Original subtitles

Hi guys, welcome to the strategy section. So this is

the DB four strategy. This strategy is a trending strategy

in which we trade the pullback after it makes a double

rejection on the email. Create in a high probability

opportunity. This is a simple and easy to follow strategy.

All the rules are predefined beforehand so there's no

guessing. After you learn this strategy I want you to go out

and back test every individual market that you're thinking of

trading at least 40 times per pair. Obviously do more if this

gives you more confidence going forward. The testing period is

very important as this was what would be creating the pattern

recognition skills and you'll start to gain a sense of

intuition also some pairs will not work as well on this

strategy as there are certain markets that tend to meme

revert in trading ranges and some markets are more trending

for example in my testing Aussie pairs tend to be more

meme reverting and pairs like pound gold or even US dollar

tend to trend this is what you need to find out so I'm not

going to tell you the pairs that that work as I feel this

is an important step in creating confidence and

discipline in yourself so the strategy rules are simply the

EMAs have to be aligned which are the 1020 and 50 EMA so a

good way of thinking is a comma so correct order of moving

averages we want next we want to price to make the trend

pattern which I'll be going over in a second then we want

to see a double bounce on the one of the EMAs either 1020 or

50 and we simply enter stop order on the second rejection

of the EMA and for stop loss it's a 1. 5 ATR from the entry

there yeah just from the entry the exit is you just move it to

break even after four candles or you exit if you're in the

negative target options this is up to you this is your personal

choice is in the test these are what work best so one R and 2R

1. 5 R fixed target or one R and a trailing stop loss

following the EMA that you entered on So this is the trend

trend wave pattern. So basically in an uptrend you've

got higher highs and higher lows. And the opposite for a a

downtrend. Um lower lows and lower highs. Just see it as the

market breathing in and out. So I breathe out, breathe in,

breathe out, resets and carries on. So here's the pattern in

action so you can see we start with a lower low then a lower

high and then and a rejection there and then it makes another

lower low and then the final lower highs there also rejects

in the EMA which is where we'd enter with a stop order so

practice drawing trends using line tools on on your on your

broker and get familiar with this pattern and just keep

drawing them over and over and over so you're doing it in your

sleep so good way of remembering what it looks like

is just basically like a lightning bolt.

So the lower so the trending wave pattern it's not always

obvious at first so like I said at the beginning it's just

practice drawing the the trend on just to become familiar with

it as you can see it's a lower low here a lower high first

rejection a lower low and then another lower high and

rejection and yes I do count the widths as a lower low or

lower high or high high when I'm doing the wave pattern. So

what candles do we enter on so we we enter on doges and

goofing or pin boys but to make it even simpler we just want to

see a small candle or a small candle with wicks or a candle

that's bigger than the previous AKA and goofing and then we

want to see rejecting the twice and we enter on the second and

simply enter a stop order above or below so up on screen these

are the candle sticks so we've got doges again we just want to

see small candles with wicks and then we've got pin bars

this is I always love seeing a pin bar good sign of strength

and and engulfing just engulfs the previous candle so the so

this is a bullish one if we're looking for an uptrend that

would engulf the previous we enter a stop order above here

for going short got a bearish engulfing engulfs the previous

one and we'd enter a stop order below here

So stop order entry. It basically we want to go with a

momentum. So we want the trade to be going in our favour.

Shooting up or down. We depending if we're going long

or short. So yeah we just simply enter the a break above

the candle. Like so. Either on a goofy pin bar dodgy. So next

up we have the ATR stop loss so add the ATR to your indicators

and set it to 20 days an SMA when we're looking to enter and

place our stop loss simply hover over the candle and look

at the ATR this is the average daily volatility of pips we

want to divide this by two and then add add the original

amount so using the example below we'd hover over the

candle and it it show us 228 so you just divide this by two and

that would be one one four and then add the original ATR

amount to 28 and your total will be 342, which in pips

would equal 334. 2 and that's our stop loss so you add this

from where you're going to enter the stop order below or

above the candle so a full breakdown we've got the lower

low lower high and the lower low we've got the first

rejection here and then we've got the second rejection there

the EMAs are aligned got the 10 the 20 and the 50 pulse based

and yes the two rejections like I said and then we simply enter

a stop order below this but because that one closed higher

you can then raise your stop order there to get an even

better entry and then we get filled and then break even

after four candles so 1 234 this candle you'd move it to

break even and it just keep you keep you in for a bit of profit

before reversing back and the stop loss would be on this stop

loss ATR would be hovering over this candle and working out the

and that's what it would be. So it's all predefined, all ready,

all good. So sometimes you cannot enter the trade when the

candle is too big like an engulfing candle so there's a a

technique you can use which is the 50 -fib technique basically

you measure the candle from the high to the low using the fib

and archie retracement tool and enter the 50% level so here's

what I'll do I'll go over to the charts and show you an

example so here we've got an example of a trade so we have

the first rejection here so we have the lower low lower high

lower low lower high then we've had the first rejection and the

second rejection now this candle was far too big for the

stop loss I like to have a bit of room above it so what we can

do is we get our Fibonacci and just measure it so go from the

bottom to the top

and you can see the note. five level is where you enter so

hovering over the candle if you look to the left down here it

says 151 so I'll get the calculator so 1 five one

divided by two plus 151 equals 226 so I'll put it at the 50%

mark and then put 226 or 22. 6 pips

So plenty of room on the stop loss. So first targets there

are one to one so you can see plenty of room on the stop loss

above which is good and we're getting a good entry there so

as you can see this wick just filled us in at the 50% level

and then you count your your bars so count that as original

1234 move it to break even and then yeah hits targets. So I

want to quickly cover this one rule in the strategy. This is

the most important in my opinion. This is because it's

our risk management. It's a leading indicator and time

saver all in one. A price is not doing what we want after

four candles and this is signed something's not right. There's

either no momentum or we're just too early or too late. You

want to be out of bad trade trades as soon as possible. So

it leaves more capital for other opportunities. This will

also get you out of a lot of bad trades and save time and

most importantly money. This is the only risk management you

need to do in this strategy and it's made easy by not having to

guess or overthink the situation which is key. So,

make sure you stick to this rule no matter what.