30 Oct A High-Percentage Strategy Blueprint
A High-Percentage Strategy Blueprint
Oct. 30, 2023
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Many times I like to give away entire systems for free.
Because I want regular people to do better than the market.
But I also want people to take my testing, confirm it, and then email me suggestions/improvements.
That way I can share the improvements with the readers for free (or on YouTube), receive more improvements on top of the improvements, and a Virtuous Circle begins.
Which is awesome.
But today I’m going to share a framework that I’m pretty sure will produce profit for anyone.
It may not be the exact profit you want and it may not make 10:1 with a 99% win rate, but I’ve seen this framework work on multiple timeframes on multiple instruments over multiple years.
And here it is.
- Establish the long-term trend. I use a long-term moving average.
- Make price close above the long-term trend for Long trades (or simply trade in the direction of the established trend.) Do the opposite for Short trades.
- Wait for a pull-back. I like to use indicators for this; RSI, CCI, Stochastics all work well.
- Go for a small profit target while having a bigger stop. I like the stop to be 2-5x bigger than the profit target.
What I did for this Newsletter was change the profit target. While I like small targets with this style of trading, I was curious how it would respond with bigger targets.
So I ran a test on Portfolio Tester on AUDJPY, GBPJPY, USDJPY, CADJPY, NZDJPY, CHFJPY, AUDCAD, EURUSD, AND GBPUSD and easily transferred the results with a click of a button over to Portfolio Architect.
Even though I more than tripled my typical profit target, the stop was still 1.5x bigger than my profit for this experiment.
Here are the testing results for 2023. As you know, 2023 has been one of the most challenging trading years in decades.
The Report (trading 1 lot each time):
And the Curve on a sample $15k account:
While it’s been a bit rocky, it’s hypothetically done quite well.
This blueprint seems to work even in a tough year.
But the question is: would this possibly work in other types of markets?
We’ll take a look in the next Newsletter.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.