I'm going to show you one of the simplest, and most effective ways to trade. Period. Just about every other type of trading is speculation; this is not. This is making money regardless of where the market goes, and you don't even have to have a clue as to what the market is going to do next. I repeat: you do not need to know where the market is going to make money.
In these pictures, every rectangle represents a cluster of small limit orders getting filled, with the anchor point (starting place) being a wick rejection. That's it!
You'll notice that in almost all of those cases, the retracement from the limit block exceeds 100%, meaning 100% of the limit orders in that block are profitable. You only actually need to see the price retrace by 50% of that block to break even.
This is why I laugh when people say "the trend is your friend". The counter-trend is your friend too. The market is your friend. You don't have to know where the price is going, and you can make money in either direction as long as you're placing your limit orders in a way that goes with the flow. You're trying to capitalize on liquidity 100% of the time, and liquidity is really, really common. You can literally place trades based on every single candle if you want to! If there is a wick, you can trade it. Even if you're wrong, having tiny limit orders spread out through a cluster based on that wick means your hard stop loss would be hit rarely. You should still definitely have a hard stop loss, just in case a doomsday scenario comes.
So imagine you have a $2000 account. On a 1k (0.01 lot size), 10 pips is $1. Let's say you have 100 limit orders, separated by 1 pip each. 50 of your limit orders get hit, and then the price retraces by 50 pips. Given that your average entry point would be 25 pips (the halfway point), you would have made 25 pips profit on a 50k, meaning $125 profit on a very high probability trade. In those pictures, even the big moves don't hit all 100 of your limit orders, not at once. Not even 50 all at once. I'm not saying that doesn't happen obviously, but the probability of it happening is very low in relation to how frequently you'd be making profitable trades.
So what you do is you either commission a script or write your own to deploy all these limits very quickly. I'm currently having one commissioned for me in MT5 which works very well. I can drag a horizontal line that serves as an anchor point, deploying x amount of limit orders with y distance between each other, z order sizes (0.01). I can even have them all share the same stop loss and take profit, or have SL/TPs a specific distance from each individual ticket. I'd show this stuff here, but TradingView doesn't like pictures coming from the outside.
If you use metatrader 5 and would like my tools, feel free to message me.
I'm not sure if I can edit this later, but I hope I can... I tend to rethink things a lot and hate having to finalize something. Anyway. I hope this helps.
In these pictures, every rectangle represents a cluster of small limit orders getting filled, with the anchor point (starting place) being a wick rejection. That's it!
You'll notice that in almost all of those cases, the retracement from the limit block exceeds 100%, meaning 100% of the limit orders in that block are profitable. You only actually need to see the price retrace by 50% of that block to break even.
This is why I laugh when people say "the trend is your friend". The counter-trend is your friend too. The market is your friend. You don't have to know where the price is going, and you can make money in either direction as long as you're placing your limit orders in a way that goes with the flow. You're trying to capitalize on liquidity 100% of the time, and liquidity is really, really common. You can literally place trades based on every single candle if you want to! If there is a wick, you can trade it. Even if you're wrong, having tiny limit orders spread out through a cluster based on that wick means your hard stop loss would be hit rarely. You should still definitely have a hard stop loss, just in case a doomsday scenario comes.
So imagine you have a $2000 account. On a 1k (0.01 lot size), 10 pips is $1. Let's say you have 100 limit orders, separated by 1 pip each. 50 of your limit orders get hit, and then the price retraces by 50 pips. Given that your average entry point would be 25 pips (the halfway point), you would have made 25 pips profit on a 50k, meaning $125 profit on a very high probability trade. In those pictures, even the big moves don't hit all 100 of your limit orders, not at once. Not even 50 all at once. I'm not saying that doesn't happen obviously, but the probability of it happening is very low in relation to how frequently you'd be making profitable trades.
So what you do is you either commission a script or write your own to deploy all these limits very quickly. I'm currently having one commissioned for me in MT5 which works very well. I can drag a horizontal line that serves as an anchor point, deploying x amount of limit orders with y distance between each other, z order sizes (0.01). I can even have them all share the same stop loss and take profit, or have SL/TPs a specific distance from each individual ticket. I'd show this stuff here, but TradingView doesn't like pictures coming from the outside.
If you use metatrader 5 and would like my tools, feel free to message me.
I'm not sure if I can edit this later, but I hope I can... I tend to rethink things a lot and hate having to finalize something. Anyway. I hope this helps.
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