Best Binance Futures Trading Strategy (Turn $1,000 to $10,000)

[00:01] futures trading strategy on binance this strategy got a really good win ratio for i'm going to go through how to actually implement this strategy what it is what things to watch out for when actually going ahead and trading so you can kind

[00:15] step-by-step guide so i'm going to show you what uh indicators that we need to the timestamps for that in the description i'll also leave the link to binance in the description as well because they will give a deposit bonus

[00:29] up to about 600 in your futures trading account so if you're not uh with binance the strategy we're going to look at is the hoffman inventory retracement strategy it's actually really quite simple it just gives you one indicator

[00:41] things you have to do before that to actually get the chart set up i'm going has the indicator and then i'm going to go over to binance and actually input these orders finance lets us put in a stop order which is the order that we

[00:55] we're going to go over to training view trading views free tradingview.com um so i'm going to go to bitcoin here and then trade on the 15-minute chart i found this is the best for me for day trading so 15 minutes gives you enough

[01:09] your analysis and then go ahead and trade now for indicators we need indicators here and then hofmann and you can see the hoffman inventory the chart now that's just going to very simply give you an indicator on where to

[01:24] get in now this strategy really all it does is try and give you a better entry to trade with the trend now what you're trying to do here is trade on a breakout of the previous resistance and that's what the indicator

[01:38] how to do that now the hoffman inventory retracement simply takes each candle and it prints an indicator when there is at least a 45 pullback from the extreme so in an uptrend you're looking actually at the

[01:53] red indicators the the down arrows and that indicates a 45 to 45 retracement from the high of that candle now in a downtrend you're looking at the green indicator indicating a 45 retracement from the low of the candle

[02:10] and what we're trying to do is find these retracements and then use those as entries now we have to look at the trend itself so in an uptrend you're actually using the red arrows and in a downtrend you'll be

[02:23] looking at retracements here what the strategy tries to do is get an entry where a retracement happened before and then you place the trade out into the future when the price is breaking through that previous resistance and

[02:37] essentially what you're trying to do is get a retracement level to put a trade in and then trading a possible breakout in the future so it's quite clever like that and that's why you need to actually use a stop order because you need to

[02:49] future so i'm going to use that on binance so here's how we do a little bit of extra work around that indicator to actually identify the trend that we're in so firstly if you want to just go out onto

[03:01] a longer term time frame so rather than the 15 minute look at a one hour or a four hour chart and that can give you a better idea of the longer term trend that you're in in terms of the price action if it's moving up or down now you

[03:13] can see i have two exponential moving averages here so i have a 220 period moving averages the first one if you go to settings is just a normal exponential moving average which is how which has a 20 period length to it so you can just

[03:26] go to indicators here and then type in exponential and it'll be right there click it twice to get two indicators so this one is just 20 periods for this chart the second one is looking at a longer time

[03:39] frame so it's a 20 period moving average but it's looking at a four hour chart now this gives this gives us hopefully confluence of a trend so the green arrow or the green line that you see here this is the four hour chart 20 period and if

[03:53] that's moving up with the blue line which is this chart's 20 period then that's confluence that we're in a you know a fairly strong trend now the other actually measure the strength of the trend by using a trend angle so go to

[04:06] trend angle here and then you're looking at you know a strength of a trend now um for the hoffman strategy that uses an angle of around 45 degrees so if you're looking at a trend here which you'd plot with an uptrend

[04:19] around here you can see this is around 11 degrees right which isn't amazing as a trend but if you're looking potentially you know at this then you're looking at something you know more around 25

[04:31] percent now in my experience the 40 45 degree doesn't happen that often and so with that in my experience and using this and back testing it um i've seen that around 30 degree angle or so does pretty well so if

[04:46] you're looking you know around 30 degrees and obviously this right if you're looking at this and it's like wow it's a 70 degree angle kind of doesn't work so you have to use uh your own kind of training trading knowledge

[05:00] here and just kind of confirm that we're in the trend that we want if we're looking at this angle we're looking at a 40 degree if you take this exponential moving average you're looking at 14. so the longer the time

[05:12] frame that you're looking at in terms of exponential moving averages um the you know less uh the angle is going to be a lot softer that's just the way it is and following this chart more has a much stronger angle for me what i'm looking

[05:27] where i think you know what this trend is strong enough for me to trade right so if you're looking at this shorter term trend here you know around a 26 i would trade but everyone has to make

[05:40] their own decisions there on kind of how they you know indicate if this trend is strong enough for them so what i'm looking at is key levels of resistance or support in an uptrend you're looking at support and for disrupt trend i'm

[05:52] saying 30 degree 25 degree that's a strong enough trend for me so you know if we're printing around here i'd be looking to you know get in on that so you do have to use a little bit of trading knowledge here but as long as

[06:06] you're comfortable that the trend is strong enough for you um especially with this breakthrough of trends here then obviously that's uh the okay and then entries now we can use the indicator to give us our entries so i'm going to make

[06:19] sure that the chart on my binance platform here and the trial on trading trading view with the indicator matches up so i'm at obviously the same level now what i want to see is one of these indicators so we use um a red arrow in

[06:32] an uptrend because we're looking for a retracement now what you want to do here is place your order just above the previous candles you're looking at a red indicator here i wouldn't trade this move because this is

[06:45] you want to sit out but when you're consolidating again that's where you want to make your entries in my opinion so what we can see is this red entry indicator which is the third red candle and it's giving us that indicator this

[06:58] shows a pullback so what we want to do is place a long order because we're in an uptrend just above this entry and then the stop loss just below this candle and that gives us an entry in the future um that we're going to trade off

[07:13] so what we want to do is go back to our chart right here and make sure on the 15 minute which is the same time frame then we're going to look at a long order long position and you can see that after this it was actually the third pullback

[07:26] so that's after this peak it's the one two three the third candle so after this peak one two three third candle here so what we want is a long entry right here in the future that is going to go long if the price goes above that

[07:42] actually is just trade a breakout of that previous resistance during this to break through this level once more in the future we have our stop loss just below and then a take profit i would suggest anything from 1.3 to 2 something

[07:58] around that we'll choose 1.3 for this example two three candles after that's when we're going to get our entry and our stop-loss as you can see moves uh just below and the price moves

[08:11] down but it never quite reaches our stop loss it gets pretty close at this candle and as you can see the price moves up um and eventually after a long while actually up at this candle here you know is our take profit so the way

[08:25] that we would do that you need to place a trade in the future can't place a market order because you can only trade in the future when the price breaks through that level so what we have to do in an uptrend is go to

[08:39] spot order or stop order sorry either a limit or a market i think market's just easier in this instance and you have to get that exact price so on that example it was 23 945 23 945

[08:52] and then you can do your size here whether you trade in btc or us dollars uh either one and you can put an amount in here now you can put your take profit and stop loss right in there so the stop loss would be here at 23 6

[09:04] 23 644 for example and then the take profit up here would be 24352 done for you so what's good about this is you've got an entry in the future you

[09:18] need a stop order because you're telling the system in the future if the price gets to this level 23945 then enter a market buy order so that you can go long you can't do a limit order because you would then

[09:33] uh enter a trade because you're actually trading at a price that's higher than can't use a limit order that stop order is there and it executes when the price gets there trading that breakout in this instance we got a little bit lucky uh

[09:47] loss it didn't indicate it you know it didn't trigger the stop loss but it was very close and it eventually broke out here and actually triggered the take profit now each and every one of these indicators

[10:01] is a trading opportunity so each red indicator and an uptrend you can once more place a stop order just above and the stop loss just below the take profit anywhere from 1.3 to two times your entry a quick example of a short trade

[10:15] in a downtrend as well because you can do that on futures so again you have to make sure that the angle of the trend is sufficient enough for you to actually be ways of doing that you can look at these candles here

[10:27] and say 35 degrees that's right you can also look at the you know the exponential moving average here and say this angle is also showing a significant downtrend so that's a potential entry trigger that we would

[10:39] now what we do in a downtrend is look for the green indicator uh to show us the entry uh entry price or entry level so there is a green indicator here indicating a retracement from that one uh so you can actually go in at that

[10:53] level or you can wait for a higher level uh in the next indicator in after the price is consolidated a little bit so that's up to you i'm going to tr i'm going to trade the second indicator just like we did in the uptrend um and then

[11:06] go in at that price now remember we're going short here so what you can do is find that on the platform and then go short so we want to go short just under that candle at that price and we want to stop loss just above that

[11:19] candle and then a take profit 1.3 to 2 times away and as you can see we got a come back up didn't quite reach the stop loss and over time it did move down to that you would do that is just go over to the trading system do the stock

[11:35] market order make sure the price is exactly what that trading indicator says and then sell short here and obviously your take profit and stop loss would be where the indicator shows you so you can change this around to be

[11:47] maybe 1.3 two times or maybe even let the trade run out depending on your trade to play out does this strategy work every single time definitely not but the indicators do give you a pretty good ratio of win reward i actually made

[12:00] a completely separate video on this um that goes through and back tests this that video i'll leave that linked in the description for you if you want to go that link in the description they'll give a deposit bonus in your futures

[12:13] trading account up to 600 bucks so uh yeah if you want to get that i'll leave that video for way more on this strategy i'm james it's money cg cheers for watching and i'll see you in the next one