Full transcript (4672 words)
I've spent years testing every single five minute scalping strategy under the sun, and this is the only one that I found that actually consistently works. In fact, it's the same exact strategy that I recently used to generate over $18,500 in a single month. And I did all that by literally just trading this strategy one time a day. So, in this video, I'm going to walk you guys through the whole strategy. I'm going to give you guys the exact sevenstep checklist that I use as well as multiple trade examples. And then at the end of the video, I'm going to show you guys two weeks worth of back tested results so you can see the proof for yourself. Now, look, I'm going to be 100% honest. It's important that you understand that trading is not a get-richqu scheme. It took me over 3 years of trial and error to get to where I'm at today. But if I was starting all over from scratch right now, this is the only 5-minute strategy that I would ever use. So, with that being said, let's hop right into it. Now, before we hop into the checklist, I just want to let you guys know why this strategy even works. And the reason is because it is dummy proof. Meaning, like it's extremely hard to mess up. Even if you know nothing about trading, you trade one pair. It's at the same time every single day. It works for prop firm traders or live traders. It doesn't really matter. And because it's one trade a day and it's during one time window and you're only trading one pair, it's great for anybody that, let's say, is in school, has a job, or has just a busy schedule where they can't be glued to their charts for freaking 13 hours a day. So, that being said, let's hop into the checklist. All right, so here we are. This is my 5minut London breakout strategy. So, if you did not know, there's something called a London session. There are different sessions, right? Think of sessions as times when people trade. So, we all know that we don't move the markets. Us as retail traders, individuals, even if we're trading with $100,000, a million dollars, even $10 million, we don't really move the markets. It's the banks, it's the hedge funds, private equity groups, it's all these huge people who have billions of dollars that they're trading with. And these people work specific times, just like you probably have a 9 to5 or someone you know probably has a 9 to5. And outside of those hours, you're not working. Same thing when it comes to these bankers. These bankers aren't trading at freaking 3:00 in the morning. They're trading from when they're on the job, when they're on the clock, which in America is most of the time from like 8:00 a.m. up until 5:00 p.m. or whatever it is, or 9:00 to 5 or 8 to 6, whatever their time zones are. And that creates these things called sessions. So in America, we go based off the New York session. In London and most mostly like European countries, they go based off the London session. meaning most of the banks and the hedge funds are active during the London session which we're going to get into the time for that in in an easy way for you to actually see that. But then there's a third session as well called the Asia session. That's mostly like where Japan and and China all that's when they usually trade. But this strategy has to deal with the London session because the London session is right before the New York session. So as we can see here this strategy is a simple breakout of the London session. We want to look at all the candlesticks and all that price has done during the London session. And then since New York session is right after the London session, we are taking advantage of the things that happened during London session and we are using that as the tell for where New York session will go. And don't worry, like I said, we're going to go onto the charts and we're going to go over actual real life examples so you guys can see this. Um, but I want to go through all the rules and things here first so you guys understand it plainly before we go on the actual charts. So, as we can see here, London session starts from 3:00 a.m. Eastern Standard Time and goes all the way till 12:00 p.m. Eastern Standard Time. And that's important. We're going to see later on. I mentioned earlier in the video that we're only trading one pair. The only ticker that we are looking at for this strategy and the only ticker that I trade the strategy with is NQ. Nothing else. I'm not looking at gold. I'm not looking at ES. I'm not looking at YM. Only NQ. And then, as I mentioned, we're only taking one trade per day. Meaning, whatever side breaks first, whether it's the top or the bottom, we're only taking that trade. We're not going to take both trades. So, that's how I can make this money and go about my day and not have to sit and look at my charts for freaking 17 hours a day. So, let's get into the first step on our sevenstep checklist. So step one is we're going to mark off the London session because we want to see what price action has been done and completed during London session. Now a simple way to do it is if you go on Trading View and I'll show you guys where to find this. There's an indicator called Killzones. It's by a person named Oscar V, right? I'm going to show you guys where to find this when we go on the actual charts. But the key is not to draw it for the entire of London session. Remember London session is from 3:00 a.m. to 12:00 p.m. Eastern Standard Time. But we only want to see the price action that has happened from 3:00 am to 900 a.m. Eastern Standard Time because 9:00 am is when New York session starts. There's going to be a window between 9:00 a.m. up until 12:00 p.m. where London session and New York session are both active. That's when you see the most amount of volume during the trading day. That's when you're going to see the best opportunities and that's when we trade that strategy. But when we're marking off our London session and looking at the price action, as you see in this example right here, we only want to mark off what happened between uh 3:00 a.m. and 9:00 a.m. and we're simply just drawing a box from the lowest part of where price was during this London session, which is right down here, and the highest part, which is right up here. That's step one. Step two is we're waiting for a 5minute candle to break outside of the box that we just drew. So, if it broke above the high point up here, we're only going for a buy. If it broke below the low, we're only going for a sell. Either way, we're waiting for this all on the 5minut time frame. You don't need to go to the hour or the 2 hour or the 4 hour or the daily chart. We're doing all of this on the fiveminut time frame. So, as you see in this example right here, the candlestick broke outside of our box. We're not waiting for price to close. As soon as price breaks outside the box, we're entering. So here, like I said, we're taking the entry the moment that it breaks. So as soon as that 5minute candlestick breaks outside the zone, we enter. Now, keep in mind, here's a rule of thumb. I have some traders that don't do this, but the win rate for me has went down if I don't wait until after 9:30. So let's say price breaks, and we'll go over some examples later on, but let's say price breaks outside of the London high before 9:30. Let's say it does at 9:05 or 9:10. I won't take that trade. The reason being is because at 9:30, that's when the stock market opens. When the stock market opens, the New York stock market, that causes price to have a huge spike of volume. So, I'd rather wait until that huge spike of volume is actually happening versus getting in it before and then that spike goes in the wrong direction. So, I only take my entries after 9:30 Eastern Standard Time. Step four is once you enter the the trade, which like I said is right above when it breaks outside of the box, whether it's breaking the high of the box or the lower of the box. As soon as we enter it, we are putting our stop loss for buys right below the candle that triggered the entry. And I'm going show you guys examples of it, like I said, on the charts in a second. But if we entered for sells, meaning if price broke below our London low, we're entering our stop loss or we're putting our stop loss just above the candlestick that actually triggered our entry, meaning the candlestick that we actually entered on. Now, step five is we're always getting a 2:1 risk-toreward ratio. I'll show you guys what that looks like on the charts. Don't worry if you don't know, but we're always going for a 2:1 risk-toreward ratio, which means if we're risking a h 100red bucks, when we win, we'd make $200. If we're risking $1,000 when we win, we'd make $2,000. If we're risking $10,000, when we win, we'd win $20,000. Whatever you're risking, when you win, you'll win two times as much as you are risking. That's all that means. And then step number six is realize that we're only taking one trade per day, which means that whatever side breaks first, that is my trade. If I win it, I'm done for the day. If I lose it, guess what? I'm also done for the day. If the price wicks the other side later, we do not take that second trade. This is a oneand done trade. Super simple, super repeatable. And then step number seven, let's say price is just consolidating like it's going up and down and it hasn't broke any of our zones. I'm not taking any trades after 11:00 am. If it's been chopping around in that same range of London session that we drew, in that same box that we drew, and it doesn't break it before 11:00 a.m., I'm not taking the trade because with breakout strategies, you need volume. And honestly, after 11:00 a.m. Eastern Standard Time, the volume starts to die down. You're not going to get as volatile of moves, and you really need that uh volatility and that volume for this breakout strategy to work good. So, here's another recap of the sevenstep checklist. If you want to take a screenshot, print this off, freaking tat it on your forehead so you can memorize it. But it's simply marking the London session high and low. Wait for a 5-minute candle to break either the high or the low. Take an entry as soon as it breaks it. Put my stop loss either above the candlestick that we entered on or below the candlestick that we entered on. Then, we're always putting our takerit to a 2:1. We're only taking one trade per day and we're taking no entries after 11 a.m. Eastern Standard Time. These are the rules. They're super simple. Now, let's actually go on the charts and see what this looks like in real life. All right, so here we are on the charts. We're just going to go through the exact step uh checklist and I'm going to show you guys exactly how it plays out. So, first of all, I told you guys about that little cheat code about adding that indicator so it easily shows you where London session is and when New York session starts. So, if we press indicator up here and just type in kill space zones, you'll see this one by Oscar vs right here. Just press it and then it'll go onto your chart. You see this yellow line and this white line for you. It might look slightly different because I have changed the settings. If you want mine, well, it will look a lot different. It'll actually have like Let me show you what it'll look like right here. Hold on. It's going to have a bunch of these colors and stuff. It's going to look like this. To me, this is ugly. This red line is when Asia session starts. I don't care about Asia session. I don't want all these colors and stuff. So, I actually changed mine. So, if you want if you want yours to look like mine, you can copy these settings that I have on my Killzone. Just have New York kill zone on and London Killzone on. Then, under style, just have the background color on for that. You don't even need this one. And then have this background color on as well. And then your charts will look like mine. But the cool thing about this is that if we look over here, this is when London session starts and then this is when New York session starts. So all we're simply doing is we're drawing a box from the lowest point of when London session starts all the way up until the highest point before New York session starts. And it's just like that. And then we're dragging it across. And we're simply waiting until after 9:30 Eastern Standard Time. If we get an entry after 9:30 Eastern Standard Time, meaning price breaks above it or below it, we enter the trade. Now, in this instance, the high is right here and we broke it right here. Let me change this like this. So, we broke it on this candlestick right here. So, we would enter as soon as it breaks it for a buy position. Our stop-loss would go below the candlestick that we entered on, which is this candlestick right here. And if we look at risk/reward ratio, right now it's at a 0.86. 86. We need to drag our takerit until it shows us a 2:1 risk-to-reward ratio, or it really just shows us a two risk-to-reward ratio. And as you see, this trade ended up hitting very nicely. Just like that. Super simple trade. I didn't have to do anything except for wait for it to break my zone and it hit TP. Now, let's go through a couple more examples because I want to make sure you guys truly understand this and you know what to look for so that when you do go and back test it, which you should go back test it, don't just take my word for this. Go and back test this for months, years. Honestly, I always suggest for all of my inner circle people to back test every single strategy until they've gotten to 300 trades of that strategy. And that's when you really start to master the strategy and understand it. If you don't know what my inner circle is, it is where I trade live every single morning. not just me, but four other extremely profitable coaches. You don't just get access to Watch us trade live, but you get access to my entire library of course material that will teach you everything that I know about trading. Every single piece of knowledge and wisdom that I've gathered over the last 8 years of trading has been put into my inner circle. That way, you're not just being able to watch us trade and trade with us, but you know exactly why we're entering each trade. You know exactly why each trade is playing out. That way you're able to replicate it for yourself. In the inner circle, you also get access to our dedicated trading psychologists because if you did not know, trading is majority a mental game. So, I put the inner circle together. I put everything inside the inner circle that I wish I had when I first started off trading that would have helped me reach the point that I'm at now much faster. It would not have taken me 3 years. I literally have people inside of my inner circle that after 6 months, they're starting to get their first five figure payouts start coming in consistently. So, if you're someone that actually wants to take trading serious and be able to have somebody that's been where you are and it's kind of at the point that most people want to get to when it comes to trading, I'll leave a link for inside description of this video. Keep in mind spots are extremely limited. If you go through the comments of any of my videos, you're going to see a lot of people complain about there not being any spots in the inner circle. That's because I have to keep it exclusive for people who actually want to get good at trading. If you're just someone that just wants a few hundred bucks a month or whatever, then my YouTube videos are 100% enough and you can take your time and kind of build from there. But if you're someone who wants to be able to scale fast, the inner circle might be for you. So, I'll leave a link for it inside the description of this video. Speaking of, this is actually one of the trades that one of my students inside the inner circle had actually taken, but let's go to a day before, right? This is literally the morning before this one. This was Wednesday. This is Tuesday. We did the same exact thing. We marked off the low and we marked off the high. What did we wait for? We waited for price to break below that low of London. As soon as it broke below it, we entered. We had our stop loss above the candlestick that we entered on, which is right here. We had our takerit set to a 2:1 risk-to-reward ratio like you see here, at least a two next to the risk-to-reward ratio right here. And the trade ended up hitting within what 5 minutes. Super simple, super fast trade. We got in and out on that one very very quickly. Let's go through more examples. You're going to notice that sometimes there aren't any trades and there are no trade days sometimes because if you remember what we talked about, we need to see an entry after 9:30 Eastern Standard Time. We drew up our low right here and we drew up our high, but this candlestick broke it and this is at 9:05 Eastern Standard Time. So, this is before we're supposed to take entries. So, for today, this is a no trade day, meaning I didn't take any trade. As soon as it was invalidated, I closed my computer up and I'm not looking for this setup anymore. Now, let's go through another setup here. This is another example of a no trade day. So, if we mark this all up, right, we mark up the low right here. And then, if we mark up the high of London session, the high goes all the way up to here. So, let's mark this up. This is the highest point before the white line started right here. But again, what ended up happening, price broke above it before 9:30 Eastern Standard Time. So, this is again a no trade day. And that's fine. You're going to have those days. And if we had taken this trade, look what would have happened. We would have entered it right here. We would put our stop loss below here. And we would not have gotten to our 2:1 risk-toreward ratio. Our trade would have lost. That's why we have these rules put in place. That's why I have these rules put in place. These are not just random rules. I have formulated these to give me the best chance possible at seeing success with this strategy. Now, let's go to the day before. This was a loss. No, no strategy is perfect. If you see any trader come on here and say their strategy always wins or say that they never lose, they're lying to your face and they're calling you stupid for believing for they're calling you stupid because they think that you believe the fact that they would never lose. I would never do that to you. Strategies are going to lose. That's why it's important that you have proper risk management. I have so many videos on my channel about risk management, but that's not what this is about. But I just wanted to show you guys the reality. This strategy will lose sometimes. Don't expect this to always win. So, we did the same thing. We marked off the high. We marked off the low. We entered as soon as price broke it, which is right here. Price broke on this red candlestick. So, we put our stop loss above that red candlestick. We put our takerit until it said a two to one at least, and price got close to our TP, but then it reversed and it ended up taking us out the trade. That's just part of the game. That's just that's just going to happen unfortunately sometimes, but that's just real. I want to be completely and totally real with you guys. And that's why I tell you guys, no matter what strategy you guys see me talk about or really any trader talk about, go and back test it for yourself. See the actual real data. We're going to go over the data here in a second, but see what the data is for yourself. But this was a losing trade right here, and that's fine. If we go to the time before, we can see again what happened, right? This is not marked off. We can mark off our high, which is right here, and our low, which is right here. Let's drag it across. What ended up happening? Price broke it right on this candlestick right here. So, we would have entered right here. We would have put our stop loss right below the candlestick that we entered on. We would have put our takerit at a 2:1. And this trade would have also lost. This is actually a perfect example of why I love this strategy so much. You just saw we just lost two trades in a row. And this is within one week's time, meaning seven days time. So in one week's time, we had one loss, two losses, no trade, no trade. One win and two wins. Even though we had two wins and two losses, we're still profitable. Do you know why? Because no matter what, every single trade that we're taking, we're every time we win, we're winning two times as much as we lost. So let's say we risked $1,000 on each of these trades. These two trades, I would have lost $2,000 total. $1,000 here and $1,000 here. But both of these wins, I won $2,000 of them each. So, I would have won $2,000 here and I would have won $2,000 here. That's how you can see that this strategy has absolutely killed it for me because I don't need to win every single trade. I can lose multiple trades in a row and just take a couple wins back to back and I made all my money back plus more. Now, we've went over a bunch of examples. I want to go through the stats for you guys on these back tested results. So, let's hop into them. All right, so here we are on the back tested results. I started this account with $10,000 in it, and I was able to make $7,471 on this account within two weeks. This is with me just risking $1,000 per trade. As you can see, the total amount of trades I had was nine trades over the last two weeks with the win rate of 66%. I didn't win every single trade. I actually lost three out of the nine trades, but I was still able to profit over $7,000 by simply risking only $1,000 per trade. If you're someone that has a $10,000 account, risking 1% or risking sorry, $1,000 per trade might be a lot if you're trading on a $10,000 live account. But if you have a prop firm account, let's say a $50,000 prop firm account, you can risk $1,000 per trade and be perfectly fine. If you have a 100k funded account, you can risk $1,000 and be perfectly fine. But even if you had, let's say, $5,000 in a live account and you just wanted to risk $400, $500 per trade, you could still make $3,000 or $4,000 every two weeks trading this one simple strategy in a month span. That's pretty good money for doing one strategy that takes three freaking or four minutes out of your day to mark up and get in and get out in the same day very very quickly. So you can see that the numbers are very very appealing once you start putting the math behind it. We can scroll down here and see the average risk-to-reward ratio is a 1.75. The reason it's not a two uh risk-to-reward ratio on average is because one of the trades I had to cut short because it took too long and the market was about to close. But we can come over here to the calendar and see that I'm winning 2K every single time I win a trade. I'm losing $1,000 every time I lose a trade. That's how I'm having and realizing that 2:1 risk-to-reward ratio with this strategy. So again, it's as simple as following this sevenstep checklist day after day, time after time, not switching it up, not trying to change any of the rules, just staying consistent with following this. And this has killed it for me for many years now. So now you've seen it. You have the exact fiveminute strategy that I use to generate thousands of dollars every single month. And the best part is is that I'm only trading one time a day. I'm only trading one pair. I don't have to worry about having 300 million indicators. I don't have to guess about anything. I don't have to sit in front of my charts for 17 hours a day. It's just a simple sevenstep checklist, a specific time window, and a clean breakout setup that prints when I follow the rules. But let's be real, as I mentioned before, even the best strategy in the world won't change your life if you're only trading with a couple hundred bucks of your own. The strategy is the easy part. We just went over it. The hard part is having that capital behind it to actually turn this into real money. That's why I made this video right here. In it, I show you exactly how I use other people's money to scale this same strategy in pulling payouts every single week, even if you're only trading with a few hundred bucks. So, click this video right here and I'll show you the path on how to use other people's money to trade with. I'll see you there.