Simplest Day Trading Strategy for Beginners

Overview

• A simplified day trading strategy using the 50 EMA indicator, suitable for beginners.
• Achieved a 65% win rate in back-testing, demonstrating profitability.

Key Concepts

• Indicator Used: 50-day Exponential Moving Average (50 EMA).
• Strategy Approach:
  • Identify when the price breaks above the 50 EMA.
  • Wait for a pullback with at least two consecutive opposite (red) candles.
  • Draw a horizontal line at the swing high before the pullback.
  • Buy when the price breaks and closes above the horizontal line.

Tools and Setup

• Trading Platform: Use TradingView or SimpleFX.
• Stop Loss and Take Profit:
  • Use the Chandelier Stop for setting stop loss.
  • Set take profit target at double the stop loss.

Invalidating Trades

• Trade invalidated if the pullback breaks below the EMA.
• Avoid trades if the breakout candle is much larger than average, indicating potential reversal.

Strategy in Practice

• Demonstrated with real examples using the USD/CAD and AUD pairs.
• Highlighted when trade setups are successful and when they fail due to invalidation criteria.

Backtesting Results

• Analysis from AUD/JPY between 2020-2024.
• Profitable in 65% of tested cases out of 32 trades with 21 wins.

Recommendations

• Platform for Beginners: SimpleFX recommended for its ease of use.
• Bonus Offer: $40 bonus upon depositing $100 with SimpleFX.
• Suggested to test the strategy without risking personal funds.

Final Thoughts

• This strategy emphasizes simplicity and consistency.
• Encourages beginners to master this strategy before exploring more complex ones.

Next Steps

• Watch the follow-up video for additional strategies to further improve and potentially earn $500 per day trading.