00:00995% this is the profit made by this simple scalping strategy after just 150 trades in
00:09this video i'm gonna show you exactly how this strategy works and i'm also gonna backtest it
00:14live in order to see the rest of its performance metrics like win rate profit factor maximum draw
00:20down and so much more let's dive straight into it first things first get on trading view and load
00:27whatever forex pair or trading security that you like for me i'm going to be using the euro usd on
00:33a five minute time frame but this strategy will work on any security that you like now head over
00:39to the indicator search tab and type in twin range filter click on this one by colin mck the default
00:47settings for this indicator will work perfectly no need to change anything so this indicator will be
00:53our entry confirmation indicator when it prints a long signal we buy when it prints a short signal
00:59we sell pretty self-explanatory now for the second indicator head back to the indicators tab and type
01:05in macd be sure to select this one that says moving average convergence divergence we're gonna access
01:12this indicator settings by clicking right here head over to the style tab and change the histogram colors
01:18to the primary green and red like this after that uncheck the macd line as well as the signal line
01:26and then click ok now this indicator will be our short-term trend identifier when the histogram is
01:32green it means that the market is in a short-term bullish trend so we will be looking to only take
01:38long trades and when the histogram is red it means that the market is in a short-term bearish trend and
01:45we will be looking to only take short trades last but not least our third indicator is called market
01:52bias click on this one by professor x again we're gonna access this indicator settings by clicking right
01:58here on the inputs tab change the period to 60 and then change the smoothing to 10. head over to the
02:07style tab and uncheck this option right here then here on the plots background click on each color
02:15and change the opacity to 30 then click ok now this indicator will be our overall trend identifier
02:23when it's green we only take long trades when it's red we only take short trades now let's go over
02:29the conditions for entering trades to enter a long trade first the market bias indicator should be
02:36colored in green to indicate an overall bullish trend second the histogram of the macd indicator should
02:42be colored in green like this and then the last condition is for the twin range filter to print
02:48a long signal all these conditions are met on this candle so we enter a long trade we're gonna set
02:54our stop loss below the most recent swing low which is this one right here for the tech profit
02:59we're gonna set it at 1.5 times the risk we'll let this trade run and full tp now here's another example
03:08as we can see here the market bias indicator was colored in green and at the same time the macd
03:14histogram was also colored in green finally the twin range filter issued a long signal we enter a long
03:21trade here set our stop loss below the most recent swing low which is this one right here and for the
03:28tech profit we're gonna set it at 1.5 times the risk we let this trade run and full tp now you may be
03:36asking yourself but what are the conditions for entering a short trade well that's a very good
03:41question to enter a short trade you basically just have to do the opposite of everything we did for a
03:46long trade here's what i mean first the market bias indicator should be colored red to indicate an
03:53overall bearish trend second the histogram of the macd indicator should also be colored in red like this
04:00and the last condition is for the twin range filter to print a short signal all these conditions are
04:06made on this candle so we enter a short trade we're gonna set our stop loss above the most recent
04:11swing high which is this one right here for the tech profit we're gonna set it at 1.5 times the risk
04:18we let this trade run and full tp here's another example as we can see here the market bias indicator
04:26was colored in red and at the same time the macd histogram was also colored in red finally the twin
04:34range filter issued a short signal we enter a short trade so that's top loss above the most recent
04:41swing high which is this one right here and for the tech profit we're gonna set it at 1.5 times the risk
04:48we let this trade run and full tp the most important question now is how exactly does this strategy
04:55perform in different market conditions well to answer that i'm gonna backtest it 150 times using a
05:02risk to reward ratio of 1 to 1.5 the account size is going to be set at a thousand dollars and we're
05:08going to be risking two percent of that every time we take a trade let's get started
05:32so
05:38so
05:40so
05:42so
05:55after 150 trades we see that the win rate of this strategy was 72 percent the gain on the account
06:17was 995 percent over a backtesting period of six months it had an amazing profit factor of 3.99
06:27eight consecutive wins against four consecutive losses and a maximum drawdown of 4.88 percent
06:35and yes this strategy works on any security that you like to trade for the time frames i'm not really
06:41sure if it really works on all of them i've only backtested it on the five minute time frame but you can
06:46always do your own research and see what you come up with as always remember this is just 150 trades
06:52and the backtesting didn't have any discretion or subjectivity if you want to trade using this
06:58particular strategy be sure to do your own extensive backtesting and forward testing and customize it to
07:03your liking so you can have as much confidence as possible when trading with it if you like this
07:09video please hit the like button below or consider subscribing thanks for watching and i'll see you guys
07:14next time
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