best

PERFECT Beginner FOREX Strategy

what is up traders welcome I'm extremely

excited about today's video in the day's

video you're gonna learn what I consider

to be the perfect beginner trading

strategy now I'm not gonna sit here and

tell you watch this video today and

you'll have a Lamborghini next week from

trading this super simple strategy that

I'm gonna show you obviously that would

be [ __ ] and if you hear anyone say

that in front of a video or course or

anything else understand that it's

[ __ ] that's not what actually

happens in the markets but what I will

tell you is that if you follow the

instructions that I lay out for you in

this video and actually go through every

step in the process to creating the

strategy to actually using this strategy

then it will help you on your path to

becoming a professional trader and this

strategy is not only going to give you

an edge over the market if traded

correctly if tested correctly if you do

all the steps right it won't only give

you an edge over the market but as you

are now if you are a beginner or if

you're someone who's still struggling in

the forex market then that struggle is

due to a few factors one of those being

you may not understand the foundations

of trading which would be structure and

trend this strategy will help you

practice that beyond belief it's

actually has a lot to do with structure

and trend so we're going to talk about

after the intro and disclaimer it will

only help you with that it'll help you

with patients and with discipline as

well and those are some of the most

important parts especially as a beginner

to actually start to understand so if

you're interested in this strategy if

you're interested in all of that make

sure you are subscribe by clicking the

button down below the video to the right

hand side we do content like this each

and every week click that like button

for me follow us on Instagram we started

doing some giveaways for apparel like

what you see me wearing here glasses and

also some giveaways on programs and

courses that we offer some of our paid

content we'll be giving that away on

Instagram but you do have to follow us

on Instagram for that to happen link is

in the description after all of that I'm

gonna go ahead let the intro and

disclaimer play read through the

disclaimer and directly after that we

will talk more about what I consider to

be the perfect beginner forex trading

strategy I'll see you guys on the other

side

[Music]

welcome back guys so we are about to

jump into what I consider to be the

perfect beginner Forex strategy but

first off let's talk a little bit about

what's imported in a strategy in general

what is what's the main focus the main

point of having a strategy or a rule set

that we follow the main focus is that

rule set gives us what we call an edge

or advantage over the market

we need this to give us an edge because

of the scenario I'm going to tell you

right now at this point you've probably

heard the analogy from trading to a

casino right like casinos what do they

do every single day a person walks in a

casino and they place bets on certain

games the casino may not win every

single day there might be days that the

casino loses money but overall the

casino has an advantage over the course

of 12 months the casino is going to make

money based on the advantage it has so

your job is to be the casino not the guy

walking into play games trading is not a

game you don't want to be the guy you

want to be the casino and you want to

make sure you have let's say a 55 to a

60 percent chance to win with a 1 to 1

risk reward that would be considered an

advantage or maybe you have a 2 to 1

risk reward and you're winning 50% of

your trades that is an advantage those

are a couple of the ways we can actually

get an advantage over the market so

every time we're testing or trying to

trade a strategy we want to make sure

that that strategy comes with an edge

over the market now one of the only ways

I have personally ever found to figure

out if a strategy has an edge over the

market without risking live money

because that's not what we want to do at

first we don't want to just go out here

and start throwing [ __ ] at the wall and

hoping it sticks we don't want to go out

here and just start wasting our

hard-earned money that's not what

trading is about the best way to do this

is to do something called back testing

so in the process of back testing you're

looking through historical data to find

the strategy or the rule set that you

have created in this case the one I'm

going to give you here the perfect

beginner trading strategy you're going

to look through historical data to see

what for one what currency pairs it

works best on let's all be honest here

I'm sure you've heard the phrase that

every difference a pair has a different

personality and it's absolutely true

there are certain currency pairs

trend really well for instance yen pairs

tend to trend really well as if we're

trading a trained continuation strategy

we want to test yen pears first and see

which ones we come up with the best

results on just as a very short example

so we're testing for that and also to

help us figure out what we have in terms

of a maximum drawdown to help us

optimize the portfolio of pears we're

going to use if you're a brand new to

trading a lot of this is probably going

over your head but we're gonna discuss

it again after you learned the strategy

now let's dive into the technical aspect

of the actual strategy you're gonna

learn today so in today's video I'm

going to teach you a strategy that's

gonna help you with understanding

structure and trend and also entry

reasons and it will help you understand

the structure of a strategy not only

that it will help you understand the

structure of creating a trading plan

around a strategy the strategy we're

going to talk about today though has two

different ways to enter this specific

strategy so first off let's talk about

the trend continuation version of this

strategy it's going to be a very simple

strategy for those of you who already

understand trend semi-difficult strategy

for those of you who don't understand

what trend is yet so a trending market

is going to be a market that makes at

least what I call a 1 to 3 move one

there two there three breaking below the

previous lows this outside return or

pullback must have at least two green

candles okay if we have a push down

that's impulsive we have two green

candles pulling back and a break below

this structure level I consider that a

trend a trending move so if we have a

trending move our trend continue but we

should play and as I was saying earlier

this strategy is going to teach you

patience because at no point if you're

using this strategy or when you test

this strategy will you trade unless

these circumstances are exactly met the

only time you place a trade whenever

you're testing this the only time you

test to place a trade you only time I

would place a trade based on this

strategy is once the market gets back up

to only this previous low okay we're and

we're gonna do this on a chart to make

it easier to understand in a minute but

only at the point that the market makes

it back up to that previous low that is

the only time you look for a trade net

no other time

are you looking for a trade when it

comes to train

a new Asian so this is going to be one

of the perfect ways to start trading as

a beginner and one thing I forgot to

mention only do this on a daily chart

for now if you're just starting out or

even if you're someone who's not

profitable unfortunately a lot of us

come into the forex market me included

when I first started a lot of us come

into the forex market expecting to be

able to quit our jobs in a month and be

trading from a large account large

enough account to where we don't have to

work anymore and we can provide for

ourselves or our families unfortunately

especially if you're here hopefully

you've already figured this out that's

not what normally happens don't be

afraid to be patient not only in your

trades but in your journey to becoming

profitable trading on the daily chart

will keep you from making some of the

detrimental mistakes that you could be

making in a day trading account that

would cause you to bleed your account

dry so trade on a daily chart give

yourself time if you have a full-time

job trading on a daily chart is not

gonna be super hard especially in the

way we're gonna enter the market if you

decide to test and trade this that's

your decision not mine I'm not a

financial adviser I cannot tell you how

to spend your money I don't know your

financial situation but this is me

suggesting something that I've done in

the past that helped me on my path to

profitable trading make your own

decision but if it were me the way I

would enter such strategy a strategy

like this is once we hit this level

let's say we have a candle that touches

that level I would enter in two ways one

a shooting star candle hammer if we flip

this to bullish and we'll do an example

of that in a second or an engulfing

candle at this area after the touch

those don't there's no other entry

that's it this is why it's so important

to be patient what you're gonna do is go

through historical data and you're gonna

test when you see a one two three trend

move like what's on the screen in front

of you and then you see a shooting star

candle and test them separately and and

then you place an entry here let's say

your stop-loss

is 180 our ATR is an indicator you could

find on trading view that's the platform

I use ATR is one of the very first

indicators that pops up once you which

once you click the indicator button own

trading view so you use an ATR indicator

to figure out the stop-loss let's say

it's above this high by 180 are you put

your target either back down at previous

structure or

one-two-one risk/reward totally up to

you how you do targets personally I set

mine at a one-to-one risk reward I do

multiple targets but if you're a

beginner it's not how you need to take

targets either do a one-to-one risk

reward or back at previous structure for

Trend continuation and don't let that

limit you once you get good at this part

of it again we're working towards you

being able to build an even better

strategy this is a simple version that's

easy for you to accomplish every day

because you're getting off work and the

daily candle closes at 5:00 p.m. Eastern

and you can actually look at that candle

and say was it a shooting star candle

did it touch my most previous level of

structure cannot place this trait then

you can set your stop Falls however you

want to and your target however you want

to these are just examples but in this

case you would take this and test this

exact situation through historical data

as far back as you can go and see how

many times over the lifetime of as far

as you can go back did this work out as

a winning trade if you come up with 55

to a 60 percent chance of winning with a

1 to 1 or above risk reward then you

have an obvious edge or advantage over

the market which is exactly what we're

trying to accomplish so to go over this

once more we'll do a bullish version

this time just to make the trend

continuation section of this extremely

understandable so that you get it

completely and we'll go to the chart

directly after this to engrave it even

more in your brain looking for an

impulsive move a pullback this pullback

has at least two candles we're looking

for the market to break above that high

before the pullback after the market

breaks above the high before the

pullback we're waiting for the market to

pull back again touch that high once we

touch that high we have two ways we can

enter either a hammer candle because

we're bullish now I'm not a shooting

star a hammer candle or an engulfing

candle those are the only two ways that

I would enter the market in this

specific situation stop-loss would be

below the low of the entry candle if for

me at least you can test this and trade

it however you would like to but for me

and if you're gonna use this example

when you're testing that's how you want

to test it and your target can be back

up at previous resistance or set at a

one-to-one risk/reward whichever one you

prefer that is going to be the entirety

of the trend continuation portion of

what I think is the perfect beginner

trading strategy and the reason I think

this is perfect is because not only if

traded on the

right pairs if tested correctly and you

have the right risk management plan and

you do everything correctly in terms of

creating an actual trading plan around

this strategy it will not only give you

an edge of the market but it'll teach

you patience because we're trading it on

a daily chart we're having to wait at

some points days for a trade which is

totally fine as a beginner slow down if

you're a beginner don't be in a hurry to

blow your account if you're a beginner

and you don't have a strategy as as

providing you an edge over the market

you don't need to be in a hurry to keep

trading that strategy or to keep trading

some strategy you heard from another

trader and don't just go out and trade

this one that's exactly what I mean if

you haven't tested the strategy you

heard from another trailer trader that

told you you could buy a Lamborghini

tomorrow from it

then go test it see if it actually

provides an edge over the market make

sure you're the decider of where your

money goes and not someone else don't

take my word for this strategy go out in

the markets and test it your self you

it's necessary not only to see if I'm

telling the truth but so you can create

a risk management plan so you could

optimize to trade this with the best

payers so that you can actually see that

it provides an edge over the market as

well and gain some confidence in the

strategy all that's important so doing

this on a daily chart we're gonna go to

a daily chart now on the pound New

Zealand and I'm going to show you a few

examples and give you an idea of how to

actually back test this specific type of

strategy let's just scroll back I have

not even done this yet I have no idea

what this is gonna come up with it may

come up as negative I have no clue and

even if that's the case it's your job to

go through the markets and actually find

a ton of situations you have to have a

big sample size I do at least a hundred

trades in a backtest so when you do that

testing through historical data hit at

least a hundred trades or more so here

we're gonna start at the bottom of this

little period of consolidation we had

right here okay and if we're looking at

this and remember we're looking for two

candle pull backs after an impulsive

move for our pullback we have this up to

this high we have a pullback of two

candles here but nothing broke this high

and until something breaks this high

then the low of our pullback is below

that the lowest low below this high

before the break above it is going to be

the low of our pullback so the way we

would draw this out we

look something like this push up pull

back break and close above what this

previous hot once we break and close

above that huh in order to test this

strategy I would be putting a horizontal

line there at the high of the wick and

if we get a market that pulls back like

this one here as we push up now we pull

back to the hot of that previous

resistance level this is the area that

we're looking at is one of the

conditions of our strategy this is the

only area we're looking at for trades

during the trend continuation portion of

the strategy so we get the pullback it

touches that wick at this point what are

the two ways we can enter either a

hammer candlestick or an engulfing

candlestick a hammer candlestick you can

define that how you would like to I like

just using a Fibonacci retracement and

pulling it over the entire candle and if

the candle is above a 382 a tradesman I

considered a hammer candlestick this

would meet that criteria and maybe yes

this would meet that criteria this

candle here would be my entry candle

because it's a hammer candle after

hitting the most previous level

resistance in an uptrend remember how

are we defining trend the reason we're

in an uptrend is because we have our one

two three move one two three in an

uptrend we pull back to that resistance

level we get a hammer candlestick at

this point is when I would enter the

market so let's go ahead and put a

position to loan the rest of these will

go a lot faster I just want to make sure

you really understand this the close of

that candle would be the entry this is a

daily chart even if you have a full-time

job you should be able to to enter the

market here and remember don't go out

and start trading this I'm telling you

right now do not go out and randomly

start trading this strategy because what

will happen to you is what happens to

every trader that does that you will

trade this you'll lose three treys and

you'll go Stephen doesn't know what he's

talking about that's just stupid in

reality I'm a professional trader do you

know how many times I've lost three

trades in a row on the strategies I use

right now that I consider to be very

good strategies multiple times you're

not prepared for that if you haven't

went out and tested this strategy

yourself you're not prepared for that if

you have it put in the work yourself

don't sit here and take my word for this

go out and test it yourself but in this

specific case we would do an ATR stop

ATR one

41 40 plus 85 let's say be 225 let's get

down to 225 and in this specific case I

would probably do we're close enough to

23 I would probably do a 1 to 1 risk

reward here just because my resistance

level is so so like so close by that if

I did this it would be a point three six

risk reward that's not what I would want

so I would go into a one-to-one reward

we're in an uptrend I consider this

market an uptrend I'm thinking we go

higher here anyway so I would go one to

one risk reward that would be a win

right so there we have a winning trade

let's continue now and again it'll speed

up a lot now at this point so after that

move we'll be looking here boom boom to

kind of pull back the market breaks and

closes above that level do we get back

down to this level here is where

patients come in comes in excuse me a

lot of traders go well man I missed out

on this whole move missing out on moves

is a part of trading it happens to

everybody you're not gonna be able to

catch every single big move up that you

that happens in the market no one can if

I could predict exactly what the market

was going to do if I could catch every

single big move I would put a hundred

percent of my account on these moves no

one can do that so don't be scared of

missing moves every now and then that's

ok that happens and in this case

especially the most important part of

having a trading strategy and a trading

plan it's following that plan if your

plan says I'm gonna trade only when we

get the previous resistance for trinka

deviation and the market doesn't get

this previous resistance then you don't

trade very simple so in this case we

would have missed this move we would not

have traded we keep drawing out here we

have to push up where's the lowest low

from this high before it gets broken and

closed above looks like it's right here

so this is the lowest low of the

pullback this is how we would draw this

out push up pull back push up we don't

get any kind of entry here the market

continues to pull down we come into this

level of resistance right here since we

come into that level of resistance right

back here and actually we don't quite

hit it so if you have set in stone rules

of the market must come down and hit the

high of the previous resistance level

and the market doesn't what do you think

you do nothing you don't trade so in

this case we would have traded

absolutely nothing and you have to

understand that that's a part of trading

now let's see do we get a breaking close

here

above this high we do we get a break and

close on this candle I know it was a

very small breaking close but a break

and close nonetheless we'd pull this

down and we don't end up getting any

kind of entry there we get another

breaking close and here we actually have

an entry that ended up being a losing

trade continuing continuing guys the

next trade was actually pretty far away

but right here we have a move down that

pushes back up here pushes back down

here and then we have a break and a

close above this previous resistance

level we then have a market that pulls

down into that resistance level gives a

shooting star candle and would have been

a winning trade in this strategy again

remember we're not winning every single

trade there and we just looked at a loss

we'll have losses as well there's gonna

be times where this strategy loses

that's a part of trading as I said I've

lost three trades in a row plenty of

times in order to figure out what your

actual winning percentage is on a

specific pair look at historical data

see how its performed in the past and

although that's not exactly how it will

perform in the future it's literally the

best thing we have in order to measure

with if I could just predict the markets

like a psychic then obviously 100% of

mine account will be on every trade and

I would be a billionaire right now I'm

not and I can't predict the markets like

a psychic no one can that's why we just

have to stick to having an advantage and

the way we see if we have an advantage

again through that back testing process

and now let's actually see if we can

find a live example of this in the

market so I'm gonna go through every

single pair and we're gonna see if

there's an example that's actually the

excuse me the euro dollar did an example

of this last week and we had this level

pointed out in last week's video as a

major level of structure the market came

in to that level put in a nice shooting

star candle and it did push the market

down quite a bit we've now pushed back

up into that level a little but that was

another example of a winning scenario

we're gonna look for something that's

actually happening right now though so

let's look and see if there's any market

this actually

doing this at this very moment alright

guys we found a market that's actually

doing this right now a potential trading

opportunity based on this strategy right

here on the pound New Zealand and on the

pound who's in them what we have is a

market that broke above and this is

actually the same pair that we were just

looking at but we have a market that

just broke above a level of structural

resistance right here because of that

do we have our like one two three move

we do one two three because we have that

one two three move we're gonna be

looking at first right here to see if we

can get a pullback into that area and

either a shooting star or an engulfing

candle here on the daily chart we'll set

our stops and targets appropriately

based on that if we were trading this

exact strategy if you're trading the

perfect for a beginner trend

continuation strategy this is what the

trade would look like again go through

all of the necessary processes you will

not know what your risk management plan

needs to be if you don't do the back

testing you will not know what pairs

this works best on the pound New Zealand

the Euro Canada would be the two pairs I

would suggest you start with both of

those respects structure extremely well

yen pears also respect structure

extremely well so there's where you can

start your testing daily chart on those

pairs test a hundred times of this exact

thing happening exactly as we just

discussed and then see what the winning

percentage has been in the past again

it's the only measuring stick we have to

see how the market could react in the

future so it's what I base every

strategy I'd trade on and that's worked

out really well for me so do that

process to build the whole trading plan

don't just go out here with the strategy

and trade blindly you want to build a

whole trading plan which is going to

consist of all the rules of the strategy

a risk management plan that will tell

you how much you can risk per trade and

the optimized payers that you're gonna

trade with this strategy there's a lot

of forex payers and all of them don't

respect structure in the same ways all

of them have different personalities

some of them respect structure and trend

a lot more than others I was going to do

a counter trend strategy here as well

but this video has already gotten close

to 20 minutes long or more so because of

that I'm gonna wait and save that for

the next video and I cannot stress

enough the importance of risk management

the importance of being disciplined to

this I know this strategy will help you

own learning structure learning

and also becoming patience discipline

and working on your risk management so

do all of the steps necessary make sure

to do your own testing as we just

discussed I hope you guys have a great

rest of your week don't forget follow us

on Instagram check the links in the

description for some of our free content

as well as some of our paid content if

this was valuable to you than getting

into some of our paid content

I'm sure you'll see a couple of comments

below this video of traders who have

been through it we've helped hundreds of

traders on their path to profitable

trading through a systematic approach

semi-closed - what we taught you here a

very systematic approach to creating

their own personalized trading plan and

even giving them my personal trading

plan for them to go out in the markets

test and copy so that's something you're

interested in check the link in the

description free trainings Instagram

subscribe make sure you're alerted about

all the valuable content we come out

with here at the trading channel I wish

you guys the best of luck on all your

future trades and I will talk to you

very soon see you later

[Music]