Transcript for:
Scalping Strategy Overview

I had the three-step scalping strategy that I've back tested thousands of times. And every single month that I've tested it, it was profitable in the long term. It works every single day and consistently gives me profits like this, this, and this. And the best part is it is so stupid simple that even a complete beginner couldn't mess it up. And by the end of this video, you too will know this strategy and will be able to take consistent winning trades like this one and become a profitable trader. Now, let's jump right into it. All right, guys. So before we get started, I'm going to ask you a question. If I give you one simple and proven strategy, are you the type of trader who is actually going to say consistent trading it? I hope the answer is yes, because one strategy is all you need. And after trading for 9 years and trying hundreds of complicated strategies, I can tell you that this strategy you will learn today is the easiest, simplest, and most consistent that you will ever find. So today, that's exactly what we're going to learn. We're going to go over one proven strategy that you can trade every single day. And no, you don't need any complicated big word terms to trade this or fancy indicators or higher time frame bias. Only need to trade for the first hour of the day. And this works for any market. It does not matter if it's futures, stocks, crypto, or forex. After today, there will be no more guesswork in your trading. And you'll be able to let the strategy make decisions for you. Now, in order to find good trades in any strategy, you need to know how to mark key levels, which brings us to step number one. Now, this is stupid simple, but if you mess this up, nothing else will work. So, make sure to pay close attention. And for this stupid simple strategy, there are literally only two levels that you need to mark out. We're going to start out at 9:30 a.m. EST or New York time, and you're going to make sure that you're on your 5minute chart. So, right here, this is at 9:25, but we're going to wait for that first candle that starts at 9:30 a.m. to close. And believe it or not, this one candle is going to give you everything that you need to trade. Your entry, stop loss, and your target. And if you're wondering, how could this even be possible? Well, next, what you're going to do is you're going to go over here on Trading View, and you're going to select the trend line. And then you're going to mark out the high of this first candle and the low. And then after we mark out this high and low, we're going to go to our one minute chart, which brings us right into step number two. And yes, that is literally it. I told you guys this strategy is stupid simple. And I want you to comment below if you've been over complicating the way you find levels before this. Now, we've got that part down. We know exactly what levels to trade from. But marking levels alone won't make you money. In order to do that, you need a consistent way to enter trades. And this brings us to step number two of the strategy, which is how we execute our trades. Now, when it comes to entries, we have three setups that we can look for. First is our break. And this is the most simple. Now, you may have even seen this one before. But what is even more powerful is our trap and our reversal entries, which give you even more trades that you can find every single day. Now, for all three of these strategies, there are very specific behaviors that we need in order to take a trade. Now, let's break down all three. That way, you have everything you need to find trades consistently without guessing. All three of these entries are going to be done on our one minute chart. Now, if you look right here, we have marked out the high and the low on the 5minute already. and then you scale into that one minute chart for us to find our entry. Now, for all three of these, there is a very specific behavior we need in order to confirm that it's good to take a trade. So, for the break, it's really simple. What we're going to be looking for is not just a candle closure outside of the range. What we need is a third candle to close outside the range and then a gap to form. So, if you notice right here, there is a gap between this candle's wick and a gap between this candle's wick. This is called a fair value gap or FBG for short. And what this shows us is that buyers are heavily in control of the market because if the market gets pushed this aggressively leaving a gap and the market just hangs out up here without retracing, we know that that's a very strong move. So that can confirm our entry. As for stop-loss, I'm going to go over a couple different ways to place that later in the video, but let's focus on our trap for right now. Now, if you want to wait for even more confirmation, you can use what I like to call a trap entry. And what this is is instead of just executing as soon as a fair value gap forms, because as you can see right here, a fair value gap formed. Now, here's a mistake that a lot of people make trading this strategy, they think that the fair value gap itself, meaning this middle candle, has to be outside of the range. But a fair value gap is a three candle pattern. So, if any of the candles close outside the range, like you see right here, see how this candle closed outside the range, even though the gap didn't, that would still give you a valid entry for a break. And as you can see on this day, it worked out pretty good. But if you want to have even more conviction in your trade and wait for a higher level of confirmation, the trap entry is perfect. And what you do to confirm a trap is once the market closes outside of the range, whether or not you created a fair value gap, what you need is the market to retest into that first fiveminute level. So have to close above. If the market comes back in the range, that's okay. And as soon as the market closes back outside, that right there can confirm your entry. And again, we're going to get into stop-loss and take profit in just a second when we go over all the examples and the back test. But for now, I want to make sure that you understand the entry. Now for a reversal and this is probably the most powerful setup there is because once the market moves to one of these levels and it fails to break out often times we have a very big move to the upside. Now comment below if you've seen this happen trading the strategy because it happens all the time. You see the market tried to get under this low and it closed a candle outside of it. But what happened after that? Well, not only did the market move to the upside, but it created a very small fair value gap. Now, when we get a fair value gap back into the range, this tells us that the market is not only rejecting the attempted breakout, but the market's going to rocket in the other direction. And the reason this trade moves so explosively is because traders that tried to sell and push the market lower after this happens, they're now trapped and the market is going to rally in the other direction because all of those sellers who got into the market, they're going to be exiting their trades all throughout this big leg up, which acts as rocket fuel for the market. And this brings us to step number three, which is trade management, aka how we find our stop-loss and our take-profit. Now, without this, you will not make any money trading this because it takes more than just knowing when to enter and marking out your key levels. You have to know how to actually manage the trade. And this is where most traders get stuck. But this strategy makes it very, very simple. And now we're back here on the one minute chart or step number three, which is trade management, aka how we find our target, where we're going to take profits, and where we place our stop-loss to protect our risk. Now, this step is hands down the most important because you can mark out key levels all day and know when to push buy or sell, but if you don't know when to take profit, you quite literally can't get paid. And the reason most people struggle with this is because of subjective, complicated strategies. But this stupid simple strategy makes all the decisions for you. You just sit back and let the market do the heavy lifting. So, the first example we're going to go over to show you how to place your stop-loss and your takeprofit is a break entry. Now, as you can see right here, we did create our fair value gap outside of that first five minute range. So, at this time, you are good to enter the market. Now, to plot out your position and get a good idea of your risk-to-reward, you can go over here on Trading View and select the long position. Since we broke out of the highs, this would be a buy or a long position. And you're going to be able to enter the market as soon as that third candle closes if you're using the break entry confirmation. Now, our stop loss or where we will say we are wrong on the trade and cut our losses is going to go at the very first candle that closes its body outside the first 5minute range. Not the first candle in the fair value gap, but the first candle that closes its body outside the range. And for our take-profit, we are just going to go for a fixed 2:1 risk-to-reward on every single trade. This means that for every $100 we have at risk, we will profit $200. So, for this trade, we have $555 at risk to make $1,15. And as you can see, this is earlier this week on August 4th. Unlike most YouTubers, I'm not sitting here cherry-picking examples from months and weeks ago. I'm actually showing you things that are happening right now in the market that you can use to start trading. After you enter the trade, all you need to do is let the market do the heavy lifting for you and trust that you're in a high probability trade. This trade only took 9 minutes to hit the takerit. And in that time, you made $1,15 profit. Now, let's go to day number two, which is literally the next day. As you can see, August 5th, and this is going to be our trap example. So, as usual, you just mark out the high and the low of that first candle, and then you go down to the 1 minute to find our entry. Now, what we're going to wait for here is the market to push through one of these levels. But for a trap entry, what we want to do is wait for that market to break through the level and then come back into it or retest the level. And then remember guys, what do we need? Do we need a wick above the range? No, that does not give us an entry. Wicks really don't mean much and they can easily cause you to get faked out. What we need is a candle closure outside of this range. So, you have to be patient. I know it's tough sometimes when you see the market feels like it's about to go without you, but trust me, guys, staying consistent and disciplined will always work out better in the long term. As you can see right here, we did get our candle closure back outside the range. So, at this time, we are good to enter the market. And where does our stop loss go? Well, remember, it's going to go at the first candle that closed outside the range. So, right here, the market closed outside the range for the first time. Our stop loss goes at that candle. And for our target, we're going for a fixed 2:1 risk-to-reward. So, at this time, you can enter the trade, place your stop loss down here at that first candle that closed outside the range is low, and then place your takeprofit above. As you can see, we have $330 at risk to make $660. And at this time, you can sit back and let the market do the heavy lifting for you. This trade only took 4 minutes to hit the target and netted $660 in profit, bringing our total for 2 days to $1,765. And this was done only trading one NASDAQ contract. And you can literally trade one NASDAQ contract with any of the accounts that Apex offers. And recently I partnered with them to get you guys 80% off your prop firm accounts. So if you use code Casper at the link in the description, you can get a 50K challenge for $30 to trade on NASDAQ. Now this brings us to day number three, which is going to be the most powerful of all three entries, our reversal. As you can see, this is the very next day on August 6th at 9:30 a.m. So we're going to follow the same stupid simple, boring, and repetitive strategy. Now, I know this may seem like too simple, but trust me, guys, over the nine years that I've been trading, I've learned that stupid simple literally always wins because it takes the decision-m out of your hands and makes everything mechanical. After we've marked out those levels, we're going to go down to our one minute chart to look for our entry. And as always, we're going to wait for a break of the range. But this is not a break. Now, a lot of people mess this up, and I want you to pay very close attention. Right here, we just got a wick outside the range. So even though that the market created a fair value gap right here, you would not look to take that entry. It is very very important you follow this strategy exactly as directed. Notice here we got a closure outside of the range. And the reason this is important is we know that there are a lot of sellers that are really trying to push the market down here because we got a closure outside of the range. And then if we see the market move back in the opposite direction, we know that a large amount of buyers had to step in in order to overcome those sellers. As you can see here, there was a fair value gap back into the range, which confirms our entry. Now, for our stop loss on this trade, we are going to place things a little differently. What we need to do is place it at the first candle in the fair value gap. Now, remember the fair value gap is a three candle formation. So, not the middle candle that actually creates the gap, but the first candle in the pattern. And for our target, we are going to again go for a fixed 2:1 risk-to-reward. We're going to keep things extremely simple. That way, we can remain consistent and not have to overthink when it comes time to trade. So, at this time, you're good to enter the market. You're going to put your stop loss down at the low of that first candle, and your target is going to go at that fixed 2:1 risk-to-reward. As you can see, we have $635 at risk to make $1,265. Now, the market runs pretty aggressively and then it retraces a little bit before hitting our target. So, this is something you need to pay attention to, guys. Even though the market may not move exactly in the direction you want it to, you have to sit back and trust the system. And I mean, to be fair, guys, this trade still only took 11 minutes, which is way faster than any other strategy that I have ever tested. So, on that trade, we made over $1,200 in profit in 11 minutes. This brings our profit over just 3 days to $3,030. And as you can see, these are recent examples literally from this week of trading. Now, you've seen how much the strategy made in just 3 days. But, as we all know, we need more data to prove that this really works over the long term. So, let's take a look at the back test. So over 18 trades, which is almost every single trading day of the month, considering there are only 20 due to weekends, this strategy ended up with a $7,800 profit with only a $1,200 in draw down. This means even with the losses, you never went more than $1,200 in the red. This makes the strategy perfect for prop firms. And to do this, we won 12 out of those 18 trades, which gives us a 66% win rate. All right, so you've seen the strategy work. You know the steps, but let me guess what's going through your head. You're worried that you're still going to somehow screw this up. You're going to start overthinking it or chasing the next shiny strategy whenever this one has its first bad day. Look, we've all been there. We've all done that. But the real problem isn't learning the setup. It's what happens when you're sitting there and you're too scared to trade it. When you freeze because you've blown so many accounts before. When you start secondguessing every single entry because you cannot afford another failure. This is where most traders get stuck. Not in learning the strategy, but in actually executing it without fear. I made another video that walks through exactly how to trade with confidence, how to stick to one approach when your brain wants to jump ship to another strategy, and how to finally become consistent instead of just blowing prop firm accounts. I'll leave a link to that video in the top of the description. But remember guys, wait for 9:30 a.m. Mark out your levels, wait for one of the three entry patterns, and repeat this relentlessly. Yes, trading can be that stupid simple. Make sure to like the video and subscribe if this helped you.