I Made My First $100k Using This Simple Strategy (Backtesting Proven Results)

Introduction

This tutorial outlines a simple yet effective trading strategy that has proven successful for both beginners and advanced traders. By following the steps provided, you can learn how to implement this strategy daily to improve your trading consistency and work towards becoming a full-time trader.

Step 1: Understand the One Candle Strategy

The One Candle Strategy is a straightforward approach that focuses on analyzing a single candlestick pattern to make trading decisions. Here’s how to get started:

• Identify the Candlestick Pattern: Look for significant candlestick formations that indicate potential market movements. Common patterns include bullish engulfing, bearish engulfing, and pin bars.
• Determine Market Direction: Analyze the previous candles to understand the prevailing market trend. This context is crucial for making informed trading decisions.

Step 2: Entry Model Summary

To effectively enter trades using the One Candle Strategy, follow these key points:

• Entry Point: Enter a trade when a valid candlestick pattern forms at a key support or resistance level.
• Stop Loss Placement: Set your stop loss just outside the range of the pattern to minimize risk.
• Take Profit Target: Aim for a risk-to-reward ratio of at least 1:2, meaning you should target profits that are double your risk.

Step 3: Day 1 Trading Strategy - Bearish Example

On Day 1, apply the One Candle Strategy in a bearish market scenario:

• Market Analysis: Look for a bearish engulfing pattern.

Trade Execution

• Enter the trade at the close of the bearish candle.
• Set your stop loss above the high of the engulfing candle.
• Take profit at twice the amount of your risk.

Step 4: Day 2 Trading Strategy - Bullish Example

On Day 2, switch your focus to a bullish market scenario:

• Market Analysis: Identify a bullish engulfing pattern.

Trade Execution

• Enter the trade at the close of the bullish candle.
• Place your stop loss below the low of the engulfing candle.
• Set your take profit at twice your risk.

Step 5: Day 3 Trading Strategy - Choppy Price Action

In a choppy market:

• Market Analysis: Recognize that trends may not be clear.

Trade Execution

• Avoid entering trades during this phase to minimize losses. Focus on waiting for clearer setups.

Step 6: Day 4 Trading Strategy - Fake Out Example

During Day 4, watch for fake-out patterns:

• Market Analysis: Identify candles that break key levels but quickly reverse.

Trade Execution

• Enter trades with caution, using tighter stop loss levels.
• Be prepared to exit trades quickly if the price reverses.

Step 7: Day 5 Trading Strategy - High Risk/Reward Example

On Day 5, look for high risk/reward setups:

• Market Analysis: Find setups where the potential reward outweighs the risk significantly.

Trade Execution

• Enter trades that have a favorable risk-to-reward ratio.
• Maintain discipline and follow your trading plan.

Conclusion

By applying the One Candle Strategy and following the daily examples provided, you can enhance your trading skills and potentially increase your profits. Remember to always manage risk and adapt your strategy based on market conditions. As you gain experience, consider joining trading communities for ongoing support and education. Happy trading!