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DoseOfLaugh

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00:00Risk management.

00:01One of those things you hear about all the time, but oddly enough, never pay really much

00:05attention to it.

00:06That is, until now.

00:07What if I told you all you had to do was apply one simple tweak to your current strategy

00:12that would instantly boost your trading profit?

00:15Like actually, implementing this trick on any trading strategy has been statistically

00:19proven to generate better profit.

00:21Once you apply this tweak, your take profits will grow, your risk will shrink, and it will

00:26take you from this average looking setup to this sniper looking entry with jaw dropping

00:31profits.

00:32But what's the secret trick?

00:34Well, first things first, we need to go on a chart, go to the four hour time frame.

00:38This is important.

00:39Next, we first need to implement our areas of supply and our areas of demand.

00:43If you don't know, demand is the start of a strong move upwards, supply is the start

00:48of a strong move downwards.

00:49For example, if we had this move where there was a strong impulse to the upside, we would

00:54find the candle that started this move, so this one.

00:57Grab our little rectangle tool on the side and mark from the lower wick to the higher

01:01wick of the candle that started this move.

01:04This is our area of demand.

01:05Pretty easy, right?

01:06This area is where large institutional orders started coming in.

01:10Often times, price will come back down to this area of demand.

01:14Traders will then proceed to have the exact same mindset, enter here, and then proceed

01:18to make some juicy profits.

01:19It's the exact same thing with supply.

01:21Find the start of a strong move downwards, grab your little rectangle tool, mark from

01:25the lower wick to the higher wick of the candle that started that move.

01:29Wait for price to come back up to the area of supply again, enter a short, proceed to

01:33make millions of dollars.

01:34But we ran into a major problem.

01:36So if we're purely going off the whole supply and demand strategy, we might get a setup that

01:41looks like this.

01:42Where we have the start of a strong move upwards, we mark our area of demand by marking the first

01:46candle of said move.

01:48We would then wait for price to come back down to our area of demand.

01:51Now if we're entering into this position normally, we would enter as soon as price

01:55entered into our area of demand.

01:57We would set our stop loss below the area of demand, and for our take profit, it would

02:01really only make sense for us to target the recent highs for the most probable outcome.

02:06But this is exactly where the problem resides.

02:08This risk to reward setup is absolute poop.

02:11Like really poop.

02:12To be a bit more specific, this exact trade had a 2.14 risk to reward ratio.

02:18Meaning if we're risking $100, we are only potentially getting back $214.

02:24Which may not sound bad to some.

02:26Hell, if you use this exact same strategy, you would probably still be profitable.

02:30But with that said, what if somehow, some way, we could raise this risk to reward number?

02:36To where we would still be following the exact same strategy, but we would be risking even

02:41less and profiting even more.

02:43That would be pretty good, right?

02:44Actually, I just got an idea, let's test out this new Siri based audio editing software

02:50I just got.

02:51Hey Siri, play classical music.

02:54Sorry, I didn't quite get that.

02:57Um, can you play some classical music?

03:02Sure, playing rock music now.

03:04Rock?

03:05No, no, Siri, stop.

03:10Play classical music.

03:12Did you say how to double your money?

03:14How to double my money?

03:16What?

03:17That doesn't even sound similar to what I-

03:18Yes, you heard it right.

03:21You can double your money.

03:23How do I do that?

03:24Well, there's a forex broker out there that I personally use and their name is Hankertrade.

03:29If you use the link in my description and it's your first time depositing, they will match

03:33whatever you first deposit.

03:35So say if you first deposit $69, they will match that and give you $69.

03:41That's pretty cool.

03:42If you need a new forex broker and want that deposit bonus, use the link in my description.

03:46Alright, now let's go over how to get a better risk reward.

03:50To do this, we're going to go over a little topic called zone refinement.

03:54Zone refinement is pretty simple actually.

03:56For example, here we have two screenshots of the exact same chart.

03:59One on the 4 hour time frame and one on the 1 hour time frame.

04:03Just like before, we have the start of a strong move upwards, so we'll mark our area of demand

04:07on the 4 hour time frame just like we did before.

04:11But instead of entering as soon as price hits our area of demand on the 4 hour time frame,

04:16we're going to move to a smaller time frame to refine our zone even more.

04:20So here on the 1 hour time frame, our 4 hour zone is right here.

04:24But if we look closely, our 1 hour demand zone is within the zone but is much smaller.

04:30So we'll mark out this one too.

04:32So now we have a refined 1 hour zone within our 4 hour zone.

04:36Instead of entering as soon as price hits our demand zone on the 4 hour time frame, we're

04:41going to enter at our refine zone on the 1 hour time frame.

04:44So we wait for price to come to our 1 hour zone, enter here.

04:48We're still going to set our stop loss below the 1 hour demand zone and set our take profit

04:53at the recent highs just like we did before.

04:55But look at the key differences.

04:57The picture on the left where we didn't refine our entry, our stop loss is bigger, our

05:02entry is worse, and our take profit is smaller, and we have a risk to reward of 5.15.

05:08But if you look at the picture on the right, we have a way better entry, our stop loss is

05:13smaller, meaning we're risking less, and our take profit is bigger, meaning we have

05:17the potential to make more money, and we have a risk reward of 11.12.

05:23Both are using the exact same strategy, but one is just more redefined.

05:27I think you can see the obvious better choice, the one where the math is on our side.

05:32But this is just the idea, let's jump into an actual trade example.

05:37First things first, we do our first step and hop on the 4 hour time frame.

05:40Here we have a pretty strong downtrend, but price is starting to show signs that it wants

05:45to do a reversal.

05:46How I can tell it wants to reverse is it just started to shift in trend direction and has

05:51made a break of structure right here, so we'll keep that in mind.

05:54To start us off with this trade setup, we're going to first mark our area of demand.

05:58To do this, we find the first candle that started the strong move to the upside.

06:03In this scenario, that would be this candle right here.

06:06So we grab our little rectangle tool on the left and mark from the lower wick to the higher

06:10wick of this candle.

06:12This is our demand zone.

06:16So if we were to plan this trade out normally, we would wait for price to come to our area

06:20of demand.

06:21We would enter as soon as it does and set our stop loss right below it.

06:25We would then target the most recent high, which is this high right here.

06:29So if we use these exact parameters, our risk to reward would be 5.23, which in the end,

06:36isn't really a bad trade at all.

06:37Hell, I'd take a 5.23 risk reward all day.

06:41That's actually pretty good.

06:42But as my grandma used to say, why settle for a low risk reward when you can get a better

06:46one?

06:47To do this, we're going to switch to the one hour timeframe to refine our demand zone even

06:51more.

06:52Now we're on the one hour, we can instantly see we have more candles now.

06:56We still have the exact same setup, just more candles in our view.

07:00Our four hour demand zone is still here, but if we look closely, our one hour demand zone

07:05would actually be right here at the candle that started this trend.

07:10So by doing this one simple trick, this one simple change, we can do what every hedge fund

07:16manager dreams of doing, we can do this.

07:23Now look, this may not seem like much, but we improved our risk reward ratio from just

07:28a measly 5.23 to a whopping 7.6 by simply dropping to a lower timeframe and refining our

07:37zones.

07:38That's it.

07:39That quick and simple easy trick just improved our risk reward by 2.4, meaning we're risking

07:44less now and we have the potential to gain even more money and who doesn't want more

07:49money?

07:50So now that we have it set up, we're going to go to the four hour timeframe and rather

07:53of entering up here at this high, we're now entering at a more discounted price in

07:58a refined area, which is going to give us the best risk to reward for this trade.

08:04Let's see what happens.

08:05Price comes down to a refined zone.

08:07We enter as soon as it does.

08:09The market proceeds to push up with huge amounts of strain and beautifully hits our target.

08:14And even though this strategy is great, we've ran into a major problem.

08:18You see, I'm sure you've had this thought already.

08:20Well, if I can get a better entry from going to the four hour to the one hour, that also

08:25means I can get an even better entry from going into the one hour to the 30 minute, then the

08:3030 to the 15, then the five, and then continuously go all the way down to the very millisecond.

08:36In that, my friends, is what I'm going to call over-refinement.

08:39Over-refinement is a problem simply because of this reason.

08:43Say if we went to the five minute timeframe for this specific trade, we would have to zoom

08:48all the way down to this five minute demand candle.

08:51And the problem with that is, sure, we now have an amazing risk to reward and an even

08:56better one than we did before.

08:58But since we've narrowed it down so much, if we zoom back out, price never came down

09:03to our five minute demand zone.

09:05Don't over-refine and don't zoom in too much because you'll end up with mispositions just

09:10like this one.

09:11To make sure you don't over-refine, just follow what I call the two steps down rule.

09:16So if you're on the daily timeframe, you can only refine down to the four hour and then

09:21the one hour timeframe.

09:22If you're on the four hour to start out with, you can only go down to the one hour and then

09:26the 30 minute.

09:27If you're starting off with a 30 minute timeframe, you can go down to the 15 minute and then

09:32the five minute.

09:33The point being, you can only go down two steps from the original timeframe you started

09:37on.

09:38This will make it so you don't over-refine and end up with a misposition.

09:42Add this trick to your arsenal, to any of your trading strategies, and it'll help you

09:45get more sniper entries.

09:47Try it out, let me know how it works for you, and DM me on Instagram with your results.

09:52Also, I've been getting a lot of comments saying I need to post more, and you're probably

10:00right, I'm kind of slacking recently.

10:02I'll try to do better.

10:05Maybe.

10:06We'll see.

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