Tom Hougaard’s SRS Strategy is CRAZY

As some of you may know, I've been developing and working on a short-term sort of scalping intraday strategy. And this is using the 15minute candle breakout strategy. Now, this was originated by Trader Tom or Tom Hugat, but some people call an orb strategy as well, which stands for opening range breakout. So, over the past few weeks, I've been testing this, collecting some data, and just watching how the markets behave. And I decided that it was time to finally take this strategy live on a very, very small account with very low risk. And you can see here how well this has performed. I mean initially we already had a very very good start but what I want to do is just clarify that this account was very small capital. So what should have been a 1% risk always ended out being 2 3 4% because the account capital could not match the percentage or the minimum lot size that C trader or IC markets had. However since then I did deposit more so I can now use relatively strong risk management. So you can see here we had a really nice rise from what is this 3% up to 8.3%. And then we sort of drift around here sort of not really doing too much during this period from the 17th up until the 20th really. Then I went on a bit of a losing streak and this is where I realized that yes I should deposit more capital because these losses are hitting a little bit too hard in terms of the percentage gain and loss. So you can see I went from a 7.85% gain here all the way down to 2.69. 69. Now, this was only in three losing trades, so really it shouldn't been shouldn't have been that much of a loss. However, since then, we managed to pull it back massively. Uh, so you can see from 2.69 to 7 uh to 10.38 and now we're currently at 13.65. If we look over here on the summary, we can see again very small account. The profit here is only $145. However, of course, it's all about the percent gain, not the dollar gain. So the percent gain is really what I want to focus on here. Profit factor is 1.37 profitability 80.28%. Now this draw down again this was when the account was this initial balance here of $469 which wasn't enough to be trading the equities or indices markets as we all should know. Uh so yes that was a little bit uh of a oversight on my part but since then deposited a little bit more just so I can take that risk that I need to to ensure I can take 1% or 2% risk depending on the trade. So you can see here I have had quite a few trades. Now I just also want to clarify this isn't only with this strategy. I have taken a couple of other trades that are obviously from the elite traders discord a couple of signals and things but overall the win rate is very very strong sitting at 57 wins and 14 losses. So, as you can see here, this is where I've been building and collecting data. So, when I say collecting data, it's not a case of collecting the hard data of this percentage move and this and that. This is more just collecting how does this setup happen every day. What are the typical behaviors? What are the number of breakouts we can expect? Those types of things. And once I built something or I found something that's a little bit more substantial, then I can go and back test that exact model. So far all I've been doing is this. So there are three or four approaches actually here. So we can do the typical sort of sell above buy below. Uh and this is when we are accounting for the overnight range. We can do the buy above buy below again accounting for the overnight range. And the same here where we sell above and sell below. However, from everything I've done, the live testing, uh live account trading, collecting the screenshots so I can sort of compare and and monitor the markets, this one seems to be the best. Uh now, obviously, there is no setup that's going to give you a 100% win rate or that's always going to work. However, this one does seem to be able to deliver the best results based on what I found so far. And this is just very, very basic. This is completely ignoring the overnight range and this is just buying above the signal candle and selling below. Keeping it very simple. So here's an example here. You can say we've got the overnight range, but again I'm not really accounting for the overnight range at the moment. So we take this 8:15 to 8:30 candle. Once it closes, we draw our range and we wait for the breakout of this of this zone. Stop loss is always at the other side of the range. So if we are selling here, our stop loss is going to be at the London high. And this way, if the market decides to reverse and starts breaking this London high, we should then technically be buyers, not sellers. So, we can flip our buyers quite quickly. So, that's the idea. So, let me show you on Trading View an exact setup. Okay, so here we are on Tuesday the 22nd of last week. So, we draw a range. Remember, I don't use the range, but I do still draw it up again so I can continue to collect data and I can keep an eye on it because I do have a limited data set. So, maybe in the long term, this would work out more profitable. So again, for now, not using it, but I do still draw it up just for future reference points. So we take our 8:15 candle here. Remember, it opens at 8:15, closes at 8:30, and we draw our signal lines here. So we've got our London high and London low. This actually gives us a very, very small range here, uh, which can often lead to a very aggressive breakout. Again, just from the limited data I do have, I am looking to collect more on that. So we've got our overnight range, we've got our London high and London low. Now on our signal candle, remember this isn't the session high and low. This is just our candle high and low. So 8:15 is our time. That's when we start looking to execute. Oh, sorry 8:30 actually after the candle closes. So let me get my drawing tool here. So on this candle, we would have been selling here. Depending on how aggressive you want to be, you can sell as soon as the candle starts to break but doesn't close. If you want to be more conservative, you can wait for that candle close and start to sell there. Either way, it's not a huge deal. Um, but obviously depending on if you if you there's both pros and cons to both. If you wait too long, you can miss the trade. You know, if you have a massive bearish candle, you should have been selling uh as soon as it broke. Yes, you can miss the trade. On the other hand, if you don't wait, that candle could completely reverse. It could wick and then reverse to the upside. So, either way, you're not going to be uh 100% sure and set in the idea. It's more a case of how risk averse are you? How much risk do you want to take? So in this case, I personally generally do like to wait for that condor to close. So the trade would have looked something like this. With this strategy, we don't just set the stop loss and a takerit. What we like to do is capitalize on that momentum for a very short period of time. So I'm not looking to hold a trade from, in this case, from 8:30 all the way down here until 245. I've got no interest in doing that. So, what I'm actually looking to do is just catch a couple of points, but to make the most of those couple of points, I'm looking to sell, trail the stop, and then scale in again very aggressively. So, I might have scaled in here, and then trailed this stop loss to break even. And this one again would have been at the top of London high. And then we would do the same. We trail this stop to break even. And then we would enter again, maybe here, for example. Now, again, these aren't hard rules. I don't have a set rule list for scaling in just yet. Uh but I do scale in once the momentum is confirmed in my direction. I'm very very happy to take on extra risk. So this is the idea. We're always trying to be as safe as possible by aggressively trailing stops but also as aggressive as possible by scaling into one-sided of this which would be the sell side here. And then I'm not looking to catch this whole move as as I already said. I'm looking to just catch a couple of points. So in this situation I may have just cut my profits at this point maybe even higher. Of course this is all hindsight. I don't know where I would have exactly cut losses or sorry cut profits in this situation. Um but it wouldn't have been the whole ride because that's not my interest. I'm not looking for a day trading strategy. I'm looking to catch you know 15 20 50 points or as much as I can within maybe 30 minutes an hour max and then I'm done. And then we start looking uh towards L uh New York session and that's it. So this strategy I'm using on the Footsie, the DAX, the uh S&P 500, NASDAQ and the Dow. So there are plenty of choices. Uh but yeah, so far it's working very very well. But of course it's only been a short period of time. So this could be, you know, beginners look or it could just be great market conditions. So we will see. Of course I'll keep you updated with this. But this is, you know, a completely new trading style for me. As any of my regular viewers will know, I don't look at this stuff. I don't do small time frames. I don't count candles. I don't look at candle percentages. I am very very fundamental based. I'll look at key levels. I'll wait for retracements and I'll look to buy. And it's as simple as that. Uh so I'm much more into the economic side, interest rates, inflation, labor market data, um all that type of thing. Whereas this is completely the opposite. This is more uh looking at individual candles, looking at the past two, three, four, five candles, looking at the wicks, the size of the bodies, where did they open relative to overnight range? How was yesterday's price movements? um and really really microanalyzing very small time frames which again is is completely it's a new world for me. So I'm finding it very very fun actually to do this. It's a it's a interesting thing. In a nutshell so far it's a profitable strategy. So we will see how it goes in the future. Of course I'm going to keep you updated and I am very very tempted to start doing some live trading with this as well on YouTube. I already do some in my Discord. Uh obviously it's not signals because again I'm still relatively new to it. Uh, but we do do live trading in the Discord already. So, I'm thinking about doing some live trading on YouTube as well. Um, so we can open this up a little bit more. Guys, thank you for watching. Hope you have a great day and we will speak to you very