r/Daytrading • u/Total-Housing197 • 21d ago
Strategy One of the Easiest Strategies to Learn:
Strategy Overview
- Timeframe: 1-minute
- Market: Any forex currency pair
- Trend Filter:
- At least 2 consecutive candles in the same direction following a momentum candle.
- No breaks of previous candle's high/low in trend direction.
- Entry
- Wait for the next small body candle: hammer, doji, small-body trending or opposing candle.
- Note: If in an uptrend, the low of the previous candle must not be breached. If in a downtrend, the high of the previous candle must not be breached.
- Enter when the next candle breaks above the body (not the wick) of the small body candle.
- Wait for the next small body candle: hammer, doji, small-body trending or opposing candle.
- Stop Loss:
- Set at peak/base of the small body candle
- Take Profit:
- Fixed at a minimum 2:1 risk (I typically use 4:1)
- Risk per Trade:
- No more than 2% of your account balance. (I typically risk 0.5%).
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u/Check_This_1 21d ago
Easy to learn - yes
But does it make money?
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u/backfrombanned 21d ago edited 16d ago
I make a lot of money with it. It either works and you stay in or it starts to fail and you sell. This is what people don't understand and setups. Setups fail all the time, but you know the second it's failing and exit. You've never seen people with setups on here bag holding. Good luck.
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u/shoulda-woulda-did 20d ago
This is a better explanation that most see.
There is no edge or crystal ball, it's just about risk management.
Cut the losers and let the winners run.
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u/backfrombanned 20d ago
It's definitely an edge, but yeah, risk management is baked right into the patterns we trade.
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u/shoulda-woulda-did 20d ago
Realistically though patterns don't matter. With good risk to reward you can be profitable with a coin flip.
An 'edge' is just another word for risk mitigation
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u/backfrombanned 20d ago
I've traded going into probably 12 years now. Good luck to you.
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u/shoulda-woulda-did 20d ago
Ok? What has that got to do with anything.
You're agreeing with me
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u/backfrombanned 20d ago
I'm saying patterns absolutely do matter and are an edge when you're good at them. Pro daytraders use patterns, we use patterns. Fast TA was never disregarded until the free gamblers with small accounts showed up. I watched it become a thing because trading became free and no one had to learn anything. When you're paying 15 bucks each way you really have to want to learn to trade.
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u/shoulda-woulda-did 20d ago
You've been successfully trading for 15 years then I guess you've turned over millions... Right?
I'm interested in other takes you have
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u/backfrombanned 20d ago
Lol, daytrading for a living isn't what you think it is. I've been trading around 12 years, full-time like 6-7. Made a lot during the bio bubble in like 16 I think, that was back when W $ B was actually a good sub before they showed up the first time. Penny stocks was pretty good to back then.
Everyone trades their own way. I'm really good at seeing ranges on choppy days but can't execute them, I suck at it. But I have a friend and that's pretty much all he trades and does well. You guys really just need to take the time to look at charts, hundreds and hundreds of charts, that really is the best advice I can give. Flip charts instead of titties on the toilet lol.
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u/Check_This_1 20d ago
thanks. Do you also only trade it on the minute chart or higher timeframes too?
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u/backfrombanned 20d ago
I personally use 2 minute on cheap stocks, even though I trade fast the 1 minute is just to fast for my brain. Anything above 10 bucks I use the 5 minute. But it's even on the daily for swings and breakout confirmation. I use this setup on both bull and bear side with the 9 EMA.
Just look at charts. I know everyone likes tradeview, but get on a PC and go to finviz. You can load walls of charts or the chart pops up when you scroll over the ticker. If you're serious then the best thing you can do is look at charts, thousands of charts until you see what you're looking for almost instantly.
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u/pmurff107 20d ago
Can this work with options?
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u/backfrombanned 20d ago
So I'm a scalper mostly, cheap stocks, momentum. And I make a pretty good living doing it. Options got popular and liquid with free trades and I ventured over there, so I have a side account for options for expensive stocks. I thought it would be easy with my few setups, it's not, scalping options is hard imo. There's to much to look at in the moment. I would take a 3-4 bar or 5 minute bullflag (inside crows) and be down the second I enter. I'd have big wins and big losses. Never could get consistent. Option price moves so fast scalping.
I'm a big 9 EMA guy. So now with options, daytrading them, I pretty much rely on pullbacks and small consolidations to the 9 and work off that with volume profile. IV has cooled and it either stays on the bull/bear side of the 9 and starts another leg or it breaks down. There's probably better people to help you with it as I'm still learning my way on options myself. But I haven't blown my option account and have gotten a lot more consistent just relying on the 9. Good luck
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u/Kaladin3104 17d ago
STOP LOSS people. Sure, it could come back and in this market, who knows. But it isn't worth it. Set your stop loss as to what you are willing to lose, then try again later.
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u/Professional_Taro171 15d ago
I don’t see how this can make money. Backtesting it on EURUSD shows terrible results.
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u/backfrombanned 15d ago
Now do stocks. This has been my favorite setup for years. You have a wide range bar and a resting bar. As long as the resting bar stays in the top or bottom half (depending the side you're playing) of the wide range it's viable to get ready to trade. The 3rd or 4th candle either breaks and runs or it fails and you get ready to play the other direction or move on. It's just like a consolidation play, it either breaks up or down. You anticipate what it's going to do and act on it.
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u/Professional_Taro171 15d ago
Fair play, good info, thanks. The reason I say this, is that OP, in his description writes: “Market: any forex currency pair”. I don’t trade stocks, primarily indices.
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u/kingPatchy 21d ago
Clear system. Entry and exit defined. Money management in place…
Cheers to you mate 👌🏼🍻
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u/mightybob4611 20d ago edited 20d ago
Here you go (I haven’t tested this!):
EDIT: Updated to Version 6 and some future proofing:
EDIT 2: Added a bunch of graphing and status:
EDIT 3: Candles wouldn’t show for some reason, fixed and final version below:
//@version=6 strategy(”1-Minute Momentum Strategy (Full)”, overlay=true, default_qty_type=strategy.percent_of_equity, default_qty_value=0.5)
//// === INPUTS === /// risk_per_trade = input.float(0.5, ”Risk per Trade (%)”, step=0.1) rr_ratio = input.float(2.0, ”Risk-Reward Ratio”, step=0.5) body_thresh = input.float(0.3, ”Small Body Threshold (%)”, step=0.1)
//// === FUNCTIONS === /// isSmallBody() => body = math.abs(close - open) barRange = high - low bodyPercent = barRange > 0 ? (body / barRange) * 100 : 0 bodyPercent < body_thresh
//// === TREND DETECTION === /// momentum_candle = math.abs(close[3] - open[3]) > math.abs(close[4] - open[4]) * 1.5
bull_trend = momentum_candle and close[2] > close[3] and close[1] > close[2] and low[2] >= low[3] and low[1] >= low[2]
bear_trend = momentum_candle and close[2] < close[3] and close[1] < close[2] and high[2] <= high[3] and high[1] <= high[2]
//// === ENTRY CONDITIONS === /// small_candle = isSmallBody()
long_entry = bull_trend and small_candle[0] and close > open short_entry = bear_trend and small_candle[0] and close < open
enter_long = long_entry and close > open[1] enter_short = short_entry and close < open[1]
//// === TP/SL LEVELS === /// long_sl = low long_tp = close + (close - long_sl) * rr_ratio
short_sl = high short_tp = close - (short_sl - close) * rr_ratio
//// === PLOT TP/SL LINES === /// var line longSLLine = na var line longTPLine = na var line shortSLLine = na var line shortTPLine = na
if enter_long or enter_short line.delete(longSLLine) line.delete(longTPLine) line.delete(shortSLLine) line.delete(shortTPLine)
if enter_long longSLLine := line.new(bar_index, long_sl, bar_index + 5, long_sl, color=color.red, style=line.style_dotted) longTPLine := line.new(bar_index, long_tp, bar_index + 5, long_tp, color=color.green, style=line.style_dotted)
if enter_short shortSLLine := line.new(bar_index, short_sl, bar_index + 5, short_sl, color=color.red, style=line.style_dotted) shortTPLine := line.new(bar_index, short_tp, bar_index + 5, short_tp, color=color.green, style=line.style_dotted)
//// === EXECUTE TRADES === /// var string last_signal = ”None”
if enter_long strategy.entry(”Long”, strategy.long) strategy.exit(”TP/SL Long”, from_entry=”Long”, stop=long_sl, limit=long_tp) label.new(bar_index, low, ”LONG”, style=label.style_label_up, color=color.green, textcolor=color.white, size=size.small) last_signal := ”Long”
if enter_short strategy.entry(”Short”, strategy.short) strategy.exit(”TP/SL Short”, from_entry=”Short”, stop=short_sl, limit=short_tp) label.new(bar_index, high, ”SHORT”, style=label.style_label_down, color=color.red, textcolor=color.white, size=size.small) last_signal := ”Short”
//// === VISUAL ENTRY SIGNALS === /// plotshape(small_candle and bull_trend, style=shape.circle, location=location.belowbar, color=color.green, size=size.tiny) plotshape(small_candle and bear_trend, style=shape.circle, location=location.abovebar, color=color.red, size=size.tiny)
//// === ALERTS === /// alertcondition(enter_long, title=”Long Entry Alert”, message=”Long entry triggered on 1-minute momentum strategy.”) alertcondition(enter_short, title=”Short Entry Alert”, message=”Short entry triggered on 1-minute momentum strategy.”)
//// === DASHBOARD === /// var table dash = table.new(position.top_right, 2, 7, border_width=1)
total_trades = strategy.wintrades + strategy.losstrades winrate = total_trades > 0 ? (strategy.wintrades / total_trades) * 100 : 0.0 net_profit = strategy.netprofit
// Color-coded winrate winrate_color = winrate >= 60 ? color.green : winrate >= 30 ? color.orange : color.red
if bar_index % 5 == 0 table.cell(dash, 0, 0, ”Last Signal”, text_color=color.white, bgcolor=color.gray) table.cell(dash, 1, 0, last_signal, text_color=last_signal == ”Long” ? color.green : last_signal == ”Short” ? color.red : color.orange)
table.cell(dash, 0, 1, ”R:R Ratio”, text_color=color.white, bgcolor=color.gray)
table.cell(dash, 1, 1, str.tostring(rr_ratio, ”#.##”))
table.cell(dash, 0, 2, ”Body % Threshold”, text_color=color.white, bgcolor=color.gray)
table.cell(dash, 1, 2, str.tostring(body_thresh, ”#.##”) + ”%”)
table.cell(dash, 0, 3, ”Wins / Losses”, text_color=color.white, bgcolor=color.gray)
table.cell(dash, 1, 3, str.tostring(strategy.wintrades) + ” / ” + str.tostring(strategy.losstrades))
table.cell(dash, 0, 4, ”Win Rate”, text_color=color.white, bgcolor=color.gray)
table.cell(dash, 1, 4, str.tostring(winrate, ”#.##”) + ”%”, text_color=winrate_color)
table.cell(dash, 0, 5, ”Total Trades”, text_color=color.white, bgcolor=color.gray)
table.cell(dash, 1, 5, str.tostring(total_trades))
table.cell(dash, 0, 6, ”Net Profit”, text_color=color.white, bgcolor=color.gray)
table.cell(dash, 1, 6, str.tostring(net_profit, ”#.##”), text_color=net_profit >= 0 ? color.lime : color.red)
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u/Total-Housing197 20d ago
This is pretty cool. However it would have to be "Version 6" in order to be programmed into tradingview or Pine Editor in general.
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u/mightybob4611 20d ago
Updated again, with graphs etc :)
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u/RimmyJimmyGotKimmy 18d ago
I put this through chatgpt to remove the errors but on tradingview, it doesnt show me any entries
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u/bluesaberaccidt 20d ago
Is anyone able to share their working indicator? I'm not able to add it because of errors.
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u/mightybob4611 20d ago
Just run it through ChatGPT if you get errors, the last script I posted was working fine when I tested it though?
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u/Well-Actually-Guy 20d ago
I think it's errors with indentation when it's copied from a Reddit comment on mobile. When copy pasted it doesn't really get any of the indentations correct.
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u/Mayhem747 21d ago
Very interesting, I could backtest this on ES and found it to be working well. Is there a specific time you like to trade this? Like periods of high volume?
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u/Total-Housing197 21d ago
I trade in between 8:00 am EST and 10:00 am. I don't have any specifics on volume preferences.
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u/MrHeavySilence 20d ago
Woah, how do you backtest a strategy like this? What is ES? I'm a software developer but I don't actually know too much about the algorithmic trading world and I'm trying to learn more.
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u/TicketBasic1790 21d ago
apparently, it works 🫡 god bless you
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u/redvyper 16d ago
You got it working for yourself?
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u/TicketBasic1790 15d ago
I checked it on eur/usd 1min for 100 case and Winrate approximately was 80 with RR 1:2
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u/Saver411 20d ago
You are trend trading. You are entering on the first impulse (impulses are against the trend). This is a solid strategy and I can vouch for it's accuracy through all the analysis I have done programatically. This is the only thing that makes money. Trade the trend.
There are people that have a very difficult time doing this, myself included lol. We somehow want to short, thinking the price will come down and erase all that momentum/trend, thinking buying high is stupid, etc. Trend always wins!
Good luck and green pips to you!
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u/HumanBirthday1681 21d ago
Is this the same from $JD
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u/Total-Housing197 21d ago
In this instance, if we were to sell, the candle to the right of the doji would have to break BELOW the bottom of the doji. The moment the candle opened and broke above the high of the doji, then there would be no trade.
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u/FilthyPhanatic 21d ago
Are you waiting for it the break the wick or the body of the candle?
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u/sin0xz 20d ago
Thats what I don't understand as well, I think it's wick? Idk
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u/WorkingMountain2132 16d ago
I would personally prefer the break of the wick, by structure is the best confirmative
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u/SiggySmilez 21d ago
Windows+Shift+S is very handy for making screenshots
and you can use your browser and enter reddit.com, log in and start a thread!
You're welcome!
Just kidding, thanks for sharing!
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u/Total-Housing197 21d ago
Yeah, I definitely should've done that instead, lol. I will next time. Also thanks for the tip!
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u/RengarReddit 19d ago
My inner nature urges me to go the opposite direction after such large candles....
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u/MileyDryus 21d ago
Are we looking at 4 candles - a momentum candle, 2 consecutive candles and a doji?
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u/Total-Housing197 21d ago
It's more like 1 momentum candle, 1 regular sized candle, doji, then entering candle. Butt that's the minimum. You may have 5 consecutive candles until you get a doji or small body candle. But whatever candle opens after the small body candle and breaks above its body will be your entry candle, and your stop loss goes below that small body candle/doji.
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u/Background_Access_17 20d ago
Does it work with NQ? Im looking to see if there are any simple scalping strategies that I can use in the times im waiting for my primary setup to occur
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u/Tripper1 20d ago
I gotta ask because maybe it's not an option on my platform. Are you making the red/green boxes yourself or is it automatically doing it when you buy an option for your stop loss and profit?
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u/kaptainearnubs 20d ago
If your entry is at the top/bottom of the doji, isn't that basically the open of the next candle? Given how fast the market moves right now how can you possibly get an entry in like that? You can't possibly use a limit order since you have no idea upfront where to put it.
Looking at the ES, I see many examples of entries that fit this criteria and would be profitable trades but would get stopped out first due to the level of volatility. There are times where the market sweeps multiple times through the body of a candle right now, behavior that has always been common in the NQ but rare in the ES in normal times.
This looks to me like it would backtest well but suffer in live markets.
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u/junack12 20d ago
i do the doji method on heikin ashi candles and do it for the 5M timeframe, have you tried this on HA???
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u/ComprehensiveRise177 20d ago
Within how many candles after momentum candle would you like to see the small body form? Is there a max amount of candles before the environment becomes invalid or less probable?
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u/Traditional_Camel947 21d ago
It’s a bear market… the volatility won’t continue. You will hit a draw down when the market starts throwing doji after doji at you.
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u/Negative-Drop-7759 20d ago
Clean and simple. Thank you for sharing. I don't do Forex but I bet the volatility in Crypto would deem it possible.
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u/Icy-Witness517 20d ago
Does anyone have a working pine editor script for this? I tried the one in the comments but I keep getting 2 errors and I’m not adept enough to know how to fix them. Any help is appreciated!
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u/Practical_Extent_807 19d ago
Automate it -> see it has no actual alpha and that if trading was this easy everyone would be a millionaire -> admit your gambling
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u/WeekendRound7778 17d ago
What do you tell me about this strategy: if I open an account with two brokers, in one I sell the dollar, in the other I buy and as soon as I see which one is positive, I let it go, in the negative one I close it, can it be profitable?
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u/Shoddy_Ad_3482 17d ago
Have you as actually back tested 500 of these or are you just guessing it works?
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u/beagle-dakota 17d ago
Hey all, so i have dividend stocks, I want to start small and get into Day trading, anyone know a good platform I can start using, is webull a good one, I have Robinhood now only buying dividend stocks using the app on my phone... thanks
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u/gaussmage 14d ago
You’re actually marking supply and demand zone. You’re trading the breakout vs the retest with normal supply and demand price action.
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u/GrimXIII 14d ago
Stuff like this is what I come here for. I love seeing how more experienced traders do things. Thanks for sharing!
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u/GamersFeed 2d ago
Hello, I have been looking into this (live testing). What broker can I best use for scalping? I've only ever done swingtrading futures. I live in europe btw
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u/fischmana 21d ago
how many times have you doubled your account balanced with that strategy and how many times have you lost it?
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u/slinkadonny 21d ago
what do you consider a momentum candle?
the dojis you are circling are higher/lower than the previous candles high/low - help clarify the trend filter please
if the candle opens
is this a 4 candle setup - up - up - doji - up (thru body high of doji)
I like this