5-Step Trading Strategy for $82M — Full Breakdown & Transcript

[00:00] made a day trader $82 million dollars Which he now uses for fast cars, multi million   dollar yachts, and luxurious mansions But what does this prestigious day  

[00:12] trader look like? This. This is him.   But don t let his looks fool you. This guy is  an absolute genius when it comes to trading.   His name is Kristjan kullam gi and he made a 5  step trading strategy that let him trade from just  

[00:25] $9,100 to 82 million dollars in just 8 years. But how did a guy like this grow his   account size to 82 million? Did he use specific indicators?  

[00:37] Was there a specific strategy he followed? Yes, yes there was.   and luckly for you, I scavenged the internet for  weeks trying to find this exact information.   And I found EXACTLY how he finds  his stocks, what he looks for,  

[00:51] and his exact 5 step strategy that he follows to  make sure he s entering into a profitable trade.   In order to follow this strategy, we have  to start from the very beginning. Step 1.   Kristjan had very specific conditions he looked  for when trying to find the right stock.  

[01:06] His first condition was that he wanted to find  a stock with a very strong move to the upside.   Specifically a move that was between  30% and 100%. That specifically   happened within the last 3 months. An easy way you can do that is by going  

[01:21] description if you don t yet have it. Go to the screener. Click the filters tab.   the change of the last month is above 30%. This will give you a list of stocks to choose  

[01:34] a (%) move under the 3 month timeframe. That is step 1 complete.   Step 2 is the fun part adding the indicators. Go to the indicators tab and type in moving   average. We are going to need  two of them so click it twice.  

[01:48] Go to the settings of the moving average and  change the length to 10. Also make sure you   are using a simple moving average. Then go to the other moving average   and change the length to 20 and also make sure  you are using a simple moving average again.  

[02:02] I also am going to change the colors of the  moving averages so we can see them a lot better.   The first reason is to make sure the stock was  currently consolidating or as he called it surfing  

[02:15] the moving average (surf meme)   When looking at these big moves, kritjan was  looking for some consolidation right after.  

[02:28] Meaning he wanted this big move, and then a  pull pack where price started to move sideways.   last between 2 weeks and 2 months. So when looking for this consolidation,  

[02:41] make sure it fits that timeframe. Now, when Kristjan mentioned surfing   the moving average he meant that he  wanted to see price holding around   the moving averages. Not going to much higher  or lower than where the moving averages were.  

[02:54] It s even better if say the s&p 500 which  is an indication of the general market,   is falling a lot, and the stock you are looking  at is still holding the moving average.   As that s showing immense signs of  strength. As its still holding even  

[03:08] So what you want to do is mark the consolidation  period and again make sure this move lasts   between 2 weeks and 2 months. That is step 2 complete.   Step 3 is when we start getting into the real  interesting stuff. Where the strategy starts  

[03:24] to take place. But first  

[04:00] a breakout of this consolidation period. He wanted to see a candle break   the resistance of this zone. Now a lot of traders would say wait for a break,   than a retest, then enter as soon as price comes  back down to the resistance. But Kristjan said he  

[04:17] Kristjan would go to a higher  timeframe like the daily.   He would then enter as soon as  the candle broke the resistance.   He would then proceed to set his  stop loss right below the low of  

[04:34] the daily candle that broke the resistance. But for his take profit he did something that   your take profit at a 2:1 risk to reward ratio or  setting your take profit at a certain percentage,  

[04:48] Kristjan set his take profit based off  the amount of time that has passed.   He said specifically he would sell a  1/3 of his position after 3-5 days.   So since we are on the daily timeframe,  we just wait for 3-5 candles to appear.  

[05:01] Once they do, we can now sell a 1/3 of  our position for guaranteed profits.   But what happens next is where the  real profit starts coming into play.   Which brings me to step 5.  The trailing stop loss.  

[05:18] averages have multiple purposes) Well the 2nd reason why Kristjan used moving   So in this current trade, we sold a 1/3 of our  position after the close of the 5th candle.  

[05:34] What he would do next is raise his stop loss  to the entry. This way, if the trade ends up   going down, we still made our money on the  trade, and we can move onto the next one.   But then he would allow the moving average  to act as a trailing stop loss so he could  

[05:49] get the benefit of these humongous moves. You see, one of the main reasons why this   strategies works so good is because its  very good at catching monster moves.   When doing my testing with this strategy I saw  that it wasn t odd to see this specific strategy  

[06:03] catch 100, 200, 300% moves. Which catching these  moves is where the strategy really shines.   So he would move his stop loss to break even  then he would only sell the rest of his position  

[06:15] once price broke the 20 day moving average. Its also very important to note. The body of   the candle must break the moving average. If  a wick like this breaks the moving average,   we do not sell the position. We only sell  once the body of the candle like this,  

[06:31] price ride the huge amounts of momentum and wait  for it to break the 20 ema. After a couple of   weeks it finally breaks the moving average, which  we then exit the trade completely. Resulting in an  

[06:45] astonishing (% move) (meme)   Now I m going to be honest, when testing this  strategy with hundreds of trades I found it   actually lost more than it won. But since the stop  loss is so low and the profits are so ginormous,  

[07:00] it actually made way more profit than it lost. For example, if we have 7 losing trades   and just 3 winning trades. That s a  winrate of 30%. Pretty shtty right?   But if those losing traders are only 1% and  the winning trades are around 20% each. That  

[07:17] means you still profit 53%. So he actually said himself,   his trading journal at times is mostly a sea  of red but then he gets a big winner. Saying,   yeah you could be wrong 8/10 times with  this strategy but it still makes huge  

[07:32] kotegawa who made 153 million  with his trading strategy.   And I gotta say, that strategy  is absolutely mind blowing.  

[07:44] Go check that out, thanks for watching,  and ill see you guys next time.