[00:03] indicators 100 times in one video the keltner and the ichimoku plus keltner channels i'll reveal how much profit i made and all the data so that we know
[00:17] is the keltner channel actually a good indicator explaining the calculations and the codes of the indicator money instead i'm just heading straight into the back
[00:31] let's start with the fun stuff the first indicator that i'm going to be back testing is the ichimoku plus keltner channels so if you open tradingview you would want to choose this one
[00:44] ichi keltner i will also leave the link to the indicator in the description below alright so first of all do not let the looks of the indicators scare you away the indicator may seem messy and
[00:57] simple so basically the indicator is just a combination of the keltner channel bollinger bands 5 ema lines and the hdmoko cloud so as promised
[01:10] technicals and the codes of the indicator because the indicator already has a built-in signals that tells you exactly when to enter and exit a trade so it's pretty
[01:23] self-explanatory if the indicator displays a long signal if the indicator displays a long signal it means you are taking a long position entry long it means you close your previous long
[01:36] position and if it displays a short signal it means you open a short position and a closed entry order short position and if it displays two signals in one
[01:53] it means you need to do both like this scenario long position and you enter a new short position at the same time so in this back test i'm not going to
[02:07] add any extra rules i'm just purely following the signals that the indicator displays so i'm going to be testing three different pairs the us dollar swiss the pound yen and
[02:19] the australian new zealand dollar all with a 30 minute time frame full instructions link in the description
[02:32] so i'll start with a capital of one thousand dollars using two hundred times leverage per trade however each trade capital so without further ado let's start back
[02:47] so this is what 30 minutes of back testing looks like in 30 seconds you can skip to the timestamp shown in the screen to see the results
[03:21] keltner channel 100 times we received a win rate of 43 percent strategy took 20 months to reach 100 trades which
[03:33] very very long most indicators averages around only 6 months to reach 100 trades so after 20 months and 100 trades we received a loss of 1.61 cents after 20 months worth of trades we lost
[03:51] one dollar i have mixed feelings when backtesting the strategy actually made so many profits our all-time high even
[04:03] reached 1609 which means at one point we profited over six hundred dollars but for some reason it all started to go downhill and we received loss after loss after
[04:17] until those six hundred dollar profit turned into a one dollar loss so there are a couple of pros and cons using this indicator the pros is that you sometimes receive huge wins like this trade
[04:32] because the indicator rarely displays a signal so each trade can last up to weeks before closing like this trade this was an 8 day trade resulting in us about 242 pips profit on the contrary you will also take heavy
[04:47] losses like this trade it went downhill for 16 days straight before the indicator displayed a closed position signal resulting in us losing a massive 256 pips loss
[05:00] so the solution to this is to add a target loss so a target loss is when you set a limit for your loss loses 40 pips you close the trade
[05:14] automatically this way you can minimize your loss and not get hit with massive losses like this however there are also times where a trade goes against you
[05:26] but then reverses after like this trade if you would have put your max loss to 40 pips which is around here it will close your trade early and you will miss this rally opportunity
[05:40] but if you don't put a target loss you will end up losing tons of money like this trade so each strategy has its own pros and strategy i suggest you backtest using your own
[05:54] methods and try to find which is the perfect combination for you so the next indicator that i am back testing is the classic keltner channel so the keltner channel is an indicator with upper and lower bands which adapts
[06:09] to changes in volatility by using the atr so it consists of three separate lines the middle line is an exponential moving average and the two lines is based on the atr
[06:23] so the kellner channel can be used to signal possible price breakouts show trends and give overbought and oversold readings but you have to use different techniques when finding each one of these
[06:35] because there are a lot of ways that you can utilize the kellner channel so for the price breakout technique you can use it by waiting for a candle to cross above or below the atr lines
[06:48] [Music] or you can use it like the rsi by waiting for the price to hit overbought and oversold levels strategies on your own but in this video we are exclusively
[07:02] technique so the price breakout technique is very simple if a candle closes fully above the atr line you take a long position but remember
[07:15] has to close fully above for you to take a long position a long position so candles like this doesn't count and you take a short position when a candle fully closes below the atr line
[07:31] but for this back test i am going to set a target loss and a profit target so my target loss will be -13 pips so if a trade reaches 13 pips loss i close the trade automatically and my profit target will be 26 pips
[07:47] it reaches a profit of 26 pips so now that you know when to enter and exit let's get straight with the back i'm also doing the same settings for the back test i'll start with a capital of
[08:03] using 200 times leverage per trade and only risking two percent of my capital and i'm trading the usd swiss 30 minute chart so here's a time lapse of me back testing the strategy you can skip to the
[08:17] timestamp shown in the screen to see the results
[08:43] channel 100 times we received a win rate of only 31 and even though it took only four months to reach 100 trades we still managed to lose 57 from this strategy
[08:56] and even with the very small largest loss of only six dollars and the largest win of 10 we still lost money because the amount of losses even though they're just small losses they accumulate and become a much bigger
[09:10] loss when back testing i stumbled upon a single problem using this indicator so when the indicator gives a wrong signal it often makes a chain reaction and will display more false signals
[09:24] after that like this trade notice that it gave a short signal and the price reverses upwards but when the price is already upwards it displays a late long signal so the price reverses down again
[09:38] and when the price is down again it displays a short signal and the price reverses upwards again so it does that continuously until finally the loop is stopped with this trade but regardless
[09:51] we still lost so much money from these false signals loss we would have lose much more money than this so is the keltner channel a bad strategy
[10:05] no it's not the breakout technique is a bad strategy but not necessarily the kellner channel itself because like i said there are other ways to use this indicator
[10:17] so i suggest you try back testing it yourself and maybe you'll find some i just made your job easier by showing you the techniques that doesn't work and now it's up to you to back test the others that do work
[10:31] so if you found value from this video do me a favor of liking the video and subscribe to the channel it literally takes only two clicks but be sure to check out my other videos as well so thank you guys for watching and
[10:45] well so thank you guys for watching and i'll see you in the next video