---
title: 'The Only Trading Strategy You''ll Ever Need'
source: 'https://youtube.com/watch?v=e-QmGJU1XYc'
video_id: 'e-QmGJU1XYc'
date: 2026-07-28
duration_sec: 518
channel: 'TradingLab'
---

# The Only Trading Strategy You'll Ever Need

> Source: [The Only Trading Strategy You'll Ever Need](https://youtube.com/watch?v=e-QmGJU1XYc)

## Summary

This video presents a three-step trading strategy based on trend identification, supply and demand zones, and risk-to-reward ratio. The creator claims the method is consistently profitable without indicators, relying solely on price action.

### Key Points

- **Strategy Overview** [00:02] — The strategy is tested thousands of times and profitable every month long-term, using pure price action without indicators.
- **Common Trend Mistake** [01:00] — Most traders incorrectly call a trend reversal when price breaks a low that hasn't broken the previous high. A low is only valid if it breaks the previous high.
- **Supply and Demand Zones** [02:43] — Demand zones occur in uptrends (buy zones), supply zones in downtrends (sell zones). Mark the consolidation candle before the impulsive move.
- **Copy Trading Example** [03:36] — The creator tested a copy trading feature with $50,000, which grew to $160,000 in a month by following a top performer with 86% win rate.
- **Real-Life Example** [04:20] — In an uptrend, only look for long trades. Mark demand zones from consolidation before upward moves. Enter on retest, stop loss below zone, take profit at recent highs.
- **Multiple Winning Trades** [05:55] — In a downtrend, mark supply zones. Price retests supply multiple times, each yielding winning trades with stop loss above and take profit at recent lows.
- **Risk-to-Reward Rule** [07:14] — Only take trades with risk-to-reward ratio above 2.5:1. This rule significantly increases profitability even if steps 1 and 2 are satisfied.

### Conclusion

The strategy combines trend direction, supply/demand zones, and strict risk-to-reward filtering to produce high-probability trades. Repeating the process consistently can lead to profitable trading.

## Transcript

I have a three-step formula that I've back tested thousands of times, and every single month that I tested it, it was profitable in the long term. No indicators, no patterns, just pure price action, baby. That really is the fun part of this whole technique.
I had more pleasure just eating the brush than anybody in this country. And by the end of this video, you too will know the strategy, and will be able to take calculated trades just like this one, and make insane amounts of money.
To jump right into it, the first step involves market structure. Now this is arguably one of the most important steps, because if you even just slightly this part up, it will ruin the whole strategy.
Come on now dawg. Come on man. One of the very first things you learn as a trader is uptrends and downtrends. It's almost like the sippy cup of trading. A chart that makes higher highs and higher lows is an uptrend.
A chart that makes lower lows and lower highs is a downtrend. Simple enough. Now, you may be thinking, why are you even going over this, I already know all this. Well, what if I told you, you're probably doing all of this completely wrong.
Let me explain. So going back to our example, the chart does this, making higher highs and higher lows. And, as we already stated, it's an uptrend. Okay, but then something interesting happens. The chart starts heading downwards, which in this process, price makes this low, and
breaks right through it. And this exact point is where I see the majority of traders make the mistake. Since price broke this low, a lot of traders think we are now in a reversal and price is in a downtrend. So in return they start looking for short trades because they now think price is going
to head lower. But what if I told you this chart is actually still fundamentally bullish? You see, sure price made this low, but this low is actually not a low at all, or at least
a valid one. Why? Because price never broke the valid low, which is right here. I want to make this very clear. In order for a low to be validated, it needs to break the previous high. If you do not understand this part of the strategy, the strategy will not
work You are done Fired So say if price does break this high we now know this is a valid low Okay good So now price is in an uptrend which means we should only look for bullish trades The only time we should start looking for short trades is if price breaks this low
It can do anything right here. It can go up, down, sideways, literally anything. As long as it doesn't break this low, we are in an uptrend. Now, say that instead of doing this, price did end up breaking upwards. Since price did break our previous high, our new low will be transferred from this point to this one.
So back to the first step. Identifying if we are in an uptrend or downtrend. So, what's next? That would be step two in the formula. Step two is identifying supply and demand in the market. Demand zones take place in uptrends, supply zones take place in downtrends.
A good style of thinking is you want to buy from demand zones and sell from supply zones. Here, if we look closely, the market is going up. Since we saw a large put from the beginning of this move, it simply shows us that a lot of people wanted to buy from this point onwards.
So we can assume if price comes back down to this area, traders will have the same style of thinking and want to buy in the same area again. Nice. A supply zone is the exact opposite.
Since we saw a large downwards move from this point on, it shows us that a lot of people want to sell at this area. So if price ever retests this zone, we can assume price will again move downward from this point.
This supply and demand theory is the core of our strategy. But we still have one more step in our 3 step formula. But let me show you some trading profits real quick. I made a video the other month saying I was going to try to use Hentertrade's copy trading
feature, where you can copy professional analysts by simply clicking a button. Now when they first asked me to test this, I was a little skeptical at first. I'm not going to lie. But I decided I wanted to test it out for myself.
What I did was click the top performing section so I only saw the top performing analyst. I then saw this guy that had an 86% win rate, so I decided to test him out. I catched this by depositing around $50,000 a month ago.
That $50,000 is now $160,000 just from clicking a follow button. Pretty insane. I proceed to update you guys on Instagram on how the copy trading is doing Your face filters on Instagram today This is my favorite one so far Nice job team But in the meantime if you want to test the copy trading feature too I leave a link in the description
so you can check it out. Okay, let's go back to the video to a real life example using the strategy I just taught you. So looking at a real chart, we see price moved upward, came down, and then broke the previous high, which means we have higher highs and higher lows, meaning we're in an uptrend.
Since we're in an uptrend, we only look for long trades. We do not look for any sell positions. As shorting in an uptrend is just silly. Since this low broke the previous high, this is our valid low and price will only be in
a downtrend if it breaks this point. So now that we know we're in an uptrend, we want to look for demand zone opportunities. We can find our demand zones by finding an area of consolidation or a point where price
moves sideways before having a sharp move upward. As you can see from this chart, we have some consolidation right here. The price got straight up afterwards. How I like to mark my demand zones is marking the candle right before the impulsive move.
So grab your rectangle tool on the side, find the area of consolidation before the big move. Then mark from the low to the high of the previous candle before the big move. This is our area of demand. Again, we are not even considering areas of supply because we are in an uptrend.
So we don't even need to worry about that. We wait for price to re-enter into the zone and this is where we would enter. Set your stop loss right below the demand zone and set your take profit at the recent highs. Boom we got an easy winning trade.
So that's an example of just one winning trade. But I want to show you just how accurate this strategy really is. So let's break it down with a real chart example. Here we have an uptrend because price is making higher highs and higher lows.
So as we can see this low is what broke the previous high. So this is where price needs to break in order to be in a downtrend. Which is exactly what ends up happening. So now we are in a downtrend and we only look for areas of supply or short trades.
So in return, we mark our areas of supply. Price comes back up to this zone, we enter, set our stop loss right above the area of supply and set our take profit at the recent lows Boom we got an easy winning trade But wait we not done Price created another area of supply up here and we still in a downtrend So we wait for price
to come up to the supply. Enter, set a stop loss above the area of supply, target recent lows, another winning trade. But again, we're still not done. Price created another area of supply, wait for price to come up to it, set stop loss above the area of supply, set take profit at
recent lows, and again, we have another winning trade. But wait, there's more. We got another area of supply, wait for price to come up here again, set your stop loss and take profit, and we got another winning trade. That's the power of this strategy. It's extremely accurate
for one, and two, you're only trading in the direction of the trend, which raises the probability of you winning a trade by a lot. So now that you know just how powerful this strategy really is, let's go to the third and final step on how to improve this strategy even more.
Our last step involves risk to reward. Sometimes while using this strategy you'll get a trade that checks all the boxes, but when you set up your stop loss and take profit, it has a low risk to reward like in this example. We only want to take trades if the risk to reward is above 2.5 to 1, meaning for every
$250 we're getting back, we're only risking $100. So even if the chart follows both step 1 and 2, but the risk to reward is under 2.5, we do not take this trade. This one rule by itself increases the profit rate of the strategy by a ton.
So for our final example we have price making higher highs and higher lows, meaning we're in an uptrend so we only mark areas of demand. Price ends up consolidating right here before shooting upwards, so we mark this area.
We wait for price to come to this area again and then we enter. Set our stop loss below the demand zone and set our take profit at the recent high. Our last step is to check the risk to reward and make sure it's over 2.5, which in this
example is 3, so we're good to go there. If it's anything under 2.5, we do not take the trade. Wait for price to play out, and we get a beautiful winning trade. Then we just repeat the process
forever.