Trading Pivot Points Indicator 100 Times: Results Revealed

[00:03] indicator but two types of pivot indicators 100 times in one video and i'm going to reveal all the details and how much profit i made the win rate all that stuff all in this

[00:16] and i'm not going to waste your time explaining the calculations of the because that's not going to make you money i'm just going straight into the and the results i can guarantee you've never seen this kind of content on

[00:31] so hit that subscribe button so you don't miss more high quality content ever again so without further ado let's get on with the video be back testing is

[00:44] the blue it is very similar to the super trend indicator it is basically a super trend that is based on pivot points so here's how you read the indicator if a signal is indicating a

[00:58] buy it means you are closing your previous short position and you take a new long position and if the signal displays a cell that position and you take a new short position

[01:14] but in this back test i'm going to add another rule to it i'm going to set our max loss to only 13 pips so if a trade hits a loss of 13 pips i'm closing my trade automatically and wait

[01:27] for the next signal to come so our loss in this back test will never exceed 13 pips per trade so i'm only closing my trade when i hit a 13 pips loss or if another signal appears

[01:43] so i'm going to be testing the euro jpy 30 minute time frame with a capital of 1 000 with 200 times leverage per trade meaning each trade we are using 200 times leverage

[01:56] capital per trade you don't want to risk all of your blow up your account so in this case i'm using two percent so ado let's get on with the back test so here's a time lapse of me back testing

[02:12] the pivot point super trend 100 times you can skip to the timestamp 100 times you can skip to the timestamp shown in the screen to see the results

[02:45] super trend 100 times we received a win rate of

[03:01] but wait despite only getting 27 win rate we received a profit of 267 dollars and 58 cents out of the one thousand dollar capital how could this be how can an indicator with a very low win rate

[03:15] manage to become profitable well let me explain when i was back testing this indicator most of the 73 trade laws most of the 73 trade laws aren't even losses let me explain

[03:28] you see because our max loss is at 13 pips there were so many instances where i missed up to hundreds of pips worth of profits like this straight here

[03:43] but because of our 13 pip stop loss we closed the trade here but because of that we lost a 300 pip opportunity because we exited early

[03:56] our 13 pip stop entirely well if you do that there are also late exit signal like for example in this trade it gave

[04:10] if i would just purely follow the loss i would have lose over 100 pips super profitable and reverses leaving me with only little

[04:27] profits and you may ask why not just add a take and you may ask why not just add a take profit target let's say 50 pips i would miss rallies like this and would

[04:41] have exited the trade early so each strategy has its own pros and cons so my solution to this is set a profit and only close a fraction of your position

[04:53] not all of your position but only a fraction so that if the trade actually continues you still have some of your capital left so you also receive some of those profits

[05:05] so that was the first pivot point indicator the second indicator that i'm going to be back testing 100 times is the pivot on pivot reversal strategy by quant nomad so i'm not going to bore you with how

[05:19] signals that tells you when to enter and exit during a trade so let's just get straight into the back test to just follow the signals without setting any

[05:33] take profits or stop loss so this se signal means that i'm closing my previous long position and entering a new short position

[05:46] closing my previous short position and opening a new long position now given to me it means i'm going to take massive losses but in exchange i will also receive massive profits so

[06:01] i will also receive massive profits so let's see how this comes out so i want this comparison to be fair therefore i'm also using the same euro jpy and euro jbp chart with 30 minute time

[06:13] i'm going to start with a capital of 1 000 with 200 times leverage per trade meaning each trade we are using 200 but i am only using two percent of my capital per trade

[06:26] so that i would not blow up my account so without further ado let's get on with the back test so here's a time lapse and you can skip to the time stamp shown in the screen to see the results

[06:48] see the results [Music]

[07:03] times here are the results but before that i accidentally back tested it using the wrong settings that i created i am able to change the settings and it

[07:17] i am able to change the settings and it automatically adjusts the results for me win rate of 46 and i received a huge total profit

[07:31] of 46 and i received a huge total profit of strategy because even though i could get huge

[07:43] wins like this 376 pip trade i also received huge losses too trade i also received huge losses too like these trades in fact our maximum drawdown was 874 dollars which means at one point

[07:59] dollars to eight hundred and seventy four dollars but of course we rebounded back and made nearly fifty percent profit over total capital that's why if you want to profit from the strategy

[08:13] you definitely need to have a strong discipline and be prepared to take huge discipline and be prepared to take huge losses but also huge profits too so if you compare this pivot point strategy with a super trend pivot point

[08:26] of course we receive more profits however the super trend has a max drawdown of only one thousand dollars and 15 cents the negative we stayed above one thousand dollars at

[08:41] all times when trading the super trend compared to the reversal which hit 874 i think even though the super trend has a low win rate most of the losses are just small losses that hit

[08:55] our 13 pip stop loss the reversal even though has higher win rate these 54 losses are much more significant losses so it's more of a high risk high reward while the super trend is more of a low

[09:09] risk medium reward so it depends on your risk tolerance if huge trends like this while also getting significant losses like this you can use the pivot on point reversal

[09:22] but if you want to receive profits like this while also receiving very very small yet multiple losses like this you trade the super trend so it all depends on your risk tolerance

[09:36] so i just gave you two potential winning indicators that you can use to profit right now and all i ask for in return is a very small favor of liking the video and just subscribe to the channel it literally takes only two clicks and

[09:50] so thank you guys for watching and i'll so thank you guys for watching and i'll see you in the next video