70% WIN RATE Profitable LEVERAGE Trading Strategy BJI Indicator Secrets

Trading is easy, however, consistently profitable trading is where the difficulty lies. Traders since the beginning of time have tried to come up with a strategy that they could use in order to increase their win rates while minimizing their risk. In this article, we go over one of the ways in which you could do so. We discuss the different indicators, the settings used, and also go over the results. Read on to find out more. 

Indicators Explained 

There are 3 main indicators used in this trading setup, and each of these indicators has been explained below in detail. 

EMA 

The EMA is simply the exponential moving average of the stock‚Äôs closing price over a given number of trading sessions. It works in a very similar way to the SMA (Simple Moving Average), except it gives more priority to more recent data as this is considered to be more relevant than old data. The parameter that you have to enter for the EMA is the time period. Usually, traders only go long when the current price is above the EMA, and short when prices go below the EMA. 

RSI 

The RSI is a momentum indicator that is used to analyse the stock and identify if it is overbought or oversold at any point in time. It does this by monitoring the magnitude of recent price changes. The RSI is presented as a number between 0 and 100, wherein a number below 20 represents an oversold stock (ripe for a long position) and a number above 80 represents an overbought stock (ripe for a short). 

TSI

The True Strength Index is another trend indicator that can be used to identify trends and reversals. It can be used to identify trends and their strengths, as well as conditions where a particular security might be overbought or oversold. In addition to this, the indicator also uses oscillators to warn when a particular trend is getting weaker and is ripe for a reversal. 

Settings

For this particular trading setup, the default settings were used on all the indicators, however, the BJI versions of these indicators were used as opposed to the standard indicators available on TradingView.

The BJI EMA is a combination of 3 different EMA lines: EMA5, EMA9, and the EMA21. This was used to provide the trend direction: when the current price was the highest, followed by the EMA5, EMA9, and the EMA21 respectively, longs were made. When the EMA 21 was the highest, followed by the EMA9, EMA5, and the current price respectively, only shorts were made. The TSI and RSI indicators were then used to confirm the trend direction and indicate crossovers, which is where the trades would be initiated. 

The risk-reward ratio was taken above the usual level of 1:2. Two take-profit levels were set, and at the first take-profit level, half the profits would be taken, and the stop-loss would then be moved to this level. This would help protect the capital and also limit the downside of the position. 

Results and Adjustments 

Initial Results 

After a trading session over the course of 6 months worth of past data using the 30-minute Bitcoin charts, the overall results were: 

Profitability: 337.47% net profit 

Number of Trades: 887

% of trades profitable: 70.24% 

Profit factor: 1.449

Drawdown: 19.06%

Adjustments 

Some additional indicators and settings that could be added in order to increase the win rate and reduce the risk employed are: 

  1. Different levels of leverage could be employed to boost the profitability and/or the win-rate associated with the strategy. 
  2. The take-profit and stop-loss levels could be tweaked to further affect the percentages of trades that were profitable. 

Conclusion

There are several highly profitable trading strategies that you can use in order to trade the markets and profit, but there are few that are as highly effective as the one discussed above. By implementing it even in its current form, you can make significant profits. You can also tweak the settings and alter the parameters on your own, resulting in a higher win rate and/or profitability. 

Resources: 

  1. 70% WIN RATE Profitable LEVERAGE Trading Strategy BJI Indicator Secrets – YouTube 
  2. TradingView Indicator 
  3. Settings Used in the Video 
  4. Exponential Moving Average – Investopedia
  5. Relative Strength Index – Investopedia 
  6. True Strength Index – Investopedia

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