Hey hey: what's up my friends, so welcome back to today's training, where i'll share with you a simple trading system that has a 65 winning rate and has generated 1067 over the last 21 years. So let's get started. So the idea behind this system, you know, is goes along. The lines of this is number one strong, trending stocks right that are in an uptrend.

They are likely to continue in the direction of the trend. This has been proven right by numerous academic research. Even my own back testing so yeah, this is kind of like a fact number two along the way right these stocks. They don't go up in one straight line.

They have you know pullbacks retracement, along the way, and what this trading system does is to look to buy the dip right to buy the pullback and sell the ready. So it looks something like this right just to illustrate stocks are in an uptrend right. They are likely to continue going up higher so when he makes a pullback we're looking to buy the pullback and then when the stock goes up higher, we sell the rally. So now, let me give you the exact trading rules of this particular trading system.

That has a 65 winning rate, so the market that we will be trading is, or rather the stocks in the s p 500 index right the 500 stocks, the trend. How do we define the trend? We are looking to buy stocks above the 200 day moving average? That's the kind of like the filter entry point right. We are looking to buy when a stock price has hit a 10 day low, so when the stock price right has reached a 10 day low, meaning right the lowest price over the last 10 days. So let me just illustrate, let's say: uh one, two, three, four: five, six, seven, eight, nine! Then right! So, let's see these are all ten candles and on this day the 10 day right.

This is the lowest price. So when you look left the left over here right, these are 10 candles over here. When you look left, this is the lowest price right among these 10 candles here. So this is what we mean by a 10-day low, the lowest price over the last 10 days.

So when it hits a 10-day low, what's going to happen, is that the next day when the market open we're going to place a two percent buy limit order, a two percent buy limit order below the previous day, closing price. Okay and as for our exit, we are going to exit right when the market closes right above the five period, moving average very simple stuff. So let me give you a chart. Example.

Sorry, so you can see what this looks like. So you can see over here. This is a chart of nvidia again number one. The stock is above the 200 day, moving average number two over here.

The stock made a 10 day low. So if you look at this candle - and you look back right over the last 10 days - right 1, 2. 3. 4.

5. 6. 7. 8.

9. 10.. So the 10 day window is from here all the way to here. Okay and you look back right, this low right is the lowest price over the last 10 days, so the price, the stock price, has made a 10 day low.

But of course we don't just enter right when the stock price has made a 10 day. We are going to place a two percent buy limit order below the previous day, closing price. So, on this candle this day, you can see that the price traded right, two percent below this, this candle closing price right and we would have gotten filled on this candle. So it's a red bearish candle, many traders will freak out, they wouldn't dare to enter, and this is where the system shines.

So it buys right when the stock is kind of like oversold. So you enter on this candle over here, where the price traded, two percent below this candle closing price, and you got fuel. Where do you exit simple you exit right when the stock closes right above the five-day moving average? So you can see over here on this candle. It closes back above the five-day moving average and that's your signal to exit the trade.

So, of course, when the market is closed above the five day moving average. The market is closed. You can't, you know, put on a trade, so how do you exit the trade? Well, what you'll do is, you will wait for the market to open the next day and then you exit right at the open on this candle, so you exit at the opening price right the next day. So this is kind of like how this trading system works and, of course, you might be thinking ah reyna.

This is a cherry pick chart. Of course, it's a cherry picture to illustrate to you right how this trading system works, and you don't have to take. My word for it, because we can actually run right a back test right, since this is a systematic trading strategy. We can run it back test and see how he has performed right over the last 21 years and to do this back test right again.

We will use the exact rules that i've just shared with you and you know, share with you another two more things number one position sizing 10. What this means right is that you know there are 500 stocks in the s p. 500.. Let's say you have a hundred thousand dollars a trading capital 10 position.

Size means right: you can trade up to 10 stocks and risk not more than 10 of your capital, so in other words or each stock right, you will risk right, not more than 10. 000. Okay, so let's say there are 10 trading setups each set up. You allocate ten thousand dollars, ten thousand dollars, ten thousand dollars.

So this is what we mean by position: sizing 10 and what happens? If we have more than 10 trading setups right, then we will exceed right, our capital allocation. So what we'll do is that we will select stocks right that has increased the most in price over the last 100 days. So let's say, for example, we have 11 potential trading setups, but we can only buy 10 stocks. How do we know which are the 10 stocks to buy? Well, we rank this stocks right according to their price increase over the last 100 days, so stocks that have increased the most over the last 100 days.

We will favor those stocks to buy okay, so this is pretty much. You know some additional insights to give you into the back testing and, of course, right. We will uh commissions, we will charge one cent per share, so using this in mind, right here is the result right over the last 21 years. You can see that this trading system has uh.

This is the results over the last 21 years, all right on the year two year basis over here, you can see right. We have a few losing years in between, but overall it's a profitable trading system. This is how the equity curve looks like during the covit saga. We had a drawdown, but now the pro the system has pretty much.

You know regained from it and now break up to new equity highs, and you can see that we have over the last 21 years, have about 5 500 trades about a sixty five percent winning rate. Some of you might be thinking arena. That's not a sixty five percent winning rate. It's sixty four point.

Two: five percent man, you're click. Baiting me, you know what's clickbait clickbait is i say right. Oh, this is a 64 winning rate. Let's round it up to seventy percent.

Oh seventy percent. Let's round it up further two hundred percent: this is a hundred percent winning rates trading system. Well, that's click! Baiting! My friend sixty four point: two five to sixty five percent: it's semi-click baiting, okay, so anyway, it's about 65, a winning rate, and you can see that the average gain per trade is about. In this case, uh 3.17 average loss on the uh system per trade is about 4.33.

So you can see that your risk to reward ratio is slightly less than one to one, but why this trading system right still works in the long run, is because right off, it's a relatively high winning rate, almost uh 65 winning rate and yeah. That's pretty much. This trading system that you know i want to share with you now. If you've enjoyed this training right, then you will love right.

This upcoming webinar that i'll be holding is called stock trading secrets, where you'll discover how you can consistently beat the stock markets and generate an extra 10, 20 or even 40 a year right without starting chart patterns or analyzing financial reports. So the next upcoming webinar it's on 26 september uh, but you might be watching this video in october november december, then hey this event is over well. The good news is, i plan to hold this uh webinar right on a recurring basis, so i will update the next date right when this webinar will be held. So just come down to this uh page over here trading with renault.com sts right - and you will see when is the next available date right to join this webinar, and i can be sure that you know you wouldn't have to wait too long to join the webinar.

I will hold this uh pretty regularly, so others alright have a chance to you know, take part in this live training webinar. So during this live, webinar you'll discover how to grow your account to seven figures and beyond right without a large starting capital. You'll learn how to steal right hedge funds winning strategy, so you can avoid wasting time and money right on the stuff that don't work. You'll learn.

You know how to generate consistent profits from the market. Even during a financial crisis or a recession. You learn a simple trading system right that you can use to profit from the stock markets, even right if you've tried everything else and failed. So once again, this webinar - it is free - just come down to over here to this page trading with rainer.com trading with rainer.com sts click on any of the orange button that you see over here, like this over here, you'll be brought to a zoom webinar page.

Just fill in your details - and you know you can join me at this - live free training webinar. So that's pretty much it so with that's it. I wish you good luck. Good trading! I will talk to you soon.

Oh yeah. The link will be somewhere below this. Video, so just click on this link - and you can, you know, sign up for this free webinar, ta-da.