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So this lesson should be somewhat simple
but basically this is these are some
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methods that can be very very effective
at instantly increasing your average
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risk reward in an extremely mechanical
and systematic manner and as you can see
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all it literally is is just refining
your entry to be a little bit further
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within the zone that you're entering
within and that's it.
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But that can have a massive impact on
your results over the long term because
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you can see here, all four of these, I
have to count those quickly to double
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check, all four of these examples are
obviously the same price action example,
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right? It's the same thing, same trade
idea, blah, blah, blah, blah, blah.
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But like, depending on whether you enter
on the edge of the zone, right, stop
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losses are always behind, they're always
in the same area.
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But whether you enter on the front edge
of it or you enter somewhere within is
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going to increase your risk to reward
significantly, especially when some of
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these zones can get quite big, okay?
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So, I mean they're somewhat self
explanatory but may as well quickly talk
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through them.
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I've just called this edge, entering on
the edge of the zone.
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Now, over the years I've always referred
to this as the distal, the front of the
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zone, but I've been informed that that's
completely wrong.
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I think the front is supposed to be
called the proximal and the back is
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the distal.
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Anyway, I forget it. So I'm going to
refer to it as the edge from now on, the
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front edge, okay?
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But if you hear us mention this or you
see it in the old content somewhere,
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is basically what we're referring to. We
mean entering on the front edge of your
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zone, okay?
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So that's the most, obviously, unrefined
way of entering on any zone that you
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draw. Then you simply enter on the 25 %
of the zone. So the way you can do this
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here, I'm just using a Fibonacci tool,
okay? So the Fib retracement, you can
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grab that from up here.
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And then when you draw it, so for
instance if you draw like that double
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into it and then you just click if you
want to enter on 25 add in the 25 there
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okay and it will come in and you need to
play around with like the background
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colors and and things like that so so it
appears uh when you do it but
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essentially what it should look like if
you wanted to do this one is there you
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go 0 .25 so you have zero 0 .25 and one
and all that is saying is that you're
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drawing the 25
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section of the box okay so you enter
there so it's a little bit more refined
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then obviously entering on zero percent
increases risk reward then likewise here
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you're just entering on 0 .5 right
halfway in the zone so you're always
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on the eq and then this is a slightly
different one whereby uh you just enter
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the body candle so obviously if it's
demand you do the high of the candle and
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it was supply you would do the low of
the candle um
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this isn't really something i've ever
done uh when i first ever started using
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supply and demand this was actually how
i drew supply and demand zones um but i
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didn't use to enter on them directly to
trade in a slightly different way um but
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yeah this just may be a way you want to
test because that is where in theory the
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bulk of the orders should be so some of
you might want to want to test that out
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it's just another option but the key
thing as always about all of this is
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trying to be consistent and mechanical
as always right so
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these are ways in which you do that
right sometimes you don't just go i'm
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to kind of enter in the zone a little
bit because i want to keep my stop loss
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little bit smaller or a little bit
bigger or whatever it's like no i always
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enter on the 25 of the zone or i always
enter on the edge or i always enter an
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eq you need to have a rule to decide you
know how and when you're doing things
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so you can be consistent now what i
would say is always use this as your
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when you're starting out okay just enter
on the front edge of the zone okay and
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stop loss is behind and just start off
with that
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Get consistent with all of the other
variables and everything we're trying to
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here. And then when you're kind of like,
right, now how can I just try and
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refine a little bit more? Then think
about this, okay? And go back to all of
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your old trades with your backtesting
data and literally just have a column,
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right? And then you can just have all
four of these and just go back through
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go, okay, what would the result be?
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Because obviously, the more refined you
are, your risk -reward goes up, but it's
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at the expense of potentially not
getting tagged in, okay? So you can have
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missed trades.
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So when you test this and when you
backtest this or in anything you're
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and you're collecting data, you can't
always just go, well, this is the most
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profitable set of rules, so I'm going to
trade it this way.
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You also need to take into account, what
am I going to be able to execute in the
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live market consistently?
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Because if you find that, you know,
entering on the EQ gives you your best
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results when you're backtesting, you
might find in live market, well, you
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three or four trades in a row where it
doesn't quite tag you in that's going to
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affect your psychology right you're
going to get FOMO and then you might not
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execute the next trade or you might
start making mistakes so kind of try and
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find that happy medium for where you're
getting tagged into enough trades that
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you know you'll be happy with and it's
still still decent risk reward right
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always a little bit of a trade -off but
again main thing pick something that
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you're consistent with we recommend you
start with this this is basically at the
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time recording this is what I pretty
much always use i always enter on um a
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single candle pivot zone and i pretty
much always enter on the edge um for the
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most part okay one thing i haven't
spoken about here it's probably not the
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example but when you get two candles
like this or sometimes even three and
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thrust candle closes above it okay so
imagine the wick of this candle was a
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little bit higher what you may want to
do is refine your zone just a little bit
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higher okay so it's like this so you
include both of those candles sorry it
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keeps disappearing so when you get a
thrust candle that closes above like the
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two or three candles to the left you may
want to include that as well because
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sometimes price will just tap the top of
that and run but that's just something
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to keep an eye on something to test and
again it's a way of being mechanical if
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you're just looking for when the thrust
candle closes above the candles to the
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left you may want to include both of
those um as well so yeah there's not
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too much else i can add here start with
the left Start with that, get consistent
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with everything. And if you want to
refine a bit more, this is what you can
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But I would highly recommend if you're
going to start doing this, collect data
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on it and just have columns for each one
and just see what works for you. But
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really think about the trade -off
between increasing your risk reward and
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also missing a lot more trades. But
yeah, be consistent with whatever you
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Some people sometimes do the edge and
sometimes do 25 % in certain scenarios.
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But if you're going to chop and change,
make sure you have certain rules for
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when you're going to do that. And I'll
leave that up to you.
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Cool.
10759
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