STARTrading - Our number one profitable strategy revealed!

[Music] Hello and welcome to the Star Trading Podcast with me Lewis. And me Sophie. And today we are going to be revealing, can't believe we're actually doing this, revealing our number one trading strategy for all of you out there. Very exciting. So how are you? I'm very well thinking, very excited today actually. Yeah, why are you excited? Not because we're exposing our deepest artist secrets, well, our number one trading strategy. But because we also have the Star Trading Social tonight. We do. Yeah, I haven't been to one yet. You come to us tonight, but I hope you are. I'll see you here. So, well, we're going to Flight Club, not Fight Club. I read it as Fight Club. Yeah, so no one's getting punched. Okay. Well, we'll see what the night brings us, right? And so Flight Club, so it's like a crazy golf, but for darts. Oh. Yeah, it's a good way to think about it. Okay. So yeah, it's going to be really fun. Yeah. Yeah, lots of trading chat, I'm sure. Yeah. Lots of life chat. Yeah. And just a good old time. Yeah, I'm very excited to see everyone. Yeah, it should be good. And I've been looking after my dog. Well, not my dog, my parent's dog. Yes. So I've got my proper dopamine hit from dog time. What dog have they got? A little sausage dog, a little wiener. Oh. Yeah. Yeah. Is it a cute one? It's called Otto. Otto. Can we come to the social tonight? Full name Otto von Bismarck. Why? My dad loves engineering. So Otto von Bismarck was a bit. What's an engineer? I don't know. General. I hope he wasn't a war general. Let's scratch that. Anyway, how was your week, baby? Good. I had a speaking gig this week. Amazing. So I go to some property networking meetings and tell them about the time I bought a beach. Yeah. Yeah. Which everyone's very surprised to hear. I start talking about moving to Indonesia and buying a beach and building a resort and dealing with wildfires and earthquakes and tsunamis. And I'm talking and I'm trying to be really engaging. People, they're always, everyone I've done, they just look at me like puzzled, like a puzzled look. But then at the end, they're like, "Oh, that was really interesting." Yeah. So, yeah. Yeah, I, um. Well, because you did the talk at the launch year event for Star Trading, you shared that. And that's actually how we met because you were talking about that on a podcast. Yeah. So, yeah. Pretty interesting. And we've circled back now to our very book class. We've circled back, yeah. Full circle. Yes. So, why do you want to tell everyone about this strategy? Well, to be honest, I don't. [LAUGHS] Because it's our intellectual property in a way. But the reality is, just because you know the components of a strategy doesn't mean you know how to trade it successfully. So, I'm actually very happy to share our secret source, our secret formula for this successful strategy. Yeah. So, we call this strategy the pullback strategy because it's based upon a trending market. So, if anybody doesn't know what a trending market is, it's where the market is moving in a very particular way. And what that particular way is, is it's creating higher highs and higher lows. So, imagine like a mountain range, and you've got your peak. It pulls down a little bit, but not all the way to the bottom. Then it goes higher, makes another peak, pulls all the way down again, but not all the way down rather, makes another peak, but a lower peak. So, when you start to see that pattern, the market, that's a trend. And then when we have that trend, we can trade what's called a pullback strategy as it pulls back to what's called a form of support resistance. So, if anybody wants to know what all these terms mean, then best place, mind blown already. I'm trying to do a very good job of explaining it when people can't see it. So, yeah, but you can join us on Forex and Five and you'll have all of that explained. Forex and Five is amazing. So, when we look here at Chart, we're seeing a series of candles, right, which represent the day's movement of the market. And what you're talking about is the shape that they make as they're rising and falling. And you're almost drawing a line, like an average line of where the market is going. And when you talk about higher highs and higher lows, that really confused me at first. But it's basically a zigzag, isn't it? Basically a zigzag, in an upward direction. Yes, or a downward direction. Or a downward direction, yeah. OK, so we're looking at a chart and we've identified, let's say, a zigzag going down. So, there's a lower high and a lower low. That's if you're going down. Yes. Yeah, so the downward movement, we're looking for those lower lows, those troughs, and lower highs. And then on the upper movement, it's higher highs and higher lows. OK, so if we're going down, it's going down, then up again, then down, then up again. Yeah. And we would expect it to go down. Yeah. OK. Yeah. I think the best way to think about it is the down and up again. That up again doesn't come up to the original point. So it can't come as high up. And so we want to see that repeated up, down, up, down. At least a couple of times to really confirm that type of movement in the market to confirm that trend. Yeah, and I remember you saying really early, actually, that trading is basically pattern recognition. And you literally start with, OK, if I see AAB, AAB, what's the next pattern going to be? Yeah. And that just translates into all of it, doesn't it? Because it's like, OK, if you see this pattern happening, we're hoping that it will continue to happen. Exactly. It is a case of what have we seen the market do before? And when it lasted this, what did it do next? So we want to make sure that we're really clear on our pattern, what we're looking for, the exact pattern, what were the conditions when that pattern happened? Do we have those same conditions? Because when we know those conditions, we can put those into our strategy components. And then we can trade that again. And that's why we call strategies money-making machines, because they repeat, they repeat, they repeat. And so that's what we're looking for, those patterns. And how do you know they repeat? Well, we've tested them. So I've been trading now for over 10 years. And all of our strategies, we test for at least 20 years, or at least three years, some of them have been tested for up to 20 years. So we know that they repeat. But they do change over time. So for example, and I'm going to give a bit more context here for the pullback strategy, so get your note pads ready. You want to have a trending market. I'm going to just talk about app for now, because for the downward trends, you just flip everything I'm about to say to the opposite. So for an upward trend, when the trade pulls back, you want it to hit something called the eight moving average. When it hits the eight moving average, then you want it to create what's called a reversal candle, which says, right, it's pulled down into the eight moving average. But the candle tells me it's going to want to move up from this point. So when we get that, we know that we can then trade the market up. We would have our entry point above that reversal candle. So it's got a little bit of room to breathe. We'd have our stop below that reversal candle. And we'd have our target at least a one for one profit, meaning whatever we've got at risk on the trade, we want to make back at least that amount of profit as well. Now a couple of other things we want to look at. I can't believe I'm given all the details away here. Never done this before. So a couple of other things we want to look at. At the point you get that reversal candle. Do you have the moving average convergence divergence, the MACD, which is an indicator, giving you upward bias, upward movement, on not the daily chart, the weekly chart. So the pattern, the trend is on the daily, but the supporting evidence of the MACD, we're looking at the weekly. And then we put our entry in a logical place within support resistance, like I said, giving at least that one for one risk reward. Amazing. I think we need to break it down even more, Lewis. Oh my goodness. How do I do that? For the newbies. All right, so they've got that upward trend, right? And it then has to zigzag back down to the eight moving average. What is the eight moving average? What does it look like? So the eight moving average is a wiggly, squiggly line that you don't have to plot yourself. The broker does that automatically. So the eight moving average is what it says on the tin. So it's a moving average of eight time periods. So if you're on the daily chart, those eight time periods represent eight days worth of data. So it's the average, generally the close price of each of those eight candles, the average price of those close prices plotted on your chart and then they're joined up as a line so you can see where that eight moving average is moving. So for example, if you're looking at the 21 moving average, it would be 21 days worth of data that would then be plotted as an average. If you were on the weekly chart, that eight moving average would look different because it's taking eight candles, but those eight candles are now worth, well, one week, one candle. So it's eight weeks worth of data as opposed to eight days. So that's what you got moving averages. And these are all indicators, right, which within the software we use, we can just add and there's a list of how many thousands? Hundreds, thousands, yeah. Hundreds of thousands. So it's about knowing which ones to select and then using those to help our trading rate. And this is exactly why learning to trade for yourself, like self-teaching, becomes an absolute minefield and absolute nightmare because you don't know what you don't know. You don't know which ones are good. You don't know how to use them. You don't know how to use them in conjunction with other tools as well, which give you that safe trading and that profitable trading as well. Whereas what we've done is we've taken our years of knowledge and expertise and testing and trialing and hours and hours and hours worth of doing that so that you don't have to, which is why we can give a very clear stretcher and a very clear process. - Amazing. So we're looking for the weekly line, eight moving average. If our zigzag has hit that, that's a good sign. And then you talked about the MACD as well. It sounds very technical and confusing, but it's another indicator, right? And what does that look like? - So the moving average convergence divergence MACD, I mean MACD is so much simpler to say, right? So again, it is what it says on the tin, but it's a calculation that's done for you. The way it looks is very simple. Thank God, because I'm a simple person. I like simple. So the way it's presented is just as bars underneath the chart. So you've got your main chart at the top and then you've got this. pattern underneath and you're reading that pattern. So it's just different bars red and green moving upwards or moving downwards. So when you're looking at the weekly, if you're trading up on the daily, you also want the weekly to be moving up. If you're trading down, so you're shorting the market, you want that weekly to be showing downward bias as well. But what it actually is is moving average convergence, moving together, divergence moving apart. So it's just telling you, are the moving averages in the market moving close together or further apart and that gives you an indication of how much momentum there is in the particular direction you're looking to trade. Interesting. So we're not just looking at the trend. We're ticking off. Is it tracking the eight moving average and is the MACD showing that bias as well? Yeah. So really a lot of what we do in our trading when it comes to chart mastery, the first point of the start trading method is we want to understand what is the market bias? What is the market direction? Where is it most likely going to go next? So these tools we're using help us identify that in a really simple way. If this is the first time you've heard it, probably doesn't sound that simple, but it's very, very visual. This is a visual art. So everything we're talking about here is visual. And that's why we spend a lot of time on Forex and Five and on our mentorships with people looking at their charts and applying this knowledge and getting that feedback from us to make sure they're seeing it correctly. Yeah. Amazing. Okay. So we've got a trend. We've hit the eight. We've got the MACD agreeing and then it's about the candle, the combination candle. Yeah. And that just has to agree, like that has to be the right color and shape. So if your trend is going upwards, you don't want a big red candle because that would be pointing in the wrong direction. So you'd like a big red, a big green candle or one with upward bias, right? Yeah. So in one sense, the color doesn't matter. Generally, a green candle is giving you upward bias, but not always. Generally, a red candle is giving you downward bias, but not always. So what you're just looking for is at the point it hits the moving average. So if we're trading up, it's come down into that eight moving average. So we want a candle around that point to now say, right, I've been moving down. That's why I've hit the eight. But now I want to move back up again. So that's what we're looking for. A candle which says, right, I'm ready to move back up again on the flip side. If you're trading short, so you've got that downward moving trend, it's going to have to pull up into the eight moving average. So when it's pulled up, you now are looking for a candle at that point, which says, right, I'm ready to move down again. Amazing. And then you were talking about placing the trade. Yeah. You're the different levels. So what are the three levels that we're putting in there as information to be straight? So we call this the set method, SET stop entry target. So you want to put your entry, if you're trading up above that reversal candle, that confirmation candle, and you can call it reversal or confirmation. So you're looking for that entry to be above that candle. And entry means when the market actually goes up there, you're now live in the trade. You're live. Yeah. Yeah. So you've got your skin in the game. You've been entered into the market. Your trade is now live. Your stop would be below that reversal candle because you want to give it some space to breathe. And you're saying, right, if the market does go below that point, then take me out. And then your target would be at least one for one. So whatever the say your distance between your entry and your stop is 50 points, your target would have to be at least 50 points above that. And then ideally, we want more. But that's going to be dictated by the support resistance levels in the market. Yeah. So we've talked a bit about them before. Do you want to go over support and resist it? Yes. So support resistance are basically ceilings and floors in the market. So they are where prices been before and we get a response. So if price is responding, say 100 points above where your entry is, you aren't going to want to trade to 120 points because then you're pushing beyond that ceiling. You may want to trade to 80 points. So you've got a nice little buffer. You're not pushing the envelope too far. You're not being too greedy, but you can still get a nice amount of profit from your trade. And how can you find those levels? So you would look probably at the weekly initially and you can also look at the daily. So we just went again, visual arts. So when you look at your chart, where do you see multiple tests at a similar price level? So it doesn't have to be exact, but similar price here. I'll probably within about five to 10, 15 points depending on the size of the market. Where do you see spikes up, hit, move away, and then later on in the chart, it spikes up again, hits and moves away and similarly on the downside. Amazing. So that's how we place our pullback trace. Yes, it is indeed. And how much practice do you think someone needs to do on this before they can start actually live trading? Very good question and I'm going to throw that at you. How long did it take you? I mean, the time is all warped now, but the way you guys teach it, you start immediately, like as soon as you discover start trading, you're told to go on a chart and start having a look at levels. So you're starting to learn automatically. And then it's just find a trend. See if you can find a trend. See if you can go back in the markets and you just have the first bit of information. Can you get that zigzag pattern somewhere? So because there's five or six criteria, right? You're not overloading us to start with. So it's find that trend and submit it to a mentor and then come back again and start getting into the course, getting into the learning and start adding things onto that and then start testing it, back testing it. So I think it took probably three months from start to live trading that strategy. The first month was learning, learning, learning. The second month was right start looking. And the third month was submitting loads of back testing and it was group testing every week. Do maybe eight or ten example trades from the back testing every week with feedback from Josh who would then say good trade, bad trade, bad trade, try this tweak this and you're getting better each time. Yeah, it is that little step by step. So I think if people have never traded before and they've just heard me break down that strategy, they're probably like oh my goodness, I don't understand any of that. There's no way you should be expected to understand any of that when you first hear it. And again, it's a visual thing. So just listening is a hard way to learn it. Which is why on Forex and 5 and on our mentorships, we make sure we have you practice it in that setting and give you feedback. But everyone is different. So some people pick up super quick. Some people take a little bit longer. Our job as mentors is to help you whatever pace you're at. And what I would say is people who tend to take a bit longer or find it harder, it's because they're doing exactly what you just said there. They're trying to master all the components in one go rather than just one thing. I mean, there's a lesson for life in there. But if they just mastered that one thing, so we always focus right, nail the trends, identify the trends, get good quality trends, then we'll move on to the next bit, then we'll move on to the next bit. And things like the MacDee are actually super simple because it's just, is it moving up? Yeah. Is it moving down? Although it sounds what it is, quite complicated. Visually, it's very, very simple. It's a bar chart. Yeah, it's a bar chart at the end of the day. Yeah. And actually, for all three strategies that I've learnt, I thought I was ready before Josh did. Yeah. Yeah. So I'd be like, okay, I've submitted 30. I'm sitting Josh on the group coaching today. I think I've nailed it. Yeah. And he's like, yeah, this is looking good. Very enthusiastic. He's like, just do one more week for me. Just look at a few more markets. Yeah. And I think you'll be ready next week. And my, you know, I'm really driven. I'm really impatient. I was like, okay, yes, Josh, you're right. Yeah. Yeah. Sure. Yeah. But then the next week, I'm like, actually, you're right. Yeah. You were completely right. I needed another week. Yeah. So yeah. So yeah, it solidifies the learning. And that's the really important thing. It's like when you, there's a reason why when you learn to drive a car, technically you can drive the car, but are you really going to be safe on the road? There's a different, there's a different level of kind of mastery and competency that you kind of have to have to really be safe and understand what you're doing, which is why we tend to push people a little bit longer rather than super, quick, quick, quick. Yeah. Because although it was sound great, oh, I was trading live in two weeks. Is that really the best thing for our students? Probably not. Probably not. But one thing I will say as well about the strategies like we say we test them. So when we originally were teaching pullbacks, we didn't trade off of the eight moving average. We actually traded off the 21 moving average. And we just noticed over time again through testing through our live trading that the 21 moving average pullbacks weren't working as effective as they used to. So we changed it up. We looked at what else we could do. We tested a new strategy and we found that when we traded off of the eight, we had a higher trade frequency, which meant we had more profitable trades, which when I first started 10 years ago, wasn't the case. So that's because market conditions change. And I think one thing which is really super important is that what we're doing at Star Trading is not just giving you components of strategies and saying, right, go and do it. We're teaching you how to adapt and evolve those strategies over time because that is what's going to keep people successfully trading for the rest of their lives versus just buying a strategy off the shelf. So if someone was to take this strategy, we just talked about now and trade it brilliant, you'll have success. If you learn how to master it correctly, because that's also a different component, if you master it correctly. But in the next few years, will that continue to work in the way that it is? I don't know. What I do know is that we will in Star Trading be knowing what is working, knowing what isn't working, and our students will be totally safe and will teach them the new way. Yeah, it's really interesting to hear you say that, because. орgau mwy hynny adedan viwnol cashaethweldwch o creuech ngoraeth gy capacitance eich meith [题pro_ Associate derivative] oiddники unaiz o gymsg syl центр sydd eu hyn y treida Clewnesall pushing oedd Bowser o pe scientist Pat Democracy asiant young neu wedi fellyyddo домap Liberalysgad yn maiad arodrian yn gallw'n gall c 70 orag adeu yn llon acoraeth ynraedd wrth ysgwch kontiunau sy wedi bod y cрет Gothen gydydd y medser y gwiiddring. Rydym ei armothr όpodadauiad. Matod o, guthwrs o fy etynrodd trafioau bethfa o ei overdiו disappointed roedd نim allw ef y той. Mae'r undadult i graith beth y tower. Ym yma g fui sefynd o gyferal ond trdyw i fyny. Hefau o ni bwnes cyrgioleg Eta symud. Ym yma o'r cyfod o gyfer yma o gyferaleg. Mae'r cyfod o gyferaleg. 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