My Simple 5 Minute "First Candle" Scalping Strategy (Backtested 1000 Times)

In this video, I'm going to show you an amazing scalping strategy that focuses on the first 90 minutes of each trading session. It's called the one box sculper. It's mechanical, repeatable, and best of all, it's simple, so even a new trader can learn this. After 9 years of trading, the most important lesson I've learned is the first 90 minutes is where 90% of my profits come from. In this video, I'm going to show you how to use the one box sculper strategy in three simple steps and then I'll back test it to show you real results. All right, so for the one box sculper to work, it is very simple and only requires the first candle. Now, for myself specifically, I try to trade for the first 90 minutes of the day. Therefore, using the strategy, the goal is to find a simple, highquality winning trade within the first 90 minutes. And of course, this works on all different markets. Here we can see we're on the charts, and this shaded area here is pre-market. Now, for this system to work, what we want to do is look at the first candle that's going to form at 9:30 a.m. Eastern. This is the New York session open. And therefore, the 9:30 a.m. candle is going to be the most important. And for myself specifically, if we look up here, I am currently on the fiveinut chart. This is because on the 5-minute chart, we want to wait for the first fiveinut candle. If I play out the day here, we can see this first 5-minute candle forming. And all we're going to do is take this box tool and we're going to mark out the high to the low of the first fiveminut candle and we can simply mark this box out. Now in between this box is restriction and we do not want to take anything as this is where the low probability and low quality trades are. However, the first step for the strategy to work is simply going to the 5minut time frame and marking out the high and low of that 5minut candle in one box. Now from here what we're going to do is go over to the one minute time frame and on the one minute time frame this is where I execute. Now if you're comfortable trading higher time frames that's fine as well. However, for myself personally, I do trade on the 1 minute time frame. Now that we're on the 1 minute time frame, it's time for step two. For step two, because we're not coming into the day with a bias or any over complication, and remember, I'm showing you this example on SPY. This could also be ES if you trade futures. However, this works on all instruments. And now, what we're going to be looking for is simply the break either below this level or above this level. Now, in this video, I'm also going to explain the mistakes that traders make when trying to execute the one box scalper strategy. But with this being said, now all we're doing is waiting for confirmation of a breakout to either side. In this example, you can see we got a strong candle closure for a move to the downside. Now, it is very important that the candle closes below or above the box strategy. In this example, we can see since this candle did close below and we got weak price action. Well, now this indicates to us that we are not going to be looking for an upside move, but rather we will be looking for a downside move. How do we actually enter the stock? Well, for me to enter the stock, it is very simple. I am now looking for the lowest risk point on this entire chart. Remember, we don't have any key levels. We're keeping this very simple and elementary because the more simple your trading is, the easier your executions become. Now, with this being said, for me, the retest is going to be back into this box, looking for continuation back to the downside. So, for step one, we've marked out the box. For step two, we've confirmed that the move is to the downside. And for step three, now we are looking for the retest. Let's see if we can get this retest for step three. Now, here's the retest that we're getting for step three. It is very important and this is the biggest mistake traders make is they don't understand how to read the retest and understand whether it's a high probability retest or a low probability retest. So let me explain some of the candlesticks that I'm going to be looking out for when we're coming into these retest levels. All right. So for the bearish retest, which simply means we're looking for the stock to move down and this is going to be breaking below the box. Of course, there is two specific candlestick patterns that I like to look for. Number one is going to be this inverted hammer or shooting star candle. And this is going to be when we're retesting or pulling back up. Let's assume the box is right here for our actual retest. Well, we can see that this candle came into that box. We retested and then moved back to the downside. This is one of my most favorite patterns when we're looking at that bearish side move. Now, the reason that it works so well is because of this wick over here. This wick was at one point looking like this up close candle. So this candle that we have here was actually at one point just a green bullish candle that looked exactly like this. However, then sellers started stepping in and sellers overpowered buyers and brought this stock all the way back and closed it at the low of the candle in the box. And because of this, this shows that sellers overpowered buyers when we're already bearish and broke below the box's structure. And this is going to be a setup that I'm going to be looking for on the candlestick patterns. Another bearish setup that we can look for is if we had the box up here and we were coming back for the retest with these green candles. This green candle may even potentially come into the box. But if the next candle is a big red candle and the big red candle's high and low is bigger than this green candle, well then this means that this is a bearish stock. And once again, sellers are overpowering buyers because buyers tried to bring the stock back up, but sellers had a huge candle closure back to the downside. So, this would be another bearish example that I would be looking to enter. And for the bullish side, which simply means that we're looking for the stock to move to the upside, and this means that it broke above the box's retest level, then I would be looking for the exact opposite. And that's going to be a hammerstick candle when we come back into the box for continuation to the upside. And rather than a big red candle this time, I would be looking for a smaller red candle when we're pulling back and then a big green candle coming out of that box for a move back to the upside. and in the most simplified way. These are the candlestick patterns that you should be looking out for when you're looking for these retests. And this is a very important step that you need to remember. So, make sure to save this video so you can come back to it. And if you're getting value out of these videos and want me to talk about the top 10 mistakes traders make while trying to trade the opening range, make sure to like this video. If this video gets 3,000 likes, I'll make a full in-depth video on the top 10 most common mistakes traders make that make them fail the opening range strategies that I talk about. Let's go back to step three. So, now that I just explained the candlesticks that I'm looking out for, as we can see with this green candle, this is a very bullish candle. Therefore, for me just yet, there is no entry. I need a big red candle for this retest or I need a hammerstick candle. So, let's play out this trade and see if we can get that. And as we can see, the very next candle is a very weak hammerstick candle. Now, this isn't the full bearish engulfing candle that I showed you earlier. However, this one is very, very bearish. This is because once again, buyers tried to bring it up. However, sellers brought it all the way back down and we're closing it near the low of this candle. So, this is where I would be looking to enter into a short position. My stop loss is simply going to be a break back above this down close candle that I'm entering in on. Every time we're going to target a simple fixed to our multiple. And all this means is whatever dollar value we're risking, in this example it's $860. We want to make double of that in profit. In this example, that would be $1,750. So, let's enter into the trade here and let's see exactly what happens. As we can see here, this trade worked out very nicely. We were able to come all the way back down at 10:02. We were done the day by taking the simple trade. And this was a 32-minute day by simply understanding the one box scalper strategy. Now, some of you may be thinking, "This is cherry-picking. He showed only one example that makes sense." In this video, not only am I going to show you the back tested results for this strategy, but I'm also going to show you a live session where I was trading this live in front of thousands of traders to help you understand exactly how to trade it. And that's going to be a very important part in this video that you do not want to miss. But with this being said, if you believe that this is a cherrypicked example, let's just go over to the previous day. Here is the previous day that we have. And what we're going to do is once again the exact same thing. And once again, this time I'm on the 1 minute time frame. So that's going to be the first four candles from 9:30 to 9:34. That makes up the first 5minut candle. And we're simply going to box that out. That is step one. For step two, we're going to wait for the stock to pick a direction. It needs to break to one side. In this example, it broke to the downside. Therefore, in this example, we will be looking for a retest back into this box for continuation back to the downside. Let's see if we can get that retest. And remember, we need weak price action for this retest. Let's see if we can get this retest with the one box sculper. As you can see on this retest, this is why it's very important to understand the candlestick patterns because we are getting very bullish price action. We cannot enter this trade here because the price action is too bullish and we need to wait for some sort of entry signal with weak price action. Here we can see that this trade simply moved back to the upside and therefore this day is invalidated but we were able to avoid a loss by simply understanding the candlestick patterns that we are looking for and that was only the bearish candlestick patterns. Now, as we can see here, once we flipped on the bullish scalper, the best part about this strategy is now we can see we are getting the retest and this is a proper retest after a big move up and breaking above this level. So, we can look to enter into the trade here. Our stop loss is simply going to be a break of that down close candle and we need at least a 2our multiple. And remember, this is a fixed profit factor. At this point of the video, you should see how repeatable and simple this system truly is. We're risking about $300 to make $600 of potential profit. Let's play out this trade and see exactly what happens. We can see a little bit of consolidation. But just like that, at 10:06, we were done the day. This would have been a 36-minute day by understanding this one box scalper. But some traders may think that this is still cherrypicking. So, we can go over to the previous day as well. And on the previous day here, once again, we're simply just going to play out the first 5 minutes. Once we play out the first 5 minutes here, we're going to box out the first 5 minutes. And now, we're simply going to wait for a break above or a break below for step two. Buyers are now starting to step in. This is a very aggressive move back to the upside. What we're going to be looking for is now the retest back into the box for continuation. Remember on the retest we need to see strong price action and hopefully you can see how repeatable and mechanical this setup is. Every single day it sets up. It is just our job to execute it properly but most importantly keep it simple. And here we can see we just came back for the retest. We got a hammerstick candle on this retest level. Now we can look to enter in on this hammerstick candle because buyers are stepping in. But right before it we got a big downlo candle. So, for me, what I'm going to be looking for is a little bit stronger price action just for confirmation. And on this day, we can see we got that big bullish green candle. Not only was this an engulfing candle of this previous downlo candle, but this was also a hammerstick candle. Once again, this is just confirming that move to the upside. Our stop loss can be a break of this upclose candle, and we're looking for that fixed tor multiple. In this example, we're risking about $890 for about $1,440 of potential gain. Let's play out this trade and see exactly what happens. And as we can see, this day right here, if we entered using the one box scalper strategy, we would have been done the day at 10:07. This would have been a 37minut day by understanding how to use this one box scalper strategy. Now, let me show you one more example. And remember, we've been going through this every single day. I'm not skipping days. This is day after day using the same strategy. So for this day once again all we're going to do is play out the first 5 minutes. And here we're going to box out that first 5 minutes and we're simply going to wait for the stock to break to one direction. And here we can see we broke above. We came back for the retest. Now this was a bigger downlo candle. So we had to wait for a little bit stronger price action confirmation. And as we can see that's exactly what we're getting right here. We can look to enter into the trade here. Our stop loss is simply a break of that structure and we're looking for that fixed 2R multiple. In this example, we're going to be risking about $720 for about $1,390 of potential profit. Let's see exactly what happens on this trade. And just like that, we would have been done this day at $951. 21 minutes into market open by simply understanding how to use the one box scalper. And the key here is every single day I just showed you was backto back. So, this wasn't cherrypicked, but it was the one box scalper every single day. Now, I actually back tested the strategy for two months straight, and these are the results I got. $10,490 in about 29 trades, 69% win rate, 2.58 profit factor, 90% daily win rate, and you can see the total P&L over this period of time, slowly moving to the upside. Of course, every strategy does have losses and dips. I've been trading for 7 years, so this is definitely not a get-richquick type of strategy. However, over a long period of time, this is a strategy that's helped me achieve my results in trading. But now, let me show you a live example of how I traded this one box sculper strategy in the real markets. All right, so here's a live session where I was trading in front of thousands of traders explaining this exact strategy in real time. And as we can see, this example is on SNDK. Once again, this strategy works for any instrument. And this is on the 1 minute time frame. What I did here was mark out the first five minutes with a box. So this is on the 1 minute time frame. So 1 2 5 and we simply mark out the 5minut high and the 5-minute low. Now I know that in between this I don't want to take any trade. However, what I'm looking for is buyers to step up above that one box strategy for a move back to the upside. So once again really just looking for buyers to step in for that one box strategy for continuation to the upside. Let's listen into exactly how I executed how I looked for buyers to step in on the candlestick price action because that's very important. and then we'll see whether the trade worked or didn't work. SNDK, we can look for this 5mm high retest, this 461 level, right? If SNDK comes back into your 5mm high retest, keep an eye out on this 461 level for a move back up into high of day if buyers do want to step in. This is once again going to be that 5m minute high retest. I'm going to keep an eye on the 465 calls on SNDK. So once again on this 5minute high, I'm waiting for buyers to step in. I talked about how I'm waiting for the 465 calls for a continuation to the upside. Let's see if buyers end up stepping in for this entry. I need some buyers to step up with Q's. Q's a little bit of buyers stepping up here on QQQ. All right, I'm taking the 465 calls on SNDK. I took the 465 calls on SNDK, the 465 calls on SNDK. So, here you can see off that one box strategy. Buyers are now stepping in. We're getting that bullish engulfing candle here as well. This is where I entered, letting everyone know that this is where I'm entering for that move back to the upside. This is the exact one box strategy that I just explained to you guys in this video. Let's see exactly what happens. And as we can see from our one box strategy right here, when buyers stepped in, we stepped in as well. And we were able to ride this trade back up into our key level. This is where I took the majority of my trade off. And this was a very simple trade. And once again, this was done before 10:00 a.m. Therefore, this was a 30inut day by understanding the one box scalper strategy. And remember, I trade live every single day and break down every single trade for free on my brand new YouTube channel. Click the video on screen now or click the link in the description to make sure that you can see every single trade I take this year. If this video helped you, make sure to leave it a like. If you have any questions, put them in the comments down below. Make sure to subscribe to the channel. Follow me on Instagram and Twitter for more education. and I will see you next week with a brand new