[00:00] I had a plan and now it's f***ed. The biggest issue that I've had is not finding my entries. I can find my entries just fine on a chart manually. It's trying to explain those entries
[00:15] to a computer and have it write the logic that tests it. My mistake was trusting the visualization for a week before I thought to get on the chart myself, drop my divergences and compare the two.
[00:29] Let me show you what that looks like. All right, this is EURUSD on a one minute timeframe. These are the divergences I would identify for trading manually. Let's start with the first one. We have lower lows and lower highs.
[00:41] Then price made a lower low, but the RSI made a higher low. The reason I like this one is because this RSI low was outside of the 70-30 range. So for this below 30, this one was within the 30 level.
[00:57] I would wait for a bullish rejection candle set my stop loss and take profit then wait for the next one Again outside the 70 range inside the 70 range Set my risk to reward enter the trade
[01:09] Outside the 70-30 range, inside the 70-30 range. Because I'm looking for bearish divergences, I'm looking for a bearish momentum candle. This WIC one was not it. This one was. I'm using the same take profit and same stop loss
[01:22] for every single trade. Continue. Like you can't see a divergence here. It happened, but it wasn't according to my secret sauce, the outside and inside the 70-30 range. We have a double bottom here. Hell, for this one, we even have two entries.
[01:35] This double bottom created a divergence, and then it happened again, creating a triple bottom. Again, a big fat rejection candle. I'm not asking for huge swing trades. I'm simply trying to scalp the move.
[01:48] Then again, a double top, wait for a rejection candle, and get my four pips. Those are my A plus entries. Hopefully you can clearly see what I see It a visible difference between two lower lows or two higher highs or double bottom and double top There a clear difference between an RSI being outside of the 70 range and then inside the
[02:12] 70-30 range. But when I try to explain this to a computer, it gets close and it gets some of them right, but it looks like this. This one would have been a winner. This one would have been a loser. I would never in a million years trade that.
[02:26] This little thing, absolutely not. This was the correct one. This was the correct one. And it didn't even think to catch this one. If you are good at trading and you can manually find your entries without getting emotional and without revenge trading
[02:39] and without screwing yourself over because every issue we have as a trader is due to ourselves, then keep doing it. If you're like me and you're obsessed with trying to get this automated, which I've been trying to do since ChatGPT came out,
[02:52] And trust me, since then, it's been over 10 million lines of code. The reason why I wanted to make this video was not only one to show you what my secret sauce divergences look like and how you can trade them manually but also to show you the process of what I working on why I think this is so valuable to be able to try to automate
[03:12] I got another kid on the way and I need to free up my time. This shit takes hours and hours and hours to do manually. So if you're on the path of making your own automation or just struggling with your entries, I want you to know that it's okay. I've been doing this for years. Just keep trucking
[03:28] along and you're going to have that light bulb moment right before you go to sleep one night. Get on the computer and you're going to solve your problem. And if you want to continue to trade manually, do your best to keep your emotions out of the game because it's the number one culprit
[03:42] for all your losing trades. If you want more information about all these RSI divergences and how I see the markets, go to trdfloor.com and on there you can learn literally every single
[03:55] thing there is to know about day trading. Maybe that might be the unlock to all your problems, or the secret ingredient to the recipe of day trading. Anyway, thanks so much for watching, share this video with your friends, and we will see you in the next one.