Hey hey: what's up my friends so in today's training, right i'll share with you a specific trading strategy right that has a 88.89 winning rate i'll give you the exact trading rules, uh the performance matrix of this strategy, examples of it and much more so with that Said, let's get started so, first and foremost, what is this trading strategy about and why it works right. So before we get started, i want to say that uh larry connors right. He is the person that i learned from so credits to larry corners, because without him right, today's trading won't even be available for you to watch, because the idea, the concept, the strategy - i learned it from him, okay, so the the core idea right behind this trading Strategy is that it's a pullback stock trading strategy and here's the thing right why? Why is that right? Because in the long run you know that the market is the stock market, it's in a long-term uptrend, why? The reason is simple, because the stock market tracks what the economy is doing, the reason why the u.s stock market has been in a long-term uptrend since 1900s is because the economy in the u.s in 1900s compared to today, has improved so much right over the last 100 years, or so same thing for the singapore stock markets, same thing for the china stock markets right most stock markets out there, they are in a long term uptrend, because today's economy is much better than where we were where we were like 50 years ago. 100 years ago, okay, but here's the thing just because a market is in a long term, uptrend doesn't mean that it goes up in one straight line that doesn't.

That is how it works right because, as you know, a market could be in an uptrend, but it has a series of you know: higher highs and higher lows and in the short run right because of panic selling because of profit taking because of fear in the Market right, the prices right in the market could go below its true valuation, okay, so this means right that there exists right, profitable trading opportunities right for traders like us to take advantage of - and this is what uh today's trading strategy is all about. We are looking to identify pullback in the stock markets. We are looking to identify fear in the markets. We are looking for the market to you, know uh uh to have a sell-off right.

Then we enter on the pullback and hopefully we are able to profit right when the market makes the next swing up higher. So these are the rules right of this trading strategy. We are trading on the s p, 500 market. You can do it on the etf.

You can do it on the futures, it's up to you, uh, even if you want to you, can test it on your own local stock markets. You can test it on the russell 1000. You can test it on nasdaq i'll leave it to you. Okay, again, first and foremost, we want to be trading right when the overall market is in an uptrend.

So our way to define the trend is that the s p 500 must be above the 200-day moving average. So you just pull out your 200-day moving average. If the s p 500 is above it great now, we have permission right to to trade right. If not, we will remain in cash.

Our entry. This is very straightforward right now. Entry is also otherwise known as the uh defining the depth of the pullback. We want the 10 period rsi to be below 30.

okay, so this is how we define our so-called trading setup right. Our entry point, the 10 period rsi, must be below 30. once it's below 30. What we're going to do is that when the market opens the next day, we'll just simply enter using a market order right, whatever price it is we'll enter on market order, our exit very straightforward as well.

We are looking to exit right when the 10 period rsi has crossed above 40 or after 10 trading days right, because sometimes the 10 period rsi can be re below 40 for quite a number of days or weeks, especially during recession. So this is where we have a time stop right. After 10 trading days, uh the market, or rather the 10 period rsi has not crossed above 40 will also manually exit the trade okay. But if the 10 period rsi has crossed above 40, then we will simply sell it on the next days.

Open make sense. So let's have a look at a few examples. Shall we? So if you look at this chart, what i've shared with you over here is just simply the chart of the s p 500. This is the futures market chart.

So let's have a look at how this trading setup looks like. So you can see this black line over here. We have, is the uh 200-day moving average, this black line here, so the smb 500 is above it. That's uh, that's the first criteria.

Second criteria we need is for the 10 period rsi to go below 30.. So i've pulled out the 10 period rsi, so you can reference it easily over here 10 period rsi - and you can see over here right now. The rsi value is 19.. So this has met our criteria because, if you recall the 10 period, rsi must be below 30..

So when the market closes today right rsi now is trading at 19.. So our entry i mean our setup - is met. We are going to enter on the next day's open so when the market open the next day, okay, we will simply go long over here. Okay, so what's the exit criteria, it is when the 10 period rsi crosses above 40 or after 10 trading days.

So you can see on the next day. Rsi has now crossed above 40. over here. Okay, not not exactly the next day, but two days later, rsi has crossed above 40 close at 48., so we'll exit on the next day open, which is on this candle.

Here we exit on this candle open, so you can imagine right for this setup. Your entry point is here you buy here, and you sell here just capturing this kind of like this one swing up higher this one swing. Okay, let's have a look at another trading setup, so this time around again, the rules are the same right looking to buy when rsi is below 30.. So we have it over here again.

Look at this at this point on today. Smp is still above the 200-day moving average, so the overall trend is still towards the upside look at the rsi. Now the value is 28., so we have the uh. The the setup right is made right because the 10 period rsi is below 30..

So what we'll do is we enter on the next day open so next day, market open here, so we go along on the next day open our exit is after 10 trading days or when the 10 period rsi has crossed above 40.. So, in this case here it has now crossed above 40, so we exit on the next day open, which is somewhere here. So we can see we enter here exit here so thereby just capturing this uh, this uh again, this small swing up higher. So this is pretty much how this trading strategy works.

Right and again, i know this is just some simple chart examples, but so let me share with you the the matrix right of how this uh trading strategy has performed. So many of you have asked me right what platform i used to do the back testing, so this one is uh. This platform is called army broker right. You can see that these are the results right from 1996 right all the way to 2019, which is the duration of the back test from 1996 to 2019 about 14 years of data.

These are the result right of every trade right that the trading strategy has taken. So you can look at the numbers which you can digest easily okay. This is the excel spreadsheet table that i've exported. You can see that over the 14 years we have about 36 trades.

Our winning rate over here is 88.89, as i mentioned earlier and uh, the average gain right per trade right average profit per trade is about 1.43 and your average loss right on each trade is about negative 0.87 percent. So overall right, this is a uh. It seems like you know something that will give you an edge in the markets. Okay.

However, there is a downside to this and i'll explain this shortly. So moving on right, how can you apply this to your trading right? So first lesson is this right? You want to look for buying opportunities right after a strong quebec in the stock market. So when you see the stock market makes a strong pullback right, the top process that you have right, especially if it's still above the 200-day moving average, is that, where can i look for buying opportunities? Maybe a pullback towards uh like, for example, the time period? Rsi is below 30. If you're a discretionary trader, you can use tools like you know, candlestick patterns uh support, trendline right to help you better time your entry right.

That's one way you can go about doing it, and one thing to point out is that you want to avoid shorting the stock market, especially you know. I know it's tempting no well strong, bearish momentum in the stock markets right. You know it's time to sell something to shut. The market market is going to collapse, but here's the thing right, based on historical testing right more often than not the price right, tends to reverse back up higher so as much as possible right.

You want to avoid shorting the stock markets, especially right, if it's still above the 200-day moving average makes sense, and the second thing is this right. So, as mentioned earlier, i i said that you know the so-called downside to this trading system is that there are not many trading opportunities right. So as you've seen over the last 14 years, we have about 36 trading opportunities on the smb 500. So what you can do right to have more trading opportunities is to, for example, you can trade uh more etf, like, for example, you can trade, the s p.

500. The russell 1000 russell 3000. Nasdaq right all this together to get more trading opportunities - or you can also you know - trade, individual stocks right, individual stocks in let's, say the s p 500. This will give you more trading opportunities right to exploit this uh.

This is called inefficiency or pattern in the stock market, and if you want to learn more about how you can actually apply this concept to trade individual stocks in the market, then i recommend you to get this a copy of this uh. This booklet over here called the pullback stock trading system, so this booklet will share with you: are the exact trading rules right on how you can actually trade individual stocks in the market? So if you want to learn more, you can just go down to my this site over here. It's called pullbackstocktradingsystem.com, okay, i'll ship. You this uh a copy of this booklet, uh anywhere in the world in the us it will be 990 uh.

If you are international right, you will be 12.90 and again it comes with a 30 day money back guarantee. If you read the booklet, you find that you know it's not really for you, just email, us and we'll refund you in full right so again the booklet. This trading system right uh, the exact rules, is in the booklet. You can see the performance over the last uh about 19 20 years.

It's all here on this website. So again right, you can just head down to the website. Pullbackstocktradingsystem.Com get your copy and with that said right i hope you know you found this training useful. I wish you good luck and good trading.

I will talk to you soon.