I Tried the Simplest Trading Strategy for 2 Months — The Result Shocked Me!

[00:02] After seven years of trading and trying over 30 strategies, I discovered something very important: the more complex the strategy, the more likely you are to lose. This applies to SMC, ICT, supply, demand, and many other strategies. Recently, I

[00:15] tried a strategy that is literally one of the simplest I've ever encountered, and I was shocked to find that some people are selling it as a paid course. So why? In this video, I'll explain it to you for free in just three steps. Then [music] you'll see real examples on Tesla stock for two

[00:30] whole months. The first step is simply to identify the premarket and draw a horizontal line at the peak and another horizontal line at the trough. The second step is for a at the trough. The second step is for a breakout of the peak or trough line. The

[00:44] third and final step is to retest the line and see an entry confirmation signal, such as a candlestick pattern. If there's an upward breakout, you enter a buy order; if there's a upward breakout, you enter a buy order; if there's a downward breakout, you enter a sell order. That's it.

[00:59] Let's look at some real examples together. The picture explains it better. Regarding reversal candles, I uploaded a video explaining eight of the most important and powerful reversal candles. I'll put it in the description below the video, or it will appear on the screen here. Watch the video, and you won't need any other source of information. If you'd like to

[01:14] receive more educational videos of this type, don't forget to subscribe to the channel. Now, let's go back and do backtesting of the strategy. But to make the results clear, we'll create a table where we put the date of each trade and how much we profited or lost. Of course, for each trade, we'll assume we risked $100 and to

[01:30] profit $200, at least, meaning a risk-to-earnings ratio of 1 to 2. First, we open TradeView. You can search for Tesla stock; just type "Tesla" in the

[01:46] stock market, and it will be the first one that appears. Now, to show the premarket, right-click on the settings, select Symbol, and change it from Regulator to Extended Trading Hours. This will open the premarket and aftermarket. The orange color represents the premarket, and the blue color represents the aftermarket. What does our strategy apply

[02:00] to? This applies to the orange color. Okay, now if we want to do a backtest, let's start from day one. So, for me, this is the premarket area. What do I need to do? I need to

[02:12] draw a line at its peak and its peak and another line at its trough in this another line at its trough in this area. Then I wait for a breakout,

[02:25] area. Then I wait for a breakout, either upwards or downwards. There's an indicator; you go to Indicators, type "Premarket," and it will show "Premarket High and Low." Just

[02:37] click on it, and it will activate. But right now, it's not visible because its colors are hidden against a white background. Change because its colors are hidden against a white background. Change the colors to black, black, black, and the others to the colors to black, black, black, and the others to

[02:54] turn off the second option. What does the fourth option do? It automatically draws the peak and trough of the premarket for the day you're in. The peak and trough of the

[03:07] premarket that I'm waiting for now is for the price to return to this point and give me a reversal candlestick so that I can enter a sell trade. So, what do I do?

[03:22] bounced back and touched the line, but the third condition wasn't met: a reversal candlestick pattern to enter a sell trade. I'll go enter a sell trade. I'll go back to the previous day. If we specify here, I'll have a

[03:36] premarket high and a premarket low.

[03:48] Look, there was a breakout here, but the candlestick immediately after closed lower. This isn't a clear breakout, and I won't enter a trade. The day is over, considered finished. It's 9:00 PM here. After 8:00 PM, I don't enter any trades. Okay, let's go to the next day. Now, there's an

[04:03] enter any trades. Okay, let's go to the next day. Now, there's an

[04:19] want is for it to bounce back and give me a confirmation entry signal. not that the fuel price was touching the line and then returned to this area. Now

[04:35] was touching the line and then returned to this area. Now I'm waiting for a reversal candlestick. I'll see if it's the first one. I'm waiting for a reversal candlestick. I'll see if it's the first one. Okay, now it's clear there's resistance in this area. Okay, now it's clear there's resistance in this area. I might enter here. I might place a... A

[04:47] I might enter here. I might place a... A buy trade. We're currently here. Let's give it some space. I'll make the trade one-to-two. Of course, in this case, if it touches the stop loss, we'll have lost $100, and if it touches the take profit, we'll have made $200

[05:04] because the trade is one-to-two. It says " Risk Rodar Ratio 2." So let's see. Okay, this is the first successful trade. Let's go to the day before. Okay,

[05:27] bottom downwards. Now all I want to do is wait for it to return to this area and give me a confirmation entry signal, which is a reversal candle, so that I can enter a sell trade. So let's see if it gives us one enter a sell trade. So let's see if it gives us one or not.

[05:45] bottom line and broke through upwards with a strong buy candle. Therefore, the strategy is no longer effective, and I won't Therefore, the strategy is no longer effective, and I won't enter a trade. We'll see if we continue. Actually, today it was moving enter a trade. We'll see if we continue. Actually, today it was moving

[05:59] nor down. Okay, if we go to the day before,

[06:11] I have the peak line and the trough line, and I have... A clear breakout to the upside, okay. Now what I want is for a candle to retest this line and give me a reversal candle that rises upwards so that I can enter a

[06:25] reversal candle that rises upwards so that I can enter a buy trade here. If,

[06:37] but unfortunately, the reversal candle formed at a price slightly higher than the line, so honestly, I wouldn't have entered. The condition has to be met: that it revisits the line. Let's go back to the

[06:50] line. Let's go back to the previous day; the

[07:06] breakout to be effective, I want the candles to have a gap; I want the candles to move away from the line, have a gap, and then revisit the line. So this breakout isn't considered effective. considered effective. Okay, the breakout we saw at

[07:25] the beginning was ineffective, but look here, strong sell candles appeared, and there was a gap between this candle and the low line. Then a buy candle appeared, and here I have a have a reversal candle. So I enter a sell trade in

[07:40] this area. I put the stop loss slightly above the candle, something like this, and I put the take profit something like this, and I put the take profit one. Let's

[08:04] see if this is the second successful trade. Okay, if we go back to the previous day, this is the second successful trade. Okay, if we go back to the previous day,

[08:28] I want the candles to touch this line again and give me a reversal candle. give me a reversal candle. Okay, but unfortunately, the price didn't touch the line again, so we won't take a trade on this day. If we go back to the previous day,

[08:51] we see that we have a high and low line, and the market opened with a large gap up. Now I don't know, maybe the price will return to this area and give us a reversal candle, and we'll continue upwards. Let's give us a reversal candle, and we'll continue upwards. Let's see what happened during the day. I'm saying this so it's

[09:04] clear. Okay, during this day, the price didn't touch the line again, so we won't take any trade. Let's go back to the previous day.

[09:21] Okay, now the price has reached the high, I'm waiting for a reversal candle, but there isn't one, so unfortunately, we wo n't take a trade. Okay, if we go back to the previous day, it's the

[09:44] same thing. Unfortunately, the breakout continued downwards, not giving us a chance to enter. The not giving us a chance to enter. The day before,

[09:58] breakout requires a gap between the candles and the high line.

[10:11] Now, this is considered a breakout because two candles have fallen downwards, creating a gap. So now I'm waiting for a reversal candle. It's actually a reversal candle, but because it's blue, I prefer it to be a bearish reversal candle. Let me see if I get another Angelfin or

[10:24] Hammer. You see, that's the benefit of waiting. This candle is a strong buy candle, so I won't enter unless an Angelfin occurs now, meaning another candle covers this one and Angelfin occurs now, meaning another candle covers this one and closes in this area.

[10:57] Now we see that the first two candles fulfilled the two conditions: a breakout occurred and it retested. But this candle is a bit scary because it's large, and it's not clear yet that sellers are actually in control. So let's see another candle or Two candles, if they give me a clearer indication that a sell will occur,

[11:11] candles, if they give me a clearer indication that a sell will occur, false breakout. Now, on the same day, the price continued upwards, a

[11:25] breakout occurred. Let's see if it can come back here and give me a reversal candle or not? Ah, look, in this scenario, you first have a breakout in one direction, then a false breakout occurs, and you have a breakout in the other direction. We can enter, but the risk will be higher. Let's try it. We will

[11:41] enter, but the risk will be higher. Let's try it. We will place a sell order. We will place the stop loss approximately in this area, slightly below the reversal candle. We will place the profit one or two. Let's see.

[11:58] Okay, it's a losing trade. Why? Firstly, because there is no 100% successful strategy, and secondly, because today it is actually moving in an irregular way. There was a breakout downwards, then it turned out to be a false breakout, then there was a breakout

[12:10] upwards. Okay, let's go to the day before.

[12:34] upwards and a retest, but there is still no strong reversal candle. Let's see if a strong reversal candle. Let's see if a strong reversal candle appears.

[12:49] you have the Anglofin candle, I could have entered that area, but why did I wait? Because the angling candle didn't actually close above the peak line, the second candle confirmed that the buyers who are currently controlling the market. Let's see if we enter a

[13:06] currently controlling the market. Let's see if we enter a buy trade here. We put the stop loss slightly below the buy trade here. We put the stop loss slightly below the angling candle, by one or two.

[15:01] because with one candle it returned to the line and broke it downwards. So, for this day, no. Okay, the day downwards. So, for this day, no. Okay, the day before, a

[15:22] this isn't considered a clear breakout because there's no gap between the candles and the line. between the candles and the line. So, today I won't enter a trade.

[15:40] Okay, let's see here. It broke upwards, then retested, giving me a clear reversal candle. Everything is fulfilled. We place a buy trade, we put the stop loss on the candle, we put the take profit by one or two.

[16:08] This is a day that raises blood pressure. Okay, it's a successful trade, but we were almost We'll go out in this area. By the way, whoever did n't manage to enter here could have entered in the

[16:20] second area here because it retested and gave you two clear reversal candles, so they could gave you two clear reversal candles, so they could also enter in this area, and it would have given the same thing, but clearer, because the stop loss would have been below the bottom that is here. It would have been

[16:36] below the bottom that is here. It would have been one to two. So, considering that whoever entered here, it's possible that they were unlucky. Whoever entered here would have made a better entry, but Whoever entered here would have made a better entry, but overall, it's a day considered a successful trade.

[17:02] Look, I have the value and the bottom, but the difference between them is large. Okay, I had a breakout to the upside. Now I want to wait for a retest with a reversal candle. Okay,

[17:22] unfortunately, there is no retest, so there is no trade. Okay, let's look at the day before. So,

[17:41] to the upside? Yes, but the problem is that I don't have a large gap between the top line and the candles that large gap between the top line and the candles that broke upwards. So, for me, I won't enter right now.

[17:55] clear upward breakout and a large gap between the candles that formed with the top line. large gap between the candles that formed with the top line. Now I'm waiting for it to retest with a reversal candle. Okay,

[18:14] the trade. Let's go to the day before.

[18:31] Okay, you have a clear downward breakout. Now we wait for a reversal candle with a retest. Okay, it any clear reversal candle, so we won't enter this trade. The day before, there was a

[19:13] breakout and a reversal candle, but unfortunately, there was a gap between the bottom line and the reversal candle, so we lost the trade. Look at the day before. It's

[19:40] breakout with a gap or not. Honestly, I could have considered it, but since this candle opened and the difference is large, why don't I I won't enter here simply because if I enter in this area, my stop loss will be too large. If I want to place a take profit of one or two, I have to

[19:57] want to place a take profit of one or two, I have to place it in this area. So, I see that the price is high from here to here. If I wait, the price might drop back here, allowing me a small profit, but then the price might drop back here, allowing me a small profit, but then reverse. So, I won't take this trade. But

[20:10] reverse. So, I won't take this trade. But let's see what would have happened. It would have been a let's see what would have happened. It would have been a losing trade. So, I simply wouldn't have taken it because the bearish candle that formed here is very large.

[20:24] Okay, let's look at the day before. Here, there was a breakout and a retest. But you probably know what a retest is: the

[20:38] line broke upwards. So, we're not concerned with this day. We simply go and look at the day day. We simply go and look at the day before. So,

[20:56] retest with a reversal candle. Okay, unfortunately, the price continued to rise without us entering. So, we wouldn't have entered today. Let's look at today.

[21:14] with a gap down, so we might wait for a retest, but I don't think so because the price is far down. Let's see. Okay, the price is already significantly down, so

[21:27] price is already significantly down, so I expect the end of the day... over. I wasn't going to enter today. Let's look at the day before. Okay, now there's a breakout to the up. Now

[21:54] I want to wait for a retest with a reversal candle. Okay, okay, okay.

[22:08] need confirmation, we need an Angelfin candle to confirm that the price will rise. Okay, enter. Look at the day before.

[22:29] retest with a reversal candle. Okay, now the retest happened, but there was a Okay, now the retest happened, but there was a breakout to the upside, so I'm not interested in this day.

[23:00] usually, according to the stock's behavior, it seems that when it goes down with a large gap... I'll go back and test. seems that when it goes down with a large gap... I'll go back and test.

[23:28] direction wasn't clear. Let's look at the day before.

[23:50] candles have a gap from the line. Now I'm waiting for a retest with a reversal candle. Okay, the price candle. Okay, the price jumped and didn't enter with it. Let's look at the day jumped and didn't enter with it. Let's look at the day before.

[24:16] Okay, now I'm waiting for a retest with a reversal candle. Okay, there was a retest without a reversal candle and a breakout downwards, so I'm not interested. Let's look at so I'm not interested. Let's look at the day before.

[24:52] this is the confirmation candle. Now I might not enter because it's 10 o'clock and I'm usually asleep, because it's 10 o'clock and I'm usually asleep, but let's see what might happen if we enter. We enter here, meaning the stop loss logically should be

[25:05] the stop loss logically should be placed here. Take profit one or two.

[25:39] move like this, I honestly... I'm not interested because the movement isn't clear, so let's go to the the movement isn't clear, so let's go to the day before.

[26:00] Is this considered a breach? As we saw, no, because I want the candles to have a gap between them and the peak or trough line. In this case, the three candles that broke upwards all touched the line, so this isn't considered a breakout. I wouldn't enter a trade even if it bounced back and gave me a

[26:14] reversal candle. Let's see, actually, it bounced back and didn't give a reversal candle; it continued breaking down. Look at the day before.

[26:38] the price bounced back and gave me this candle, but this candle alone isn't gave me this candle, but this candle alone isn't enough. I need a candle to confirm that it actually bounced back from the line, that the price will actually respect this line and continue falling downwards. Let's look at the next candle.

[26:52] line and continue falling downwards. Let's look at the next candle. logically, yes, I can enter. Why? Because if I want to enter, I'll put the stop loss above the candle. I'll put the

[27:04] put the stop loss above the candle. I'll put the maximum take profit in this area, and it reaches two, it reaches two, so I can enter the trade. Let's see. see. Okay, a successful trade.

[27:41] Okay, now I have a clear breakout at 10. I don't think I was going to enter. Let's 10. I don't think I was going to enter. Let's see the

[28:32] breakout and a retest, but without a reversal candle, so we're definitely not interested. reversal candle, so we're definitely not interested. The day before, okay? Now I have a clear breakout upwards.

[28:50] I want a retest with a reversal candle. Okay, it did

[29:02] n't retest, so I won't enter. The day before, okay?

[29:15] touch again. I want to wait for a reversal candle in the area.

[29:27] Okay, now it touched. See if there's a clear reversal candle. I If we put a buy order, put the stop loss in the area. The take

[29:42] profit is one to two. It's a bit high, but let's see what happens. Yes, it's a special deal.

[29:55] Yes, it's a special deal. Look at the day before; it's

[30:13] clear the price dropped sharply here and didn't retest it. Let's look at the day before that;

[30:56] from the top. This means sellers are almost in control in this area. I might enter, but the risk is high. Let's see if I enter this area. Logically, I'd put my stop-loss and take-profit around this area,

[31:08] this area. Logically, I'd put my stop-loss and take-profit around this area, at least one or two. at least one or two.

[31:21] Tesla. I'll put the table with the results in detail. Yes, of course, you saw many days when there were no deals we couldn't enter, but you do n't have to work on just one stock. You can work on Tesla, you can work on Apple, you can work on Nvidia, on QQQ, on the

[31:37] on Nvidia, on QQQ, on the SMP 500. Do backtesting like I did. See if the strategy actually suits the stock you're going to work on. Or no, and definitely, definitely, definitely, if you see a stock, for example, if we open on a stock like New York and you see a stock where the candles are in a certain

[31:53] pattern, like points, avoid trading on it. Why? Because the volume, meaning the trading volume, will be low, so you can't predict its movements. You'll have a lot of gaps, and the price will jump up and jump down. So, the stock you want to

[32:09] trade needs to have all the candles, meaning there are no price gaps, and the stock has high trading volume. Of course, the most important thing in terms of strategy is having proper risk management. And always remember not to trade with any amount you need and aren't prepared to

[32:25] lose, because nothing is 100% guaranteed. Try the strategy and tell me what results you get. And if you're interested, write to me in the comments because I might create a free indicator that I can put trough for the premarket and give an alert if it breaks through them and another alert if they re-enter.

[32:42] By the way, if you're looking for a reliable broker, you'll find the one that I'm a verified user, as described in the video below. Another video will appear explaining the steps to open an account Another video will appear explaining the steps to open an account in detail. Peace be upon you.