This 5 Minute Strategy Is The Easiest Way To Become Profitable FAST

What if I told you that the more complicated your trading strategy is, the more money you will lose? But the more that you simplify, the faster you can become profitable. Most traders are stuck on a hamster wheel of complexity. They're convinced if they add just one more indicator or watch one more timeframe that they'll finally crack the code. However, most traders never do. It's ironic, but in trading, stupid simple always wins. And I'm about to show you a stupid simple strategy that I used to grow an account from $9,000 to over $140,000 in less than 90 days. And to prove it, as you can see here, this is my live account performance. And to make sure you fully understand this strategy, we're going to look at a full 30-day backtest, and I'll show you some recent trade examples. That way you can see it in action. We'll also go over the common mistakes most traders make. That way you can avoid them and become profitable much faster. And by the end of this video, you will have a complete framework for finding high probability trades in the first 90 minutes of the day. There are 3 parts to this framework. First, we identify our trading range. Second, we wait for the market to confirm its direction. And last but not least, we enter and manage the trade. And that's it. That's the entire strategy. Now let's break down each step, and when you see how simple this is, you're going to realize that trading is not as complicated as you think. Step number 1 is to identify our trading range. At 9:35 AM Eastern Standard Time, the first 5-minute candle of the day closes. This is the only moment that matters because the first candle sets the tone for the entire session. You open your 5-minute chart on any market This strategy is universal. And then you just mark two levels, the high of that candle and the low of that candle. That's it. Two lines. This is your trading range. Your chart should be clean. No indicators, no clutter. Just these two lines. Next, for step number two, we wait for the market to confirm its direction. We don't predict. We don't guess. We just let the market show us its hand. We're looking for one specific pattern, a 5-minute candle that closes completely outside of our trading range. Not a wick. We need the entire candle body to close above the high or below the low. This is the market committing to a direction, but we don't want to chase it. Well, not yet, at least, because this is where most traders get wrecked. They see the breakout and they jump in only to get stopped out moments later. We, on the other hand, wait for a retest. A retest is simple. After a breakout, the market almost always pulls back to the level it just broke. And this is the key. But the real question is, How do you know if it's a valid retest or a fake out designed to trap you? We'll go over a simple trick to avoid these fake retests in the examples, which is a common mistake that traders make when using this strategy. Simply put though, the candle just has to trade back into the level, but then it has to close outside of the range. It cannot close back inside of the range, or it is an invalid retest. Now when this happens and you get this candle closure outside the range, now you're ready to execute. Which brings us to step number 3: entering and managing the trade. And this is the most important part of the strategy because knowing the direction of the market never made anybody rich. Only execution can do that. Now this is best explained on a live chart, so let's hop over to TradingView. We'll go over multiple real examples and go over how to avoid the common mistakes that plague most traders when when using this strategy. For the examples, we're going to trade this strategy together over an entire week. We're going to go over the wins, the losses, and the common mistakes that most traders make when using this strategy. So step number 1 is to identify our trading range. As you can see right here, the 9:30 AM candle on the 5-minute chart has closed. This is on a Monday and we're trading the ES, meaning the S&P 500 futures market. So if we go over here to the left, we can select this trendline tool and this is what we can use to mark out the high and mark out the low. Now we have our trading range and this brings us to step number 2, wait for the market to confirm its direction. And it also brings us to common mistake number 1. Now there are 3 fatal mistakes a lot of traders make with this strategy, and this one is just getting FOMO, right? Like when the market starts to fake out, a lot of people want to enter the market. You got to remember, at one time this candle, its body was up here, and people will think, oh well, the candle's way past the range, I'm just going to go ahead and get in now. And then what happens? Almost every time, like the market is just out to get you, when you do that, it will stop you out. But the good news is, if you can be patient, the signal for our confirmation is pretty clear. All we're waiting for is this closure outside of the range. But remember, we need a closure and a retest. So just this candle closing like this isn't enough. We need to see the market try to trade back into the range like it did here and then fail and close back outside of the range. This shows us that these sellers who took control of the market here are defending this level. And even though buyers tried to push up, they failed and the sellers won this tug of war. You want to think of candlesticks kind of like a tug of war, right? Like buyers tried really hard, but then sellers won and the candle closed outside of the range. And it may sound simple, but this is huge for keeping a high win rate with the strategy. As you'll see later on when we do the backtest. So this brings us to step number 3, which is entering and more importantly, managing the trade correctly. So as soon as you've got this candle closure outside of the range and then you get your retest, we're good to enter a trade. Since we broke the low, we're going to be looking to sell. So to plot out our sell position, you're going to go over here to the left, click this button, and you're going to click short position. This means that we want to make money off the market going down. So as soon as that candle closes, you're good to enter the trade. But we need to know where we want to get out if we're wrong. So the way we're going to do this is we're going to set our stop loss right here at the midpoint of this range. But we're not going to just guess where the midpoint is. We're going to go over here and we're going to select this Fib retracement tool. Now, all we're going to do is mark out the high and the low of our range. Now, what this does is it helps us plot the midpoint exactly. Now you want to have your settings set up just like this. So when you double-click that tool, it'll bring you to these settings. You want to have just 1, 0.5, and 0 selected. This just selects the exact midpoint of the range. So that is where our stop loss is going to be placed. And then our target is based on our stop loss because we want to look at trading in terms of risk to reward. How much do we make when we're right versus how much we lose when we're wrong? So we can go ahead and drag this out, which this is our target and it's showing where we're going to exit the market if we're right. And we want to put it at a 2R. This means that we're going to make twice as much on a winning trade as we lose when we're wrong. Now, to actually execute the trade that we plotted out here, you can go up to the left here and click sell. We're going to sell one contract. Then we want to place our stop loss here at the midpoint and we want to place our take profit down here at the low. Now, as you can see, we have $925 at risk. To make $1,850. Once you click confirm and your levels are set, you've done all the heavy lifting and now you want to let the market do the work for you. And as you can see, the market ends up running towards our target and we end up making that $1,850 in about 1 hour and 5 minutes. And this is great, but a lot of traders will maybe get some beginner's luck with a strategy. They get some wins and then they make the mistakes that end up causing them to blow up. So let's take a look at Tuesday and break down how you can avoid what holds a lot of traders back with this strategy. So as you can see, it's 9:30 a.m. the next day and we've got the trading range marked out. Now all we need to do is wait for a closure outside of the range. Now, as you can see right here, we got a closure and then the market failed to dip back into the range. And then what happens? The market rallies. So in this moment, what do you do? Well, if you're like most traders, you're going to end up getting into the market all the way up here. And that is never the right move because FOMO is 100% the killer of all traders. And oftentimes when you have FOMO, the market's actually testing your patience to see if there was a better entry. Because in my 10 years of trading, I can tell you with confidence that any time you feel a lot of FOMO,. That's almost a signal that the right moment is just about to come, but it's not here yet. So as you can see, the traders who chased here got in the market for much higher prices than the patient traders who waited for the retest. And as you can see, the trader who waited patiently is now heavily in profits. At the same time, the guy who had FOMO is barely break even. These small things can either make or break you as a trader. So in this trade, we were able to net $1,325. In about 25 minutes. However, if you would have entered on this candle and had FOMO, you would have gotten a fraction of the profits in almost double the amount of time. These kind of small things will either make or break you as a trader. So this brings us to day number 3 and the most important mistake that nearly all of you are making without even realizing it. Here it's 9:30 on Wednesday and we've marked out our high and low. Just another normal day. And then we want to wait to see if we get our breakout of the range. And you guys know by now not to make the obvious mistakes like chasing wicks or having FOMO. But even when the market gives a good setup and we have closed outside of the range and then the market comes down and it retests the level, another mistake is made very commonly. Now at this time we have everything we need to get into a trade, so we're going to enter the trade. We're going to go over here. We're going to mark out the midpoint of our range just like usual, just like it's any other day, just like those last two trades. But something about this trade is a little different because as this trade unfolds, we let the market do its thing, but we lose. So what did we do wrong? Well, the answer is something that a lot of newer traders have a really hard time dealing with. And the answer is that we didn't do anything wrong and that the mistake number 3, the most important mistake that most traders make, is they think just because they had one losing day, that their strategy isn't good and they need to go back and fix something. But it's silly because on this one trade we only lost $325, and on the last 2 days we made $1,800 and then $1,300— over $3,000, over 10 times what we had lost on this one day. Yet a lot of traders will still make the mistake of hopping from strategy to strategy or trying to edit their strategy, and this is what keeps most traders unprofitable. And I know this because the first 5 years of my trading, when I was unprofitable,. I struggled with this a lot, so I've opened up a live trading room where you can sit down and watch your mentor actually execute. That way you can stay consistent and have somebody there to guide you to stick to the plan. I'll leave a link at the top of the description for how you can join these live trading rooms. Now, real quick, I need you to take a look at this disclaimer before we look at the backtest. So we traded that strategy together for 3 days, but I wanted to show you guys the backtest over 30. Over those 30 days, we had a total of 20 trading days, 70% win rate, and a total profit of $10,000. Now the max equity drawdown on this was only $1,000, which makes this strategy perfect for prop firms. If you guys want an 80% off discount, use code Casper at Apex. I'll leave a link down in the description. And as you can see, we had over double the win rate when using a retest instead of just trading without one. Really quick guys, to recap, we Remember, the steps are to mark your range, then confirm your direction with a candle closure, and then execute on the retest. Most importantly though, don't FOMO, don't chase, and don't switch up after a loss, or even a few, because trading will result in some losses. You're trying to be successful over time, not every time. So don't be so hard on yourself if you take some losses. If this video was valuable to you, then make sure to subscribe, 'cause I post a ton of free trading education here on YouTube. I have free courses, hours long of me trading, and everything in between. So leave a comment, like the video if this helped, and I look forward to seeing you guys in the next one.