[00:02] for me. Until I discovered that every successful day successful day trading strategy needs these four pillars: direction, confirmation, entry signal, and entry point. And when I understood [00:15] all of that, I started building strategies with method, logic, and structure. And today I'm going to develop a complete strategy with you from scratch, using these four pillars. But what makes [00:29] is different because I want to combine several advanced tools that I've already shown here on the channel. The efficiency index indicator, the moving average table, the moving average. I want to bring all these indicators together and create [00:44] a powerful strategy for you. And of course, all these indicators are available for free on Profit Chart, as described in the video. Come with me, man. [01:03] create this strategy for the mini- index, using two different timeframes. index, using two different timeframes. left. Indicators. In the 15-minute timeframe, we will use [01:18] the efficiency index indicator. And why are we going to use it specifically on the 15-minute timeframe? Dude, because this indicator works better on larger timeframes. This indicator was created for swing trading on the [01:32] daily chart, but we adapted it for day trading on the 15-minute chart, okay? Now, in this minute, we're going to use the Mesa, Fama, and Vídea moving averages, along with the Donche channel. Okay, man. These are the indicators that I intend to [01:46] use in our new strategy. And now we're going to assemble it pillar by pillar. First pillar, direction. Dude, the first pillar of any objective strategy is direction. And direction is knowing objectively where the price is [02:01] going. Wow, are we in an uptrend, a downtrend, or is the market moving sideways? That's what the first pillar needs to identify. And today we're going to use three moving averages together to identify the direction on the [02:15] 1-minute timeframe chart. In other words, we will use the moving averages for the fame table and the moving average for the video. Starting, dude, with the moving average table. Look, it was created to adapt to the dominant market cycle, and it comes with [02:29] a second moving average called fame. It's a confirmation line, you understand? So we have the average table, which is the fast line, and the average fame, which is the slow line. Beauty? Now, the average is based on the [02:44] CMO indicator, so it adapts to market volatility. And we're going to use this 34-period moving average. Oh Pi, but why 34? Because, dude, that comes [02:56] from the number of wires cubed. If you're new to the channel, I've already talked about cube wire in this video here, and the link is in the description of this lesson. But continuing, the logic behind these three moving averages together is simple. For you to have [03:09] an upward direction, you need to have the average table above the average fame, and the fame needs to be above the average video. In this way, you have an upward trend. Now, for you to have a downward trend, you need the moving average to be [03:25] below the Fama average, and the Fama average needs to be below the moving average. This way you have the downward direction. Any other scenario besides these two, we will then consider sideways movement. Pretty simple, right? So [03:39] now we can move on to the second pillar. Confirmation. Okay, now that we've identified the direction on the one-minute chart using the moving averages, we need to confirm if that direction holds true on the 15-minute timeframe. Because it's [03:54] pointless for the market to be trending if the movement is stagnant, full of noise, full of back and forth, you understand? We need an efficient movement. Wow, Pio efficiency index, what indicator is that? Man, [04:09] this indicator is amazing. And he answers that fundamental question. Is the price reflecting quality, or is it just making noise? He answers that question by measuring the efficiency of the movement. [04:24] When you insert the efficiency index indicator into the chart, it comes up in three colors: red, yellow, and green. If the bars are red, it means the market is very noisy. If they are yellow, it means the [04:38] market is in an intermediate zone. Now, if the bars are green, great, it means efficient movement, movement with direction. I went into more detail about this efficiency index indicator in this [04:52] video here, take a look. And the link is in the description of this lesson. And the second pillar, which is confirmation, would work as follows. If you look at the chart and see that the averages on the 1-minute timeframe are [05:05] showing an upward trend, then we should turn our attention to the 15-minute timeframe. If the efficiency index indicator is positive, we will consider that we have confirmation of the [05:19] classroom trend. Now, if you look at the chart and the one-minute averages are showing a downward trend, then we 'll turn our attention to the 15-minute timeframe. If the efficiency index indicator is [05:32] green, we will consider that we have confirmation of the downward trend. Simple as that. Having understood this, we can now move on to the third pillar, the entry signal. Now we need a trigger, something that [05:46] tells us exactly when we should consider the operation. The entry signal represents the moment when the opportunity to buy or sell becomes real. And for that, we're going to use the 10-period Doncha channel with a [06:02] D1 shift. And the logic is simple. When the price breaks through the bottom of the channel, wow, that shows strength in the downward direction. It's a sales signal, you understand? It's a sales opportunity. Now, when the price breaks through the upper part [06:17] of the Doncha channel, it shows strength in the upward direction. It's a buying signal, it's a more opportune time to be buying, you understand? Of course, right? This sign alone is not enough; it needs to be aligned with the [06:30] first two pillars. In other words, if you look at the chart and see that the 1-minute averages are showing an upward trend and the 15-minute efficiency index is green, and the price breaks through the upper part of the [06:43] Donche channel on the 1-minute chart, then we have a valid buy signal , understand? Now, on the other hand, right? If the averages on the one-minute chart are showing a downward trend and the 15-minute efficiency index is [06:57] green, and the price breaks through the bottom of the Doncha channel on the one-minute chart, then we have a valid sell signal. Okay, man, we're almost there. Our strategy already includes the direction, confirmation, and [07:11] entry signal. There's only one thing missing. We still need to know exactly where we're going to fit into the operation. And to talk about that, we need to go to the fourth pillar, the entry point. Dude, the fourth and final pillar is the [07:27] entry point. This is the exact location where you will place your buy or sell order. And this is crucial because it's no use having all the signals aligned if you don't know where to buy or sell. Hey, don't worry, we won't [07:41] need to add the new indicator because we'll be using the existing average as an entry point. Because if you look closely at the moving average table, it forms a kind of dynamic support and [07:56] resistance platform for us. So now, putting these four pillars together, our strategy would look like this in a buying scenario. When we have the moving averages showing an upward trend on the one- minute chart, the efficiency index on [08:10] the 15-minute chart, and the price is breaking through the upper part of the Doncha channel on the 1-minute chart, we then place our buy order at the moving average table. When we have the moving averages showing a [08:23] downward trend on the 1-minute timeframe, the efficiency index is green on the 15- minute timeframe, and the price is breaking through the bottom of the Donche channel on the 1- minute timeframe, then we place our sell order at the moving average table, [08:37] understand? Okay, man. Now we have our complete strategy with the four pillars structured. But, man, there are still some fundamental things missing from our strategy. We still need to define the target, the stop loss, the [08:52] daily goal, and also the area loss limit . So, calm down, we're going to define all of that now, but before I want to say that I know your situation is probably this: "Wow, Pi, but I work, I study, I don't have [09:06] time to keep up with and update strategies, I don't have time to develop good strategies." Dude, relax. If you work develop good strategies, in the description of this video I've left a [09:20] link to the PSA 3.0 method, where you'll find the same strategies and robots that I use in my daily work. And in this way you will have a complete portfolio of strategies and robots to attack the mini-index from various fronts at the same [09:35] time in day trading, thus increasing your chances of success. The link to the Pilsar 3.0 method is zero. It's in the description of this video and also in the Risk management. Okay, now that we've created the strategy together, we [09:48] need to determine what the target will be and what the stop loss will be. And how did we find that out? Purely and simply through trial and error. We're going to test different risk- reward configurations, for example, a 200-point stop loss [10:02] , a 100-point target, a 300- point stop loss, a 150-point target, and so on. I'm going to test various risk- reward ratios and see what best fits the strategy we've created. [10:20] risk and return ratios, the setup that showed the best setup that showed the best performance in the current market was a stop of 300 points and a target of 100 points. But, man, even though the risk-reward ratio is [10:34] negative, we're going to compensate for that in the daily positive target and the daily loss limit , because the daily positive target for this strategy will be three consecutive wins. In other words, if you have three consecutive wins, you will make 300 [10:46] points in the mini-index. And the daily loss limit is just one stop loss. So, if you go into the market and get a stop-loss order, man, it's over, you understand? You will have already reached your daily loss limit. So this means that whenever we win [10:59] with this strategy, we will always score 300 points, because we will have three wins of 100 points each, understand? And when we lose with this strategy, the maximum we can lose is 300 points. This is the [11:14] worst thing that could happen. So, in this way, we balance the game, even though it's . But of course, that's the management style I like to use. You can take this strategy that we developed today and adapt [11:28] it to your operational profile and risk management. Beauty? OK. Now we're going to see if this strategy is actually working well in the current market or not. And we're going to do that through deck tests. So let's go, [11:43] man. I'm going to open this up, look, one chart, two charts. I'm going to click here, minutes on the right, 1 minute on the on the chart on the left, on the 1-minute timeframe. I'll be back with more [11:56] indicators, more indicators. I'll search for "table," it'll show up here, look, average table P trader. I'll insert it into the chart. Now I'm going to search for I'll include it in the chart as well. And to [12:09] minute timeframe, I'm going to search for Doncha and insert Doncha here on the OK. The 1-minute time graph will look like this. What do we do? We double-clicked on Don's channel . We remove the central average. In the [12:22] properties section, we change the period here to 10. We set an offset of one. We can click OK. Now we can, look, double-click on the moving average table. You're going to show up here, look, show off your table, show off your fame, okay? So, we'll [12:36] leave the two selected examples here to show the two moving averages. We we can click on fill, fill with color. We clicked OK. double-click here, look, on the moving average video. It comes with 34 periods by [12:52] default. In terms of appearance, we're changing the color here, look, to yellow. Look, let's go to increase the thickness to two, and click OK. So, the 1-minute timeframe is already configured. Now I click on the 15- [13:05] minute timeframe, I go to indicators, more indicators, and now I search for efficiency. It will appear here, look, efficiency index. I then insert You can see that he's going to come here this way . We can double-click on the [13:21] we come here, look at the appearance, and change the type to histogram. We click OK and that's it. In this way, we have our strategy configured, both on the 1-minute timeframe and also on the 15-minute timeframe. Let's run [13:35] our backtests. Look, this is May 15th. The first pillar is for us to have direction. So, look, let's just look at the moving averages here on the 1- minute timeframe chart. Notice that from this [13:47] point on, the three averages are crossed downwards. Look, the average shown in yellow, right here, the FAMA average, which is the top part of the table moving average , and the table moving average, look, it 's below the FAMA moving average. This [14:02] crossed downwards. So we already know that the trend is downward. turn our attention here, look, to the 15-minute time graph. You can see that the movement is efficient according to the efficiency index indicator, [14:17] because the bars are green. So we already have, look, the first pillar completed here, the second pillar completed here, because the initial efficiency indicator is in green. We then need the third pillar. That's where [14:29] the Doncha channel comes in. And notice that at this point, which I'm going to highlight with an arrow, look right here, the price has hit the lower part of the Donch channel. So we already have the third pillar, which is the input signal. Okay [14:41] are crossed downwards. First pillar, the bars of the efficiency index indicator are green. We have the we have the third pillar at this point, because the price has broken through, look, the [14:55] have the input signal. The fourth and final pillar, then, is simply to place our sell order on the moving average table. So, our sell order would be executed at this point here, look, and down here the price would [15:08] exit the operation right here. That would then be the first profit of the day. Oh man, I couldn't understand. No problem, man. I'm going to repeat the step-by-step process here because we need to have three consecutive wins to reach our [15:21] with all the calm in the world. So, let's say you've made your first profit of the day here, okay? You then need to redo the step-by-step process. The first step is to identify the price direction, which in this case is the [15:34] first pillar. In this particular situation here, on May 15th, in the mini-index, we have the average table below. Above average, we have average fame. Pio, how do you know that the average fame is above the average table? It's [15:49] very simple, man. When the averages are red, it means that the average table is below the average fame. That's all. And you also notice, this yellow average, which in this case is the video average, is also above the [16:05] fame average. Okay, man. If you go to the market and you identify this, look, the averages in this sequence, look, crossed downwards, it means that we have a first pillar, downward direction, OK? Knowing this, you then [16:18] turn your attention to the 15-minute timeframe chart. All you need to know is whether the movement is efficient or not. That's what the efficiency index indicator is for. If the bars here, look, are green, if you have at [16:32] least one green bar here, it means the movement is efficient, it means confirmation. That's all you need in 15 minutes. After that, you can move on to the third pillar, which is the input signal. And then you use the [16:45] don channel. If the averages are showing a downward trend and the movement is efficient on the 15-minute chart, it means you need the price to donch channel. So I'll increase it here again. Look, notice that at this point [16:59] the price touched the bottom of the Donch channel. That's clear. Look, here is the upper part of the Donche Canal and here is the lower part of the Donche Canal. Notice that the price, look, touched the bottom of the Donche canal. This [17:11] means that we already have the input signal. The fourth pillar, then, is to place the sell order here at the moving average table, following the moving average table until the order is triggered. Our sell order, look, [17:24] would be triggered here and the price would immediately reflect the exit from the trade. at this point, and down here, look, the price would catch on to exit the trade. That would be their second win of the day. Oh man, Pi, so how do I do the third operation of the [17:38] day? Again, you redo the step-by-step process from scratch. Look at these three pillars again from scratch. So you start with moving averages. You then realize that the table average is below the Fama moving average, and the [17:53] Fama moving average is below the video moving average. So we already have the first pillar here, which is the direction. The direction continues to be from the bottom up. Let's move on to the second pillar. Oh, confirmation. Let's look here, [18:07] in the 15-minute time graph, at the efficiency index indicator. Notice that the bars remain green. This means that the downward direction of the 1-minute temperature chart is confirmed. The movement here is efficient. Beauty? The [18:22] third pillar, then, is the input signal. So we went back to using the for the price to break through the bottom of the doncha channel to get a sell signal. And he realizes that this happened here. Look. At this point, the price broke through [18:36] the lower end of the Don channel. We then have the third pillar, the fourth pillar is to place the sell order on the moving average table. We'll be monitoring the moving average table with a sell order. This is where the sell order [18:50] would be triggered. You can tell the price is returning and touching the moving average. So here, and when the price falls again, we would exit the trade once more. That would be their third win of the day. Now we would have [19:02] reached our daily positive goal, understand? With three sell operations during this downward movement here, look, on May 15th. Okay, Pio, I understand how this strategy works in a downward movement, right, in a [19:16] downtrend, but in an upward scenario, how would it work, man? Let's take a look here, look, at May 14th, that is, the trading day before the one we just saw. This one here, look, is May 14th. Let's go. The [19:29] first step is to identify the first pillar, that is, the direction. Notice that initially here, look, we have sideways movement because the averages are not in the correct sequence. Just a little further on here, notice that the video average [19:42] goes below the table moving average and the fame moving average. So let's go, calmly and easily . First, we have the moving average table. Below the moving average table we have the moving average fame. Pio, but how do you know that the table moving average [19:56] is above the fame moving average? Dude, it's very simple. If the averages are blue, it means that the table moving average is above the fame moving average, okay? Finally, notice that the yellow moving average is [20:09] below all the other averages, meaning it's also below the Fama average. This yellow average is the video moving average. So here is the moving average video. So if you look at the mini-index chart and find the averages in that sequence, it [20:23] pillar, which is the upward direction in this case. Knowing this, you can then turn your attention to the 15-minute timeframe chart. And here you will see the efficiency index. Notice that the efficiency index indicator [20:37] we have green bars here. This means that the direction here, look, is upward direction. We can then move on to the third pillar. The third pillar is the input signal. And this input signal is given by the Doncha channel. We [20:52] need the price to break through the upper part of the Doncha channel to then have a buy entry signal, a bullish entry signal, okay? Wow, man, here, look, this is the top part of the doncha channel and here is the [21:05] bottom part of the doncha channel. Notice that the next candle touches the top of the doncha channel. This means we have a buy entry signal. finally, we would then move on to the fourth pillar, which is simply [21:19] placing our buy order right here, look, at the moving average table. And we will monitor the moving average until the order is triggered. In this case, in the case of this auction, our purchase order would be triggered right here, right here. [21:31] Right after that, look, the price would already be hitting the exit point of the operation. That would be the first profit of the day. Oh Pia, but you said that to have a positive goal, we need three consecutive wins. Exactly, man. We [21:43] then need to redo this step-by- step process to go in search of the second gain of the day. So here you look again at the moving averages. The timeline showed 1 minute. Notice that the averages continue to show an [21:55] upward trend. Notice that we continue to have the moving average above the moving average, and below the moving average, we continue to have the moving average below the moving average, But then we need to confirm this upward trend. We then look at [22:09] the bars here, the efficiency index bars are still green. It means that this direction here, look, it 's upward, it's confirmed. So now we have direction, the second pillar is confirmation. [22:22] And the third pillar is the input signal. We found the third pillar through upward trend is confirmed, we need the price to touch the top of the buy entry signal. Notice that the price, look, touched the doncha channel part [22:35] right here, just like it touched back here too, remember? This means that we now have, man, a buy entry signal, the third pillar. And the fourth and final pillar is placing the buy order on the [22:47] moving average table. Right here, look. And we would be monitoring the moving average until the buy order is triggered. My selected purchase order is listed here. the price would already be taken and the trade would be exited. That would be their second win of the day. [23:01] Pi is still missing one gain. What do we do, man? We'll redo the step-by- step process. Again, observe the moving averages here. Look, all three averages continue to show an upward trend. We already have the first pillar. The second pillar, [23:15] observed here on the 15-minute timeframe, is the efficiency indicator. Do you understand? We still have efficiency indicator. Do you understand? We still have green bars, meaning the movement here is still efficient. And this movement was confirmed by the efficiency index indicator [23:29] , as you can see. So, this means we have the second pillar, the confirmation of the direction. In this case of an uptrend, we now need the third pillar, which is provided by the Doncha channel. Do you realize that the price has already hit the [23:41] look. So, we already have the third pillar, which is the input signal. The fourth and final pillar is the entry point. So we're going to place table right here and we'll follow the [23:54] buy order until the order is triggered. The buy order would be triggered right here, operation up here. And now we would have the third gain of the day, a positive goal achieved in preaching on May 14th. So this is how [24:09] the strategy we just created works in a strategy we just created works in a selling scenario. May 15th and May 14th. Now that you understand how the [24:22] buying and selling scenarios work, I'm going to go back to the chart, do some backtesting of this strategy, and I'll be right back with you. [24:34] last three months, and what I can say is that, in my opinion, the result was good. Of course, I'm not going to hand you the results on a silver platter; I want you to test them yourself. Plot this strategy on a chart and [24:46] draw your own conclusions. See if it makes sense to you or not. Now I'm going to do three more months of backtesting to complete six months of backtesting. Let's go. Alright, man, backtesting is complete and now I have [25:00] concrete evidence that this setup tends to work. The next step would be for you to test this strategy through market replay. And if you like this strategy in market replay, you can switch to a real account if [25:13] you want, right? Obviously, you'll need a few small contracts to test this strategy and see if it suits your trading style . How do I download and install indicators in Profit Chart? Hey, listen up now [25:27] . Donan's channel, well, it's an indicator that's native to Profit Chart, so you don't need to download it. However, the moving average table fame, the moving average, and the INC efficiency indicator do not natively exist [25:44] in Profit Charge. These are bonus indicators that I developed and that I'm giving away for free to those who participate in my Telegram group, the Pilsar 3.0 VIP list. And in that group, I've also already submitted the Kaufman moving average [25:57] . I also delivered the Pons Pro indicator, among other bonuses. I will continue delivering new indicators there. And downloading these indicators is very simple. Click the first link in this video's description, join the [26:11] Telegram group, and there you'll find the file with all these bonus indicators. After you download it, open Profit Chart, click import, and select the file you downloaded. To import to your computer, click on [26:25] that little arrow to the side and then click on import. You will see successfully imported strategies. And after doing that, simply go to Indicators, then More Indicators in your Profit Chart, and there you can [26:37] look for the indicators we used in today's strategy. Okay, man. Simple as that. Follow-ups and updates. Dude, it's crucial that you understand one thing. Every objective strategy [26:51] requires monitoring and updates. No matter how good the strategy we want today is. At some point, it could be in two months or two years, it's going to start underperforming because the [27:05] market changes, the flow changes, the volatility changes, you understand? That's natural. That's why you need a criterion for updates. In the strategies I use daily, I employ the criteria of the Pilsar 3.0 method. If any [27:20] Pilsar strategy or robot meets this criterion, I then pause my strategy and immediately start updating it, you understand? This ensures that I never end up operating a dead strategy, a strategy that [27:34] is no longer working in the current market. That's why you need an update criterion to identify whether your strategy is working well or not. But of course, man, I know that not everyone has the time or [27:46] technical knowledge to create objective strategies from scratch, do backtesting, monitor the strategy's performance monthly, and update it when necessary. And everything's fine, man. That's what the [27:59] training program, you'll find ready-made strategies, such as, for example, " Passing 100, 200, 300." You'll receive support for these strategies. So, monitor the strategies and updates, man. So, when a [28:14] strategy starts to underperform, we notify you in the Telegram group and provide you with an update. In other words, you'll receive my portfolio of strategies ready-made, already tested, validated, and constantly updated, [28:28] OK? In the description of this video there's a direct link to the Pilsar 3.0 method, OK? Well, buddy, you just saw in practice how the four pillars transform the creation of objective strategies into something simple and replicable. Because when you [28:42] simple and replicable. Because when you have clear direction, confirmation of strength, an objective entry signal, and an exact entry point, you stop trading based on guesswork and start trading with method, logic, and evidence. [28:56] Together today we created a complete strategy and tested it via backtesting, all following an objective process. And now it's your turn to apply these four pillars to your own strategies. And if this video helped you, [29:09] this channel with notifications activated, because I won't rest until you become a successful trader or achieve your goal. I'll be staying here, man, and see you in the next video. These are the strategies from the Next version, meaning they are the new [29:23] Pilsar strategies that utilize the Pilsar indicator and coloring. And another interesting thing is that all of these strategies here are automated. When you get to this module back here, look, [29:37] robot settings, you'll find the Pilsar 400 Next version robot, you'll Pilsar 400 Next version robot, you'll also find the Pilsar 500 Next version robot, the 600 Next version robot, and also the Pilsar 700 Next version robot. Yeah.