BEST CHAIKIN Trading Strategy that actually makes MONEY after 100 TRADES !! - Forex Day Trading - YouTube

Channel: TRADING RUSH

[0]
Can Chaikin oscillator trading strategy聽make you more money in stock or forex trading?
[5]
We tested the money flow index 100 times on the Trading Rush channel, I found out that
[10]
the money flow index has an Ok win rate and can sometimes make money. Then we tested the
[16]
Chaikin money flow 100 times, and that worked as well. What will happen if we test the chaikin
[22]
oscillator 100 times, will it perform better? In this video, I'm going to test the Chaikin
[28]
oscillator 100 times to find its win rate, and to see how many winners and losers it
[34]
can have in a row. Furthermore, at the end, I'm going to give it a Trading Rush score.
[40]
What's the Trading Rush score? It's like the Doug score, but for trading indicators. Now聽I
[46]
have tested many other indicators 100 times on the Trading Rush channel, but I never gave
[52]
them a Trading Rush score, so I will rate other indicators hopefully in the coming week
[57]
as well, which you will be able to find on the Official Trading Rush Website. This way,
[62]
beginner traders who are looking for proven profitable strategies, can find it easily
[67]
on the Trading Rush Channel, not just sorting by聽highest win rate, but with other categories
[72]
as well.
[74]
Subscribe to the Trading Rush and ring that notification bell, because we test many different
[79]
trading strategies 100 times to find their win rates, and you don't want to miss that.
[84]
If you plot the Chaikin oscillator on your trading chart, you will notice that it comes
[89]
with 1 line that moves above and below zero. This line tries to show the momentum of a
[95]
trend. The Chaikin oscillator will try to show the buying and selling pressure. Indicators
[101]
like the Chaikin oscillator, which try to show the momentum of a trend, have worked
[106]
really well on this channel. So let's see if this indicator performs good as well after
[111]
100 trades.
[113]
The idea is pretty simple, when the Chaikin oscillator is above the zero line, the buying
[119]
pressure is high. Similarly, when the Chaikin oscillator is
[123]
below the zero line, the selling pressure is high.
[127]
The basic聽strategy based around the Chaikin oscillator goes like this. When the Chaikin
[132]
oscillator is crossing above the zero line, it's a buy signal.
[136]
And when the Chaikin oscillator crosses below the zero line, it's a sell signal.
[141]
In this example, the Chaikin oscillator crossed above the zero line. So entry is at the first
[147]
candle that closed above the zero line of the Chaikin oscillator. And in this example,
[152]
the Chaikin oscillator crossed below the zero line. So entry is when the first candle closes
[158]
below the zero line.
[160]
But what about long term? Will this indicator聽聽 work in the long run? Before we test the Chaikin
[167]
oscillator 100 times, we will have to modify the Chaikin oscillator strategy to fit with
[173]
the trend. Taking every single trade will make you lose money. But we can use the 200
[179]
E MA to find the long term聽trend direction.聽
[182]
So the better chaikin oscillator trading strategy goes something like this.
[187]
Buy聽when the Chaikin oscillator crosses above the zero line, and if price is above the 200
[193]
E MA. As for the stop loss, you can set it below the pullback.
[198]
And Sell when the Chaikin oscillator crosses below the zero line, and if price is below
[203]
the 200 E MA. Stop Loss is above the pullback. Furthermore, in both of these setups, the
[210]
entire candle has to be above or below the 200 period moving average.聽
[216]
In this example, the price stayed above the 200 E MA, so we are only going to buy. The
[222]
Chaikin oscillator gave a long entry signal, so entry is at the closing price of the candle.
[227]
Stop Loss is below the swing low.
[230]
In this example, the price stayed below the 200 E MA, so we are only going to sell. The
[236]
Chaikin oscillator gave a short signal, so the short entry is at the聽closing price of
[240]
the candle that crosses below the zero line, and set the stop loss above the swing high.
[247]
The Chaikin oscillator trading strategy was tested on the 30 min timeframe and on the
[251]
Euro JPY pair. And聽after testing the Chaikin oscillator 100 times, here's what happened.
[259]
Number 1. At the start, when price was in an uptrend, Chaikin oscillator gave multiple
[265]
winning trades in a row. The indicator gives many entry signals in a short period of time,
[271]
but these entry signals are not bad like some聽other indicators we have seen on this channel.
[277]
When the trend was coming to an end or was changing direction, the Chaikin oscillator
[281]
did give a decent amount of聽false signals, but it makes up for that by giving many good
[286]
signals in a strong trend. You can see this in the Trading Rush App,
[291]
when the price was trending, the profit line was going up. Then it slowly went down when
[296]
the price was changing the trend direction or was moving slowly. It gave back some of
[302]
the profit it made, but when price started to move again in one direction, it made even聽more
[308]
profit. You can filter the range market by using other indicators like the alligator.
[313]
I have already discussed more聽about the alligator indicator on the Trading Rush channel, check
[318]
it out to learn more.
[320]
Number 2.聽Unlike some other indicators, there is nothing particularly bad about the Chaikin
[325]
Oscillator. The entry signals it gives are not late most of the time, and because of
[331]
this, your pullback stop loss stays smaller.聽
[334]
After testing the Chaikin oscillator 100 times, I got an approximate win rate of 47 percent,
[340]
which is a profitable win rate because we used a 1.5 to 1 reward risk ratio. The profit
[347]
graph in the Trading Rush App looks good and is going up, with few pullbacks when the price
[352]
starts moving sideways. In the end, it managed to make money, with 7 losses in a row, but
[358]
11 winning trades in a row.
[361]
And now, let's give the Chaikin oscillator聽a Trading Rush score.
[366]
In the win rate category, Chaikin oscillator gets a 5.5 out of 10. Win rate is good and
[373]
profitable, but not high as some other trading strategies we have seen on the Trading Rush
[377]
channel.
[378]
In the easy to use category, it gets a 7.5聽out of 10. The Chaikin oscillator strategy is
[385]
fairly straightforward and all you have to do is look at a line when it crosses above
[389]
or below another line.
[391]
If we talk about the reliability category, it gets a 6 out of 10. The Chaikin oscillator
[398]
gives many winning trades in a row, but also gives many false signals in a row. Strategies
[404]
that聽give multiple signals in a short period of time, are usually not that good, because
[409]
when price stays in the sideways direction for a long time, you can lose a lot of money
[413]
if the signals are false.
[416]
If we talk about consistent profits, it gets a 5 out of 10. The profit graph in the Trading
[421]
Rush App went up in the long run, but there were sudden upward moves, and many losing
[426]
trades in a row. The profit graph you will get with the Chaikin oscillator strategy won't
[431]
be as consistent as some other strategies.
[434]
If we talk about the quality of the entry signals, the Chaikin oscillator strategy we
[439]
tested in this video,聽gives entry signals in the direction of the long term trend direction,
[445]
where price has higher probability of moving. And because it doesn't give late entry signals
[450]
most of the time, it gets a 7 out of 10.
[454]
So the overall Trading Rush聽score is 31 out of 50. Other trading strategies that had excellent
[460]
win rates after testing 100 times, will get a Trading Rush score soon.
[466]
So subscribe and ring the notification bell, and because on the Trading Rush channel,聽we
[472]
test and have tested trading聽strategies multiple times to find their win rates. And you don't
[477]
want to miss that. Maybe considered supporting the channel on Patreon to see in depth trade
[482]
analysis. Thanks for watching.