This would have been my dream strategy when I started out as a trader. It involves only 2 simple steps:
Step 1: Identify the current market trend.
Step 2: Wait for a pullback (you may call it retracement, or dip/rally, theyโre all the same thing). And then enter the market in direction of the current market trend.
Simple, isnโt it? And if I had to guess, 90% of retail traders would get better results if they stick with this simple pullback strategy, instead of chasing that one elusive โmagicโ system.
Today weโre taking pullback trading to a whole new level. Hereโs why:
Weโve just put the finishing touch to the all-new Pullback Solution indicator.
I might be biased, but I really think:
Pullback Solution is probably the best indicator ever developed for trading pullbacks.
Let me show you the last 7 trade setups that Pullback Solution gave me on GBP/USD. And then Iโll explain exactly how it works:
First, the Pullback Solution indicator automatically identifies the current market trend.
If the current trend is up, then Pullback Solution will only look for buy (long) trade setups.
On the other hand, if the current trend is down, then Pullback Solution will only look for sell (short) trade setups.
This โTrend Filterโ criteria may sound simple, in principle. But donโt underestimate it. Because, as you will see in a moment, this principle can single-handedly make or break a trading strategy.
Second, once the current trend has been determined, Pullback Solution will scan the pair for high-probability entries for trading pullbacks.
And then the indicator will print on your chart the very best trade entries that have the highest probability of winning.
Nextโฆ and hereโs where it gets REALLY interesting:
Thereโs a reason we aptly name this indicator โPullback Solutionโ.
Because itโs as close as it gets to a COMPLETE, AUTOMATED solution for trading pullbacks:
Once a trade entry is triggered, the indicator will show youย the best place to place your stop loss and take profit.
In other words, Pullback Solution gives you EVERYTHING on a silver platter: High-probability trade entry, stop loss, take profitโฆ
It does all of the hard work for you. You no longer have to guess when to enter or where to set your stop loss & take profit. Everythingโs taken care of. You donโt have to lift a finger.
And if you ask meโฆ
Pullback Solution is the EASIEST way to profit from trading pullbacks IMHOโฆ
To illustrate its power, weโve developed a simple trading strategy built around Pullback Solution as our โProof of Conceptโ. We would enter whenever the Pullback Solution indicator gives us an alert. And we would exit the trade when the market price closes above/below a short-term moving average.
Below are the backtest results of this stupid simple strategy on GBP/USD, EUR/USD, S&P 500, and NASDAQ 100:
But first,ย our full disclaimer:ย These are backtest HYPOTHETICAL results. We donโt control the future. We donโt know how this strategy will perform in the future. Trading is very hard and risky. Most traders lose money.
GBP/USD backtest results:
- Initial depost: $10,000
- Total net profit: $14,860.50
- Maximal drawdown: 22.14%
- Winning rate: 73.77%
ย
EUR/USD backtest results:
- Initial depost: $10,000
- Total net profit: $6,374.50
- Maximal drawdown: 17.59%
- Winning rate: 72.13%
ย
S&P500 backtest results:
The strategy only takes long trades when trading indices. Hereโs a tip: You should consider taking only long trades when trading indices to increase your winnning rate.
- Initial depost: $10,000
- Total net profit: $16,137
- Maximal drawdown: 23.39%
- Winning rate: 84.75%
ย
NASDAQ 100 backtest results:
The strategy only takes long trades when trading indices. Hereโs a tip: You should consider taking only long trades when trading indices to increase your winnning rate.
- Initial depost: $10,000
- Total net profit: $47,649
- Maximal drawdown: 26.69%
- Winning rate: 76.56%
ย
Now you understand why I love trading pullbacks so much!
And while weโre at it, hereโs an important tip Iโd tell my younger self:
When you first start out as a trader, focus on these 4 instruments only: GBP/USD, EUR/USD, S&P500, and NASDAQ 100.
These instruments are well-known for their tendency to trend AND their smooth price action. Thatโs the reason why itโs a lot easier to trade.
By the way, did you notice thatโฆ
The default settings for our stop loss and take profit ALWAYS ensure that the Reward:Risk ratio of EVERY trade is 2:1.
Which means, when you lose, youโll lose only a little. But when you win, youโll win BIG.
And that also means you only need to win less than 50% of the time in order to make a profit!
Next, letโs analyze how the Pullback Solution indicator works on multiple currency pairs as well as other instruments:
GBP/USD:
Anyway, my favorite part about Pullback Solution is thatโฆ
Since pullback is a UNIVERSAL trading concept, and it works on ANY timeframe and ANY currency pair (any financial instrument for that matter)โฆ
The Pullback Solution indicator works equally well for day traders, swing traders, and long-term tradersโฆ
Hereโs another important feature that you need to be aware of:
Our indicator filters out a lot of false signals, so youโll get the VERY BEST trade setups.
And by the way, itโs very very easy to trade with Pullback Solution becauseโฆ
The indicator gives you all kinds of alerts: Pop-up, Sound, Email, and Push Notifications as soon as a setup appearsโฆ
Plusโฆ youโre in total control. For example, you can change the color of any text, entry, stop loss & take profit.
In addition, the indicator is extremely flexible: Works on ANY currency pairโฆ ANY time-frame.
It also works on indices, stocks, commodities, and futures. Virtually any instrument you could think of.