https://www.fxblue.com/users/37132419

 

As a trader, wouldn’t you like to make a bigger relative return than Warren Buffett does with his investments? And would you also like to know why most people would find that very boring? In this video, you will learn everything about the strategy that I use. This is something I wanted to show you because we have correlations, which means we have entries and exits, and we have this oscillator here. This is the Commodity channel Index, and you can see we have entries in blue and we have exits in red. And the idea is whenever we get below the lower line, we want to buy. And when we get into the profit, we want to sell. In this case, we have a blue arrow here, which means we have taken a trade. And once the profit goal was reached, it was closed here. And this is the chart that people like to show you because it all makes sense every time I have a spike below the lower line, we can open a trade and it runs into a profit. And that’s what people want to see. But from time to time, it can also go the other way.

Like in this case, we had this entry signal. And it opened a trade here. That wasn’t a profit right away because the market went down. And the happy end is here when it was able to close the two open positions in a profit. So if we move the chart a little bit into the past, we can see these fan-like trading results. Here was the entry signal. We opened a buy trade, but the market went against us. And that is when we need to wait until it comes back. So how do we know if it comes back? Let’s zoom out and see what our two moving averages are doing. And here we can see on the long term With 1,000 candles for the green moving average and 1,100 candles for the red moving average, we have a long term uptrend. And that makes it likely that the uptrend is going to continue. Therefore, we expected the price to come back into the long-term trend because this would be a correction. And in most of the times, this will work. So let’s zoom out even more. And you see all the time, starting from the beginning of August until today, which is September the 27th, we had a long-term uptrend and we made a lot of trades, and that led to a lot of small profits.

In this case, we are about 6.8% profitable. Actually, let’s have a look at the FX Blue stats for the system. It says 6.6%. This is in German because my operating system is in German, but you could Check out all the stats in the language that you prefer. And when we click on the risk tab here, we see we have about 1.7% each month. The current probability of a total loss is zero. And we have also seen bad days and bad weeks. And you could analyze each and every trade here. By the way, you don’t have to log in. But let’s say it is 6.6% for 116 days, and more than half of it was just the adjustment time to get the system up and running and change a few parameters until we started off in August. So let’s say this is a third of a year. We have 6.6%, so three times this value would be roughly 20%, which is also my yearly goal. And guess what the the S&P average return is? According to Investopedia, the average return currently is about 10.26% since 1957! And now that we know that, what do you think is the average return for Warren Buffett, the greatest investor in the world, as some people call him?

Well, according to Google, it’s about 10 %. And as we all know, Google knows everything. But if you look at his company, which is Berkshire Hathaway, this is about three times the return value. And if we go a little bit down, we see that Berkshire Hathaway has consistently outperformed the S&P 500 since 1965. So some people might find about 18 to 20% gain per year totally boring. But I’m risk averse and I consider trading to be one thing that I do. My goal is not to live from this little account. It’s more about a combination of things that I use, and trading is just one part of that combination. And I like simple and consistent, like in this case. But what I could do is I could increase the trading risk here to a much higher value. But there is a reason for my values here. And we can see the reason here. This is a backtest result. This is the COVID-19 time, and this is today. I started in 2015, traded up until the current day, which isn’t October the 15th because we are in late September. This is actually five minutes. That’s a time frame that a lot of people would consider to be pure noise.

Actually, I prefer to trade the one hour time frame. But I like consistent and slow growth with as little risk as possible, because most of the time it looks like this. And this is easy to watch without the urge to manipulate the system. This COVID spike here was very hard in a lot of ways for all of us. And by the way, in this case, I used a $10,000 account and it did 3,411 trades. So that is what I consider to be a good result. And that’s how I like my systems to behave. So if 6.8% is not enough for you and you want to double or triple your money every month, I would suggest to stop trading, because once you see a big drawdown, most likely you will want to close everything and get rid of the account. And that’s how most people lose all their trading capital within the first six months. Okay, I hope that was helpful for you and you understand how I do it. You can do it too if you want. You can also check out the stats. Just look for the FX Blue link that I will publish with the video.

For now, I say thank you for watching and I will see you in the next video.