Trading Strategy. Basic principles

25 בינו׳ 2023

The following clearly outlines my trading strategy, every day I seek out deals based solely on this strategy.
Without regular backtesting (trade by trade), the results of trading are random and uncertain. The cumulative outcome of the R-multipliers should be positive, but, if a routine backtest is conducted (after executing numerous trades based on sequential trading processes that offer us an edge) The primary focus of our trading strategy is the risk-to-reward ratio (RR), where a large number of losses can be offset by a single profitable trade.

- Entry requirements are sufficient to prevent market noise.
- Position sizing ensures we have a consistent (fixed) risk every transaction, and we adhere to this algorithm on each and every trade.
- Maintaining the advantage afforded by our trading method requires mental preparation for the fluctuations that will effect our account balance. Short-term losses should have no psychological impact!

Entry Standards:

We join the market based on key supply and demand sectors that play a significant impact in the structure of the market. We identify them by emphasizing the M15, H4 points of interest responsible for the structure's collapse.
Once the price reaches our point of interest, we will watch for a reaction in this area, which will indicate if the price intends to move higher or lower. The objective is to identify where a substantial position was taken and wait for the price to return to that point in order to reduce the repercussions and ensure the price follows its actual intentions.

Countertrend:

- Monitor price action and reaction points closely.
- Do not be greedy; if required, close such deals sooner, but not before 3R; bring the trade to the following supply/demand zone.
- Keep a close eye on price movement and response points when entering a trend.
- Enter a trade based on the candle that triggered the CHoCh, move it to the next high/low level, and partially close if momentum appears to be waning.
- There is no need to move the SL aggressively; instead, let the price to fluctuate and move the entry to break even only after the initial LH/HL is created.

4H Definition of Market structure

Determine the price's response to important zones on a daily/weekly basis.

How should I mark the chart?
4H
- swing highs and lows
- B.O.S
- Supply and Demand zones
- Liquidity H/L, EQH/EQL, internal liquidity trend
- Orderflow structure HL - HH or LH - LL

15M
How should I mark the chart?
- fluctuate between highs and lows
- ChoCh/BOS
- Demand/supply zones
- Liquidity, liquidity zones/points, strong/weak H/L, liquidity before poi
- Premium/Discount - short discount and long premium.
- Order flow

1-5M
How should I mark the chart?
- Liquidity grab (sweep)
- Mitigation/RTO
- S/D flip