Super Easy! My 456 Trading Strategy Plus Create Your Own | Gail Strauss | Skillshare

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Super Easy! My 456 Trading Strategy Plus Create Your Own

teacher avatar Gail Strauss, Real life experience trading the market.

Watch this class and thousands more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

16 Lessons (1h 32m)
    • 1. Super Easy My 456 Plus Create Your Own Promo

      3:54
    • 2. Welcome and Introduction

      4:09
    • 3. Lets Begin

      12:30
    • 4. Basics

      5:21
    • 5. Business

      3:31
    • 6. Win Loss Ratios and Risk Reward

      4:21
    • 7. Risk

      5:36
    • 8. Postion Size

      4:19
    • 9. My 456 Strategy

      4:47
    • 10. Charts Examples My 456

      4:30
    • 11. My 456 Strategy Indicators

      4:04
    • 12. Risk Reward Tool

      8:39
    • 13. Create Your Own Part 1

      9:23
    • 14. Create Your Own Part 2

      5:17
    • 15. Create Your Own Part 3

      9:48
    • 16. Conclusion

      1:46
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About This Class

Here is a trading strategy that you can use straight away. Plus learn how to create your own trading strategy in an easy step by step process. Learn and understand risk management, position sizing and risk reward ratio. Learn to be a disciplined and patient trader. Learn how to set a plan and follow it. Be able to keep your day job and do this as well.

Meet Your Teacher

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Gail Strauss

Real life experience trading the market.

Teacher

 

Hi there,

My name is Gail, from my courses you will notice how I combine my lifetime of knowledge and experience with the stock market into real life in how I explain and help you learn.

We all have started right where you are now.

I have traded forex, cryptocurrencies, indices, commodities, equities and options.

I know what it is like, I have been in the real experience seat of trading.

I work tirelessly to give you skills and tools of value to take away from each of my courses.

I hope you decide to join me and look forward to seeing you in class.

Best regards,

Gail

See full profile

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Transcripts

1. Super Easy My 456 Plus Create Your Own Promo: Oh, welcome. My name's Kyle. This is a short overview of what you'll find in this course. It's two parts in a way in that I'm sharing with you my what I call my four for six strategy, as well as you'll learn how to create your own strategy when you're starting out, it's good to have something to start with on. Then you can tweak it, modify it to be comfortable for your after that suit you. So that's where you've got something to start with, and you can learn how to modify it to suit you. It's super easy. It's four hours, five indicators and six chance. That's what I call it the 456 So I'll share my 456 strategy with you as well is that you'll learn to create your own strategy and you learn about rescript reward. I work on wonder to in my strategy, but you learn how you can have that to suit you where in the most liquid market in the world, which is the forex market now, I understand, especially when you're starting out. You really do have limited capital, but it's doesn't really have to be an obstacle to start trying t could. You have to stop, You have to learn and anyone can become tried. In principle, it's just you gotta learn the lessons that go with it that a part of the whole business of trading in the beginning. Like I said, the best place is to start small and demonstration platform is another place, which is a perfect place to start. It's a perfect place. You contest your strategy out. You familiarize yourself with the driving platform, so it's a great place to stop. Once you do start trading with throw money, it is different now. It just is, so you only start small and you only ever ever tried with money you can afford to lose. So in my four for six all share with you 456 strategy with sittings of the risk reward of 1 to 2. And we'll Shea had loaded on the charts, and you can learn how. Then you couldn't quantify it. The strategy. Create your own strategy what it is, and it is not. It is not a way of turning your $500 in $2 million. That's why of becoming I disciplined. Try to. It's a way where you will create your strategy or plan and you will stick to it and you will have patients and you'll learn all about risk management. Most important rule. So I hope you decide to join me in the course. There is no 100% winning formula or best strategy or perfect system. You always look the highest probabilities and, most important, rule his risk management. You do have a bit of a chance of civil level anyway. Like I said, I hope you'll join me in the course. I'll see you then. Thanks, boyfriend Kyle. 2. Welcome and Introduction: Hi. I'm really glad you decided to join me in the course. So, like I said, it's super easy. Smart. 4564 hours, five indicators and six chats. That's it. So I'll share with you my 456 strategy. And you're also learn how to create your own strategy in the most liquid market in the world, which is the for its market. But before we begin, there's the housekeeping. So this is purely educational purposes. There is now investment advice, he at all all the illustrations and everything for just to show you on the educational side how it all works. So my 456 Learning Hatch creator and strategy you'll learn risk reward to have 1 to 2. I work with 1 to 2 in my 456 strategy, But like I said, you will be able to, uh, modify what suits comfortable for you? A little bit of an introduction. I've been studying and trading stock markets now for about 20 years, so I do have quite a history and knowledge surrounding stock market. I can show you my 456 simple strategy and how you can use it on then use that its advice to Mike you're on. Just remember your trading strategy should feet in with your trading plan comfortably. What suits your personality and what your life schedule as you. For trading time. Now, you might be wondering, What's the difference between a trading plan and a trading strategy? Well, the trading plan is the whole business plan. Where is the trading strategies On the one part that fits into your trading plan? How will this full for six strategy benefit you? You'll learn patients. Now That's crucial. If you want to become a four X tried A. Also, it will allow you to keep your day job. Becoming consistently profitable takes time, but it also takes capital. And this relieves the stress that, if you were to solely depend on the income to come from trading. There is a lot of noise in the forex market, and this filters out quite a bit of noise. It's reliable and increases the reliability because I work on a four hour time frame. You've got risk management of controlled risk reward. So we've got the planning of the entry and the exit, which decreases Thean emotional tie. That can happen and have an effect on your trying and it cures over trading. I have a trading is a common pitiful amongst for X tried us and using the big A timeframe. Your focus more on the bigger picture, a combination of then a few Atreides, greater reliability and you have consistent profits. So without further let's now, let's begin and let's start the course. So you're in the next picture. 3. Lets Begin: right. Well, let's begin. Learn how to make your own strategy. So your strategy. Look at the screen. Understanding is a good start to a good strategy, especially if you understand yourself understanding the fundamentals, understanding what is happening in the market. You're native. Decide what instrument when I say instrument my main. Hey, we're working with the forex market, but it could be commodities oil, gold That could be your indexes, but the Dow Jones or the footsie that when I sigh instrument. But in this particular case course, we're just working with the forex market. The currencies when I say forex, some in currencies and what time frame that you will be using now, guy. This depends on your experience, your ability and your valuable time. Remember, this is your strategy, so there's really no wrong answers here. So as well as deciding your instrument in the timeframe, you'll need to choose the tools that you're going to use to build the strategy. Now you may like to use indicators like the moving average for the Mac D as well a support resistance lines to define the trend, you might like to combine them with also letters like the IRA, Sire Relative Strength Index or the stochastic to find entry points into the market. You may also like to learn about candlestick patterns, but combining these different tools. My hope. You analyze your charts better. But the last and most important pot over your driving strategy is your risk management on the steps that you will take to limit the potential loss. A great place to look at fundamentals is this website called daily if x dot com Now if you go to that website, Di has what they call the economic calendar, where you can have a look on that will let you know for the week ahead. What's happening? Is there any at particularly high impact news that could be coming up in the week ahead? That's where you could get a lot of information with your fundamentals. But the currencies of the weight of what's coming up have made a charge here for you to look at it to give you a bit of an idea about time front, depending on your stall, how long you tend to hold your position and the big picture charging an entry shot. And, as you can see there from the it's table. Long term, you're holding it for one week and more. On the bigger chart, you'd look a weekly chat, but then you zero in tow a dialect child to look for your entry. If you're a swing trader, if that was just style, you're holding it from a few hours to a few dies, you'd look a daily child was your big picture. Then you would, um, focus down on a four hourly charge for your entry. You might be a short turn. Tried er for you only. You're going to hold it for less than a day where you big picture chopped. There would be a four hour charge, but you look then at a fern entry on analogy shot and then the other try to Stall said. In the type of years scalper and the scalpel holds a coalition of a few hours. Usually look at the bigger picture child for about an hour, but you could entry on a 15 minute chat, so there's different urgency this different types of holding periods. What chart you look at, how long you prepared to depends on your time that you have available to put into the trading and this question. Do you have to ask yourself which are what and why? And I've listed nine points here, so it's have a look at them. The number one first things first. We gotta get some general ideas about your trading and your training goals, because this is all about you. So what? What is your trading goal? What is your goal for trading? How much a month do you want to make? What? How much return on investment looking at over the years. So when you worked at you go, Your next question is, why? Why do you want to learn to try out a trade? Why do you want to make there's extra dollars per month? Why do you want to quit your job and start trading for a living? What would be immeasurably different in your life if tomorrow morning you woke up and you had exactly what you wanted? So why is a very important question and you have to become crystal clear before you start out on your trading journey or your quit? Because here's the thing. Sometimes we take losses in our trading, and it is the why why am I doing this that get you through those tricky times in trying has a lot of things out of your control, but the starting on if the what and the why that scene your control. Basically, it's all about surviving, especially now that you're starting and you've got that learning could civil level. So it's important to have the right mindset on its important manage risk. But you still need a simple and robust trading strategy, allowing you consistently to inter high probability trading opportunities. Effective technical analysis can place the odds in your favor as you look toe only inter high probability trades Using technical analysis as your prime remains of analysis, it's easier to to define the rules and be more precise with those rules, saying, When you creating your strategy in NATO, address your entry, your risk management and how you guide exit the trades at both a loss and a profit. The reality is that you need to survive the learning curve and to get an understanding of what works for you and how to approach the market There. Along the way, you're gonna make mistakes, which is inevitable, but you'll learn from those mistakes, and you'll move on. Every tried was different. Keep it simple, simplest possible. Pick your market and they were talking about forex. In this particular course, choose your trading timeframe based on your circumstances. How much time you have to apply yourself to the trading? Pick your tools. Fundamental with a mix of technical. Well, define your entry trigger. You'll plan your exit. You'll have your stop loss, which is your risk management position, sourcing and your hope, your profit target. And then, in the beginning you'll do a lot of back testing of your strategy. So here's a few points to consider market selection. Which pays? Can I tried this strategy? Market condition Does this strategy work in trending markets only, Or is it in range Bound markets or my Viana Bull Markle in Harley Volatile Markets, Your entry time fried which time prime to use 20. You tried contextual timeframes, which is which time prime tore use to get into the market. But do we use a higher time frame for an overall trend decision or a load Timeframe for entries chart set up What chat type to use? What indicators? A part of your default shots. Where are the settings of those indicators. Position sizing. Do I use percentage vice position sizing? Do I increment my position sizing erotically, Or once I increase my on account by X amount of dollars? Or do I use fix or lot fixed sizes with my contracts, risk and money management? How much do a risk for tried? How much do or risk on all my trades in total? Do I have rules for maximum drawdown, but each die awake or month entry rules? What conditions need to be fulfilled in order to enter the trade exit rules? Do I use a fixed take profit level or a fixed profit level based on an A t M? And what is the risk to reward right share that I mining to get what will cause you to exit the trade? Premature. And what do I use? Trailing stops, If so, trailing Stop. Is it a fixed people or tick value? Is it volatilities based or percentage based? Managing your tribes? Do I use sitting forget, or can I intervene in a tried and if so, win? And how do I move my stop loss to break even in certain cases do I hold the trade over the weekend. Karen Tse Correlation rules. Can I intern? Multiple currency correlated Hate currency pairs at once. Do hedge positions against inversely correlated Piss hell on monitor currency coat Correlation How to do with news and fundamental releases. Do a stop trading before after. So I only tried around news. Do I choose positions before certain use events? No. As you can see, there is quite a lot of points to consider when you are creating your trading plan trading strategy. But we're gonna keep it simple. So I will see you in the next lecture and we'll move on to the next step. Bob Arthenia. 4. Basics: So the next speed Let's get dance, um, by six. About learning to create your own strategy. The important first step. The solid money management system has to be put in place. The idea. Opposition. Make sure that you're trading in alignment with your plan. You're not risking too much and a taking on the same amount of risk on each tried. The simple fact is we don't know which tried to going to be profitable, which ones that now professional tried as I never risk more than 2 to 3% of their equity in a single tried. So in order to accomplish that, you have to calculate the risk of the tried on your account, and you stop yourself from making decisions that could set you back. So if you're starting out and you don't have a successful track record, stick to risking 1% or less of your account on hte tried on this limit that said applies to all your trades. So, for example, if you had $1000 in your trading account, you risk nine more than $10 or 1% of the account on a single tried. Now this is your tried risk and that is controlled by use of a stop loss boy. Actually not risking too much and sticking to the plan. You relax more and let's talk here about risk management, what it is and why it is important. High risk can mean that without proper capitalization, you could risk losing your trading equity and risk management. Is this string that toys your different trading activities together? The bottom line is, I don't think about what you come win. You always think about what you can lose. Managing risk is the most important part of investing, whether you trading forex stock. So any derivative market novice traders are always focused on the potential profit on the potential outcome, rather on what that potential loss is. You stop loss is a price that your guide Exeter tried for a loss. Every online trading platform will allow you to place a stop loss at a predetermined level price, and if that price the level is reached, then your tried will be automatically closed in a stop loss and you'll be taken out of the trade, and that stops limits any further drawdown. By having a plan, you remove emotion. You had people sigh, It's going to go there. Caps on Maya's will stay in the tried or, oh, just find more so I can average my losing position. Who? The price is getting pretty close to my stop. I'm I just move my stop away a little bit, so I think the price is going to get back up. I've just got my stop loss. I just got taken out of my stop loss and has gone back the other way. I'm going back in whole examples what many people have said many times over driving success is simply a numbers guy, and managing your risk and using a stop loss is critical to your success. Therefore, no trader should be afraid of having a stop loss hit. In fact, having losing tribe's is a critical part on the cost of doing business as a tried A. It's you could think of. It is the overhead of running a successful investment business. Never be afraid of having a stop loss. Spitting it Training success is not about how many times you get it right. Four room tried ing success is about successful risk management and how much you make when you were right. And how much you have Little. You lose when you are wrong. I'll see you in the next picture. 5. Business: guy. Welcome to the next lecture, and I seem to be going on at the moment with the fibula tive information. But my plan is I'm trying to set up a foundation of base that you understand to work from and in this little listen I want to talk about trying is a business, and you probably don't really think about this. Why, But four X tried is are in the risk management business. You think they're in the business of trading currencies direction, the business of risk management. It's not a money making business or a market prediction business. It's the risk manager of business. And we have to think of ourselves as a business that manages risk. The horror. A risk to reward ratio is the greater a success of forex Tried A Will have. There's a common sighing in the tried and community that it says good tried is manage risk . Bad tried is chase profits. Now why this smart sand like a clich? I successful tried. It's not that it's true. Risk management starts from the time and tried is being considered until it's closed. At risk is an essential element of trading and tried is should realize this fact. The golden rule in forex risk tried in his risk management and speculative forex trading. It is wise to limit your risk on H tried to 1% of your total accounts, saws and many, and you try to seek. It's preposterous. 1% of my can't sunny $10. How can I possibly make any money with this side? Well, such a low exposure to risk might like the excitement of potentially turning a small kitty into a great fortune. Sooner or later, you will realize the necessity of such a conservative approach. But capping the risk on H tried to 1% of your account. You increase the probability of your civil level during Tropeano on favourable market conditions. Even if you lose 10 trades in a row, he still have 90% of your capital. Your initial balance and small drawer dance like this can be easily might in two or three great tryouts, and you'll have a new account. Hawes could even be achieved once again, so I know I'm probably really emphasizing here, but it's so important. Risk is an essential element and has to be managed. I'll see you in the next lecture. Thanks 6. Win Loss Ratios and Risk Reward: to the next place. Let's talk about win loss. Risk reward ratio is the win loss ratios, but try to must have more reward than risk to have success in the long term. And a good tried out is always risking less than I can make on any tried. The goal is to minimize your risk as much as possible. Try to maximize your profits. There's the risk of ruin. What's the risk of ruin? That refers to the probability that you'll lose or you tried in capital? What death? The higher your risk to reward ratio is where you getting mawr reward than you are risking . The less presented your number of triads you need to win. I'll show night. Couple of titles have a tables. So the reasons for such a risk reward set up in numerous and his future prices can be difficult to forecast and impossible to predict. Member. Seven. You don't know when you get on a tried, which once again work which one son. But when a trader is on the right side of it, trade. This type of risk reward can maximize your gain and limit losses because there's times when you're going to you're on. As a matter of fact, let's sigh Iraq you not right. Even half of the time, you're only winning 40% of your tribes. But by using a reward, a risk ratio of 1 to 2, you can actually still make a profit. So if you not even write it right less than half of the time But you're still making a profit by having that greater reward to your risk. Saying the title that would try just did 10 tribes and we worked on 40% only got four trades, right? But I she could see if you just went 1 to 1. So you stop losses, said it $100. I worked on dollars here to make this simple for you to I understand the principle of it. So I got $100 you got to lose on the tried first column. You're going to make $100 if you win Second column 203 104 100 she consent. And now she couldn't say in the type of way, even that 1 to 2. And you didn't even get half your trades, roid, but just still came out ahead in your profits. Then, if you risk reward is more 123 A wonderful as you can see the exponential growth of your profits. See, he's another table to look it still with it. 10 tribes. But I showed you that on the 1st 2 columns where you only got three of your trades. Right, But on the other two columns you aren't you Sorry I said that back the front first to call in. Johnny got four. He tried to write on the last two calm. She only got three of them, right? So imagine in 10 trades you only got three trades, right? But the caveat. Here, you have to be getting that risk. Reward the 123 A wonderful That's the combination. But as you can see it 123 A wonderful. It's still came out ahead with a profit. Even though most you try, it's wrong. That's the whole point of your risk reward win loss ratio. I'll see you in the next lecture 7. Risk: next lesson. Risk risk management so important. I speak from experience. Think risk management. To be a successful forex trader, you'll need to have proper money management system. It starts with identifying what level of presented risk per trade you were going to risk as a god. A seif a good risk percentage rebate from 1 to 3% as I am instead of a little bit earlier through this course in this particular strategy and this particular course were working on 1% miss strategy. Anything higher than 3%? It's relatively risky. Why was this so well, if you understand the forex market condo's anything, so even if you are sure that this is the most perfect set up, it may not end up the why you expected to pay. Why? Because, like I said, anything can happen in forex market. So even if you're the best for X tried er in the world, you will not have 100% winning strategy for winning right as well. You will still lose as the market can do anything, which is why it is not wise to have a high risk on your trials, having a strategy and sticking firmly to it. Your risk percentage cannot be to oy as mentioned, a good guy. I just wonder, through sent. And once you have set and decided on your risk for tried, stick to it. For example, In a Siris of tribes, you can't have 1% on far be Atreides and then have 3% on another four of your trades. You've got to be consistent, said pick a percentage risk, which, when he won't gonna work with 1% on every tried not some and others. Because if you play where you're chopping and changing, what if you making money on the five trades with the 1% risk? But then you lose your money on the five tribes with the 3% risks, which usually happens, and then you'll lose money. So sticking firmly to the risk percentage per tried, you have said so if you set 2% risk for tried from now on on every tried your risk 2% of your whole account on each tread. Nothing more, nothing less This while bay consistent and you are on the right track to success compounding by capping your risk. But 1% on H tried you are essentially dividing your Canada 100 equal partitions and accepting a maximum loss of just one of compartment at a time. And this survival technique is critical in keeping your account alive long enough to enjoy the count blue waters of profitable trending conditions. Not only does the 1% risk model preserve your capital, but during this series of losses, the risk on each tried becomes progressively smaller and smaller, forming a reverse of the compounding effect. Consistent, profitable tried to come progressively larger, and it can pending effect on that side is also true. So during the periods of losses, trading losses, your losses will be progressively smaller. So the simple act of risking a fixed percentage per tried ensures that your account harnesses the power of compounding on the way up was taking advantage of the reverse compounding effect during the periods of draw. Damn that small. Would this slide is about the compounding up, compounding down. Many new traders open her account and they deposited $100,000 or $2000 and then I proceeded to risk $100 or $200 per tried, and they think I will $100 or $200 isn't much to risk, right? Wrong. That's 10% of your camp. Risking on a tried picking. Risking 10% of your count on your tribe has sent. Well, you'll have that risk to ruin unsustainable. 10 wrong prides and you're done. You've got no capital lift to tried, so I cannot emphasize enough risk management is three key. Now your risk. I'll see you in the next lecture. Bopha now. 8. Postion Size: welcome to the next piece position sizing, and I was going to be going over a lot of facts here. But stick with me. I'm setting you up of a foundation of information. The strategy is coming. Most traders usually ignore position sizing on position sizing. It's a concept which asks a fundamental question. How many contracts should I try it or risk on a tried? The resulting answer shows you what trade saw is you should use in order to meet your risk tolerance required requirement If you want to risk 1% on a tried what saw his position should I take? But the answer is you need to determine your stop loss level first. So if your stop loss level with site 20 pips away from your entry and then at 1% risk of your assuming, you're starting with the $1000 in your camp, which is $10 so you devoid the amount of the risk by the stop loss amount. So in this case, your amount you prepared to risk is $10 which is 1% of your $1000. The stock losses 20 pips away from where you're going to enter so you $10 is divided by 20 um pips, and that equals 0.50 What sauce is what you'd be contract source on that one tried, so you don't actually pick your position. Saw his first. You stop loss orders are one of the essential risk management tools every investor needs to employ. A stop loss order should always be placed on every trade you established with stop loss will be for a particular trade. Measure the distance in peeps between it and your entry price. This is how many pips you have at risk based on this information, and they can't risk the ideal position. Size can be calculated. The stop loss is placed. Based on this strategy. Find the ideal spot for the stop loss. Calculate the position size. You don't pick your position size first and then place to stop loss to accommodate it. We determine your position size based on your account risk, and you tried risk. For example, June There's a $5000 account and your risk a limit of $50 on H trial. That's 1% off your can't on the trade, and you're going to buy the Euro, USD and it happens to be a at 1.3600 And so you're going to place a stop look and you want to place a stop loss at 1.3550 So the risk on this particular tried the difference between where you want to enter and where the stop loss of babies. 50 pips. So now you know that place where you want to put your stop loss is going to be 50 pips. So you know your wrist. It's 50 pips on. We know we're going. We're prepared to risk $50 or 1% over account. So determined the size of their position sizing, lot sizing. We divide the $50 by 50 pips and it turns out to be one What sores. So, uh, that's a bit of an explanation there on position sizing. I'll see you in the next lecture. Thanks 9. My 456 Strategy: right. Welcome to the next place. This is my 456 strategy that I'm going to share with you. So it's four hours manual before ER chats. Five indicators. I'll show you the settings and had load them onto your chart and six charts in this strategy. I'm only working with six major for experience, so I call it the 456 It's pretty Klein. Pretty hazy. It's anything kind of follow, and it's a It's a training strategy that you're welcome to use to get started, and you can modify it to suit yourself. So the strategy is you tried in the four out shot. You're only so you know, he had two slipped instrument. Your any trading, the six major forex charts and what are they? That's the Euro USD. The G B USD. The U S. Stake had the US djp Why the USDA CEO Jeff and the i U D U S t in other words, the Euro USD great British pounds USD. You were steak and I'd in Dullah. You were stay Japanese yen. You were stay Swiss Frank and the Australian dollar. Christie. There's five indicators and you'll be adding nice to your charts. They're all exponential moving averages. The three of them, a 13 21 and a 55. They'll be, um, activity with settings of 2154 eyed. And there's a stochastic oscillator with 78% chi at 6% day, with the 13 slowing mannish A had to set up a risk reward to on your chats. And it's part of the strategy because by setting up this risk reward to will use the Fibonacci retracement to we change it settings. And that's how we create this Chris reward tool to use. That's the title of settings, and I'll show you on a chart how we change it to put those settings on the Fibonacci retracement, too. But just be aware that now every time you get to use the FIBA naturally tryst meant will have these settings set in it as the risk reward, too. That's not a problem, because if you want to just go back to the basic Fibonacci retracement to you, just click on the default savings and we'll just go back to the default um, sitting. So that's not a problem. How What's my entry next? It I work on risk reward of 1 to 2 and get it consistently with this strategy. So for going long, it's when a new candle opens above the triple moving averages of Crossed as well as the Mac Day is above its signal line, and as well is that the stochastic oscillator skies above the day on the stop losses, said at the 55 moving I've reached level and the target profit is set at the 12 to this reward. Then for going short. It's similar when a new candle opens below the triple crossed moving averages as well as the Mac days below the signal line, as well as the stochastic percentage K, is below the percentage D. And again, the stock losses said that the 55 moving average level with the type profit or rece, rewards level at the 1 to 2. That is the strategy. That's the um have I get in and out of long and short and the prejudice that I work with. So that is the 456 strategy. I will show you hat show to you on a chat 10. Charts Examples My 456: Hi. I've taken a few screenshots to give you some examples of my 456 on the top six. Major, if x currencies. So we'll have a look at those. I just want to show you that is, and then I'll show you on some real chats. But there is a screenshot so to the screen. So the 1st 1 I've got there is the, um you stay in that this happens to be a long tried the I am amazed of cross Which of the 3 a.m. ice of 55 21 in the 13 theme activity is above, it seems signal on and the CAIS above the day on their saliva, once it tried, is in select. Um made its that it's good to g O that there is Uris reward calculate. I'll show you all this on some real chance have set it up Stop losses said. And the as you'll see as it moved up, it actually hit the 1 to 2, which is what the target is wanted to Deakin going further. This is on the four out on front. The next shot is the British pound US day. That's a short tried the guy and he looked the guy before out shot. They crossed the Mac. Daddy was below the signal line on the K was below the do in the stochastic. Once it's set the stop losses said at the 55 level the 1 to 2 is the target hit target did keep going on. Stop loss and target. The next one is USDA cad. This happened be a short tried cross to go down. You met? Did he agreed? You stochastic agreed in the rules of the strategy Stop loss for said at the 55 am I Playing on the restored calculator Target was one to which had hit When that was another tried that was successful. The USDA Swiss was a long tried Yeah, where are we went across across tear three. My eyes crossed agreeance with the Mac Daddy in the stochastic. The stop losses said said, And then you had the wanted to target was hit the Euro USDA. That was a short tried through you. My eyes closed. Mac Day. A great stochastic agreed the stop losses set of 55. There was their entry. It wanted to target was hit. I think That's the the last one. Us. Pastrana USD Along tried the crossed Mac degrade stochastic oscillator all grade in the strategy agreements. What I'm sign. Then you said you stop loss entry 1 to 2 with the target and that was Hit Guy in there all on four hour charts. So that's the Six Currencies merger currencies. That's my 456 strategy, which I'll show you. And the other thing now will do is in an exp It is. Let's have apply around of creating a U strategy for yourself, so I'll see when the next lecture thinks boy. 11. My 456 Strategy Indicators: So show me that my 456 strategy just a quick recap and then I'll show you how to put it into the chats. So in my 456 strategy before hours, the farm indicators and the six charts the six major for its currencies. And the five indicators are the three different moving averages, which exponential the Mac D and the the stochastic side to the chat. Right? So I opened up the six different tab. Stand the bottom of this six characters here, so we've got to put the indicators onto the chat. So let's stop with that three moving averages. So we'll go of he to a never gator tunnel with side grab the moving average drag and drop. Now we're about 13. The spring grain that'll do not make you did Dhaka grain might be doesn't matter Spring Group Anyway, we'll put that on the chats. That's their first moving average. We have to do that again. Drag and drop. This time it's 21 blue and then the third moving average again drag and drop on this times 55 exponential and can see those. It's not too bad. That's those three now the Mac Dees who go to go over too well, never. Guider of the sod, Mac D drag and drop. It's a 21 54 the night and put that on down the border on the 5th 1234 Now stochastic oscillator drag and drop. And it's 17 13 and six. Okay. Oh, we don't want it. A dash just laid it up there. Do that again. We wanted to have its own separate window. 17 13 and six still did it. Good. So I'm lucky. Yes. Okay. Now, the other thing you could do at this point is you could save it as a template. Right? Click templates save template, and we can go to give it a nym. It's call it, um 456 Strategy and side. Now, when we go to our other charts, which we've got sort six miles down the bottom here, I just have to instead have endured individually will, like the Timlin template of the 456 um, 10. Put 456 considera. I might show you the risk reward to in the next video, and then we'll put it all together the video after that. Okay, So I'll see you then, boy. 12. Risk Reward Tool: Hi. I'll show you in this little lesson how to set up the risk reward to. And I use the Fibonacci retracement to just change the levels in it. As you can see on the screen, that's the levels that were put in the chat. And but with the Fibonacci retracement to once you set this up, that's every time you go to use that. This will be the levels that will come on your to if you don't want it anymore, or whatever the reason, it's not a problem. You can always go back to default to the original Fibonacci retracement levels. I'm not a problem. You respect it. Back to default settings, and I'll show you one the chat to chat. Okay, so what we do is we grab, if you've been, aren't you too? I'm just gonna put it anywhere for the minute. Let's see how high are the Fibonacci levels? The 23.6 and 61 point I. So we're right quick and we'll go to the properties will goto levels. And this is where we'll change it. So the 1st 1 stays at north. You double click and you put stuff close. See now the percentage dollar sign that shows you on its level. What? The actual prices of the instrument that level just tax. Immune it. And then oops didn't double click. And then it they're all on just takes immune. It I want will be. - And three you could keep going. That'll do now. We don't need the last line, as you can see. So we're just hit. Delete here and remove it. That's where you come. So you go to your properties to levels. If you want to go back to default that do foot button there with this stage. Okay, so now, as you can see straightaway, you can see it. But stop loss entry. I went to one and see how the price is off the instrument there. That's with the percentage dollar sign. So we just removed that. Now let's put it all together. What you look for is you look for the crossing off the moving averages in conjunction with the Mac do in stochastic. So we'll just do a couple just to share you. He just pick a line. So we look for the crossing here of the three moving averages which, if I apply that up a little bit. You put her on the forehead shot, by the way. Um, no, no. Yes, You probably get on there, see how we can see were they? So, this candle here before as before it possibly be starting to think what's coming up. So that's one part that that's crossed. But now we have deceived the other parts, agree. And M activity is above their signal line on the Mac D. So yes, that agrees. And acai, which is the solid lawn, has to be above their day because we want to get along and that agrees. So we've got agreement now that we can go long on this trade, we get a few Banacci, too. I will drag it. And what I find is the easiest is I set my stop loss down he around the 55 level, Then I get which I've sit that long there. Then I get this end of the two, not the grain one this to, and I drag this to roughly where my entry point will be. Let's say it's about about the we're guessing because this is after the fact. And then so you have your stop loss set of where it'll be and you have your target of striking stand of 1 to 1122123124 As you can see a few position saws he would measure. Then what was your distances to stop us and then working on that? I'm able to work at how much you put on that tried to be a percent Idris management off that tried. Then you could tug You want to one a 1 to 2 so on and so forth. Let's look for another trade in case of this time now that crossed under so potentially you'd be looking for short, if probably there, because it's of their under the It's clear, but we have to save the rest of the indicators. Tools agree. In this case, the Mac do is below the signal lines. So, yeah, that's happy for a short position, and our skies below it do so. It's happy for short position, so I can now we grow back to Banacci to again and we'll put it on and I start by dragging and putting a stop loss where it'll be, which is just around about the 54 moving average. And then when it's there, I get the other end and drag where entries going to bay and let's Siwei, just for example, halfway down this candle, just Topeka point off effect. So now we have a stop loss set. Their level gives the process there that there that entry. When you do actually inter, you put your drag that to be on the right price, you got your wonder to or whatever you're targeting again. Before you do enter, you'll see what the distances between your stop and you between your entry and you stop and then you'll be out of work at your position. So is working on your risk management. So that was that short. That's making the risk reward to using the Fibonacci retracement. And then how you put all the factors together on a chart? Hope that helps. I'll see you in the next lecture boyfriend. Here 13. Create Your Own Part 1: like I the next listen. So I've shown you my four foot six strategy. Let's now have a bit of apply around and try and give you some ideas for your own strategy to work with. This section's about making your own strategy so we'll play around with the instrument, the timeframe, the tools and practiced you have to Baptist. That's where the demonstration platforms. Terrific. Now, just to remind before we go to the charts when you're building a strategy, this parts of the strategy, the three components to my kid generally keep it a simple as you can and easy for you to follow and stick to its gatto work for you and keeping it. Simples World is Toys R You really don't want to overcomplicate things so basic parts of a strategy you have to pick which instruments going to be. If he like for this one today we're just playing around with the forex. But then, even in the forex, decide well, which particular currency piers they're going to trade. For example, I just selected the six major currencies, for example, commodity, she might say. I just want to try gold oil or you might want to do the indexes is your strategy or stocks . Thank you. Pick your market. It's part of a strategy the time fried. Now you might want to remember we had a look at the screen on time frame where you might look at it a larger timeframe toe for analysis, but then actually enter on a shorter time frame. Is that part of the strategy, or will it just be the one time prime for analysis an entry and exit The tools The fund a 1,000,000,000 of the fundamentals and technicals or technicals and technicals Thean Decatur's that you put on your charts. This is hardly strategy, and then you have to have an entry trigger. What will trigger? What is the reason that you're going to inter tried? And then on the other end, what was the exit trigger? What what's the reason you're extinct? That tried, but the entry trigger could bay that it's a specific specific. It's a pivot. Little, for example, your exit trigger could be fixed at a risk reward like I did with the 456 or it might be, you might want to work on the average true range. The OTR work on that is your exit or might be supporting resistance levels or Fibonacci retracement or extension levels. There's a point where you you got a reason. It's part of your plan that you exit risk. Management, of course, is a major, important part of the whole strategy, and it's a risk management of your whole account, which then breaks down to be the risk management of each particular single, tried and tied in with your risk management is your position sizing because your position sizing links together with your risk management of how much you're risking and then not a part of building a struggle. These roble things that part of building a strategy that you have to think about is managing your trade. Now you're only going to do one trade at a time. That, or can you handle having three or four or five trades open at once? Something to think about then this. I've made a point there. Others other, like just have a supposed to use with miscellaneous. But I Do you are you going to hold your trades over weekend or is a part of your strategy that your only on the trades through the operational wake or another part of your trading strategy would be. Is there a point in the trading in that particular trade that you will move your stop loss to break even? Order to stop Ross? Never get moved. It's a few little tweaks they that you will just play around with for what works comfortable for you and back Tous. That's where the demonstration platform is. Terrific. You can practiced and test a strategy out. Let's have a look. A chat. Okay, so I just got here on the screen. I just hear a us day, said my style. It traded currency. That's on a dialling chart. So, for example, so air instrument then we've selected would be the Euro years with selected the currencies . And with trying to say, I think I will stick with the euro USD Now, the time friend knew how we're gonna look at the Euro USD on the alley timeframe when an internal smaller timeframe or are we going to enter, analyze it and enter and exit along the one time frame again? This dent this in all of this, there is no right or wrong answer that well. There are no wrong answer is that your strategy performed to end his your risk reward works for you, but other than right or wrong answers, it's Firas. The components of the strategy is individual. The 200 moving average is a very popular moving average in the forex market. It's generally if it's above the 200 am I? It's pollution positive spillover. The 200 day may looking for short or bearish. So let's say we throw it. We're here for daily moving average from a navigator on the side panel. Miss an indicator. I will put it on the car shot through a 200 exponential moving average. So we're looking at that. This particular the euro. Your stays under the 200 moving average strategy Could be that. Okay, it's under the 200 moving average, but you're only looking for short positions but actually can see nothing never goes in a straight line. This is a darling charge you could just looking at it. For example, pick a trend line and pick a trend lawn that when it has a few days up, look for intercourse. You're only looking for shorts when it crosses the trend line. You're your take a short position. There's a few of those trend lines I could just say Stride A Why looking at the chat here, I mean, it is easy to look at something after the fact, but in Su what I mainly it entered to go short. That's a dialling chart. But you march, Um, I want to look at that, but then pick your entry, but a smaller time friend. So for Allie, then you have you Teoh last dialing was there on the daily, but your entry then that then you're above you 200 moving average. But that was more. That's not for the entry. So even though we're above the 200 moving average, that's irrelevant there because we're under word analyzing the chart. Valladolid, Bisys. I'll show you a couple more minutes, takes a little bit of time, and I want to try and not give you too much at once. So do the next section, and we'll look at another couple of different strategies. So I'll see you in the next lesson. Okay, boy, 14. Create Your Own Part 2: hi. A little bit more now on making your own strategy. So it to the screen. Now, that's where we were looking at before. So we're just Klay, all right? I'll just bring up another child instead of clearing that, um What? We pick you, we'll pick this charge. Now it's on a four hour um RG. There's so many things you can do with strategies because you've got dialing pivot points. You got support resistance points got Fibonacci retry Spence and extensions. You got all your different indicators are here on your left hand. Saw it in a Navigator books. It's trawling era this. Let's just have another play with something else Anyway, This is to give you a few ideas that you can go along and work with yourself. He also more saliva. Let's use that will drag that onto the charge. Might get a little bit seeker so you can see what we're doing here. This is a fairly pop. Your samosa light is popular indicator. What you can do with that is you look for divergence and divergence is basically through a line. He if on on your candlesticks or bar charts, your line is going in one direction and on your also masal Ida, your actual trendline is going in the opposite direction to see how you've got divergence. They're diverging the going the opposite way, taking it into an actual thing to use here, just looking. Okay, so the process here on this kid on the chart, he drag this up from the to the process actually went higher. But if you look at your or some oscillator, we'll drag that up today. That bump here is lower than that bump. It is quite It's not as defined or some other bumps, but it is lower. So what that means is generally, at the end of that, there will be a change in the trend On this case. The trend of the price was up So that trend, the price fall, possibly go down, retry Stan goes the other way to, uh oh, here we go. So the process here to the hell you produce wench lower from that point to that point, but dropping it down onto the awesome Australasia That bump is smaller than that bum so but the that is diverging during the opposite, so you'd expect the process to challenge and go up at that point, something you could build into your strategy that's working on a four hour time frame there . So as shaken city, then as far as putting your stop loss in it probably put it below your you pick a point that Jemaah Cash not sure Wade. Enter. So you want to do worked on the bottom of that candle? Good. Measure your distance between your entry and where you stop losses. Then you work out with your present position. Saw his calculator and how much risking is to how many lattes or contract sizes you'd be buying. I could go on for quite a bit of time here, but I think it might be. I think what you're better off doing now is to tackle those different ideas and stop building your own strategy. Peace for peace. Back testing it. See how it how it goes. We'll show you some more charts. I'll show you more on in the next lecture. I can't see you then 15. Create Your Own Part 3: boy. Okay, let's see a couple more ideas for you to create your own strategy to help you so to the to the screen. So it's kept working on making your own strategy. Okay, that's were up to before. So let's get another fresh charting out with something. Mm. Here we go before I take it to a dialling. Similarly, how to be what could be. There's so many indicators over here, and you never go to Penhall to use you be trawling era of what works for you with your strategy. I'm just thinking of another indicator that we could use would be college events that been around a long time, very famous. So put her Bollinger bands on Justice Default 22 Generally with Bollinger bands. When it's a one sort of the Bollinger band, it will target back to the middle of the Bollinger band. So from one side to the middle one inspect the middle. Expect the middle, so that could be I strategy that you could work into trying plan The other thing you could Toyne to you Trading strategy. Sorry. Trading strategy not tried. Playing is candlesticks. Can mystics can show you reversal. Um potential reversals. So that's look this bullish. Engulfing Berry Shing golfing, shooting stars. But morning and evening, Hemmer's Hanging Man Oh, daughter. Jeez, Dark cloud covers is a few piercing patterns. It's a few candlesticks that will give you a potential of an i D. Off the change in the trend that could you could car light with your Bollinger bands toe work back to the side. So, for example, what start here with this one here now? I mean, that is an extremely, well, Morningstar. Extremely so they would. And it isn't that side of the Bollinger events. You would have expected it to go back to the center line, which it did. Let's go to the other side. Now that red candle they has engulfed the body with the candle before that is potential turned to go down. You target the sent along care the next sort of the well in Japan. That grand candle has engulfed that red candle said it expected to go back up to the center line. Um, next one, see here again. Similar again. Grayness engulf the red said expected. Get back to center lawn. Mm. Now here you've got your red has engulfed green, so it expected to g o to the center line. But actually this one would have filed because the very next die the grain candle just a bad engulf the red one. So that tried would have turned out file, which is part of trying. Not every tried the winning tribe, then whiting on the edge here you would have been expecting a turn, especially when you're getting quite a few. Doje is here in a row. That's arresting point stabling point. Possible turning point. But then to confirm it was when you start to get that red candle there which engulfed the bodies of these past bodies, he that would have been you trigger to Sybil will target the middle bully. We have a morning star here outside the Bollinger bands who targeted the center. That one didn't quite make it. You would have. You would have got some burn profit. But if you target was set for your center Bollinger band, it wouldn't have happened. So then you'd have to have in your trading strategy off contingencies. Would you move your stop loss to break even once you're in, uh, profit Or that's all part of your trading strategy things to think of it. What else have we got here? We are at the bottom sort of this Bollinger band, but we're not really getting a cover of a change here. It's more lists sideways. That grand candle they is when it started to actually engulf the body before, that could give you a potential idea that it's heading back to the center line. This one here is very obvious, because they it's at the one sort of the Bollinger Baines That was quite an engulfing, bearish scandal, which had target sent along. You might target to the opposite side. It's not to say it's going to stop with center line. That could be your first target with maybe mind. Target is the other sort of Bollinger bands because, as you can see, they do tend to G O from one side off the village events to the other sort Bollinger pains and here now, this one here, that's it, hasn't engulfed that bullish candle, but what it has is a canticle of dark cloud cover. And if you're candle, this red candle is at least 50% of the candle previous, that's enough of a change to site changes imminent that 50 halfway down the candle and that That's why even though that's not a bearish engulfing, it's enough of that candle. Decide and possible imminent change the then down here on the last candle with the minor. Dan, he you've got an extremely long brought up move. It did, if I can, you've got an extremely long Morningstar. They But this stage, you'd be targeting back to you middle Bollinger band because then you had the morning star bullish engulfing though that now, depending on where you stop losses set and where you ain't ID could be back it entry. That's just another a couple of ideas of what you could deploy into your trading straightly the tools. I mean, this so much your trading strategy is, I'm sure. Now you understand what I've shown you here, Isn't I trading strategy? It's how you could use a couple of tools to incorporate him into your trading strategy. Still got risk where you said you stop. Plus, you profit target. How much you are going to risk you risk management? What time front? I mean, we were just looking at dialing chats there. If you went to four alley shots. Does that make any difference? And that's what you'd be. That's where the back testing you come up with a strategy. Then you practiced it, incorporating in all those places that work for you. Okay, I think it's I don't think I think that's it for for this. Listen, some mawr, something more to think about. I'll see you in the next lesson boyfriend. 16. Conclusion: Hi. Oh, we've reached the end of the course showing you the for quite six super easy strategy. So I've shared my strategy with you using the six months before experience. But Jim, you might like to use other chats are going to use afford our chats you might find another time frame sits You You may like to move your stop horse around Once the tried is at the 1 to 1 ratio, you might like to wanted to take half your profits up off the table move You stop loss up to Bright Caven. I'll let the other half of your tried run That's the wonderful thing about creating your own. You can do it. What suits you You might like to use a trailing stop loss of shiny had used the Fibonacci retracement too as I ris reward Teoh and you can set it back today Foltrigg Jewish. So I hope I've given you are giving him sharing on with you. And I hope I've given you a few ideas for yourself to work out when you create your own trading strategy and you go off and create your own. So I've come to the end. I do wish you all the best with your trading goal. And hopefully we'll see you in another course. Thank you. Bye. Familia guile.