[00:02] test of my trading strategy which I created based on the smart money trading Concepts after spending hours for the back testing we came up with pros and cons and exciting results about the win rate
[00:14] of this trading strategy which I will explain in this video explain in this video for the back testing I use soft4fx on metatrader4 which is a Forex simulator with real data that allows you to trade
[00:26] on the past and conclude the results I used ten thousand dollars for the initial account size and two percent risk per trade I back tested this strategy for three months and only looked for trading
[00:39] opportunities from London open till the New York close so first let me explain the strategy I used with all of the rules and then I will show you the results I got this strategy has two steps
[00:53] in the first step I analyze the market Direction and Mark high potential order blocks for trading in the one-hour time frame for example here we can clearly see the demand is in control
[01:06] the market has broken the structure to the upside with inefficiency leaving a perfect order block demand Zone behind also we have enough room for the price to go higher before reaching the higher time frame Supply Zone
[01:20] in the second step I wait for the price to get to my order block and zoom into the trade after the price reaches the order block for the entry reason I want to see a change of character formation to
[01:35] over and the market can potentially start to move to the upside if we see no change of character then we will have no trade for executing the trade I want my stop-loss protected below the swing low
[01:51] but here are two scenarios when executing the orders if the change of character move creates an efficiency therefore an order block I will place my buying position a spread size above the order block with my stop
[02:04] loss being a couple of Pips below the swing low but if the change of character move does not create an order block I will place my buying position precisely in the middle of the 618 and 786 Fibonacci
[02:17] retracement levels and for taking profits I will track my profit meaning that every time Market makes a new order block I will reposition my stop below the order block until we reach our higher time frame
[02:30] Supply Zone this way you can achieve a significant profit without any pressure keep in mind that everything I mentioned applies to the bearish scenario to learn more about smart money trading
[02:44] strategies check the links added to the description now let's back test this trading strategy for three months on euro dollar strategy for three months on euro dollar and see how things will work
[03:02] testing we came up with some of the pros and cons of this trading strategy the first advantage of this trading strategy is that it is very simple and instead of having multiple lines drawn on your chart and considering multiple
[03:17] indicators and factors this strategy is easy to implement and you know exactly the chart the second advantage of this strategy is using the change of character concept as an entry reason which can save you from
[03:32] losses many times sometimes the market ignores the order blocks which happens when the other side is highly in control so a change of character in lower time frames entry reason is helpful to not
[03:46] enter the losing trades the third advantage of this strategy is tracking the profits we have noticed that once in 10 trades the market goes highly in our favor so by tracking the profits we could gain
[04:01] risked so this system for taking profits is better than having a solid one to two target or Etc but it requires more patience and time now let's see the results of back
[04:15] testing so this is the overall result that we got after back testing this strategy on euro dollar for three months we have realized that although the win rate of this
[04:27] strategy is not that high but we gain 68 profit but remember in my opinion this percentage will be much lower if you traded live because you have to deal with the emotions
[04:40] so guys I hope you found this video interesting and helpful please remember to like this video And subscribe to our Channel if you still need to also if you have any questions or suggestions for the following videos let
[04:55] us know in the comments see you in the next episode