Original subtitles

So this lesson should be somewhat simple but basically this is these are some

methods that can be very very effective at instantly increasing your average

risk reward in an extremely mechanical and systematic manner and as you can see

all it literally is is just refining your entry to be a little bit further

within the zone that you're entering within and that's it.

But that can have a massive impact on your results over the long term because

you can see here, all four of these, I have to count those quickly to double

check, all four of these examples are obviously the same price action example,

right? It's the same thing, same trade idea, blah, blah, blah, blah, blah.

But like, depending on whether you enter on the edge of the zone, right, stop

losses are always behind, they're always in the same area.

But whether you enter on the front edge of it or you enter somewhere within is

going to increase your risk to reward significantly, especially when some of

these zones can get quite big, okay?

So, I mean they're somewhat self explanatory but may as well quickly talk

through them.

I've just called this edge, entering on the edge of the zone.

Now, over the years I've always referred to this as the distal, the front of the

zone, but I've been informed that that's completely wrong.

I think the front is supposed to be called the proximal and the back is

the distal.

Anyway, I forget it. So I'm going to refer to it as the edge from now on, the

front edge, okay?

But if you hear us mention this or you see it in the old content somewhere,

is basically what we're referring to. We mean entering on the front edge of your

zone, okay?

So that's the most, obviously, unrefined way of entering on any zone that you

draw. Then you simply enter on the 25 % of the zone. So the way you can do this

here, I'm just using a Fibonacci tool, okay? So the Fib retracement, you can

grab that from up here.

And then when you draw it, so for instance if you draw like that double

into it and then you just click if you want to enter on 25 add in the 25 there

okay and it will come in and you need to play around with like the background

colors and and things like that so so it appears uh when you do it but

essentially what it should look like if you wanted to do this one is there you

go 0 .25 so you have zero 0 .25 and one and all that is saying is that you're

drawing the 25

section of the box okay so you enter there so it's a little bit more refined

then obviously entering on zero percent increases risk reward then likewise here

you're just entering on 0 .5 right halfway in the zone so you're always

on the eq and then this is a slightly different one whereby uh you just enter

the body candle so obviously if it's demand you do the high of the candle and

it was supply you would do the low of the candle um

this isn't really something i've ever done uh when i first ever started using

supply and demand this was actually how i drew supply and demand zones um but i

didn't use to enter on them directly to trade in a slightly different way um but

yeah this just may be a way you want to test because that is where in theory the

bulk of the orders should be so some of you might want to want to test that out

it's just another option but the key thing as always about all of this is

trying to be consistent and mechanical as always right so

these are ways in which you do that right sometimes you don't just go i'm

to kind of enter in the zone a little bit because i want to keep my stop loss

little bit smaller or a little bit bigger or whatever it's like no i always

enter on the 25 of the zone or i always enter on the edge or i always enter an

eq you need to have a rule to decide you know how and when you're doing things

so you can be consistent now what i would say is always use this as your

when you're starting out okay just enter on the front edge of the zone okay and

stop loss is behind and just start off with that

Get consistent with all of the other variables and everything we're trying to

here. And then when you're kind of like, right, now how can I just try and

refine a little bit more? Then think about this, okay? And go back to all of

your old trades with your backtesting data and literally just have a column,

right? And then you can just have all four of these and just go back through

go, okay, what would the result be?

Because obviously, the more refined you are, your risk -reward goes up, but it's

at the expense of potentially not getting tagged in, okay? So you can have

missed trades.

So when you test this and when you backtest this or in anything you're

and you're collecting data, you can't always just go, well, this is the most

profitable set of rules, so I'm going to trade it this way.

You also need to take into account, what am I going to be able to execute in the

live market consistently?

Because if you find that, you know, entering on the EQ gives you your best

results when you're backtesting, you might find in live market, well, you

three or four trades in a row where it doesn't quite tag you in that's going to

affect your psychology right you're going to get FOMO and then you might not

execute the next trade or you might start making mistakes so kind of try and

find that happy medium for where you're getting tagged into enough trades that

you know you'll be happy with and it's still still decent risk reward right

always a little bit of a trade -off but again main thing pick something that

you're consistent with we recommend you start with this this is basically at the

time recording this is what I pretty much always use i always enter on um a

single candle pivot zone and i pretty much always enter on the edge um for the

most part okay one thing i haven't spoken about here it's probably not the

example but when you get two candles like this or sometimes even three and

thrust candle closes above it okay so imagine the wick of this candle was a

little bit higher what you may want to do is refine your zone just a little bit

higher okay so it's like this so you include both of those candles sorry it

keeps disappearing so when you get a thrust candle that closes above like the

two or three candles to the left you may want to include that as well because

sometimes price will just tap the top of that and run but that's just something

to keep an eye on something to test and again it's a way of being mechanical if

you're just looking for when the thrust candle closes above the candles to the

left you may want to include both of those um as well so yeah there's not

too much else i can add here start with the left Start with that, get consistent

with everything. And if you want to refine a bit more, this is what you can

But I would highly recommend if you're going to start doing this, collect data

on it and just have columns for each one and just see what works for you. But

really think about the trade -off between increasing your risk reward and

also missing a lot more trades. But yeah, be consistent with whatever you

Some people sometimes do the edge and sometimes do 25 % in certain scenarios.

But if you're going to chop and change, make sure you have certain rules for

when you're going to do that. And I'll leave that up to you.

Cool.