---
title: 'The Only Proven Strategy for Small Capital'
source: 'https://youtube.com/watch?v=theOeXhSNWc'
video_id: 'theOeXhSNWc'
date: 2026-08-05
duration_sec: 1186
---

# The Only Proven Strategy for Small Capital

> Source: [The Only Proven Strategy for Small Capital](https://youtube.com/watch?v=theOeXhSNWc)

## Summary

The video presents a comprehensive trading strategy framework, emphasizing that a complete strategy requires four components: direction, levels, entries, and exits. The creator shares live trading examples from a week where he made nearly $8,000 in three days, illustrating how he applies this framework in real market conditions.

### Key Points

- **The One-Thing Fallacy** [00:04] — Many struggling traders focus on a single element, like an indicator, believing it will make them profitable. Trading is not that simple; a single element is not a complete strategy.
- **Four Components of a Complete Strategy** [00:46] — A complete strategy requires four things: direction, levels, entries, and exits. Each has subcategories, and focusing on only one is insufficient.
- **Direction: More Than Just Trend** [01:53] — Direction involves identifying trending, ranging, reversal, and breakout markets. Most traders focus on trends, but markets often range, leading to losses.
- **Levels Are Not the Holy Grail** [02:41] — Levels (Fibonacci, support/resistance, supply/demand, order blocks, etc.) are just areas where buyers or sellers might enter. They are not a complete strategy by themselves.
- **Entries and Exits Have Many Forms** [03:42] — Entries can be double bottoms, pin bars, etc. Exits can be fixed ratios (1:1, 1:2), trailing stops, or dynamic based on market conditions.
- **Direction Is the Foundation** [05:45] — Getting direction wrong leads to losses. If the foundation is correct, the rest follows. Direction is the most critical component.
- **Live Trade Example: Monday** [06:11] — On Monday, the market hit all-time highs. The creator avoided trading due to uncertainty, but noted a potential long that worked out.
- **Live Trade Example: Tuesday** [07:05] — On Tuesday, a trendline break led to a sell-off. The creator shorted at a supply zone with a limit order, targeting a quick scalp, and made $3,235.
- **FOMC Day: No Trade** [10:45] — On FOMC day, the creator avoided trading due to choppy conditions and news volatility.
- **Live Trade Example: Thursday** [11:12] — On Thursday, the market made new highs. The creator bought at a support area with volume, using an inverse head and shoulders pattern, and made $993.50 on one trade and $1,622 on another.
- **Live Trade Example: Friday** [15:40] — On Friday, the creator took two quick scalps: one long at support and one short at resistance, making $911 and $3,494.50 respectively.
- **Complete Strategy Recap** [18:49] — The complete strategy uses all four components: direction, levels, entries, and exits. It takes time to master, but backtesting and study are essential.

### Conclusion

A complete trading strategy requires integrating direction, levels, entries, and exits. The creator emphasizes that no single element is sufficient, and consistent profitability comes from a holistic approach, backtesting, and continuous study.

## Transcript

struggling traders, they try to focus on one thing and they think that one thing is going to make them profitable. Now this one thing could be it's usually like a shiny thing like an indicator and they think that that one thing is going
to make them a profitable trader. Um and unfortunately trading is not that simple, right? So a good example would be plotting on a moving average on your chart. If it's go above the moving average and it pulls back to the moving
moving average, right, and it pulls back to the moving average, you sell. I wish it was that simple. Unfortunately, it's not, right? So, usually, uh, most people, they will focus on one thing and
they don't realize that one thing is not a complete strategy, right? Usually, if you want to create a complete strategy, you have to have these four things I'm going to show you guys uh, real quick. But, um, you know, I'm g show you guys,
you know, my complete strategy. Um, I'm going show you guys some live trading that I did uh recently. Um, I actually made close to what $8,000 uh this week. Um, and that's from, you know, that's only for just 3 days of trading, right?
only for just 3 days of trading, right? Um, so let me show you guys uh what I mean by creating a complete strategy. So hopefully you can actually um could create your own strategy or maybe use some of my strategy or maybe use my
strategy or whatever the case is. But I wanted to show you guys what it's like to create a complete strategy. All right guys, so this is how you create a complete strategy, right? This is the circle right here you want to use in
your trading career, right? This is how you create that complete will, right? That complete strategy. So the first one is direction and every single one of these have subcategories. I'm definitely going to explain what I mean by that. So
direction is not just one thing right you have multiple you know ways to look at the market levels same way multiple levels to pick same way multiple entries and you know multiple ways to look at uh how to exit the market right so
direction most likely you want to look for a trend but unfortunately the market have to look for you know ranging markets potential reversal markets potential breakout markets that's how I'm looking at the market Right? Because
trending day. You have to understand that. If you don't, then you're going to You're going to make profits on a trending market, but unfortunately, market is ranging. Okay? Now, from my experience, most traders focus a lot on
this right here, levels. Right? Now, it could be equal. A lot of traders do focus on entries, too. But I think levels is actually probably more popular when it comes to just that one shiny thing. We talked about that before.
Usually traders focus on that one thing. So levels could be maybe Fibonacci uh you know it could be support and resistance, supply and demand, order blocks, fear value gaps, volume profile, so many different levels you can focus
on, right? And a lot of people think that that level is the strategy and it's not. It's just a level. Okay? And from my experience, levels are not the holy grail, right? It's just a level where potential buyers or sellers, you know,
might come in the market and that's it. So, a lot of traders will either focus a lot on this or a lot on entries, right? Entries could be double bottoms, right? whatever. It could be volume or it could
be level two whatever the case is. So remember I said every single you know category has a subcategories where you have different ways to you know attack the market and this is why trading can be a little bit hard in the beginning
because there are so many different variables and different nuances. A lot And the way I'm breaking it down right now, um, I can almost guarantee you a lot of people that's online don't break it down like this because sometimes it's
Sometimes it's hard to break down trading in a way where it you can actually make it simple. The reason why I can do this is number one, that's how my brain thinks. I need to break things as simple as possible. And also, I lost,
you know, for a long time. I lost for like eight years. So, I know a lot when comes to entries, you know, you have so many different entries the market. You can, you know, you can do double bottoms, you can do, you know, pin bars,
you can do so many different things when it comes to entries. And also when it comes to exits, right, you can do the same thing. There's no one way to exit the market. You can do a simple one to one, a simple one to two, or you could
do maybe could trail your trade, right? You could do dynamic exits where you know uh maybe uh this trade might be a one one because it's a slow market or uh the next trade might be a you know one to five because it's a you know booming
market where it's trending like crazy. So again these four different things to complete a strategy you have different ways to look at it right even the all four the directions you can just say you know what I'm only want to trade
trending markets or I only want to trade maybe two markets maybe a trending market and a ranger market whatever the case is there are different ways you can attack the market but you have to focus on these four different things to create
okay to create a complete strategy not one thing on this thing is a complete levels. Yeah, let me look at this smart money level because it it's the holy grail." No, it's not the holy grail because it's not complete, right? You
have to have a complete strategy. Um, to me, the foundation is always going to be direction, right? So, if you lay the foundation right, everything is going to follow. So, the foundation direction because if you get the direction wrong,
you're always going to lose. So, you have to have that direction correct. make sure you on point and then everything else comes after that. So, let me go over some trades and then you guys can see exactly how I'm trading my
strategy. All right, so this day right here, which is Monday, we basically hit alltime high, right? So, right now, you know, dealing with these alltime highs could be annoying. I'm not going to lie, but it is what it is. So, we broke and
and we kept going up. So, to me, I I'm not going to lie, I wanted to buy, but sometimes when it's hitting these alltime highs, I might just stay away because it can do two things. It could just keep going up or it could break the
high and and and you know, uh reverse. So, I'm like, I don't know if I trust this, but this was a nice long. I thought about going long. We had a nice going long right there, but it definitely worked out if I would have
went long, but I didn't. So the next day now the next day again we you know we now the next day again we you know we shooting up but this day basically was a shooting up but this day basically was a day where we had the up move but no
continuation. So the way I'm looking at this you know we had this tron break right here and then all of a sudden we just sold off right at the open. So we just sold off right at the open. So we created this supply right here right
So volume came in right here. Okay, you see the volume coming in right here. And basically, I just went back to this level. I start selling. Okay, I just put a limit order, stop loss above here, right? And then basically, I was just
looking for a quick scalp. Uh because remember, we still are in a bullish market. So, you know, not really trying to look for, you know, crazy shorts, but this was a quick scout to the downside. That that was my trade, and I'm going to
show you guys the live trade um right now. All right, so here's the trade right here. Um, I'm in the market and basically you see I'm down $64 already is because um I got in and I got out certain contracts because I thought I
added too much but you know I didn't. But anyway, so basically I'm in the But anyway, so basically I'm in the market and I'm looking for uh my I'm looking for my target profit but it's going up a little bit more. So, I'm
adding this a little bit more to my position uh while it's going up, but my stop loss is still above uh that, you know, that supply zone. So, overall, you my way. So, let me fast forward this.
uh basically the market is going my way. We tried to go higher, but we kept supply, and then sellers came in. So, overall, I'm looking at this, I'm like, can't complain, right? It looks good.
Sellers coming in. So, I'm just looking for the market to go to my TP. So, um let me fast forward this. All right. So, right here, I'm just waiting for the market to hit my TP. It was taking forever. Um I actually stopped the
recording and um I forgot to, you know, hit it back on. But basically, this was me just waiting for my TP. And let me fast forward this. And right here, you
saw that um I'm out the market right here. And I'm up uh $3,235 for that day. And again, it was just a quick scalp to the downside. Wasn't looking for that
much on this trade. And basically, uh that was it. So, uh let me show you guys next trade, let me explain because so this actually makes sense to you guys where I went, you know, the complete strategy. So, the complete strategy on
this day would be what what is the direction, right? the direction is broke this trend line right buyers tried to bring this back up and notice that we couldn't multiple times and we just we shot back down so to me uh the direction
is to the downside right now the next thing is what levels the level I use was supply right I use a supply levels right and then next one is entries uh basically I wait for the market to sell off pull back to that uh supply I just
went with a limit You can use so many entries. You can just basically get in if you see a rejection at that um supply zone or double top or double rejection and you know you get in. So right here we you know if you want to look for
confirmation we have a double rejection right here. one two. You could have got short right here, right? Or um you know just wait for a regular rejection or any type of um candlestick that you want,
right? And then the exit would be depending on the structure of the market and you can just go for a fix one to two, one to three, whatever the case is.
This was a quick scout because overall the market is bullish. So let's go to the next day. So the next day was FOMC. So, I really didn't want to trade this day. Um, and it was looking, you know, choppy anyway. So, I was like, "Okay,
anyway, you know, we you saw we have FOMO. I really don't trade the news right here. So, maybe there were opportunities, but I didn't really, you opportunities, but I didn't really, you know, wasn't around to look for it. So,
know, wasn't around to look for it. So, uh, the next day is when I decided to trade, right? And basically, again, we are making new highs, right? So, we have new highs right here. And what I saw was we had this support area right here.
Notice how we have this support area right here. We came back to this support area right here, right? And basically, we bounced off that area. Definitely volume's coming in right here, right? And I actually uh went to
that real quick. So, here's the one minute chart. You can see that we have aggressive aggressive buying right here. Volume's coming in. an aggressive buying right here. So, uh I said, "All right, we have inverse head and shoulders right
here. We have support right here." So, I just dropped a limit when we came back to right here, right? I dropped a limit order right here. Um and then basically, right here, right? So, I mean, you going to see the on the recording. So,
basically, that was my thought process. I kind of thought, you know, we was going to go to these highs right here, but I was just scalping this just for a quick, you know, pop. But yes, these highs was, you know, was
in my opinion a good target. So, um, let me show you that quick trade and, um, we're going to go from there. Actually, before we do that, I had two trades that day. So, let's, um, show you the other trade. So, the other trade was a simple
pullback trade. Uh, because we broke the high right here, right? And basically to me the way I was looking at this was most likely we're going to try to test the high again. Okay. So when we came back, we came up with some, you know,
volume around here. So this is this area right here. So I'm looking at this area as a potential, you know, area where I can say, all right, most likely this area is going to hold because we did shot up with some volume around here. So
that's what I did. I just dropped a limit order. Again, you don't have to do the limit orders. Um, I just dropped a limit order and basically this was a quick scalp. I wanted this to go to the high, but I got out when it got to
show you guys the recording. All right, so this trade, guys, I thought I hit the record button, but I didn't. Um, but basically, you saw that it pulled back inverse head and shoulders. So, uh, I
but I didn't. But you can see that I'm up uh 99 uh $993.50 on this trade. So, let me show you guys the next trade. All right. So, I did hit the record button on this trade. So, right here um basically I dropped the
limit uh when it went halfway into that zone um and basically uh added a little bit more when it was going down. But basically, my target was the highs. But
since it dropped down a lot, I was like, you know what? Let me just if it goes up, let me just, you know, get out almost at the high. So, let me fast forward this. All right. So, right here, guys, you see that I'm pretty much about
guys, you see that I'm pretty much about to get out uh very soon. And the market is going my way. And basically, I said, "All right, enough is enough." So, when it went above this candle, I believe, and you know, I just got out. So, um I'm
and you know, I just got out. So, um I'm waiting for me to get out. Come on. Come on. I don't know. Let me let me see. I don't know. This thing take forever. Come on. Go, go, go, go. All right. So, you're going to probably
see me get out very soon. Let me see. Let me fast forward this because it's taking forever. All right. So, I'm out the market and look to the left. I'm up $1622 for that day. Okay. So, um that's that
trade. And again, that was a quick scalp. I had two quick scalps on a one minute chart. So, let me just break that down real quick. Basically this day in my opinion was a trending day. We just came back to that support area right
came back to that support area right here and then basically I just look for buying. Okay, from an entry buying pull back on the 5minut chart you can get in when you see a rejection. So we have a rejection right here. You could have got
pulled back right here. Okay, you could have got in bullish bar came in. So you don't have to drop a limit. Um again you can look for a fivem minute reaction and can look for a fivem minute reaction and get in. So let's go to uh the next day
uh which is today. So today what's going on? All right. So uh today was a bullish day and then right here we had resistance. So the way I looked at today if you look at today we had this let me erase this. We had this level right here
that was holding and then we also had this level right here. So, I'm looking at this that, you know, is holding these levels. Okay. So, I'm looking for a buy anywhere around here. So, um I went to one minute chart and I saw that we had
uh volume coming in right here. When we touched that level right here, boom, volume coming in. So, when it pulled back, I just, you know, got in with a limit order and I got out for that quick scalp to the upside. And then the last
trade I took was the resistance trade. And notice how we went above this right here and we started to sell off. Now we're starting to sell off. I didn't get in right away cuz a lot of times I'm more, you know, a conservative trader. I
doesn't matter. I mean, if you want to get in right here, you could have got in right here. But when I saw the market selling off right here, right? Volume a one minute chart. I just when it pulled back. Okay, I just dropped, you
know, I just dropped the limit and then we for a quick one to one. Remember, um, right here, you know, this area right here trading right here, you you're dealing with support. So, you got to just it doesn't make any sense for me to
be holding these trades for a long time. Okay, so these are two quick scalps. Uh, let me show you those trades real quick. All right, so this is the trade right here when I got in the market. basically put my stop loss and um underneath the
put my stop loss and um underneath the lows and basically waiting for the market to just break a new high, right? And everything is looking good. coming in the market. I'm not worried at all. Um it's a possibility I might get
stopped out, but I do see buyers coming in. So, I'm like, "All right, cool." So, let me fast forward this. All right. So, here we see. Boom. Boom. Get my targets. Boom. I'm out. So, I made a quick uh $911
$911 on that one. All right, so overall, that was a good trade. And I actually made another trade. So, let's go to that one. All right, so this trade, I literally thought I hit the record button, but I
didn't. Um, basically, it was the same trade that I explained. I went short and basically you see that rectangle that that was just the box that I was looking at. And when it pulled back, I went with a limit order. added a little bit more
when it was going up, but basically um it's it's sold down. So, if you look at it's it's sold down. So, if you look at the P&L, I'm up 3,494.50 live account and yes, this is my own funds. Um there's nothing wrong with
in the future, but this is my own fund live account. Okay? Futures broker. So, you can't really do anything any uh crazy things with a regulated future broker, right? So now that's the
broker, right? So now that's the complete strategy. Again, that was using the whole circle that I showed you, right? Direction, levels, entries, exits, right? And then going from there. Of course, this is going to take time
because everything takes time in life, right? But that's how you create a complete strategy. So if you're struggling right now, if you think that a level is a complete strategy or if you think that entries is a complete
strategy, it's not. Okay? Make sure you have that complete strategy so you can professional trader, right? That trader that wants to make profits from the not going to be, you know, a green week, but hopefully you know by the end of the
month, you can be green. Now, that's all I have for you guys today. The best thing I can tell you is back test like crazy. Study, study, study and everything else will just fall in line. All right, until then.