[00:00] In today's video, I'm going to give you live practical examples of trades that I took on my new funded account, trading my number one trading setup. Hopefully this will be more informative to
[00:12] you than showing you back-tested results of how it works. Let's get into it. All right, I am trading this on the one minute time frame and this is a warning to all of you that are wanting to do this. One minute time frames are extremely fast, they're extremely volatile, and you need to be quick.
[00:30] I was not quick enough on a lot of these trades. So because this is a new account and I wanna make sure that it's actually placing and closing trades properly, as you can see right above me, I have two quick positions that I opened
[00:42] and closed immediately for negative $2 each. It's always good to test things to see if it works before you start throwing money in the fire. All right, first trade, we have a double top bearish divergence.
[00:55] You can see the difference in the RSI points. Entered in a short position on this doji candle, closed out the trade at $28 in profit. Next up, price made a higher high while the RSI made a lower high.
[01:08] Typical bearish divergence with a massive engulfing candle. Enter in a short position My stop losses are currently set at around about a 1 times ATR the average true range
[01:24] And the take profit is two times the risk. This trade went extremely quickly. And because I'm doing this manually, I ended up closing it way down here at $60 in profit. So way above the
[01:36] original risk to reward. Next trade is going to be right here. As you can see, price made a lower low, whereas RSI made a higher low. Doji candle, rejection candle entering a long position,
[01:48] and this one got me a profit of $44. Now, all of this that I'm scrolling through right now is times where I'm not interested in trading, even though divergences may occur. I'm not on the charts, nor am I available. Now, it is the following day. We have a pseudo double top divergence right here.
[02:04] This one just looked too good, so I went for it. RSI divergence stagnated for a bit and then dump down to take profit. This one was a much smaller position. As you can see here, the take profit was only three pips. So it was a $22 trade. The issue with this one, I ended up double clicking
[02:22] the sell position. So it was two trades. One of them was $30. The other one was 22. Now this next trade again super small This was a huge mistake trade Like me personally owning up to it huge mistake trade I have it automatically set where my take profit and my stop loss are like four pips away and six pips away because I know that outside of the 1 times ATR
[02:45] I looked away for a minute and this trade ran straight into the stop loss and then started moving into profit. By the time I looked at it again, it was already in the middle of the range. So I closed it out because I'd already screwed it up and this was $12 in profit.
[02:58] Now the next one, Because I have already the RSI divergences as signals for me, I made the mistake of not waiting until bar close, meaning I saw the signal and I immediately entered the trade, but the candle
[03:11] hadn't closed yet. So I entered in a trade and then once the candle closed, the first trade was already in profit. And the next one I entered in right here. The first one was like way down here. Now the issue with this trade is, and the reason why I tell most people not to trade the one minute
[03:28] timeframe. Look at what this third candle did. You see how it wicked into the take profit zone and then immediately back into the middle of the trade that happened in the blink of an eye. And so by the time I saw that, I immediately saw rejection wick take profit zone already hit,
[03:45] close the trades manually both trades plus plus And then the last trade that just happened one hour ago You guys can see these divergences I hoping They very very visible to me Double tops lower lows RSI doing the opposite
[04:03] This trade hit full take profit, again, 3.2 pips. So these are very, very small moves, but got me $29 in profit. So far, I'm up $231 on the account, which is great because my original goal
[04:15] was like the 650 bucks that the account cost me. So I'm already a third of the way there. Now, this was just a recap of all of the trades that I took over the last two days, but it's really good money for being super low risk
[04:28] over the last two days. I think I'm gonna keep this super low risk to the end of the week, and then next week bump it up to maybe risking 0.25%, so a quarter of a percent of the account balance.
[04:42] So instead of doing a one to two risk to reward where the risk would be $1,000 and the take profit would be $2,000, I'm gonna risk a quarter of a percent So that makes the risk for each trade $250. That might be pushing it because the rules for the funded account are super strict.
[04:56] Maybe I'll keep it at like an eighth of a percent. Anyway, if you want to see the full tutorial, an in-depth guide on how to trade these RSI divergences, you can check out this video right here.
[05:08] Thank you so much for joining me today. I really appreciate you guys and we will see you in the next one.