what's up everybody stephen here with the trading channel and I normally do not come out with videos on a Tuesday but with the Monday that I had I felt obligated to share it with you guys and not to brag or to say how good of a trader I am but only for educational purposes only to show you that if you have a trade plan with only a few strategies in it and you master those strategies and have the discipline to execute those strategies every single time they happen in the market then that will increase your chances of becoming a successful trader now this Monday was the best day of trading that I've had since I started trading with a live account a little over a year ago this Monday I managed to bring in 417 pips in a single day and later on in this video I will show you exactly how I came up with those 417 pips but first I want to explain how important it is for you guys to test any strategies that you want to use in the market because see this is where most people give up in order to use these strategies effectively you must go back through the markets and stare at charts you must go back five 10 15 years sometimes on higher time frames and look for these kind of trades look for advanced patterns and any other kind of strategy that you plan to test and you have to find these trades over and over to see how many won how many lost what was your stop what was your target so you can understand the risk-to-reward on every trade on average what you'll have you may want to test for multiple targets and multiple different ways to put in stops so by the end of it you will probably have hundreds of hours in back testing and the reason there are so many people that give up and either blow an account because they didn't back test their strategy and did not have confidence in what they were doing or they completely give up on trading the reason is because all those hours that you put in back testing there's no promise that they will ever pay you can go through the pound dollar or any other currency just using this as an example you can go through any currency on a 1 hour to 4 hour 15 minute doesn't matter the time frame go through on the chart for maybe the 4 hour chart and you can look for as many butterflies as you can find within a period of 10 years on the 4 hour chart and maybe you find somewhere near 300 trades you test them you you crunch numbers in a spreadsheet for all 300 of those trades using different stop- losses different targets trying to figure out which one would be most profitable and at the end you've got around 200 or 300 hours just on that one pair one strategy you've got 300 hours in testing just that what if it doesn't make any money what if it ends up not even being profitable how devastated how disappointed will you be that you've wasted 300 hours staring at charts for absolutely no reason well I'm going to tell you guys that's the life of a successful trader that's the kind of thing you go through every day you can test strategies that may or may not be profitable in the end and that's not even the hard part once you're done doing that at this point you have to have the confidence and the discipline once you've tested to see that whatever you're testing is profitable and has a positive expectancy at this point psychology comes in to play at this point it's up to you to have the discipline to place that trade on that specific strategy that you have just tested place it every single time you just had 10 losers in a row place the trade you just had 10 winners in a row place the trade market's in a downtrend and your strategy shows that you're buying place the trade and the reason we have to do all this testing is because without it you have no clue what your risk management should be if you do all this testing and you test every strategy you plan to put in your trade plan put it in a spreadsheet as long as you've tested the right the correct amount of trades and no one can tell you what that is there's a number that floats around that says you can get a pretty good idea of how a strategy will work off of 100 trades for me that's not enough just because I'm don't feel very confident only having a 100 trades to go by so when I've tested all of my strategies I've always tested 200 trades and once you have those trades set in a spreadsheet with your stop- losses your profit targets the amount of trades that won and lost then you can start to set up a risk management plan then you can see okay this strategy is going to come with a 20% draw down this strategy is going to come with 10 losers in a row well if I'm trading on a $10,000 account and I know it could have 10 losers in a row I know for sure I don't want to be risking a very high amount of money per trade you could not risk $1,000 per trade if you knew your strategy has produced 10 losers in a row at one time even if that was back in 2012 so once you've tested it you'll know the max number of losses you'll know what your average draw down is what your max draw down is and you'll be able to base a money management and a riskmanagement plan around that now I plan to do a risk management video eventually so leave a comment down below if that's something you think you'd be interested in and also go ahead and subscribe to my channel so that you get updates whenever I come out with any new videos about Forex trading now with all that said about hard work back testing creating a risk management plan creating a money management plan and creating an entire trading plan i know all of that sounds very strenuous and very difficult but let me tell you there's nothing better than all of that hard work paying off on a Monday and making 417 pips in one day so stick around guys through the intro and disclaimer go ahead and hit that like button for me subscribe to my channel if you're new and I'll be back shortly to share with you how I pulled 417 pips out of the market in a single day [Music] welcome back everybody and today we are going to start out on the dollar yen the dollar yen produced two different advanced patterns here on Monday on the hourly time frame all the trades that I took on Monday were on the hourly time frame just so you know and here we had a bat pattern i'll give you a second to see if you can find it i'm also going to put a link in the bottom left hand side of the screen to a video tutorial that I did on the bat pattern not too long ago so if you're not familiar with the bat pattern then go over there and check that out and learn a little more about advanced patterns this specific bat pattern came in from here this leg here is the X this is the impulse leg x to A A up to B 50% retracement b down to C at least at 382 and C to D at the 8.86 see how close I was there a little bit high all right and now if we bring in another Fibonacci for our targets i only take one target i do not trade multiple targets so from our entry down to the 382 which is where I take targets on my advanced patterns is 42 pips and as I said before there's another advanced pattern here on the chart i'll give you a second to find it as well and it's a cipher pattern so on the bottom left hand of your screen there will be a link to the tutorial I did on the cipher pattern not too long ago so if that's something you're not familiar with then head over there and check it out and get a little more familiar with the cipher pattern this cipher pattern came from this leg down here this is the impulse leg x to a 382 retracement up to a 127 extension and ending down here at the 786 retracement again we'll bring the fibs in to see how close I was on the entry just a tad high and now we will bring in another Fibonacci to see about targets and to count the pips on this trade somewhere around 25 pips up to the 382 all right so that was 43 pips and 25 pips there coming up with 68 so far now we'll head over to the dollar CAD which was the next trade we took on Monday and as you can see this one's already drawn in i obviously did not delete it yet on the dollar CAD we had a cipher pattern the cipher pattern came from this X leg down here x to A A down to B B to C and CD completion right in here this one actually came down to test the X leg of structure here and held up pretty nicely shooting up to hit our targets pretty easily and although we got a little bit below our X leg we didn't get anywhere near our stops because we had smart stop placement under this previous swing low all the way over here this is what I wanted my stops to get under just in case we pushed down a little further and tested this area i had a long bias in this market because of the trend we've been in for a while now nothing but up so I assumed that if I could get stops under this level here that we would probably see a continuation of that upward trend now we will measure for our targets at the 382 so that accounted for 35 more pips so that's up to 103 so far next we'll take a look at the Euro Aussie and the Euro Aussie has a very large ATR which contributed a lot to our pip gains this Monday so here on the Euro Aussie we had two trading opportunities i'll let you see if you can pick out the cipher pattern here before I draw it in and there was also a Gartly pattern after the cipher see it yet cipher pattern coming from this leg down here x to A 382 retracement to here 127 extension down here to a 786 retracement for entry we barely entered this trade barely got filled but did get filled and if we just bring in another Fibonacci retracement for targets you will see that we did come up to these 382 here to hit targets that accounted for 138 pips so we were at 103 we are now at 241 pips for Monday also on this same chart as I said before there is a Gartly pattern if you're not familiar with the Gartley pattern then make sure to subscribe to my channel because I'm coming out with a video explaining how I trade the Gartly pattern within the next couple of days i'll put a link to subscribe in the bottom lefthand corner of your screen and let's bring in a Fibonacci retracement to find this Gartly here as you can see starting from this X leg here we go down our impulse leg up to a 618 do not hit 786 so that tells us this is going to be a Gartly pattern if a couple of more rules are met we then come down more than 61.8% and then back up to a 127 extension right in there and I'll bring on the 127 to make sure I'm correct with my entry pretty close we'll move it up a hair and now we'll bring on another Fibonacci retracement to check the pips out on this particular trade bring over our ruler it looks like that was around 90 pips so that puts us at 333 pips for Monday so far with one more trade to look at on the Euro pound and the Euro pound actually was not a advanced pattern this trade was a 786 strategy trade which is also a strategy that I came up with well I don't like saying that I came up with it i'm sure other people have used the same strategy that understand trend continuation and just not uploaded YouTube videos about it but it's a strategy I use during trend continuation to capitalize on very good risk-to-reward and being with the underlying trend if that's something you're interested in learning about I'll post a link in the bottom left hand of your screen and I'll show you an example here on the chart of that kind of trade so what we look for is a break and close above a previous resistance or support level as you can see here we get a break and close above this previous resistance level and then all we do is go from the swing low down here to the swing high and we would in this case with the market breaking above and going up we would buy the 786 retracement which is what we did and we look for targets specifically me I look for targets you will have to test this yourself if you ever plan to trade it and figure out where the best place for targets is for you but I look for targets back up at previous structure which would be here normally I would go with the bodies of these candles here but I chose to go a little lower just to make sure I hit targets on this specific trade now with that there let's check and see what our pip count was to targets around 84 or 85 pips so if we add that to our 333 that equals 417 pips in a single day and if you notice here I'm actually involved in another advanced pattern trade on this same chart i'll delete all this and show you what I'm talking about here if we take a Fibonacci retracement from our X leg up here down we see that over here we get a 50% retracement that does not go above the 618 retracement here i'll zoom in a little bit maybe hard to see so this bat pattern would look like this x to A A to B did not touch the 618 if it would have we would have assumed this was going to be a Gartly pattern we would have looked for another 618 retracement back down but instead since we did not clip the 618 we only have to have a 382 and back up here at 8.86 is the completion of our bat pattern and that's what I'm short in at the moment waiting to see if we can come down we've actually got pretty close to targets but not quite there yet as you can see we've got within one pip of targets here so at this moment I should be moving stops down to break even but you probably don't want to see that so I will do that once I'm finished shooting this video all right guys well thanks for watching and I hope you learned something out of this i hope you learned that if you follow a specific trading plan that you've tested in previous markets and has proven to be profitable that you can have a much better chance of becoming successful as a trader i hope this video was educational for you if it was and if you liked it then please don't forget to hit that like button also don't forget to subscribe to my channel for more educational videos about Forex trading i'll be coming out with a Gartly pattern video very soon so make sure to subscribe if you're interested in that and good luck on all your future trades see you next time guys [Music] [Music]