I am about to ask Chad GPT about the most effective trading indicator, but that is just the beginning. We are not stopping there. We are going to put the indicator that Chad GPT suggests to the ultimate test by back testing it 100 times. So make sure you are tuned in for the entire video because you will not want to miss a single moment of this trading experiment.
Now, let’s dive in. In this video, I will explain what we learned. First, I will discuss what trading indicators are, which we will use in this video. Second, I will teach you how to place trading indicators that we discuss in this video. Third, I will teach you how to place a stop loss and take profit using this trading indicator. Fourth, I will give a conclusion from our trading strategy using smart. Fifth, I will give you additional information.
Alright, let’s jump to the first chapter. The first question is what trading indicators will we use in this video? In this video, Chad GPT recommends two trading indicators. The first one is the Trend Magic indicator, and the second one is the Vortex indicator. Now, let’s place these indicators on our trading chart.
The first step is to open your trading chart. For this example, I will explain this video on the yearly chart in one-hour time frame. Please click on the indicator writing and write ‘Trend Magic’ after the Trend Magic, please click on the indicator. You can see the Trend Magic indicator on your chart. We don’t need to change the settings on this indicator.
Now, I will teach you how to place the Vortex indicator. The first step is to click the indicator menu at the top. In the search menu, please write down ‘Vortex’. If you see the Vortex indicator option by VSOV, click on it. After that, close the search menu. We don’t need to change the settings on this indicator.
After you have successfully placed the Trend Magic and Vortex indicators on your trading chart, now I will teach you how to use these trading indicators. Let’s start with the buy entry rules and exit rules when using this combination.
In the first step, we see a green line on the Trend Magic indicator. Second, the Vortex indicator has a dark green color. You can go for a buy transaction. Please place your stop loss position on the last low of the market. Then, please place the take profit position 1.5 times greater than your stop loss value. Now, let’s see how this trade turns out.
For a while, it turned out that our trading position touched take profit. Now, I will explain the sell entry rule. In the first step, we see a red line on the Trend Magic indicator. Second, the Vortex indicator has a dark red color. You can go for a sell transaction. Please place your stop-loss position on the last high of the market. Then, please place the take profit position 1.5 times greater than your stop loss value. Now, let’s see how this trade turns out.
For a while, it turned out that our trading position touched take profit. Before I show you a Time Lapse video when I was back testing this trading strategy, I have interesting information for you. I often get questions about what app one uses for back testing in each of my videos. The application I use is called Trader Edge. Trader Edge offers a back testing service that allows traders to quickly record all their trades as they back test. The advantage of Trader Edge that I like is back testing with Trader Edge is three times more efficient than traditional methods like spreadsheets. Sign up right now to get a seven-day free trial from Trader Edge.
Now, let’s start the back testing video. The video you are seeing right now is a Time Lapse video when I backtested the Trend Magic indicator and Vortex indicator. While waiting for the back testing results, don’t forget to join our free Telegram Channel. You can get free trading signals and join the discussion group to share your experience with other traders.
Okay, it looks like our back testing will be finished soon. I will give some conclusions regarding our back testing results. Now, I will convey the conclusion of back testing trading indicators which we are doing now. First, it turns out that the Trend Magic indicator and the Vortex indicator have an accuracy rate of 51 percent. Second, by applying a risk to reward ratio of 1 to 1.5 and placing a transaction risk of one percent per open position, this trading strategy can help you grow your trading account up to 30.58 percent from the initial balance. The maximum consecutive profit is six in a row, while the maximum loss in a row is five in a row. The maximum drawdown of this strategy is 4.9 percent.
From the performance we have seen, I can conclude that this is a great trading strategy. Like I said earlier, I will give you some information. Don’t use the back testing results in this video as your primary reference if you want to use this trading strategy. I advise you to keep back testing independently to see how this strategy works in other currency pairs or on different trading time frames. We at Max Trade Academy are not responsible for any profit or loss you experience when using our trading strategy. This video is for reference purposes only and is not financial advice for you.
Okay, that’s the video for this time. Hopefully, you get a lot of educational benefits from this video. See you in the next video.
