[00:01] profitable. And I'm not the one saying it; it's backtested over years. You know how many YouTubers upload strategies explaining entry points, exit points, and general parameters, which
[00:13] is all well and good, but they don't really show you any kind of performance over time. This strategy you're going to learn today uses the GBP/JPY pair, that is, the pound/yen pair in forex, and I've personally been using it for several
[00:26] years with some modifications. Of course, because you know future profits, and you know that in trading you have to adapt to these new trends. However, you'll see that it's quite simple because, as I've
[00:39] said before, the simpler your trading, the better. Of course, there will be indicators who will do well, but in general, that's not the case, and you'll see why. We're already in trading VI, so let's go directly to the strategy itself.
[00:52] But before showing you entries, exits, adjustments, little about the context of a strategy because without a Basically, no strategy is going to be profitable in the long run.
[01:06] The context of this strategy is that we're going to focus exclusively on the GBP/ JPY pair because it's one of the most volatile forex pairs. What we're going to do with this strategy is take advantage of that volatility.
[01:18] If you trade more common pairs like the euro/dollar, for example, you know that during the week the maximum it can move is 100, 150, or at most 250 pips, but of course, it depends on whether there's any kind of fundamental movement. But with
[01:33] this GBP/JPY pair, as you can see now, it can easily move 400 pips in a week, or sometimes 500, or even 600. So that's why we're going to trade only this pair. This is a day
[01:48] trading strategy, which means we're going to trade every day. As you know, there's scalping, swim trading, and other strategies, but our trading will focus exclusively on day trading. You can
[02:00] see right now that I have the 15-minute time frame marked. need to go for 4 hours or even an hour; just 15 minutes every day is more than enough. I have it divided here, or rather segmented by
[02:15] days, okay? These aren't sessions, they're days. We're seeing that here, this is Monday, this is Tuesday, Wednesday, Thursday, and so on. And we're also seeing the lows and highs that I've marked for you. The market lows and highs that I've shown you
[02:29] will always count from the London session onwards. Okay, everything that happens in Asia doesn't interest us; we're interested in all the lows and highs that are created from the London session onwards. As you can see
[02:42] here, I've chosen this week, but I could have chosen any other. But before showing you a more professional backtest that I've backtesting, I want to show you how the operation would be in a normal week.
[02:55] explained, we're going to work with these highs and lows created from London onwards, and it's going to be like this, as I'm going to show you now: every time the price reaches the lows and highs, we We're going to follow the trend of that same
[03:09] low or that same high. For example, if the previous day's high was here, then the trend, when it breaks this high, will be upwards, and if downwards. But in this case, we see that when it
[03:23] reaches this high, the trend goes up. That is, the day arrives, and when it reaches that high, it breaks through. It doesn't act as support and resistance; it simply breaks through. So we're going to take advantage of that breakout. And I've
[03:38] prepared them here because they're 1 or 2. That is, when we lose, we'll lose one, but when we win, we'll win two. You can't change that, because otherwise the strategy would
[03:52] stop being profitable. Obviously, if it's set to 1 or 1, the win percentage or ratio will be much higher, but that's not what we're interested in. We don't care if we lose more often than we win because when we lose, we'll
[04:05] lose little, and when we win, we'll win a lot. So let's go directly to a realistic example. When it reaches this price, as I've already told you, what we're going to do is...  The trading method is based on limits, not
[04:17] market execution orders, but limit orders. This means that when the day ends, around midnight ( I live in Spain, so you'll have a different time zone), you'll
[04:32] when the price reaches these levels. Let's imagine that on Monday, the high is this level, and it continues throughout the day until midnight, before the Asian session. In MetaTrading, I prepare
[04:46] an entry that will execute when the price touches this zone. This would be the entry for Tuesday, as the price has reached this zone, this limit. The price
[04:59] will execute. So, we would have a fairly clean entry, as you can see, following the trend. Then, the next day, we would re- mark the lows and highs. As you can see, this low doesn't count because it was
[05:13] created during the Asian session. So, you would take this low from the London session. Let's continue with the...  For example, the next day we wouldn't have any entry because, as you can see, the price didn't reach here, nor did it
[05:26] a day where we have no trading activity. And the next day, as you can see, the price reaches this zone, this zone here, but doesn't reach this one. So, we would simply enter the sell zone. And in this case, it would have given us
[05:42] a stop loss, as you can see. Let's take this here because we would have placed the entry here. Okay, this is the limit zone. So, it would have given us a stop loss. So, one win, one loss, and here we would be another
[05:56] different day where we would have this zone marked here. Let's see if I can take it here. Then we would enter again, and it would give us another profit, and so on for the rest of the day. So, we would have a high here that was created this same day.
[06:10] Then, the next day, we would enter as soon as it touches the profit. And in the same week, we would have had two profits and one loss, one stop loss. And that's what this strategy is based on. I've
[06:25] many, but they are very important when... To continue with this strategy, otherwise it will basically cease to be profitable. The backtesting I'm going to year of using these methods, always respects all
[06:39] these rules listed here. There aren't many, but you have to respect them all. always respect the ratio. The ratio is basically 1:2. When I lose, I lose one, and when I win, I gain two. If you change it and set it to 1, as I
[06:54] said before, you'll have more wins, more take profits, but the ratio will decrease considerably because when you enter a stop loss, it wo same way. Next, we'll always have out-of-the-pocket (OOTP) or stop-loss (
[07:08] SL) trades. No exiting mid-trade. No thinking, " If the trade enters here, I'll close it because otherwise I 'm afraid the stop loss will hit." None of that. You'll always enter at the TP or stop loss. The next rule is to repeat the
[07:21] winning trade. For example, if we enter here and see that...  This entry Look, it almost happened by accident, the same thing happened the next day. So you repeat the entry that almost lost, but as you can see, it's still a winner. That is,
[07:36] this operation has already given you two profits. That is, since we risk one and win two, we risk one of those, it does n't matter. That is, repeating a next rule is to always enter by limit, never by execution. You will
[07:51] always enter by limits. Why? Because it could be that at 3 country you are not awake and you can't enter, and then you will lose the ratio of the strategy. Then always enter at the highs and
[08:06] lows starting from the London session. Many times you may be tempted, you Many times you may be tempted, you see this high, for example, or rather, let's say this low that was created at 6 in the morning during the Asian session, and you are
[08:18] not really interested, and you will always enter in London. Okay, I don't want to sound repetitive, but it is very important because many times, for example, a very interesting low can be created, I don't know here...  2 AM, but don't
[08:31] focus on that. Always London and New York. And lastly, and most importantly, we're the wicks. That is, we're going to mark the highs and lows of the previous day and enter at the end of the wick at those same highs and lows. The
[08:46] power the candle itself had is left. For example, here you have this wick, which is quite clear. Here you have another wick, these are another wicks, and all of these here are wicks. So we're
[08:58] always going to enter at the end of the wick because it's not the same to enter here where, let's say, the body begins, or to enter in the middle of the wick. We're always going to focus here on the end, and you have to be very clear about that because it's not
[09:12] the same to enter at the end of the wick as at the beginning or in the body of literally, these wick ends are what will prevent us from having more possibilities for our trading to always reach take profit,
[09:27] to plot this as if it were an example of a real trade. We would plot this low here, and the next day we would enter right here at this low. Perhaps you don't need to enter exactly
[09:41] at the end of the candle; there might even be a pipet difference, or two pipets, but not too much. It's always best to enter at the end. Why? Because this effectiveness when starting the trade. Once you understand the
[09:53] interesting part. As I said at the strategies and explain them well, but then when it comes down to it, they do backtesting or any way for you to verify that the strategy
[10:06] is actually good over time. I do n't really need to do this backtesting because, as I've already said, I've been using it for quite a few years. for this whole year, 2023, and you'll see it below.
[10:20] 1%, in others I've been up 11%.  And my average will always be around 4%. For example, here we have January at 4%, February a very good month at 11%, 4%, 6%, 4%, May and June at 1%,
[10:39] negative months like July at almost 1%, and August also at 1%. The last few months, September, October, and November, I haven't included because I traded them myself. To give you an idea, in November I was negative at 1%, and in
[10:54] August I was around 3 or 4%, more or less the average for the whole year. So, broadly speaking, I'd say that the average for this trading gives you around 4% to 3% monthly, stable. There have been months where it's given me considerably more than
[11:09] here, even 11%. Because, if you don't know, I trade with many funding accounts; currently I have close to 20. So I divide the strategies among the accounts I manage. I have three different strategies, and this is one of
[11:21] them. So, for example, in this month of February, when it gave me 11%, I couldn't take full advantage of it because I don't trade it.  100% that strategy, as I said, varies with the others I have, and let's say I could easily have gotten
[11:34] half or less than half because I don't focus exclusively on that strategy, I repeat. But you, who probably have one or two accounts, this strategy will work very well for you if you stick to it. You'll see that these are
[11:46] the percentages you'll get in a typical year, and I repeat, risking as much as you want. Obviously, here I've done the backtesting with 1%. Then, if you want, when you're in the black, you can increase the lot size by 1 or 2%. It's your decision,
[12:01] but all of this is based on 1%. So, for example, here I've put February, which was the best month I had, and here you see that we're on February 2nd. And we started with a stop loss, and we continued. The rest of the week
[12:15] gave us a take profit, as you can see. Here the price entered at this low; it almost broke the stop loss, but it gave us a take profit. The days continued to pass, and here you see this low, and the next day it breaks this low and gives us another take profit. Time continues to pass, and here
[12:31] gives us another take profit. Time continues to pass, and here we...  It gives us a stop loss, and here the next day it gives us another stop loss, but then it gives us a take profit. Then another day passes, as you can see, this is the high of the previous day, and at the high we enter, and it gives us a take profit again.
[12:46] We repeat the same thing all the time; here is the high. And at this high, we enter again, and it gives us another take profit. Almost, by the way, here if you see, we almost hit the stop loss, but not quite. And this would be the whole month of February. So,
[12:59] whole month of February. So, what month is this? This is March. This month is March. Let's see, I have it all together, and I've put it all together for one month, basically. And as you can see here in March, we enter, and we hit a stop loss
[13:13] luck that in the first trade of the month, generally, I always hit the stop loss, the first one or the second one, and here the second one also, you can see that we hit the stop loss. The third one also hits the stop loss. That is to say, we start the month down 3%,
[13:26] and then we see how we are recovering. We see that in this trade we are already winning, we recover 2%.  Here we go again, gaining another 2%. That means that even though we lost the first three trades and only won
[13:39] two, we're still at a positive 1%. Then we see that here we have another stop loss and another take profit. But as you can see, we don't mind having more stop losses than take profits because at the end of the
[13:54] positive most of the time. As you can see, there are many losses this month specifically, but as long as we have a 50% positive percentage, or even 40%, our ratio will always be positive. Okay, as you can see, here's
[14:09] one take profit, another take profit. Let's change months. This month would be Let's change months. This month would be April, and in April, let's see what ratio it gave us. In April it gave us almost 6%. Okay, let's see where it
[14:24] 6%. Okay, let's see where it started. Here, okay, let's see. started. Here, okay, let's see. April started by giving us a take profit. I'm going to go a little slower because I don't want you to lose track. No, sorry, it
[14:38] started by giving us a stop loss, as always. We took this minimum here, and when we placed it...  Well, it hit our stop loss, and here again, it hit our stop loss twice. You see, I ended the month 6% positive, but the
[14:52] bad luck that I always start off on the wrong foot. Look, even the first four trades hit our stop loss: one, two, three, and one. And from there, well, let's say we started to recover. We hit four stop losses, but on the fifth trade, we
[15:06] see that our take profits are being triggered. Okay, we enter at this peak, it breaks through and hits our take profit. enter at this peak, it breaks through and hits our take profit. breaks through and hits our take profit. And as you can see, the strategy is very simple:
[15:19] we set the limit in the early morning, and it hits our take profit. You 've seen, simply by setting limits in the early morning, there's nothing else to do. And these days when you see that I'm not trading, it's because if I have two profitable trades in a week, I do
[15:32] n't trade the rest of the days because that's already 4% that I can withdraw from my account. You might think 4% is small, but think about it for a second, it's not the same.  That you trade with an account of 1,000 or 10,000 and your 4% percentage is $0 or $400, versus
[15:49] me withdrawing $4,000 with an account of 100,000, then that 4% is what will interest me. So, keeping 4% in a week is more than enough for me. Here you see it gives us a stop loss and here another take profit. As you can see, we entered at the previous day's high. It's
[16:03] very simple: we set the limit and take profit. Here it's the same; I do n't know how to show it to you, but to make it clearer, the previous day's high, we set the limit, which I put here a little earlier, but as you can see, it's the same, and it
[16:17] gave us a take profit. And here it's the same. I didn't stop these days because I already had two winning trades in a row. Then the following week, well, here it gave us a stop loss, here it gives us another stop loss, and so I stopped trading the next day because I wouldn't
[16:31] high was  Here from 9 o'clock onwards. and here the next day it gives us another stop loss, and the following day it
[16:43] starts giving us take profits, and here the month ended, and basically, well, no, and it was missing. This and that's how April ended at 6%, and I could show you all the months, but as you can see, it's
[16:56] always that simple. In short, by applying everything I've just taught you, you have a profitable strategy, but in trading, it's not enough to just have a profitable strategy; you not enough to just have a profitable strategy; you
[17:08] the rules of the operation are one thing, and the rules of your rules to be profitable with this strategy are that I'm simply going to trade one trade a day, whether it's positive or negative, and if I have two take profits two days
[17:24] simply not going to trade the rest of the week and I'm going to wait to withdraw the profits from the funded accounts. And there are some more, but they will all depend on your personality as a trader. And how  If you can tolerate the risk,
[17:37] you have my Telegram community in the description below and my personal Telegram can help you with. And believe me, if you don't have a trading plan, you'll never be a profitable trader. I know this because I was once like you and never had a
[17:50] trading plan. So watch this video where I explain in detail how to create a highly effective trading plan. See you there!