Transcript for:
Scalping Strategy Insights and Techniques

over the past 8 months I've been perfecting an easyto repeat scalping strategy that not only now has me on a 29 trade win streak and usually gives me 700 to 1,000 plus dollar opportunities multiple times per day but it's also allowing other traders to be able to see amazing results grow their accounts even if they're starting off with not that much experience okay trading isn't about luck and what I'm about to show you today proves it so to explain this overall process I'm first going to outline some simple trading Basics that are particularly helpful for this style of trading then I'll break down how the system works as well as this simple system checklist and some tools that I use then most importantly I'm going to show you all my logged trades and show you some live trade examples that showcase rules and tips that are critical for the process so if you're a beginner or you've been doing some trading by the end of this video you'll understand how I built this process and how I scaled it and hopefully be able to apply to some of your own trading okay so there's a few things to fundamentally understand about trading that most people approach completely incorrectly and this is something that think largely gave me an edge and this is going to help you no matter what you're trading so when we are looking at any chart say something that looks like this right the reason we're seeing these moves is because the market is going to move to fill imbalances so whether it's algorithms or real buyers when there is an increase in demand and not enough Supply to meet that demand prices of whatever we're looking at are going to go up and fill that imbalance particularly into key areas we'll talk about a little bit later and it will eventually stop when the demand no longer outweighs the supply in which case there's two Supply and not enough demand and the price will sink back to fill that imbalance until once again the demand outweighs the supply and it reverses so when you're looking at a graph you're really looking at the visual representation of mass human psychology whether it's done by algorithms or Traders like I said that's what we're looking at so there's two types of macro ways to trade moves like this okay one is going to be following current trends like this so trying to buy in at an area of a move up or down and then the second way is by timing reversals so anticipating areas where price will likely reverse and then playing the move to the downside so say for example we have the market starts here makes a move down to this Zone moves up here and then is trading right at this range we can then often use these parallel lines to find key areas where we can predict where these imbalances will change allowing us to find areas where the price is likely to reverse okay so this is one approach to take so if we look at a real charting example we have these highs being broken so once again if I were to take my parallel Channel tool off of these lows at this point and bring it down to this low point we can then sort of assume that when this price does come down to here this area even though it seems to be random is a high probability area using other technical analysis that I'll show you in a second for the price to potentially have a reversal all right so price starts to make its way down you'll see even though we anticipated for it to touch here once it reacted near this level this is where we saw a significant reversal in price all right and once again this is a super basic way of looking at that I'm going to show you here in a second a few more ways that can help you do this a little bit better to gain your bearings of where these levels could be all right but if we want to trade in the direction of the trend the second thing that we're going to be looking at is identifying where these Trends are coming and then waiting for the price to test the opposite side of that Trend to show us the first pullback in an early point which often time shows us the very beginning of a new complete downtrend so we have our uptrend over here downtrend over here so the earlier we can get into situations like that the more we can play Trends to the upside by getting in early so if we take our previous example if we look at this overall block of price action this shows us a macro uptrend but inside of all these Trends we have fractals and those are fractal mini trends that are in in this overall block of price movement so we can sort of just start to find these areas so if I identify that this level and this level is all producing sort of an area where the price can't break below it I can draw trend lines on here also trend lines along this level so this low this low this low which may have a reaction a little bit higher into the future so even though we know on an overall sense this might be an area where if we break down to we may have a big reversal in the meantime there's different areas where you can take advantage of that along the way okay so if we see for this example before it comes down to this low Point here we have price come up test off of the opposite side after it's broken out of this overall uptrend and then make a further move to the downside but this is still a very non- selective way of timing tops and bottoms they shouldn't necessarily be used by themselves so I'm going to show you a few things that have helped me along this process of scaling that I've learned over 7 years of trading that allows us to actually be a little bit more selective about these levels and these are going to once again pertain to the strategy that I'm going to show you in a little bit okay so there's an indicator in a natural phenomenon called Fibonacci this is a ratio that is followed across nature you can see it in the way shells are formed humans are formed faces are formed plants you name it all follow a specific ratio which just so happens to sort of be the code of nature we can look at these specific levels while we're doing our charting and so this tool is called a Fibonacci retracement tool where essentially say we have a trend that moves something like this and is starting to now have a pull back down we can take our Fibonacci from the beginning of this trend up to this high and this is going to show us key retracement levels that the price will likely come down to and of these the most important is What's called the Golden Ratio which is the 618 level now this is a level where most often is going to be the retracement considered a full retracement after a trend has sort of had a dip where we'll see a continuation or at least a temporary response off of sort of following off of that same golden ratio say we had a trend that moved something like this if we take something called a trend based FIB extension now we're taking that same golden ratio but we're taking multiples of that golden ratio to show us potentially where the tops of Trends would be I'm going to show you how this is all going to tie together and start making sense even if you're a beginner no matter what in just a second but in this situation if we click our indicator from the low to the high then back down to the low what we're doing is having our first push in our overall trend structure give us what we consider to be a factor of one and then we'll see that golden ratio is 1.618 2618 projection zones which often times can show us the tops of Trends so let's take a look at how this would apply to both of our situations on this chart so if we consider this our overall uptrend and we take our our Fibonacci retracement starting from the beginning of our Trend to this high point if we drag this perfectly over you'll see this is exactly where the price came down to in addition to touching this lower part of our imbalance Zone to then start to have a major reversal in price okay and then once again if we take our factor of one being this first sort of move that we had in the beginning of the trend and then we make our factor of one you can see this lines up almost perfectly to this exact same value so we have our FIB multiple lined up we have a Fibonacci level lined up up and we have the price Hitting off this Supply zone so you can see as we start to master some of these Concepts we can pick really really key areas where there's at least a higher probability of what we expect to happen in beginnings of Trends to start allowing us to play into those Trends early so even if we're thinking in the context of a trend we're thinking price moves up for an uptrend and price moves down for a downtrend but inside these Trends there's obviously areas where the price makes dips continues makes dips continues makes dips continues and especially if we go down to smaller time frames so say for example if each of these candlesticks is showing me 1 hour worth of price movement so if we go down to say something like a 3 minute frequency and I toggle on something like say a moving average these moving averages when they're all one color this is a 20 50 200 day moving average it's also available in the tools completely for free for you to add to your chart you'll see we clearly have a trend break right here and then after that we sort of trend red pullback pullback continuation pullback continuation pullback continuation pullback continuation Etc you get the point so there's a lot of opportunities where the trend is still moving in the same direction but has these pullbacks in ranges and this is exactly where the opportunity lies okay but there's one more thing that I need to share with you before I hop into the opportunity and the specifics of the trading style okay and what I'm about to show you is really where and how the money is made in trading and I'm going to explain something to you that will turn your perspective into thinking of trading like a business rather than it being gambling or some sort of Wizardry you can't look at trading in the context of money because it's basically irrelevant from a experience I know we don't want to focus on money because really in trading money has almost nothing to do with showing us whether your trading works so say for example $5 million is considered a lot of money to most people however if we look in terms of something huge like Amazon if Amazon made $5 million they would be in extreme trouble so looking at it in the sense of $5 million being a lot but it not being a lot to Amazon the same thing is true in trading okay the money you make On Any Given trade has nothing to do with how good or bad the trade was what you want to do is aim to be consistent and if you follow this consistency process this is the number one biggest step to becoming consistent in your trading process so let's go back to our example from over here considering we know this is probably going to have a reversal I know that based on all of these conditions this is going to happen a certain percentage of the time so out of 100 if this condition were to be met 50% of the time I know I can make more money than I lose over time even being wrong half the time has nothing to do with being right or wrong okay so you'll notice if you're making 3x you can be wrong up to 30% of the time and still Main maintain profitability and so really all we're trying to do is find a repeatable process where we can hit any combination of these metrics to maintain on this side of the equation and stay away from this side of the equation and these are the processes that I use to build up this system all right so considering that say I enter at this price I'm going to take profit at that price and have a stop loss here and I want to risk $200 in this situation that means that if I hit my full takeprofit I'm going to make $600 I'm risking if it comes down to this level $200 and it's going going to show me precisely how many units I need to enter in at this exact point to have that contained amount of risk and that type of profit if I just say I'm entering in with 100 units every time and say my first trade is set up like this and the next trade looks something like this you'll notice based on this order input I need to enter with $16 to risk $200 but say we adjust it to this one now all of a sudden in order to have that same maintained $200 worth of risk now we need to use almost half the quantity because our stop loss is different so people are just throwing in 100 at any point and not quantifying your risk any sort of consistency with these metrics is almost going to be impossible to achieve which is going to throw off your whole system anyways so whenever we're quantifying this distance and whether we're using a percentage or a dollar amount so in that situation it was $200 instead of looking at it in the sense of dollars we're looking at it in a sense of something called risk factors and this is going to be important to keep in mind when I'm explaining the next steps of the process but in doing this this is going to allow us to figure out how to treat our trading like a business in and this is where the money is actually made in trading so I'm going to show you the strategy that I put together and we've been working on over the past 8 months in the combination of all these metrics put together that is allowing us to currently scale at the rate we are real quick I want to show you how much we see this golden ratio coming into play on charts in general so even if we look at say for example our pushup and pull back down on this move if we take our Fib from here to here you'll see perfect contact before a push up say off of this move once we broke this overall trend and we tested up at this region we start here and go to here once again boom boom 61.8 hit before reversing so if we start to master all these Concepts you can really pick really good dip areas to get into to play continuations off that's exactly the concept that we started with for this strategy so here's a basic concept of the model that have been able to build out allowed us to scale so well so say we have a trend something like this okay what the system aims to do is is pick key areas on a Fibonacci to be able to play dips in price in then continuations and all we did was look over time the average amount that Trends would pull back before having a continu ation up and we created a custom Fibonacci with these settings here okay so you can see our entry level is at that 61.8 our dip by level is at 38.2 second dip by level at the17 level and then our stop loss is at the .05 level okay what this allows us to do is if we are to get a normal pull down to 61.8 our take profit is set up here at the 1. 1272 level now this is all based off of statistical probability and it'll make sense to you in a second when we start looking at more explanations here here's where it starts to get interesting though what we did was create a custom calculator on Excel that basically allows for say example price to come lower than our anticipated entry and say come down to something like this now as soon as this secondary level is hit this calculator is going to adjust our average price to slightly lower and move our takeprofit if we're not getting a massive continuation of the trend to come down to somewhere right around this level so now all we need to do is have the price correct even just a little into this Zone and in this situation I'll still make almost the exact same amount of profit as if price went from here by having the price just reverse down a little bit in which case we found following a certain set of rules the probability of having a slight correction even if the price starts moving against us is extremely extremely probable and once again we're making the same amount of profit okay so in a situation like this we'll use this calculator to identify whether it's short or long our limit will be this value take profit will be this value stop loss this value and we have limit one being our dip by one and limit two being our dip by two you can put the amount that you want to start with here and it will show you all your position sizes so once we input all of these values you'll see we'll get our exact quantities in our estimated amount of profit on the trade now this is where it sort of differs from a more traditional risk reward perspective so in a situation where say we're anticipating the price to come down to here and then make a reversal we know a certain percentage of the amount of time will hit a full profit and a certain percentage of the time will hit a full loss so if we're making 3x what we're risking say this happens 40% of the time we're going to be be profitable and we know that the expected profit on a successful trade is positive three risk factors now in a situation of this trade the probability of a win is a lot higher and if this were to come down through without getting us out of anything like this this is going to be NE - one whole risk factor and the expectancy on full profit trades is going to be positive 0.2 so in this circumstance if you're getting 22 you need about four to five trades in a row to make one risk factor but being selective in where you follow Trends can allow these opportunities to happen over and over again and as I show you more live examples of these I'm going to go over some of the nuances that I do look for but just to show you how often these types of moves will happen now considering all of the extra rules that we've added in this is what I did to practice the proof of concept before implementing okay so if we bring our bars back to this point right first I have an uptrend first I'll take my FIB then I'll just go through examples of this to see based on what I do what my mathematical risk reward outcome will be okay we one full profit there okay so now we're getting to pull back down I wouldn't take this trade but just for sake of example enter here out for full profit so we have another break up to this level entry short full profit all right so in a short period of time we have plus point2 plus point2 plus point2 plus point2 plus point2 so you can see we can start winning these back to back so say for example we just did this across 15 trades we could already have plus 3.3 risk factors then whenever we do have say a Max loss we have a approximately a negative-1 risk factor which would still leave us up 2.3 risk factors and this isn't even me using any of the selective measures to decide whether or not it's a good idea to take or to not take these trades this is how we have members going on 14 15 win streaks 30 in1 win streaks being able to scale their accounts like crazy and once again why I have now been on a 29 trade win streak and the good thing about this is you can scale your account up like crazy if you want to be extra aggressive or you can play it a little bit more moderately which is sort of what I do because I'm in the first first place starting off with a little bit more money okay this type of trading doesn't make sense to a lot of people and there are some challenges that do come along with it and what I just showed you wasn't even refining down any of the metrics that I'm looking at when I'm journaling all of my trades over time and from journaling these notes and doing these sorts of observations and just doing the practice sessions over and over gave you my system checklist here you guys can actually download a version of this notion and use it to track your own performance as an equity curve up here a daily planner so you can go through and follow your system checklist so I have a pression checklist where it loads up all of the things that I need to do for the day for my individual trades I have my rule sets Okay and then I block out my daily trade schedule as well as my evening schedules so I'm always following trading like a business and I'm able to maintain being selective and being consistent so now I'm going to show you a few live trade examples and show you sort of some of the specific things that I look for when I'm taking this type of approach and this is going to go hand inand with the Fibonacci projections Trend analysis that I would showing you to be able to construct this type of process you'll see right here I'm tracking this trend reversal off of here think I was shooting another video showcasing this trade you can see I'm already entered into the trade but entered off of this point on that once again break of trend retest section here okay so you can see price does come up and reverse the opposite section and you can see now I should have already been out for full profit here but instead I let this trade end up running I was up$ 27 $2,600 and I ended up closing this trade out for a fairly normal size win okay but notice we were using our analysis on those key reversal areas where even when we got a significant push it was enough for it to reverse and be able to get us out of the trade okay so here's another example in this situation I've already been in the trade since up here this ended up taking way too long but you'll notice off of this contact point and this contact point after we got the breakdown once again price comes up to retest this that's the last point that it goes before dropping down below this key Point down to our takeprofit Zone we're up $11,000 and it ends up closing out right around $1,100 so you'll see in this situation I'm anticipating that this will hit some sort of resistance off of that previous imbalance zone right right into the exact point where I'm also taking an entry hoping to play to the downside and you'll see I enter the trade there took a little bit smaller of a position here up about $700 all right and the price finally pushes down full take profit Clos it out for right around $800 so once again using all of our Confluence all of the rules comes down perfectly to our Zone all right so this one's pretty straightforward as well we have our position set up into our moving averages I take a position right here right on top of this fair value Gap as well price ends up responding and then in invalidating the fair value Gap comes down gets us filled on our dip by two and because of this choppy price action something that I do like to see we get this nice flip into our Zone down here get a nice juicy candle to push price up up around $800 and closes us out for right around $900 so in this next example see how we have a break of structure showing us a nice and early jump on this current Trend lots of support to the underside we got our entry here I'm in the position we get filled on our second dipy level and then price pushes back up up 700 800 I don't know why the camera stopped but came up and got us for a full profit trade all right and in this situation push up into one of these chops on our Trend I think we entered this a little bit weird up $1,300 at this point price moves up continues moving up and got us a nice juicy full profit trade didn't quite make it I think it input this order slightly wrong but got a really decent Siz trade out of that as well what I'm showing you here on the YouTube side is just scratching the surface of what we talk about on the private side of our trading team and all the things that we dive into we dive into things like doing daily analysis to predict the general bias all sorts of structuring money in reallocating compounding to be able to scale accounts quickly okay the calculator I gave to you guys is for a 10% allocation so what we're able to do fully understanding everything to do with the system you can scale a lot more okay which is allowing members to do things like once again six trades zero losses you can see this member managed to double their account the last two trades okay Nicholas using these trading Concepts to go up 13 risk factors $3,200 in profit from Project Mayhem once again $1,100 here $3,200 Scooby 444 144 trade win streak okay this is exactly what I'm talking about and how treating trading like a business focusing on the right things can allow you to scale up to these levels so I wanted to show you this framework and show you the proof of concept to show you that being able to scale accounts isn't luck if you know how to do it properly if you're still here make sure you hit the like button on the video subscribe to the channel only if you want to follow along with new videos that I post take advantage of this Discord guys in the resources below I put a ton of value in there for you guys this helped out at all make sure you let me know in the comments which part was your favorite I'd love to see it but until next time guys I will see you all in the next video [Music]