Mechanical Trading Strategies Lecture

Introduction

• Recording: This lecture includes a face cam.
• Topic: Mechanical trading strategies.

Why Mechanical Trading Strategies?

• Definition: Adherence to a set of rigid rules in trading.
• Types of Strategies:
  • Discretionary Trading: More opportunities, uses a framework of rules but not strictly adhered.
  • Mechanical Trading: Fully autonomous, rules strictly followed.
• Presenter’s Preference: Autonomous strategies using AI for simplicity and better understanding.

Understanding Mechanical Trading

• ICT Traders: Apply various methods like the Silver Bullet method.
• Choosing Autonomous Route:
  • Step 1: Understand the knowledge (ICT/SMC concepts).
  • Step 2: Create a simple, concise strategy.

Creating a Strategy

• Strategy Formation: Make it simple enough to be explained in a few lines.
• Example: Presenter's 5-step strategy summarized on one sheet.
• Importance of Simplicity: Easier to stick to and teach.

Back Testing

• Not Just Simulation: Live back testing is crucial.
• Software: FX Replay recommended (discount code available).
  • Proven track record with 80%+ win rates over 4 years of testing.
  • Focus on one currency pair for at least 2 years.

Improving Strategy

• Initial Data Collection: Collect data through back testing.
• Refinement: Stick to core steps, e.g., trend alignment.
• Implement Adjustments: Continuous improvement through data.
• Example: 60-70% win rate improved to 72% initially, then to 81% win rate.

Live Testing

• Transition from Back Testing: Move to live markets with demo or low funds.
  • Examples: 5k, 10k, 50k accounts.

Key Takeaways

• Mechanical Strategy Advantages: Make simpler decisions, stick to a proven plan.
• Proof of Success: Presenter’s trades showing high reward-to-risk ratios and consistency.

Journaling Trades

• Importance: Documenting trades helps in reviewing and improving.
• Presenter’s Example: Clear explanation and documentation of all trades.

Conclusion

• Final Tips:
  • Start small and grow your strategy as you gain confidence.
  • Mechanical strategies offer clear guidelines and can improve trading consistency.
  • Upcoming AI features and potential price changes for the strategy.
• Call to Action: Links provided for more information, strategies, and joining groups.

End Note: Pricing for the strategy is soon to change with new AI features.