Trade Pro
The video discusses a trading strategy that includes multi-time frame EMAs, MACD indicator, and divergence, which has shown fantastic results. The presenter provides detailed examples and backtests the strategy, revealing a 60% win rate and an 80% gain on account.
Maximizing Profit through a Winning Trading Strategy
Introduction
Trade Pro channel presents a trading strategy that has been tested a hundred times to show its profitability. The strategy incorporates two multi-time frame exponential moving averages (EMA), the Moving Average Convergence Divergence (MACD) indicator, and divergence. With this combination of indicators, the strategy produces significant results, making it the top-ranking strategy among 53 others tested.
Indicators and Their Settings
The multi-time frame EMA comprises a 15-minute 50-EMA and an hourly 50-EMA. The 15-minute EMA determines the short position, while the hourly EMA determines the long position. MACD features include the fast rate at 12, the slow rate at 26, the source on close, and signal smoothing at 9.
Using the Strategy
To enter a short position, the 15-minute EMA must be under the hourly EMA; also, the price action must have a higher high, while the MACD shows a lower high. Contrarily, the long position requires the 15-minute EMA to be over the hourly EMA, price action with a lower low, and the MACD with a higher low.
Macros
For the MACD indicator, it needs to be above the zero line of the histogram for a short position and below for a long position. While spotting a divergence in a bearish divergence situation, the MACD must create a gap in the histogram, and the high peak of MACD must not touch the zero line of the histogram during the formation of the Low-high.
Examples
For the short case, the bearish divergence triggers the entry signal to take the short position. For the long case, the bullish divergence prompts the entry at the next cross-up. Stop losses are two pips below the swing low, and the risk-reward is 1:2.
Back-Test Results
After a hundred back-tests using six-months of price data, the result was a 60% win rate, sixty wins, and forty losses. The gain on the account was 80%, making this Trade Pro’s number one trading strategy tested on the channel.
Optimizing Strategy
The strategy’s parameters are not optimized, and further tweaking may lead to even better results. The Trade Pro Patreon members have access to a more optimized strategy that incorporates this winning strategy with other tools to produce better results.
Conclusion
The winning trading strategy, comprising the multi-time frame EMA, MACD and divergence, has been tested a hundred times and emerged tops among 53 other strategies. With a win rate of 60% and a risk-reward of 1:2, it is worth exploring and optimizing to maximize profitability.
