Overview
The video documents a trader's process for testing a new scalping strategy on the US30 index using the five-minute chart during the New York session. The trader details their method, adjustments, trade examples, and reflections on performance over a 10-trade sample.
Strategy and Setup
- Focused on the US30 (Dow Jones Industrial Average), trading during the New York session while based in the UK.
- Initially considered the 15-minute timeframe but switched to the 5-minute for scalping.
- Emphasized backtesting and iterative improvement of the strategy.
- Used the Fibonacci extension tool to set trade entries and targets based on New York session market structure.
- Stop losses set below/above New York session structure; risk-reward usually 1.5R, occasionally 2R based on context.
- Encouraged risk-free demo testing before trading with real funds.
Trade Examples and Adjustments
- Trades were entered based on price action and structure breaks during the New York session, applying the Fibonacci tool on recent moves.
- Adjusted approach when the 15-minute timeframe proved less effective.
- Noted importance of reviewing higher timeframes (1-hour chart) for context.
- Observed that deeper pullbacks sometimes required waiting for double the initial pullback length before entering trades.
- Logged each trade result, noting both wins and losses throughout the sample.
Reflections and Results
- Achieved 10 trades over roughly two weeks, resulting in a net gain of 5.5R.
- Strategy worked better on the 5-minute chart as a scalping approach rather than on the 15-minute chart.
- Simplicity and focus on New York session structure provided more consistent results.
- Identified the need to gather more extensive data and possibly create a follow-up video focusing solely on the five-minute scalping approach.
Resources and Recommendations
- Suggested using a demo account for strategy testing; video available on setting up a demo with IC Markets.
- Mentioned participation in the 5ers prop trading programs with features like no time limit for challenges, live rooms, and coaching.
- Recommended signing up for Mindset Edge, a free mini-course on trading psychology (link in description).
Action Items
- TBD – Self: Save the current trading plan and repeat the process for a larger data set in a future session or video.
- TBD – Viewers: Try the strategy in a demo account before live trading and provide feedback or interest for a follow-up video in the comments.