The Only Trading Strategy You'll Ever Need

I have a three-step strategy [music] that I've traded thousands of times on hundreds of different stocks and commodities, and every month that I decided to run it in the past 10 years, it was profitable. I don't have a name for it. I haven't seen it anywhere else. There are no indicators. There are no complex setups, just pure price action. And by the end of this video, you will know this strategy so that you can take trades just like this one and make huge profits. To jump right into it, the first step involves market structure. Now, this is arguably one of the most important steps because if you this up, it will ruin the whole strategy. One of the very first things you learn as a trader are uptrends and downtrends. A chart that makes higher highs and higher lows is in an uptrend, and a chart that makes lower highs and lower lows is in a downtrend. Simple enough. Everybody knows this. You might be thinking, "Why are you even going over this? I already know this." What if I told you that you're probably doing all of this completely wrong? Let me explain. So, let's say that we have a chart that does this, making higher highs and higher lows. And as I said, this makes it an uptrend, right? But then something interesting happens. The price starts heading downwards, and in that process makes this low, and price breaks right through it. And it's in this exact point that most traders make a mistake. Since the price broke this low, a lot of traders think that we are now in a reversal and the price is in a downtrend. And as a consequence of that, they start looking for short trades because they now think that the price is going to go lower. But what if I told you that this chart is still fundamentally bullish? You see, yeah, sure, price made this low, but in fact, this low is actually not a low at all, or at least not a confirmed one. And why? Well, because the price never broke the valid low, which is right here. I want to make this very clear. In order for a low to be validated, it first needs to break the previous high. If you do not understand this part of the strategy, the strategy will not work. So, let's say that the price first actually did break this high. The moment that the price breached this level, this is now a valid low. It is a validated higher low. This means that the price is still in an uptrend, which means that we should only look for bullish trades. The only time we should start looking for short trades is if the price breaks this now validated low. But, if the price never broke this high, and this low was never validated, then the price can do anything here. It can go down, it can go up, it can go sideways, literally anything, as long as it doesn't break our last validated low. But, again, the moment that the price breaks above this high, that validates our new low. So, this is our rule. A higher high validates a new low, and it's vice versa in a bearish trend, where a lower low validates a new high. And the second rule, which I already explained, is that in an uptrend, we look for long trades, and in a downtrend, we look for short trades. And that's the first step, correctly identify if we are in an uptrend or if we are in a downtrend. So, on to the second step, which is to identify supply and demand in the market. Simply put, a demand zones takes place in an uptrend, and supply zones takes place in a downtrend. The simple rule is that you want to buy in a demand zone, and you want to sell in a supply zone. So, here, if we look closely, the market is going up. Since we saw a large push from the beginning of this move, it simply shows us that a lot of people wanted to buy from this point onwards. So, we can assume that if the price comes back down to this area, the big mass of traders will come back and buy in the same area again. And a supply zone is the exact opposite. Since we saw a large downward movement from this point on, it shows us that a lot of people wanted to sell at this area. So, if the price ever retests this zone, we can assume that the price again will move downwards as the big masses will start selling. These supply and demand zones is the core of our strategy, but we still have one more step in our three-step strategy. Let me show you some news real quick. Just last month, I revealed that you can automatically copy all the trades that I make, including this three-step strategy. You've been asking for it for years, and on January 1st next year, the first group of traders will be admitted. So, I do the trading, exact replica trades are automatically copied to your account. So, if I win, you win, and if you lose, I lose. So, go sign up. The link is in the description of the video. Okay, let's go back to the video and to a real-life example using this strategy that I just taught you. So, this is Google in August. So, look at this chart. We see price moving upwards, coming down, and then breaking this previous high, which means we have higher highs and we have higher lows, meaning that we are in an uptrend. And since we are in an uptrend, we are only looking to take long trades. So, when the price broke above this high, this became our latest valid low, and we will be in an uptrend for as long as the price remain over this valid low. So, now when we know this, we want to look for opportunities to go long, and we want to do that in a demand zone. If we were in a downtrend, we would look for opportunities to go short, and we would do that in supply zones. We find our demand zones by finding an area of consolidation, a point where price moves sideways before a sharp move upwards. So, as you can see in this chart, we had some consolidation right here, and then the price shot straight up. So, how I like to mark my demand zones is by using the candle right before that impulsive move. So, I take my rectangle tool, I find the area of consolidation just before that big move, I draw the zone from the low up to the high, wick included, of the candle before that big move, and then I extend it into the future. So, this is our demand zone, and again, we're not considering areas of supply because we are in an uptrend. And now what we do is we wait for the price to re-enter this zone, and this right here is where I would enter the trade. I would set the stop loss here, just right below the demand zone, and I would set the target profit here at the recent high. And uh this is what happens. Boom, we get an [music] easy winning trade. Let me show you another trade, and uh let me show you how accurate this strategy really is. So, let's break it down with another chart, and then I will show you some back tests of this strategy to show you how it actually has performed the last couple of years. Here's Tesla in August. We have a chart in an uptrend as we have uh higher highs, and we have higher lows. So, as we can see, this is our latest validated low. It became validated when price broke this high. So, this is the level that the price has to break down through in order for this to switch into a downtrend. And that is exactly what ends up happening. So, now we are in a downtrend, which means that we are looking to take short trades, and we're looking to do so in areas of supply. So, what we do is we mark our areas of supply. We look where the price was consolidating before a strong move downwards, and now we wait until the price comes back up into this zone, we enter a short trade, we set the stop loss right above the supply zone, and we set the target profit at the recent low. Boom, we got another easy winning trade. But wait, we are not done. Price created another area of supply, and we're still in a downtrend, so we wait for the price to come back up to this area of supply, we take another short trade, stop loss above the area of supply, and the target profit at the new recent low, and boom, another winning trade. But again, we're still not done. Price consolidated and created another area of supply. We wait for the price to come up to the area, we set the stop loss above, we set the target profit at the recent low, and boom, once again, another winning trade. But wait, there is more. We got another area of supply. We wait for the price to come up here. Again, we set our stop loss, our target profit, and we got another winning trade. That's the power of this strategy. It's extremely accurate because we're only trading in the direction of the trend. This is how this strategy has performed in the last 12 months on Nvidia, Alphabet, Bank of America Pfizer Meta, Tesla, Coca-Cola, AMD, Apple, and Microsoft. We're talking 80% win rate across the board. So now when you know how powerful this strategy is, let's go into the third and last step, which is going to improve this strategy even further. The last step involves risk to reward. Sometimes when you're using this strategy, you will get a trade that checks all the boxes, but when you place your stop loss and your target profit, you notice that the trade has a low risk to reward, just like in this example. And we only want to take this trade if the risk to reward is 2.5 or more, meaning that for every $250 that we are winning, we are only risking $100. So, even if the price follows step one and follows step two, but the risk to reward is less than 2.5, we do not take the trade. This one rule by itself increases the profit factor of this strategy by 84%. So, for our final example, this is meta in July. We have price making higher highs and higher lows, meaning that we are once again in an uptrend, which means that we are looking for long trades in areas of demand. So, price was consolidating right here before shooting straight up. So, this is our demand zone. We wait for the price to come down to this area again, and we enter a long trade. We set our stop loss below the demand zone, and we set our take profit at the recent high. And now to this last step, we need to check if the risk to reward ratio is more than 2.5. And in this example, our stop loss is 10 bucks, and our target profit was 28 bucks, which means that we have a risk reward ratio of 2.8. And this means that we are good to take the trade. Anything under 2.5, and we wouldn't take it. And let's see what happens. Boom. We see another winning trade. And that's it. Now, we just repeat this three-step process forever. But, I know you want to see me trade this live, so let's go. It's already after lunch, but that doesn't matter because this strategy works throughout the day, which is in contrast to many of my other strategies that trade the market open. So, I just scanned through a few different charts, and I think we have a pretty good setup here. This is Nvidia. It's uh 1:00 p.m., and these are our price movements today. I'm on the 1-minute time frame. So, since this morning, we have been in an uptrend as we had higher highs, and we had higher lows. And this low here at 225 was our latest validated low. It became the validated low when the price broke this high. But just a few minutes ago, we formally went into a downtrend as the price broke through this level. And yeah, this means that we are in a downtrend and we are looking for short trades and we're looking to take these short trades in areas of supply. So, what I will do now is to mark our areas of supply. I will look for when the price was consolidating before a strong move downwards. So, I will take the rectangle tool and we have one of these areas up here where price consolidated before this move downwards. And we have another area of supply here where the price consolidated before this move downwards. So, now what I want to do is just to wait and see if the price comes back up into this area. And if it does, I will enter a short trade. Okay, here we go. Price just came into this area. I'm quite eager to take a trade today, so I'll just jump into the short trade immediately here. I set the stop loss right above the supply zone and I set the target profit at the recent low. There we go. Boom. We have got another easy winning trade. Okay, guys. Price just came back up into this area of supply again. I'll take another short trade here. I will set the stop loss above the area of supply and I will take the target profit at this new recent low. Okay, guys. That took a bit longer, but it was another winning trade. We actually got another price consolidation here. So, I will mark this area as another area of supply. And let's see if we can squeeze in one more trade. Okay, price is once again up here in this new area of supply. I will enter a short trade. I will set the stop loss above and I will set the take profit at the recent low. And there we go. We have another winning trade. So, that's 100% win rate today, which is of course not always the case. But, this is what you do. You follow this three-step process. You run it forever, and you thank me later. Bye.