[00:02] Hey everyone, Edmar C here with another video for you, and today I'll start by asking you how about having an operational model that operational model that pays you an average of 25, 30, 35, or
[00:16] pays you an average of 25, 30, 35, or 40% profit on each trade you make. Pretty interesting, right? Before we start talking about that, I invite you to subscribe to the channel if you have n't already, activate the bell
[00:28] to receive notifications of all the new content we post here, follow us on Instagram, and of course, don't forget to comment at the end what you thought of what you learned in this video. Now, talking a little
[00:40] more about what you'll learn today, I'm going to bring you to my computer screen where I'll talk about the metrics and the type of chart you use, and also, most importantly, which assets are most
[00:54] which assets are most interesting to trade with this model. look at the metrics. Let's call our setup the moving average crossover setup: a 200-period moving average,
[01:07] a 50-period weighted moving average, and a 12-period weighted moving average.  The 200-period exponential risk-reward ratio of our operation will be one loss and aiming for two gains, or twice the risk.
[01:21] Remember that since it's a long-term trade, it's always good to test the daily timeframe, which I still find fast, but the ideal is the weekly timeframe. This model can be applied to stocks, commodities,
[01:35] cryptocurrencies, and Forex; it can be applied to various assets in various markets. less configured; it will look like this. I'm using the weekly timeframe here. The first moving average
[01:48] is the 200-period moving average. The moving average indicator would be directly on the chart, 200 periods. Let's double-click on it; we'll set its appearance to exponential. We 'll set its appearance to purple, thickness
[02:01] two, and click OK. Let's go back and insert another moving average, now a 50-period moving average. Click OK, double-click, weighted, gray in appearance, thickness two. Click OK, then OK. This would be the 12-period moving average indicator;
[02:16] double-click on it, weighted, thickness two, yellow to highlight it. And let's set it to dashed.  Let's highlight here on our chart how I'm going to perform the operation using these averages.
[02:30] Let's understand that this purple average here is an average that will guide me on how the market is performing, whether it's trending more towards selling or buying. Basically, we'll use this information to see if
[02:44] the averages and the price are working below or above them. So, whenever it's working below it, for example here, we won't do anything because our model is specifically for
[02:59] work with stocks. We're going to work in the long term. So, we'll always work on buying. Therefore, it will only be of interest to me when this set of faster averages is working above this purple average. If it's working below it, it's
[03:13] not relevant to me. My trigger will always happen when I have a situation like this one here, where this one here, where the average crossover occurred. Whenever the
[03:26] faster dotted average crosses the gray average, and the market is working above the slower average, which is the purple average, I will have a possible entry trigger. What will happen from then on this week is that I will place a
[03:40] buy order above this price, breaking through this price.  I have an entry, my trigger is set up, it hasn't activated yet, my trigger position is still there. I'm going to lower my order and place it here at this point. It doesn't happen, I
[03:55] hold the trigger for a while. This average will cross downwards, then it disables my trigger. Notice that this is a trade that can take a while to activate, so that's why it's good to always keep an eye on more than one asset. At this point here, it activated
[04:08] my entry point. It's here, it made the purchase. My Stop, I'll leave it at the nearest bottom, and from there I'll take my projection tool and project from this bottom to the entry point. In this formation, I have the stop
[04:24] positioned here below, and I'll have my target projected twice my risk. So it hit here at what would be the partial, and finally it hit here at this point. So it was basically a 165-day trade to hit the
[04:41] target. These are trades that end up being long, so there's no secret, you'll always act on the buy side, obeying this rule of... Hey, are you liking look at the channel, we have
[04:54] so you can enrich your...  Your learning to trade, and if you want to learn more in depth and have an operational system that gives you great support, I invite you to join my
[05:07] Corus operational training. So, go to our website (the link is in the video description) and you can explore the site to learn how each setup that makes up our operational system works, how the lessons are divided,
[05:21] how you receive all the content, and you will be able to trade in an content, and you will be able to trade in an objective, simplified way with excellent results. So come and be part of the Corus team! There's a link in the
[05:34] video description for you to go to the website to learn more about averages. The first simulation movement we're going to do here is on Vale do Rio Doce, Vale Três. So look here, it's already working with the averages well aligned,
[05:48] and this downward crossover doesn't mean anything to me. I need it to cross upwards at some point, and observing, I see that some point, and observing, I see that this candle here marked a confirmed crossover for me.
[06:04] this candle here marked a confirmed crossover for me. how my risk is affected, for example, what I'm going to evaluate here if I have an entry breaking this candle.  Here, my Stop has to be at the
[06:18] last low, okay? So here's a 20% risk. Is it worth it for you? If you want to take a smaller risk, you can take it here. I can consider this low here, which is 15%
[06:31] risk. Is it worth it? So you have to evaluate it, okay? So in this case, let's say the person chose to assume the risk and left a risk here at this point, risk and left a risk here at this point, basically 15%. What should be done
[06:46] when activating this type of trade? You will make your projection. So, project from this low, which is the risk part, to the entry point. You project your
[06:58] target upwards. Remembering that the Stop is here at the low and the target is twice the size of this risk. It moved and hit our target basically here at this point. Let me see how long it took: 85 trading days for a profit of
[07:15] 30.8%.  Let's take a look here at another asset. Let's see, Petrobras traded below the purple average for a long period, threatened to break out of
[07:27] below the purple average for a long period, threatened to break out of that situation, but then returned here. After that situation, but then returned here. After this long period, it triggered a breakout at this point, which also needs to be evaluated in terms of risk.
[07:39] As I mentioned, the last low for me in this operation would be this for me in this operation would be this point here. So, a trade activated at this point would have a 20% risk. Is it worth taking that much
[07:52] risk? I don't know if it's worth it in this case. As I said, you can leave it close to the averages as well, so it would be a lower risk, around 13%. Let's say we opted to assume this risk here, leaving the stop here at the averages
[08:07] here, leaving the stop here at the averages and entering from this breakout here. Let me see if it actually happened, right? It happened a little above, so the risk is here at the averages, and we have a projection of twice this
[08:23] have a projection of twice this risk upwards, which would be 200% of the projection. Observing the market, we see that it took a little while, but it went and hit the target. So let's evaluate how long it took and what the profit was for
[08:38] this model until it hit the target.  Our total target is 90 days with a profit of 26.8 per day.  Let's also evaluate the last asset here so we don't just focus on two.
[08:52] Let's look at Banco do Brasil. Very well, Banco do Brasil also spent a period below the purple moving average, then moved above it when everyone else was above it. Then the price made this correction, leaving the moving averages
[09:06] above. And I'm already keeping an eye on this movement here, this crossover, which is movement here, this crossover, which is my trigger, and I see that in this candle here exactly we have this crossover happening. And then it's a matter of evaluating
[09:21] what fits in my budget. Is this risk of this size acceptable? An entry here, my original stop loss is around 30, right? Or, as I said, I can leave it here in the region
[09:33] of the moving averages, assuming a risk of 19%. Is it worth it for you? Isn't it worth it? You have to have this very clear. I prefer smaller risks, so wait for a trigger that leaves you with less risk. So
[09:47] in this case, imagine that I assumed the risk of leaving it here at the moving averages. Then I 'll place a position above the candle, and from there I'll observe my trade. It starts a good
[10:01] my trade. It starts a good sequence and it comes and hits the target. Evaluating my trade here, the entry here at this point, right? It's a trade that lasted... here at this point, right? It's a trade that lasted... 100 days and paid
[10:13] 39% profit, very good! So my friend, I hope the content of this video has helped you, has opened your mind to the world of investments, to a very cool and safe operating model. I sincerely hope I have
[10:27] helped in some way. If you really liked it and it helped you, please subscribe to the channel. Leave your like and comment if you found it interesting, if you liked it or not. It would be great to read your
[10:41] comment and interact. You can also follow us on Instagram. I invite you to go to our page and follow us on Instagram as well. I am immensely grateful for watching this video with us.
[10:54] See you in the next video, may God bless you immensely. Bye! bless you immensely. Bye! [Music]