    that pullback your methodology says okay
  • 00:08:42
    it's time to buy and you
  • 00:08:45
    do and but and you do it just before
  • 00:08:48
    this hedge fund manager comes in and
  • 00:08:49
    starts driving the price up see you're
  • 00:08:52
    going to think that the reason why you
  • 00:08:54
    won is because that your mathematical
  • 00:08:56
    formula told you what was happening next
  • 00:08:58
    and that was the reason reason why it
  • 00:09:00
    happened what I'm saying to you now is
  • 00:09:04
    that there almost isn't any reason that
  • 00:09:06
    you could come up with whether you won
  • 00:09:08
    or lost that would correspond to what
  • 00:09:10
    really happened in the
  • 00:09:11
    market you hear what I just said there's
  • 00:09:14
    almost no reason that you will come up
  • 00:09:16
    with to put on a trade that will ever
  • 00:09:18
    correspond with the actual reason why
  • 00:09:19
    the market went up or the market went
  • 00:09:21
    down other than the fact that there was
  • 00:09:23
    an imbalance and conviction between
  • 00:09:24
    buyers and
  • 00:09:27
    sellers because the people who do this
  • 00:09:30
    will not tell you unless it's in their
  • 00:09:31
    best interest to do
  • 00:09:34
    so and the reason the people who report
  • 00:09:37
    it in the news agencies they don't know
  • 00:09:39
    either they're making it up they make up
  • 00:09:41
    the reasons because they sound
  • 00:09:43
    reasonable they are paid to sound
  • 00:09:45
    reasonable and there's no way to verify
  • 00:09:48
    what it is that they
  • 00:09:54
    say or to disprove what they said that's
  • 00:09:57
    right there's no there's no way the only
  • 00:09:59
    people who can do it are the people who
  • 00:10:01
    actually made the trades the only people
  • 00:10:03
    who know for sure what's going to happen
  • 00:10:05
    next are the ones who are willing to
  • 00:10:07
    make it
  • 00:10:11
    happen you see we'll put on a trade and
  • 00:10:15
    find ourselves in a nice monster little
  • 00:10:16
    winter here and think oh man my my
  • 00:10:19
    methodology it is just
  • 00:10:21
    fantastic and then the next time you get
  • 00:10:23
    the same signal and then you don't get
  • 00:10:26
    anything not only that it's a loser you
  • 00:10:27
    think oh now you feel betrayed you think
  • 00:10:29
    you're your your methodology let you
  • 00:10:33
    down your methodology wasn't designed to
  • 00:10:36
    tell you what's going to happen next on
  • 00:10:37
    a trade bytrade basis no technical
  • 00:10:40
    methodology
  • 00:10:42
    is that's where your expectations are
  • 00:10:45
    not in line with the reality of the
  • 00:10:47
    situation that's why it's so easy to
  • 00:10:49
    make mistakes is because you're
  • 00:10:51
    expecting something from your
  • 00:10:52
    methodology that just doesn't
  • 00:10:56
    exist it just doesn't it never
  • 00:11:01
    did on a trade bytrade basis they will
  • 00:11:05
    tell you what will happen let's say I
  • 00:11:07
    don't want to use words to happen next
  • 00:11:08
    they'll tell you what will happen over a
  • 00:11:11
    series of trades on a percentage
  • 00:11:14
    basis this particular pattern will
  • 00:11:16
    emerge X number of times and when it
  • 00:11:19
    does there's a higher probability of
  • 00:11:20
    this happening than that if I limit my
  • 00:11:23
    risk when I take the trade and my
  • 00:11:25
    profits uh my profit potential is at
  • 00:11:28
    least you know one or two or three times
  • 00:11:30
    greater than what I need the risk then
  • 00:11:31
    over a series of Trades I will be a
  • 00:11:33
    consistent winner that's what trading is
  • 00:11:35
    all about guys as a passive technical
  • 00:11:37
    Trader unless you're doing this other
  • 00:11:39
    stuff I just said it right then and
  • 00:11:40
    there I said it all right then and there
  • 00:11:43
    Rest in Peace Mark but he did say it
  • 00:11:46
    right then and there what makes you
  • 00:11:49
    think that you can predict every single
  • 00:11:52
    move in the market when you have no idea
  • 00:11:55
    what the people who have financial and
  • 00:11:58
    psychological me means to move the
  • 00:12:00
    market are going to do next you simply
  • 00:12:03
    can't that's why less than 1% of these
  • 00:12:07
    Traders make any significant returns
  • 00:12:10
    consistently let me Zoom that in that's
  • 00:12:13
    way on top of the pyramid after
  • 00:12:16
    everybody quit after years and years of
  • 00:12:19
    unprofitability there is only less than
  • 00:12:22
    one% of these Traders make any
  • 00:12:26
    significant net returns consistently and
  • 00:12:29
    they are not doing it by knowing what
  • 00:12:32
    Market will do next they are doing it by
  • 00:12:35
    executing the same trading model over
  • 00:12:38
    and over again so if we can't control
  • 00:12:42
    the market what can we control we can
  • 00:12:46
    only control ourselves this is why I
  • 00:12:49
    keep emphasizing to follow your daily
  • 00:12:52
    plan and execute the same trading model
  • 00:12:56
    over and over because that's how you
  • 00:12:58
    will conqu trading and Conquer yourself
  • 00:13:01
    so you don't act out like this
  • 00:13:04
    somebody's about to punch punch the oh
  • 00:13:06
    you son of a [ __ ] I was trying to fade
  • 00:13:07
    ICT [ __ ] him he's a fraud I can't share
  • 00:13:10
    the video now it failed on
  • 00:13:12
    me [ __ ]
  • 00:13:15
    you [ __ ] you very
  • 00:13:17
    [Laughter]
  • 00:13:19
    much give me some more I I'm here all
  • 00:13:22
    week baby tip your bartender tip your
  • 00:13:24
    [ __ ] bartender who's doing it like
  • 00:13:26
    this Patrick come on baby
  • 00:13:32
    get the [ __ ] out of here the only
  • 00:13:34
    solution is to let go of the desire to
  • 00:13:38
    be right and accept that losses are part
  • 00:13:41
    of this game when you learn to let go of
  • 00:13:44
    the need to be right being wrong
  • 00:13:47
    gradually lose its power to disturb you
  • 00:13:51
    and really the only certain thing that
  • 00:13:53
    certainty does not exist and this is
  • 00:13:56
    life in general we must become
  • 00:13:59
    comfortable with risk because if we are
  • 00:14:02
    not taking risks we are not improving
  • 00:14:05
    and if we are not improving we are
  • 00:14:07
    falling backwards the real secret to
  • 00:14:09
    trading is to become indifferent towards
  • 00:14:12
    the outcome and treat trading as a job
  • 00:14:15
    where you come in every day executing
  • 00:14:18
    your daily plan and moving on with your
  • 00:14:21
    day adopt the belief that current trade
  • 00:14:25
    most likely will not work out because
  • 00:14:28
    that's the only certain thing that's the
  • 00:14:31
    only guarantee that we have as traders
  • 00:14:34
    that as soon as you put the trade it's
  • 00:14:37
    already a loser so it's the only one
  • 00:14:41
    guarantee that we can rely on as Traders
  • 00:14:43
    is that we are starting with the losing
  • 00:14:47
    trade so most likely this losing trade
  • 00:14:51
    will not work out so this believe allows
  • 00:14:54
    us to adapt the mentality of placing a
  • 00:14:57
    stop order protect our risks so we don't
  • 00:15:01
    go acting like total degenerates
  • 00:15:04
    increasing our risk because we feel so
  • 00:15:07
    great that we can predict the next move
  • 00:15:10
    and we can't so it's unrealistic and
  • 00:15:14
    delusional to think that we can win
  • 00:15:17
    every single trade it just not reality
  • 00:15:21
    we need to adopt the belief that current
  • 00:15:24
    trade most likely will not work out and
  • 00:15:27
    that's the only way to be indifferent
  • 00:15:30
    towards the outcome that's the only way
  • 00:15:33
    to be
  • 00:15:35
    indifferent and stay emotionalist while
  • 00:15:39
    we trading because as soon as we get
  • 00:15:41
    excited about trading we start believing
  • 00:15:44
    that we are invincible the dopamine and
  • 00:15:48
    adrenaline feels very good and we start
  • 00:15:51
    doing crazy things we start uh
  • 00:15:54
    leveraging up we start taking more
  • 00:15:56
    trades than we should and pretty much we
  • 00:15:59
    are not following our daily plan and if
  • 00:16:02
    we can control our market and we can't
  • 00:16:05
    control ourself you can imagine what
  • 00:16:08
    kind of outcome we can expect and the
  • 00:16:11
    only belief that we can have is that our
  • 00:16:14
    trade will not work out and we can only
  • 00:16:17
    rely on this series of trads but those
  • 00:16:21
    trads need to be the same so we know
  • 00:16:25
    that our methodology our pattern that
  • 00:16:27
    we're following are working because over
  • 00:16:31
    series of Trades we come out as a winner
  • 00:16:35
    and if we come out as a loser then maybe
  • 00:16:38
    we
  • 00:16:38
    can try to trade some other trading
  • 00:16:42
    strategy or maybe trading is not for you
  • 00:16:46
    again we cannot have trading as the
  • 00:16:50
    number one priority in our life because
  • 00:16:53
    we cannot rely on it trading is gambling
  • 00:16:57
    you either like it or not trading is a
  • 00:17:00
    risky gambling Behavior where we placing
  • 00:17:04
    bats on the direction and as Mark
  • 00:17:07
    Douglas says there is no way of knowing
  • 00:17:10
    if our next trade will work out so might
  • 00:17:13
    as well we need to adopt the belief that
  • 00:17:16
    the current and the next trade will not
  • 00:17:19
    work out and we simply placing bets and
  • 00:17:23
    over the long period of time we
  • 00:17:26
    hopefully come out as a winner so
  • 00:17:28
    trading cannot be the number one
  • 00:17:31
    priority in our life because that's a
  • 00:17:34
    recipe for disaster so really the only
  • 00:17:37
    way to trade is the mechanical trading
  • 00:17:40
    and really there are three levels of
  • 00:17:42
    trading Mastery but you got to start
  • 00:17:44
    from somewhere you got to start from
  • 00:17:46
    mechanical then you can move on and add
  • 00:17:49
    on more confluences and try to uh tweak
  • 00:17:53
    your trading models and uh then your
  • 00:17:56
    trading become more subjective and and
  • 00:17:59
    then uh eventually you can trade
  • 00:18:01
    intuitively but you have to start from
  • 00:18:04
    the mechanical strategies and most
  • 00:18:07
    people don't most people never Master
  • 00:18:10
    the mechanical strategy and they never
  • 00:18:13
    Master their emotions and they keep on
  • 00:18:15
    in that cycle of uh losing refilling
  • 00:18:19
    their account and keep on going in that
  • 00:18:22
    vicious cycle of uh trading Madness that
  • 00:18:26
    like you see in the beginning of this
  • 00:18:27
    video but the real secret is to have one
  • 00:18:30
    trading mechanical strategy so in this
  • 00:18:33
    video I want to present to you the
  • 00:18:35
    simplest mechanical trading model where
  • 00:18:38
    we using a simple Fibonacci retracement
  • 00:18:42
    and entering at
  • 00:18:44
    the golden pocket which is the golden
  • 00:18:48
    ratio 618 retracement and our exit is
  • 00:18:52
    only tp1 I recommend you take off your
  • 00:18:57
    whole trade because a lot of times if we
  • 00:19:00
    wait for tp2 we might have a deeper
  • 00:19:03
    retracement and we might get stopped out
  • 00:19:05
    at the break even or whatever but if you
  • 00:19:09
    want to keep it the most mechanical as
  • 00:19:12
    possible I recommend number one limit
  • 00:19:15
    order at 618 so if we can identify the
  • 00:19:20
    bullish Trend where we breaking
  • 00:19:22
    structure to the upside what we want to
  • 00:19:25
    do is we want to measure this leg over
  • 00:19:28
    here this is the expansion lag and we
  • 00:19:31
    have waiting for this retracement to the
  • 00:19:35
    golden ratio to the 618 where we set the
  • 00:19:40
    limit order our stop loss goes below
  • 00:19:43
    this low this is protected low if you
  • 00:19:46
    don't know what the protected low is
  • 00:19:49
    watch my videos about Market structure
  • 00:19:51
    you will understand but I continue to
  • 00:19:54
    simplify trading and the only way for me
  • 00:19:58
    to succeed at trading is to completely
  • 00:20:01
    remove the thinking process completely
  • 00:20:04
    remove the desire to be right so this
  • 00:20:09
    way I know that most likely this trade
  • 00:20:12
    will not work out but over the series of
  • 00:20:15
    Trades I might come out ahead because
  • 00:20:18
    this pattern plays out in the market
  • 00:20:21
    over and over again and I'll show you
  • 00:20:24
    examples a little bit later and all we
  • 00:20:26
    have to do is place a limit or at the
  • 00:20:29
    golden ratio
  • 00:20:31
    618 and place a limit exit where as soon
  • 00:20:36
    as price gets to this level we take our
  • 00:20:39
    profit and we are done for that trade
  • 00:20:43
    again I don't recommend you waiting for
  • 00:20:45
    the tp2 because most likely or not
  • 00:20:48
    there's going to be some kind of
  • 00:20:49
    retracement before hitting these highs
  • 00:20:52
    and in a lot of cases we might not even
  • 00:20:55
    get the tp2 and I rather take profits
  • 00:21:00
    and have a winning trade then see price
  • 00:21:03
    reverses on me and in my previous video
  • 00:21:05
    I was talking about the daily plan this
  • 00:21:08
    fits perfectly within the daily plan
  • 00:21:11
    where all you have to do is just find
  • 00:21:14
    few trades like this every single day
  • 00:21:17
    you can go to the low time frames like
  • 00:21:20
    15 second 1 minute and you can find many
  • 00:21:23
    many trades like these and all you have
  • 00:21:25
    to do is just execute from entry to the
  • 00:21:28
    T P1 take few trades like that and move
  • 00:21:31
    on with your day let's go through some
  • 00:21:34
    examples I have a NASDAQ 15minute chart
  • 00:21:38
    as you can see there was a reversal here
  • 00:21:41
    we have double bottom in here and we
  • 00:21:44
    have this expansion
  • 00:21:46
    upwards this is where expansion ended
  • 00:21:49
    and we keep on dragging our Fib so first
  • 00:21:54
    we drag FIB to this High then we
  • 00:21:56
    dragging FIB to this High then we
  • 00:21:58
    dragging FIP to this high and we waiting
  • 00:22:02
    for the price to retrace into our entry
  • 00:22:06
    where we have a limit order so as price
  • 00:22:10
    going up and not retracing down into the
  • 00:22:13
    618 we keep on waiting waiting and this
  • 00:22:17
    becomes liquidity this becomes people
  • 00:22:20
    that are longing here they're going to
  • 00:22:23
    be stopped out on this move down and we
  • 00:22:26
    can enter at the the 618 and it's easy
  • 00:22:30
    exit over here and as you can see the
  • 00:22:33
    price actually went to tp2 but again I
  • 00:22:35
    recommend is for the completely
  • 00:22:37
    mechanical strategy I recommend exiting
  • 00:22:41
    at 0 uh 236 which I believe the most
  • 00:22:46
    optimal exit for this strategy and again
  • 00:22:49
    you should go and back test and see it
  • 00:22:52
    in your chart see it how it plays out
  • 00:22:55
    get used to it and uh then you will be
  • 00:22:58
    able to just set limit orders and uh be
  • 00:23:02
    done for the rest of your day here's
  • 00:23:04
    another NASDAQ 15minute chart where we
  • 00:23:08
    have a breakout structure here and we
  • 00:23:10
    waiting for the price to come to the 618
  • 00:23:14
    and we have an exit at 236 so our
  • 00:23:19
    measurement goes from the
  • 00:23:21
    low to the high and you can simply put
  • 00:23:25
    the limit order at 61 8 and wait for
  • 00:23:31
    this 236 and as I said sometimes this is
  • 00:23:35
    a perfect exit and you are done you
  • 00:23:39
    don't have to be waiting in this
  • 00:23:41
    retracement over here here's a bearish
  • 00:23:44
    one 15 minute NASDAQ again we have this
  • 00:23:48
    expansion leg down which we measure with
  • 00:23:51
    our fibs and we wait for the retracement
  • 00:23:55
    to the 618 and exit at 236 and it's
  • 00:24:01
    quick and easy trade and we are done and
  • 00:24:04
    again based on your daily plan you can
  • 00:24:07
    have a daily plan where you just take
  • 00:24:09
    one trade a day and you done here I have
  • 00:24:12
    gold chart again we have break of
  • 00:24:15
    structure here to the
  • 00:24:18
    upside we have a lag from here to
  • 00:24:21
    here we measure putting uh anchoring our
  • 00:24:25
    fibs from the low to the high and we
  • 00:24:28
    simply waiting on this pullback at 618
  • 00:24:33
    and we exit at
  • 00:24:35
    236 this is a gold hourly chart so as
  • 00:24:40
    you can see again as soon as it Taps
  • 00:24:43
    into the 618 it goes to the 236 and
  • 00:24:48
    starts pulling back as you can see this
  • 00:24:49
    wigs so I believe this is the most
  • 00:24:52
    optimal trade over here and while most
  • 00:24:56
    people are waiting for the draw
  • 00:24:58
    we already done with our trade and it's
  • 00:25:01
    all about risk management so depends on
  • 00:25:05
    your risk tolerance whatever you want to
  • 00:25:07
    risk it be $100 $200 you need to
  • 00:25:10
    calculate how much you want to buy over
  • 00:25:13
    here so you have you are risking $1 $200
  • 00:25:17
    whatever your risk tolerance is at the
  • 00:25:19
    stop and 236 is the one: one risk to
  • 00:25:24
    reward ratio So based on your risk and
  • 00:25:28
    BAS B on your size of your account you
  • 00:25:30
    want to calculate how much you need to
  • 00:25:33
    buy over here so you have a one to one
  • 00:25:37
    RR a one to1 risk to reward is the great
  • 00:25:42
    start if you want to improve go back
  • 00:25:45
    test this see what happens how often we
  • 00:25:48
    get to the takeprofit too because that's
  • 00:25:51
    the only way for you to gain confidence
  • 00:25:54
    and experience in your trading I cannot
  • 00:25:57
    teach you that you have to go into the
  • 00:26:00
    charts and execute and see this happens
  • 00:26:03
    but remember that you got to execute the
  • 00:26:06
    same thing at least over the series of
  • 00:26:10
    30 trades at least that and see what
  • 00:26:14
    kind of win rate you have what kind of
  • 00:26:16
    risk to reward you comfortable with and
  • 00:26:19
    uh see how this plays out in real time
  • 00:26:22
    you're only going to get that through
  • 00:26:24
    back testing and forward testing and
  • 00:26:26
    live executions here's the daily chart
  • 00:26:29
    on bitcoin the same thing we had the
  • 00:26:32
    break of structure here and we waiting
  • 00:26:36
    for the pullback there is our high there
  • 00:26:39
    is our low so the low is the stop this
  • 00:26:42
    is the invalidation here the Stop and
  • 00:26:46
    our entry at 618 and as you can see
  • 00:26:49
    we've been rocking back and forth and
  • 00:26:53
    eventually we got down to the 618 swept
  • 00:26:57
    the slow
  • 00:26:58
    and now heading almost got to this
  • 00:27:03
    tp1 so this is the most simple trading
  • 00:27:07
    strategy that I can come up with and
  • 00:27:10
    really that's the only thing that you
  • 00:27:13
    need in trading because if you can have
  • 00:27:17
    a limit order entry at 618 and exit at
  • 00:27:21
    236 you don't have to think about it
  • 00:27:24
    this is the most mechanical thing that
  • 00:27:27
    you can do in trading and once you can
  • 00:27:30
    Master this once you can consistently
  • 00:27:33
    execute your daily plan which is how
  • 00:27:36
    many trade you want to take every day
  • 00:27:39
    right you do that daily plan
  • 00:27:42
    consistently by executing the most
  • 00:27:45
    mechanical strategy ever which is entry
  • 00:27:49
    at 618 exit at 236 and over time you
  • 00:27:54
    will build confidence and you
  • 00:27:56
    consistently will see
  • 00:27:58
    the results of your trading because if
  • 00:28:02
    you are just going into the market and
  • 00:28:04
    trying to read it and trying to predict
  • 00:28:07
    this move and that move and you taking
  • 00:28:10
    trades randomly you will never know what
  • 00:28:14
    your trading will look like over the
  • 00:28:17
    long period of time and the only way to
  • 00:28:20
    know that is to execute the same thing
  • 00:28:24
    over and over and over again and I did
  • 00:28:27
    not not switch the
  • 00:28:29
    strategies I didn't hop around or
  • 00:28:32
    anything like that all I did is simplify
  • 00:28:36
    for here if I go back to this uh gold
  • 00:28:40
    chart there is an SBS the swing breakout
  • 00:28:44
    system that I talked about in my
  • 00:28:46
    previous video which is there is our
  • 00:28:50
    breakout here we have one which is the
  • 00:28:54
    breakout two which is the first step
  • 00:28:58
    we have number three over here and we
  • 00:29:01
    come back to liquidate the first stop
  • 00:29:04
    over here right we liquidate first stop
  • 00:29:08
    that's number four we have a
  • 00:29:11
    reversal that's number five and our
  • 00:29:15
    Target is over here which is
  • 00:29:20
    236 instead of tp2 so I refined the SBS
  • 00:29:26
    even further by not letting myself wait
  • 00:29:31
    until tp2 so I notice that most of the
  • 00:29:36
    time we reverse or we pull back right
  • 00:29:40
    before the exit at tp2 which is number
  • 00:29:44
    six if I'm talking about SBS I realized
  • 00:29:48
    that and I was like well why not just
  • 00:29:50
    take one to one RR why not take a entry
  • 00:29:54
    here and exit here which would be the
  • 00:29:57
    most optimal I believe here's another
  • 00:30:00
    one 15 minutes right we have a
  • 00:30:03
    breakout we have number one which is the
  • 00:30:06
    breakout number two the first pullback
  • 00:30:09
    the first stop number three right and
  • 00:30:14
    number four liquidates and Taps into the
  • 00:30:18
    618 now we had a deeper retracement but
  • 00:30:22
    we not panicking because our stop loss
  • 00:30:24
    is over here that's why our stop loss is
  • 00:30:28
    over here so because I don't want to
  • 00:30:29
    think about it I just want to place a
  • 00:30:32
    limit order without being emotional
  • 00:30:35
    without stressing about it and I want to
  • 00:30:38
    exit quickly right so we have a reversal
  • 00:30:42
    here and it goes right into the 236 and
  • 00:30:45
    look what happened pull back so do I
  • 00:30:48
    want to take profit or do I want to wait
  • 00:30:51
    maybe for this tp2 over here for the
  • 00:30:55
    number six SBS so what I did I refined
  • 00:30:59
    it I refined it and I simplified my
  • 00:31:03
    execution even further so this is how it
  • 00:31:06
    looks like and let's call it golden SBS
  • 00:31:10
    because it's a golden pocket
  • 00:31:13
    0618 and like I said we have a breakout
  • 00:31:16
    1 2 3 four liquidates number two and
  • 00:31:19
    number five is reversal we have a limit
  • 00:31:22
    order at the 618 and we have a TP at the
  • 00:31:26
    236 and and that's it that's the model
  • 00:31:31
    that's the most mechanical model that I
  • 00:31:35
    can come up with and this is really it
  • 00:31:39
    without SBS the SBS is a great
  • 00:31:42
    Confluence for this model so with that
  • 00:31:45
    being said thanks for watching go back
  • 00:31:47
    Des this model share your thoughts and
  • 00:31:50
    questions on Twitter at stoic TA or ask
  • 00:31:54
    your questions Down Below in the comment
  • 00:31:56
    section and I will see you in the next
  • 00:31:58
    one good luck
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