This Scalping Strategy Is Boring, But It Made Me Profitable

This boring strategy made me a profitable trader. And it works so well that it almost feels like cheating. And if someone would have told me this nine years ago whenever I first started trading, I would have been able to start getting results like this, this and this much sooner. So in this video, I'll be breaking down the whole strategy and doing a one month back test to prove that it works. Now you may be wondering, why have a boring trading strategy? Because boring plus repetitive means profitable. When it comes to trading, you're trading one setup with three steps. No hopping from different strategy to strategy, no over complicating. I mean you're literally just doing the same thing every single day. So it gets pretty boring. And today I'm going to show you the full strategy step by step. And at the end of the video, I'm going to show you how to avoid the losing trades and keep a high win rate. The goal of this strategy is to make consistent profits in less than 90 minutes per day. Because less is more when it comes to trading. And the faster that we can get in and and out of the market, the more we can avoid overtrading and blowing accounts. When trading this boring strategy, you start your day the same way every single day by getting to your desk right at 9:45am Eastern Standard Time. And this strategy works for any market, whether it's futures, stocks, crypto or forex. It's all the same time. Now first I'm going to teach you the three steps on a picture perfect example. And then I'll show you a messier, more choppy example. That way you can see how this works in different market conditions. And then at the end of the video, I'll show you how to avoid the common mistakes that make most traders fail. And we'll do the backtest. Now let's hop into step one of the strategy. First we're going to mark our range. Now to do this, we're going to start out on our 15 minute chart. You can find this by going on trading view and make sure that you have the 15 minute button clicked. This means that each candle you see is representing 15 minutes of trading time. Next, you're going to wait until the 9:30 to 9:45 Eastern Standard Time candle closes. So as you can see here, it's the 9:30 candle. That means it started at 9:30 and it's a 15 minute candle. So it ends at 9:45. And then we mark the high and the low of the first 15 minute candle. To do this, you can go over here to the Left and select the trend line tool. And after that you can use that to then mark out the high and the low of this first 15 minute candle. You now have your trading range for the day. Yes, it is that simple. But having a range alone means nothing if you don't know how to trade it. And this brings us right into step number two which is confirming the market's direction. Are we going to be bullish meaning price is going to go up or are we looking for a bearish trade meaning price is going to go down? For step two we're going to change to our five minute chart. To do this we're just going to go up here and click the 5 minute button here on Trading View. This brings us to a view where each candle represents five minutes worth of trading time. And next we're going to wait for a break of either the first candles high or the first candle's low. And as you can see very quickly we do break this range. However, wicks alone don't count. We need a very specific pattern to confirm the break. Now the reason this is important is this first 15 minute range has the highest volume for of any 15 minutes during the entire trading day. And we want a big and forceful move to confirm who's really in control of the market. That way we have confidence in our market direction. And this is very important. Otherwise you'll end up just trading this range, getting chopped up, losing trades and becoming one of the many traders who is unprofitable. So we want to avoid over trading inside of a range and wait until we have a high probability setup. So at this time you wouldn't have any trades and you want to just wait until we get another break of either the high or the low. Now you may be thinking that this candle is a big move and it confirms who's in control. But you'd be wrong because we haven't got our specific pattern. And our pattern is not just a candle closing outside of the range. After this next candle closes, we have our pattern. What we're looking for here is a three candle pattern called a fair value gap. Now this blue shaded zone is the fair value gap and what it represents is the gap between this first candles wick and the third candles wick. We have a very expansive middle candle that leaves a gap between these two candles wicks. And this is what we call a fair value gap. When we have a fair value gap through the level like this, where we know that there was the highest amount of volume, meaning the most sellers in the day are right here, and the most buyers in the day are right here. Then we know if we have a very big energetic push through these levels that buyers are clearly in control and overpowering all of the sellers and waiting for the fair value gap to confirm. This is important, as you'll see later on in the backtest of this strategy, where you can see how big of a difference it makes in the data over the long term. You now know how to mark your range and find your direction. But without being able to consistently enter trades and place your stop loss and target, all of this information is useless. Which brings us right into step number three, and this is where we're going to break down how to set up your trade and find the best entries. Now, before we go into setting up our trade, I wanted to let you know that I'm hosting a free live class this month where I'll walk you through this strategy and more in real time and answer all of your questions in a live setting. It's totally free, so click the link in the description to claim your ticket before they're gone as there are limited spots available. Now let's hop into setting up our trade. So first we're going to want to set a limit order on the fair value gap. Now, a limit order means we're going to pick a price where when the market hits it, it just automatically enters us into the trade. That way the market does the heavy lifting for us. The way that you set a limit order is by going over here on the left on Trading view and we're going to click long position. Now, a long position means that we're getting into a buy and since we broke through the high, we know that buyers are in control, so we want to be on the same side of the market as them. So after you've clicked that position tool, you're just going to place it and you're going to align the line with that fair value gap. At this time you can right click this tool and then click Create Limit order. And once you've set this order, the market is going to enter you into the trade. As soon as price hits this level, we're going to take our stop loss and place it just under the first candle in the fair value gaps low and we're going going for a fixed 2 to 1 return target. This means that you'll drag out the position size tool until it says two right here at the risk to reward ratio. And what this means is that our target is twice the distance from our entry as our stop loss. This means that we'll make twice as much money on a winning trade as we would lose on a losing trade. Now, as you can see on the very next candle we were entered into the trade, but sometimes it will take a little longer. You just need to make sure that your entry happens before 12:00pm Eastern Standard Time, as this is when all of the best trades occur. As you can see, we have $1685 at risk to make $3370. Now at this time all you need to do is sit back and let the market do the work for you. You don't need to micromanage your trade or change anything. You just want to let the trade play out on its own. And as you can see, the market takes a bit, but then it rushes to our target and it's really as simple as that. Now of course, this is a picture perfect example and I'm going to go over another one. That way you guys can see how to execute this in a choppy market and show you guys a trick to avoid losing trades. But like I said, guys, really boring, really stupid, simple and repetitive. You just get to your desk and do the same thing every single day. Let's hop right into example number two, which is our choppier and messier trade. And this is really important because a lot oftimes on YouTube you'll get these cherry picked examples because yes, it is easier to teach on those, but you need to understand how to execute this in real life situations. So we're going to go over and we're going to take our Trendline tool and we mark out that first candle's high and then we mark out the first candle's low and head over to our 5 minute chart. Now at this time we want to wait for our fair value gap to form through the range and it's very important that you stay patient through these ranges. And even when you see these little candle closes, you don't get excited and just rush into the market. This is how accounts are blown and how traders stay unprofitable. And the only way that this truly becomes boring is if you're patient enough to let it be. And sometimes it's going to hurt watching these candles print. You're going to feel like you're missing out. But a lot of times you're just going to be missing out on the losing trades that keep most traders unprofitable. And even now we've got another big candle out of the range. You'll probably be sitting there saying, oh man, the market's going to run without me, I have to get in. But you have to stay patient because most of the time, whenever you're getting impatient, the best opportunities are right around the corner. As you can see here, we created a fair value gap outside of the range. And a lot of people get hung up on this because they think it has to be the first break. It does not. It can be any fair value gap where one of the three candles is closing outside of the range. So notice right here, we closed right outside of the range with this candle and this makes this a valid fair value gap. Now if all three candles were just way up here, that wouldn't be valid. You want to have at least one of the three candles closing inside the range and one of the three candles closing outside of the range. That way the three candle pattern is touching this first candles high or low. So at this time we're going to go over here. Since this was another buy, we're going to set our limits and make sure that we go ahead and create the limit order. We're going to get into the market and once the market tags us in, I'll set the stop loss down here right at that candle's low. You want to make sure to drag that position size tool so it's correct because this is how we're going to calculate our target. So we're going to go to a 2 to 1 risk to reward. As we can see right there, you're going to drag your target up and then as you can see, we've got about $780 at risk to make 1560. And at this time we just sit back and let the market do the heavy lifting for us. You'll see. Sometimes the market may get close to your stop loss and sometimes it's going to stop you out. I'm not going to sit here and tell you that this is 100% win rate. I mean you'll see the win rate here in a second. The backtest still pretty high, but nothing's 100%. But you have to just sit back and trust that the market's going to do its thing. Don't get excited and cut trades too early as that will hurt you in the long run and just let the market do the heavy lifting for you. As you can see, the trade hit the target and this trade was pretty quick. It only took about 45 minutes which ended up making around. I think it was 1500 bucks. Not bad for a 45 minute workday if you ask me. And yes, guys, trading really can be that stupid, simple and Boring. And if you're like me, whenever I first discovered this strategy, you're probably sitting there thinking, how could this possibly work? Let's put it to the test and look at the data gathered over historical trading of this strategy. But first, you need to pause your screen and read this disclaimer in full before we get into the backtest. Over the last 30 days, this strategy yielded 16 trades. 81% of those were winners. Now, this is huge because this was only by waiting for that fair value gap. And after we had those 16 trades where 81% were winners, we made $15,000 on this backtest. We with a max drawdown of only $1,600. And if you've made it this far in the video, then congratulations, because you now have a stupid, simple, boring strategy that is proven to work by data. But chances are you've had these kinds of opportunities and strategies before, but you're still not profitable. And I totally get this because I was in the exact same boat. And it took me years to go from this, where you see me in 2021 blowing my accounts, to being able to get the results that you saw earlier in the video. And this was because I wasted a lot of time on complicated strategies, getting overloaded by all the information that's out there on the Internet. And this resulted in, as you saw me, blowing a ton of accounts. Which is why now I mentor traders to help them avoid all of the losses and wasted time that I had to go through. And I want to be clear, this is not some little trading discord like you see on social media. This is a full mentorship where you're live trading with your mentors five days per week. Every single trade that you take is reviewed in our trader dashboard software. You get access to Enigma, which helps you trade prop firms. You get to learn everything that I've learned in the last nine years that I've spent in the markets and direct access to me for anything you need. And I'm so confident in this process that if you don't get funded in 12 weeks, I will personally trade with you until you do. Due to this being a direct mentorship where I spend a lot of time with you, I obviously cannot work with everyone. So we only take on a limited number of students for each enrollment. And if the link in the description next to the word mentorship still works, then slots are available. But if not, this enrollment is closed. Now, regardless if we work directly together or not, I'm still rooting for you to win. And to be clear, you don't need the mentorship, it's just a fast track to help you avoid my mistakes. Truly, you can do this all on your own if you want to. Just accept that it's going to be very difficult and it will likely take you years like it did for me. If you're new to the channel, make sure to subscribe and I'll leave a playlist on your screen that teaches you everything that you need to win at trading. Make sure to go down in the description and claim your ticket for the free live class that I'm hosting and I'll see you guys in the next video.