My Trading Strategy Is “Stupid”, But It Makes Me $46,822/Month

Josiah Stewart breaks down a day-trading system using three timeframes and a seven-step checklist that he says made $46,822 in one month. The strategy waits for price to break and retest support or resistance, then enters on pattern breakouts with a 3.7:1 average risk-to-reward ratio and 42% win rate.
Chapters
There's one simple strategy that made me $46,822 last month trading just 1 to 2 hours a day, and I'm going to show you exactly how it works step by step. I'm also going to show you my real results from trading this strategy the past month so you can copy it today and start using it to get consistent fast. Let's get straight into it. Now, what makes this strategy so effective is that it has an average of 45 to a 60% win rate depending on the month., and the average risk to reward ratio is over a 3 to 1, which over a long period of time shows you just how extremely profitable this trade could be. Because with every trade that you win, you win 3 times as much as you lose. It is literally all based upon following the trend of where price already is going, using momentum and simple price action to execute and have simple stress-free trades. Let's dive into how to do this. So here is my simple 7-step break and retest strategy. If you follow every single one of these steps, this strategy will print you money month after month, year after year. It's a strategy that you can literally rely on. Now, as I mentioned, it's a break and retest strategy. Now, the timeframes that we use for this are only 3 timeframes. We're using the 1-hour timeframe, the 4-hour timeframe, and then for entries, we're looking at the 1-minute chart. Now, I'm going to run through all these steps and then we're going to go into examples so you guys see exactly what this looks like. I want to make sure that I don't just tell you what to do, but I'm going to show you real-life examples of these trades specifically trades that I've actually taken and made money on following these steps. So the first step is to identify the most recent support or resistance zones on the hourly or the 4-hour time frame. Now the second step, since we're waiting for a break and retest, we're going to wait for a full candle body to close above or below that zone on the same time frame. So what that means, like I said, I'm going to show you examples of this, but in simple what that means, if we drew a zone on the 1-hour time frame we're waiting for the 1-hour candlestick, the body of that candlestick to close above if it's a resistance zone or below that zone if it's a support zone. Next, once we have that closure outside of our support or our resistance zone, we're going to drop down to the 1-minute timeframe after that breakout candlestick closes. So once we're on that 1-minute timeframe, we're going to wait for price to pull back into that previous resistance or that previous support zone. And then we're going to wait for it to form one of the following. This is what we're going to look for for our entries. We're going to wait for either a consolidation pattern, which I told you I'm going to show you guys examples of this, either a consolidation pattern, a trend line with multiple taps, or a clear higher low or lower high being created. Now, the reason we're looking for these is that this will show us exactly what price is doing in that area. We want to see price slow down in our zones, and we'll go over a bunch of examples of this. We want to see price slow down in those zones or those areas of interest for us. Then when it slows down, we actually want to see the market shift into a different direction by entering on a break of the consolidation in our direction, or break of that trend line, or break of that, that recent high or that recent low, depending if we're looking for buys or sells. Now always, once we're into the trade, our stop loss is always going to be the below the most recent swing low from our entry. And if we're taking buys, or above the most recent swing high if we're taking sells. Like I said, I'm going to show you guys examples of all this. Now, step 7, for our target, it's not always going to be a 1:1, or it's going to be a 2:2 or 3:3. We're going to be targeting the next major recent high or recent low on our hourly time frame or on our 4-hour chart, depending on how far away that is. On average with this strategy, I'm achieving a 3:1 risk to— more than a 3:1 risk to reward ratio, but there will be days where you have a 0.5. Then there'll also be days where you have— you can have a 5 to 1 risk to reward ratio, which simply means if we're risking $1, when we win, we're going to make $5. Um, so that is the 7 steps. Now let me break down how this strategy actually works. So we all know that price doesn't just go straight up. We all know price doesn't just go straight down. We go up, down a little bit, up, down a little bit, up, down a little bit. But in this instance, we can obviously see that the market is trending up. The market is overall going up, and we're trading momentum. We always want to trade in the direction that the market is going. This is very important. We never want to go against the trend. The trend is your friend. Remember that no matter what strategy you're trading, the trend is always your friend. So what we are doing is as we're going up, right? So let's imagine that this is price going up. Sometimes price will make a roof as far as it can't break above a certain level. This is good. This is what we want to see. This is a resistance zone. Same thing on the bottom. So this is our top. Any top area of interest is a resistance zone. And any bottom area of interest is a support zone. This is very, very important because price most of the time will bounce in between these two, right? We're not looking to take sales off of here and we're not looking to take buys off of here. We're waiting for a break and retest of these areas because if you did not know, like I said, this is a resistance zone at the top. When price breaks above a resistance zone, it'll come back down to retest that previous resistance zone and it'll actually treat that previous resistance zone as a support zone and it'll buy off of it. So that's where we get the name break and retest, because we want price to break above our recent resistance zone in this instance and then come back down to retest it, test that same area, and buy off of it. Now same thing vice versa with sales. If price broke to the downside below our support zone, we'd wait for price to break below it, then come back up to retest this previous support zone, and it'll actually treat this previous support zone as a resistance zone and sell off of it. The reason why the strategy works so well is because we obviously know if price is breaking outside of a resistance zone to the upside, that means there's a lot of momentum for buys. The market wants to go up. There's a lot of buyers in the market. When there's a lot of buyers in the market, we want to capitalize on that and ride the wave with these buyers. So once we see that it's broken out in either direction, no matter if it's buys or sells, we want an opportunity to ride that wave. And the best opportunity that presents itself is with this strategy of waiting for that breakout of that previous resistance or support zone, then waiting for price to come and retest that previous resistance zone or support zone and flip it, basically meaning that it retested and now starts going in the opposite direction of it. This is where we capitalize. This is where we'd enter the trade and we'd be able to make money on it. That's what we're looking for. We're looking for these breaks and these retests. Let's show you guys exactly what this looks like on the actual charts though. All right, so here we are with a real-life example of this exact strategy following this exact checklist. This setup right here made me personally $19,440, but I also sent this out into my Inner Circle for all of my Inner Circle traders to take along with me, and they were all able to bank. If you didn't know what my Inner Circle is, it's where I teach you how to trade exactly how I trade. I don't just teach you and give you all the resources to be able to trade how I trade, but you can also trade alongside with me. You get access to every single trade that I take, the exact entry, the exact exit, so you can copy my trades. In my inner circle, we also have 4 other extremely profitable traders that you can learn from and copy their trades as well. We have a dedicated trading psychologist. We have everything you would need to help fast-track your journey to becoming a profitable trader. If you're someone who's been struggling with trading or someone who is not profitable yet, That is where I help people get from that stage, whether you're unprofitable or you're just starting off in your trading journey, and I take them to becoming an extremely profitable trader, being able to bring in consistent 5-figure months from day trading. If that sounds interesting to you, I'll leave a link for it inside the description down below. Please keep in mind that spots are extremely limited, and I don't just say that. You can look in the comments of any of my YouTube videos and you'll see people saying that there's no spots. So if there's no spots, just periodically check back in. But the Inner Circle is literally the one tool that I wish I had when I first started off trading. So if you're serious about making 5 to 6 figures every single month with day trading, hit the link inside the description of this video to have the opportunity to join my inner circle. Now, as I mentioned, this trade was sent out into my inner circle, so they were all able to take it. But let's break down exactly what I saw here. So first of all, let's go over our checklist really quickly. Step 1 is to identify the most recent support or resistance zone on the 1-hour or the 4-hour that has not been touched. So This area right here is the most recent support or resistance zone that I was looking at. Reason being is we had this area right here, but this area could have been a recent resistance zone. As we see, price bought up into this level, then sold down. So this is a resistance zone, but it's not the most recent one. This is the most recent one where we had price buy up here and then sell down. Then we had price break and close above here. We had that close above here on this candlestick right here. Remember, we need price to close above our most recent support or resistance zone. We got that on this candlestick. And as you notice, we're on the 1-hour time frame right now. None of these candlesticks ever came back to test this zone. We never had a retest of this recent, in this instance, resistance zone. But on the start of the day, keep in mind this is all in the middle of the night, so this is at 3 AM. 4 AM, 5 AM, 6 AM, 7 AM. On this candlestick right here, price actually came and tapped into the zone. So what went through my mind is we saw this trade here, we had our, um, resistance zone right here. I went down to my 1-minute time frame when price started selling off in that direction. So let's go to our 1-minute time frame. As you see, price tapped into our zone right here. This is the first time that price tapped into it right here. Once price tapped into it, I was looking for price to either create consolidation— if you don't know what consolidation is, it simply means price just going up, down, up, down, up, down, basically stuck in a range. I either wanted consolidation or I wanted price to be trending to the downside, right, for something like this, or I wanted price to be making higher highs and higher lows— or sorry, lower lows and lower highs like this, right? Those are the 3 different things on our checklist that we look for for entries. Then we want breaks of those. Reason being is that all those patterns that I just showed you are showing us that price is going to the downside. If we zoom out, we can see that price is gradually going to the downside, but we want buys. So the reason we wait for that consolidation, those trend lines, or, um, higher or lower lows and lower highs, is because we want to see that, and then we want to see that break, as in price is changing the direction that it's going in. So in this instance, as you see, price is trending to the downside here. We created a high point right here, we sold down. We created another high point right up here, we sold down. So this area right here became the most recent high point, the most recent higher low at this point. And I'm waiting for price to break above them, this most recent higher point, because that's telling me that if it breaks above this most recent high point it's actually going to make a higher high, which is what we want to see, because higher— a higher high would tell us that we're creating a high above the most recent high, which tells us that price is going to go up. So in this instance, that's what we waited for. As soon as price broke above our recent high point right here, we entered into the trade. So our entry was actually right here on this candlestick. We put our stop loss below the most recent swing low. In this instance, the most recent swing low was right here. But I gave my trade just a little bit more breathing room. Either way, I would have won the trade, but I just gave my trade a little bit more breathing room, and I put it below this ultimate swing low based off of it rejecting off of our zone here. We got entered into the trade. We targeted a recent high point on the hourly timeframe. So if we go back to our hourly timeframe, this is the most recent swing high. Well, not the most recent swing high, but the recent swing high that gives us a good trade, a good enough breathing room. So we entered into the trade. Our take profit is up here. This is where we took profit, and as you see, price just trended to the upside and hit our full take profit here for a 2.87:1 risk-to-reward ratio. Now that is just one example. This happens many different times, so let's go into a couple more examples to make sure that you guys truly understand the strategy, to know what to look for, to make sure that you guys are able to repeat this and profit with this simple strategy. So here we are on another example of a trade that I took with my Inner Circle, and I sent it out to my inner circle. Same exact setup. We were on the hourly time frame. We had price create our resistance zones. We had price buy up here, then it sold down. We broke above it and we got our close above it on this candlestick, and we got to close above on this candlestick as well. We got our close above it, right? Then we went down to the 1-minute time frame, waited for our pattern. So this is when price closed above it right over— price closed above it right over here. All right, on this red candlestick, if you look in the bottom there, you see it says 8 o'clock. So this is when that candlestick closed. And as you see, this candlestick right here closed above our zone, which is what we wanted. And then we're waiting for our entry criteria. Remember, we're waiting for consolidation, we're waiting for a trend to form, or we're waiting for higher highs or higher lows or lower lows, lower highs to be formed. In this instance, as you see, we had a trend line, which simply means that we were trending to the downside. We had 1 rejection, 2 rejections, 3 rejections, 4 rejections right here. Once we had that, I'm then just waiting for price to break above this trend line and above a recent high outside of this trend line, and I'm entering into the trade. As you see in this instance, price broke above it right here on this candlestick at 8:31 Central Standard Time. I put my stop loss right below the most recent low, which is right here., and I targeted a most recent high on the hourly time frame, which is right up here. Targeted that trade that made— and if we, if we look here, actually we can see this trade hit very, very quickly. This trade won in 26 minutes and made us a 3.88R return, which basically means if we risk $1, we made $3.88 on this. If you risked $1,000, we made $3,880. $1,080 on this specific trade right here. Following the same exact strategy, we're on the hourly time frame. We waited for a close above it. Once we had to close above it, we went down to the 1-minute time frame to look for our entry criteria to be formed— consolidation, trend line, higher highs, higher lows. We waited for those— that consolidation or that trend line or the higher highs and higher lows to be broken. We entered on the break of that. Now I suggest using stop orders so that the trade automatically enters you into it. And what I mean by that is, let's say with TradingView or Tradivate, no matter what broker you use, if you use Forex, a Forex broker, you can do the same thing as well. It basically means that you can set an order where price will automatically get you in when price hits a certain point. So I use stop orders when I'm trading futures. So I use a stop order. Let's say for this instance, I put my stop order right at 42,783., and it will automatically enter me into the trade. Um, that way I don't have to sit here and even watch my charts. I could just set up my charts, um, make my plan, and it'll enter me into the trade at the perfect time. So that's what I do. We enter into the trade, and as you see, the trade won. Let's go over one more example just to make sure that you guys completely understand it and understand how to apply this to your own trading. All right, so here we are on another example, actually looking at the ES chart. Now keep in mind with this strategy This strategy works no matter what pair you're trading. You could be trading stocks, crypto, futures, forex— it does not matter. As long as you follow this checklist, this thing can print you money. So same exact setup here on the hourly time frame. This is our most recent resistance zone. We see price came into that zone, sold off, came to that zone again, sold off. We finally had price break above it and we got a closure outside of it on this candlestick and on this candlestick. Now next, what we wanted to do is wait for our entry criteria. So we're on the hourly time frame, we got our close above here on the hourly time frame. We'll go down to the 1-minute time frame and we're going to look for our lower lows and our lower highs to be created. So you see price brought up here, sold back down into our areas, and as you see, we created a high right here. This is the high point because we had price tap into our zone bounce off of it, and then we see price sold down in this, um, these two candlesticks right here, these two red candlesticks right here, creating a recent high point. So once we created this recent high point, we were then looking for price to break above that recent high point. We can rewind this so you guys can see exactly what I'm seeing as soon as I saw it. So we're waiting for price to break above this recent high point. We'd put our entry— remember, I use stop orders that. So it automatically gets me in our entry right above that area. So let's say it's right here. We'd put our stop loss below the most recent swing low. If we go to the next candlestick here, you see it would have tapped us into the trade here. We would have been in the trade here. Stop loss below the most recent low. Our take profit, like I said, is always at a most recent swing high. Right up here is the most recent swing high. I don't usually like putting it right at the tip of the most recent swing high. Like, I don't put it all the way at the top. I'll put it generally in that area, a little ways off from it depending. Like sometimes I'll put a little bit closer to it. Really just depends if I'm able to sit and watch the chart to be able to make a little bit more money because sometimes price will reject in this general area. So that's why I like giving myself some breathing room when it comes to my take profit. But either way, uh, had our take profit at our most recent high, we had our entry, and we can just fast forward this. And as you see, this trade just continued to go to the upside., and ultimately we ended up winning this trade. Let's skip forward on the hourly time frame. As you see, like I said, it just ended up hitting this trade, and we actually were able to make a 3.4:1 risk-to-reward ratio on this trade. Super simple, following the super simple checklist that we just went over. Time after time, this strategy will print you money. Now I know that it'll print you money because it literally prints me money month after month, year after year. As you can see on the screen, these are my real results from this past June. I was able to make over $46,800 just trading this one strategy. You can see I have a 42% win rate with this strategy and an average risk-to-reward ratio of 3.7, which is extremely profitable. And that's why I've been able to stay profitable month after month, year after year, just trading this one Super simple strategy. Now, this strategy works, but not just for me, but for hundreds of traders that I coach inside of my inner circle. Every trade I broke down today followed the same exact checklist. But here's the truth: even the best strategy won't work if you don't know how to scale it. So if you want to see how I turn this exact setup into over $10,000 a month trading just with using $500, watch this video right here. I'll break it down for you step by step, literally exactly how you can do it starting off with just $500. I'll see you there.










