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Top 5 Simplest Trading Strategies That Actually Work

0h 09m video Published Jan 1, 2021 Transcribed Aug 5, 2026 Data Trader Data Trader
Beginner 5 min read For: Novice forex traders looking for simple indicator-based strategies.
AI Trust Score 65/100
⚠️ Average / Some Fluff

"Delivers on the promise of simple strategies, but the 'high win rate' claim is subjective and lacks robust evidence."

AI Summary

The video presents the top five trading indicators that the creator claims have high win rates and can significantly increase profitability. It covers the Alligator, 200 EMA, RSI, MACD, and ATR indicators, providing specific strategies for each and emphasizing the importance of combining indicators with the 200 EMA to improve win rates.

[00:03]
Introduction to Top 5 Indicators

The video will reveal the top 5 high win rate indicators to increase chances of profit.

[00:18]
Alligator Indicator Strategy

Instead of waiting for all three lines to cross, wait for the green line to cross the purple line for earlier entry. Exit when a candle closes below the purple line.

[01:41]
200 EMA as a Trend Filter

The 200 EMA shows the long-term trend. Always trade in the direction of the trend. Combining any indicator with the 200 EMA can boost win rates (e.g., from 35-40% to 45-48%).

[03:20]
RSI Indicator Versatility

RSI can be used for overbought/oversold levels and as a trend indicator. For trend, set RSI to 50 and take buy when it crosses above, sell when below.

[04:48]
MACD Indicator High Win Rate

MACD is famous for high win rates. MACD divergence backtested 100 times gave 47% win rate. Combining MACD with 200 EMA: buy when MACD crosses above while price above 200 EMA, sell when below.

[06:13]
ATR as the Best Indicator

ATR predicts volatility. Low ATR means flat market, high ATR means big movements. Use ATR to set stop loss based on volatility, not fixed pips.

[08:24]
Summary of Top 5

Alligator for trends, 200 EMA for trend filter, RSI for overbought/oversold and trend, MACD for high win rate, ATR for volatility and stop loss placement.

The video concludes that using these five indicators, especially when combined with the 200 EMA, can significantly improve trading win rates and profitability.

Mentioned in this Video

Study Flashcards (9)

What is the recommended way to use the Alligator indicator for entry?

easy Click to reveal answer

Wait for the green line to cross over the purple line, not all three lines.

00:33

What is the exit strategy for the Alligator indicator?

medium Click to reveal answer

Close the position when a candle closes below the purple line.

01:15

How does combining the 200 EMA with other indicators affect win rate?

medium Click to reveal answer

It can increase win rate by about 10%, e.g., from 35-40% to 45-48%.

02:06

What is the rule for trading with the 200 EMA?

easy Click to reveal answer

If price is above the 200 EMA, only take buy positions; if below, only take sell positions.

03:05

How can RSI be used as a trend indicator?

medium Click to reveal answer

Set RSI settings to 50, creating a single line; buy when RSI crosses above, sell when it crosses below.

04:17

What was the win rate in the MACD divergence backtest?

easy Click to reveal answer

47% win rate out of 100 trades.

05:01

What is the MACD + 200 EMA buy signal?

hard Click to reveal answer

When MACD is below the histogram and the blue line crosses above the orange line while price is above the 200 EMA.

05:33

What does a low ATR indicate?

easy Click to reveal answer

Low volatility, meaning less price movement and a flat market.

06:28

Why is using a fixed pip stop loss a bad idea?

medium Click to reveal answer

Different markets have different volatility levels; a fixed stop loss may get hit early in volatile markets.

07:39

💡 Key Takeaways

🔧

Alligator Entry Improvement

Challenges the common alligator strategy, offering a more timely entry signal.

00:33
📊

200 EMA Boosts Win Rates

Provides a concrete example of how a simple filter can improve performance.

02:06
📊

MACD Divergence Backtest

Shares a specific backtest result, adding credibility to the strategy.

05:01
💡

ATR Predicts Breakouts

Highlights the predictive power of ATR for volatility and price movements.

06:13
⚖️

Volatility-Based Stop Loss

Emphasizes the importance of adapting stop loss to market conditions.

07:39

[00:03] that some work better than others so that is why in this video i will reveal the top 5 high win rate that will significantly increase your chances of profit

[00:18] so without further ado let's get on with the video number five we have the alligator indicator strategy works if you are using the original alligator

[00:33] you would wait for all three lines to cross over and then take a position this is actually the worst way of using the alligator strategy because if you waited for all three lines to

[00:46] cross over you would have entered in late and so instead of waiting for all three lines to cross over i would instead wait for the green line to cross over the purple line

[01:00] purple line you take a by position notice how by only waiting for the green line to cross over the purple line it gave an earlier entry signal compared to if you waited for all three lines to

[01:15] cross over and now for our exit strategy so let's say you took a buy position here candle closes below the purple line if a candle

[01:29] closes below the purple line like this you close your position about the strategy you can check out my alligator strategy

[01:41] video but for now let's move on number four we have the 200 ema this indicator is a very simple to use but it can show you the most important data when trading

[01:54] which is the long term trend you always want to trade within the direction against a trend is not a good idea the 200 ema

[02:06] indicators and it can automatically increase its win rate let me give you an example if you're alone it will give you a win rate of around 35

[02:21] to 40 percent but if you combine it with the 200 ema it will automatically increase its win rate to around 45 to 48 as well like the parabolic sar if you're trading

[02:38] only using the parabolic sr it will give you a very low win rate of around 38 percent but if you added the 200 ema 38 percent but if you added the 200 ema it can boost that win rate to around 45

[02:52] so my point is if you're trading using any indicator adding the 200 ema will significantly increase your win rate and the way you combine the 200 ema with other indicator

[03:05] is very simple if the price is above the 200 ema you only take buy positions and if the price is below the 200 dma you only take cell positions so that's how you combine any indicator

[03:20] with the 200 dma now let's move on heading over to number three we have the rsi indicator the reason on five is because the indicator can be used in

[03:35] many ways and all of them give accurate signals you can use the rsi to detect overbought and oversold levels on the market and you can also use it as a trend indicator as well

[03:50] if you're using the rsi as an overbought and oversold indicator you need to wait for key levels first for example an rsi that displays oversold doesn't mean anything

[04:03] mean anything however an rsi that displays oversold level is a much more accurate signal and you can also use the rsi as a trend indicator

[04:17] and the way you do that is by changing the settings of the rsi indicator and make it both 50. now you have a single line in the middle if the rsi crosses above the line you take a by position and

[04:34] if the rsi crosses below the line you take a cell position i did a more in-depth explanation about the strategy in my rsi video the strategy in my rsi video but for now let's move on

[04:48] on to our second place we have the macd indicator this indicator is very easy to use and it is famous for having one of the highest win rates out of all the other indicators a famous

[05:01] strategy using the macd indicator is the macd divergence i made a back test video where i traded the macd divergence 100 times and to summarize i got a 47 win rate out of 100 trades and i ended

[05:18] up making a decent amount of profit so that is why i recommend this strategy another profitable strategy using the macd is by combining it with a 200 ema this is also a famous strategy that is

[05:33] proven to have around 47 win rate how the strategy works is very simple basically if the macd is below the and the blue line crosses above the orange line

[05:47] orange line while the price is above the 200 ema you take a buy position it's the same for short positions as well if the macd is above the histogram and the blue line crosses below the orange

[06:01] line while the price is below the 200 ema you take a cell position so because of the and the effectiveness of the indicator the macd

[06:13] definitely deserves to be on the list moving on to number one the best forex indicator in my opinion has to be the atr indicator despite the simplicity of the indicator for having a single line

[06:28] this line is actually a really powerful tool that can predict the market let me give you a quick explanation on how this works so if the atr is low it means that the volatility of the market

[06:42] is low therefore there's going to be less price movements meaning that the market is flat and if the atr is high it means that the volatility of the market is high

[06:55] price movements this is actually good for us traders big profits are made when the price is making big movements and guess what using the atr indicator we can predict exactly when the

[07:11] volatility is starting to rise therefore we can predict when a big price movement is coming and take advantage of it i did a more in-depth explanation about the strategy in my atr video

[07:25] in my atr video moving on you can also use the atr to place to put your stop loss and take profit important so let's say every trade you put your

[07:39] stop loss at 15 pips so you'll close your position every time a trade reaches a loss of 15 pips this is actually a really bad idea different markets have different levels of volatility

[07:54] level and you only put a 15 pip stop loss it will most likely get hit and you will get stopped out early stop loss based on the volatility of the market

[08:10] and an easy way of doing that is by using an loss this indicator is based on the atr and it can adjust your stop loss based on the volatility of the market so

[08:24] that you don't get stopped out early because of the usefulness of this indicator i gave it the number one spot to summarize the video number five we have the alligator indicator

[08:38] because it can detect trends while also give early entry and exit signals number four we have the 200 ema because market and increase the win rate of any

[08:52] indicator number three we have the rsi because it oversold indicator and also a trend indicator number two we

[09:04] have the macd indicator because it's very simple to use and is famous for having a high win rate and number one we have the atr because it can predict when a price breakout is

[09:16] and give you the best place to set your stop loss so i just showed you the top 5 trading indicators that you can use right now and make a profit and all i ask for in return is for you

[09:31] to invest 2 seconds of your time into liking the video and subscribe to it literally takes only two clicks but it means so much to me videos as well so thank you guys for watching and i'll

[09:46] so thank you guys for watching and i'll see you in the next video

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