 So recently I decided to begin testing the most popular YouTube trading strategies. During my research I came across a bunch of channels that post up different strategies that claim to have 60, 70 or even higher win percentage making insane profits. But what I found is that most of these strategies didn't actually work. So what I'm doing for this video series is picking out the most popular trading strategies on YouTube and then coding together a bot so that I can back test these strategies using TradingView's back testing feature. I then show you guys the real results and win rates of these strategies with over 2,000 back test trades. Since I will have these strategies coded into an indicator, I will take the best performing ones and create some trading bots that I can test these strategies with actual real money. This is definitely going to be a fun experiment and who knows we might actually find some good strategies. So without further delay let's dive right into today's video. What's up guys I'm Jay and welcome to Bitcoin Daily. Remember that this content is for educational purposes only and is not financial advice. Always do your own research before risking any of your own money. So if you're new here and you enjoy this video don't forget to subscribe to the channel and smash that like button. Let's dive right in. So on today's video we are reviewing this strategy here from TradeIQ that claims you can turn $100 into $5,000. This currently has over 155,000 views and the title is this insane scalping crypto strategy will make you filthy rich. In the video he shows that this strategy has a win rate of 60%. After taking a total of 100 trades and he made a profit of 391.25% on just 100 trades using this strategy. He did his test on the five minute chart so today we'll be back testing this. Not only the five minute chart we're also going to look at the one minute chart, 15 minute chart, 30 minute chart, one hour, two hour and four hour charts. We'll do all of this by coding together a bot with the exact entry and exit rules so that then we can back test this as close to perfect as possible and get some real results. So let's go ahead and jump right into the strategy. The first thing you need to do on your chart is switch it from candles to Haiken Ashi. So if you guys remember from our last video we told you guys that any video that does a back testing strategy using the Haiken Ashi candles, the strategy probably doesn't work. If you look at this photo here you can see that these are normal candlesticks and these are Haiken Ashi candlesticks. You can see that there's a lot more green on the Haiken Ashi versus against regular candlesticks. If you look at it again here on the move up, this is basically all green over here. Look at this big red candle that does not exist on the Haiken Ashi chart. The reason for this is because the Haiken Ashi candles don't give you the actual real-time prices. What it gives you is an average price of the previous candles. So the closing price on a Haiken Ashi candle is the open plus high plus low plus close divided by four and the open price on a Haiken Ashi candle is the open of the previous bar plus close of previous bar divided by two. So if we split our chart into two with the left side being Haiken Ashi, right side being normal candlesticks. If we look at the last closed candle, you'll see that it opened at $20,389. If we look at it on the Japanese candlesticks, you'll see that it opened at $20,404. So about a $15 difference already on the open. Let's look at the close. This closed at $20,398. This closed at $20,405. That's a $7 difference. You might say, well $7, $15 is not a huge difference, right? But if you do this over and over and over, over 100 times, it begins to add up and it vastly affects your results. We showed you guys on our previous video what that looked like. When we ran all of our back tests on the Haiken Ashi chart, everything was literally green and profitable. When we ran the same exact strategy over the same exact amount of trades, using the same exact signals except opening them and closing them using real-time market data, which is candlesticks. This is what it looked like. And as you guys can see, it is a huge, huge difference. So now that you understand the difference between Haiken Ashi and Japanese candlesticks and why back testing on Haiken Ashi chart is inaccurate, we can move forward to the indicators for this strategy. So for our first indicator, we're going to use the exponential moving average. If you just search EMA, click on moving average exponential and this will add it to the chart. All you have to do is double click it and then we're going to change the length of the EMA from 9 to 200. We're going to go to style, make it a little bit thicker just so that we can see the line a little bit better and hit okay. Our second indicator is going to be RSI, the relative strength index indicator. If you just type in RSI, you'll see it right here relative strength index. So we're going to leave the inputs alone here. We're not touching those. What we're going to do is go over to style. We're leaving the RSI and the RSI middle band and we're basically taking everything else off. So I'm going to take all of these off, leaving RSI middle band taking these off. I'm going to change the RSI middle band from these dots to a line and then make it a little bit more visible. So it's a little bit more obvious and hit okay. The third and final indicator that we will need for the strategy is going to be the parabolic SAR by Evergett. Just click on that and now we are set with all the indicators that we need for the strategy. I'm going to open up the SAR. I'm going to leave the inputs as is, go over to style, take off long start, short start and trade state filling. Put the cell labels above bar and the buy labels below bar. Then we're going to hit okay. So let's go over the rules of entries for the strategy. In order to enter a long trade, there are three things that need to be happening. First, we need the parabolic SAR to be giving us a buy signal or for the dots to be green underneath the price. The second thing that we need is the price has to close above the 200 day EMA. And the final thing needed is for the RSI to be above this line, which is the 50 level. So when those three things happen at once, that is a entry trigger. So if we were looking for a long entry, you see the price right here is above the 200 day EMA. I am getting a buy signal here from the parabolic SAR and the RSI is above the 50 line. So my entry would have been here on that close. I'd be looking to set my stop loss below the swing low. So similar to the last strategy, in order to take profits, we're going to wait until we get the parabolic SAR to switch over to the top and give us a cell signal. So in this instance, we will be closing our trade on this candle right here. So if we closed on the close of that candle, it would have closed right about there. This would have gave us a move up of 0.57% in a risk to reward ratio of 0.73. So now we're doing the opposite. We're looking for a cell signal with the dots on top of the price. We're looking for the price to close below the 200 day moving average. And we're looking at the RSI to be below the 50 mark. So here we got a cell signal, but the price was still above the 200 day. So we wouldn't trigger that entry until this candle right here that you can see closes just below the 200 day. The RSI is below the 50. That would be where we would open our trade our short position. Once again, we're setting up our stop loss above the swing high. And then we're taking profits once the SAR indicator flips into a buy signal. So that would have been right around this close right here. So this trade would have made a profit of 1.43% with a risk to reward ratio of 2.42. So now that we know our entry and exit rolls, the next thing we need to do is get our bot coded together to match these exact rolls. Alright, so we've put our bot together. Let's compare its entries and exits to the examples that I gave you guys. So like that, we can confirm that it's following our exact rules. So here we saw this entry right here. Our bot entered it basically at the same exact spot. It actually entered on the open of the very next candle. You can see that it set its stop loss below the swing low, basically the same area that we're in. And it took profits pretty much the same exact spot where we took profits. You could also see that it took some extra trades here where we got buy signals price was above the EMA and RSI was above the 50 line. Exit it here on this sell signal entered again here and sold again there. It wasn't until here where actually opened a short entry. So you can see here right on this candle, all our rules are met. It set up the stop loss basically in the same area where we set up our stop loss and it closed its short position in the same spot where we closed our short position. So now we've compared our bots entries and exits with our manual entries and exits to make sure that they're the same and that the bot is following the exact rules. So in the video where they showed the strategy, they did 100 total trades that a 60% win rate and a PNL of 391.25%. So we're going to do our first back test on 100 trades on the five minute chart so that we can see how close to these results we might be. All right, so we just did the back test on 100 trades and here's our result net profit came in at 57.68% with a win rate of 53%. So our win rate is very close to this one. His was at 60. We're at 53. Depending on how the market was acting throughout that period of the 100 trades could easily change this. So we're not too far off on this. However, on the PNL, that's where we are very far off. Of course, again, if he hit a few big, big trades that could potentially be the difference. So not bad, right? Wrong. Let me explain. This back test was done again using the Heiken Ashi candles. When you use the Heiken Ashi chart, these entries and exits are not accurate because they're an average of the average open and close of previous candles. So because of that, you can't accurately back test trading strategies using the Heiken Ashi chart. But what you can do is use the Heiken Ashi chart for the strategy to signal and indicate entries and exits, but you must open and close your trades using candlesticks. And that's exactly what we did here and what we're going to show you in our back test today. So if we just flip this strategy over from Heiken Ashi over to candles, you will see a huge difference here on the results. Our net profit is now down instead of up minus 33.77% after 100 closed trades with a win rate of only 42%. So now when we compare it to this video after 100 trades, we are way, way off of these numbers. So again, 100 trades is really not enough data to really know how a strategy is performing. So let's go from 100 trades to 300 trades and see what that difference looks like. So you can see after back testing it for 300 total closed trades, our net profit is now down 52.45%. But our win rate did go up to 49.33%. So to show you guys the difference between opening up these trades on candlesticks versus Heiken Ashi, we back tested 300 total closed trades on the Heiken Ashi chart. And you can see the big difference in profit. Our profits now 867.29% with a percent profitable of 58.67%. So that's when we start to realize that now these numbers look a lot more similar to these results that they show on this video here. This is why I keep trying to emphasize to you guys the difference between a strategy on the Heiken Ashi chart versus on actual candlestick chart because you can get some insane inaccurate results and numbers exactly like these right here that are just inaccurate. You will never get these numbers in the real world. So now I'm going to back test this on seven different time frames and do 2100 trades. I will be using the Heiken Ashi chart to give me the entry and exit signals, but using the candlesticks chart to actually open and close the trades. We'll see if maybe this strategy works better on different time frames or if it's just not a viable strategy. Alright, so I have now back tested this strategy 2100 times with the Heiken Ashi chart and 2100 times with the regular Japanese candlesticks. I want you guys to be able to see the results from both sides so you can see how inaccurate the Heiken Ashi can actually be. So first off, we're looking at the results for the for Heiken Ashi. You can see that everything, everything, everything is green. Everything is profitable. On the four hour after 300 trades, we're talking about 5888% net profit on that. So obviously some insane crazy numbers. Now when we look at the same strategy except opening and closing with Japanese candlesticks, now this tells a different story. Very interesting that the one minute, five minute and 15 minute are all red through 100 trades, 200 trades and 300 trades. The 30 minute through 100 and 200 trades is also red. Once we got to 300 trades, it began to hit the green. And then from then on, basically everything was green, the one hour, two hour and four hour time frames were all green. Now I couldn't back test 300 trades on the four hour because it just went too far back and my trading view didn't go that far back. But when we went back a few years, 1,186 days, even though we did get a positive net profit, you would have actually had more money if you just bought and held Bitcoin at that point in time versus doing the strategy. Everything else was pretty much in profit, not only net profit, but if you held it against Bitcoin at this specific time right now, it would have outperformed Bitcoin. There were a few of them where it had circumstances where Bitcoin was outperforming it during its all time highs. And then once prices fell down to the current levels, now the strategy is outperforming Bitcoin. So it's just one of those little given little take you got to decide what it is that you want to do. But as you guys can see on the bigger time frames, one hour, two hour, four hour, the strategies is not too bad. I would probably stay away from four hours. And if I wanted to put some real money onto this, I would look into the one hour and two hour kind of compare them together and see what I think is the best bang for my buck. Just looking at it from a profit factor standpoint, it does look like the one hour could be the sweet spot. If you look at this one right here, 242 days, this one's 265. This is as close as we can get to each other. You'll see that the one hour was outperforming and that's because of course the one hour is taking more trades than the two hour time frame. So if I was looking to do this strategy and implement it, I would probably be doing it on the one hour chart. As you guys can see, it is profitable there. Here's the results for the one hour time frame year to date. If we just did this exact strategy from the beginning of the year, we would be up 46.93% year to date, 255 closed trades, a win rate of 60%, profit factor of 1.197. Let me know what you guys think about the strategy and if there's any optimizations that you guys would make to it to make it better. In the comments, drop any other strategies that you would like for me to review. So I think we're kind of one for two. I would call this one somewhat of a success versus the previous one that we tested, but I'm definitely excited to continue testing more and more of these strategies to see what's the best strategy that we can actually find. If you enjoyed this video and wish to see more reviews on these strategies, make sure to smash that like button and subscribe to the channel, turn on notifications so that you don't miss the next one. All that being said, if you guys want access to the codes for these indicators, for these strategies, so that you can set it up on your own trading view or maybe even on your own box, you guys can gain access to all these codes by gaining my VIP Discord. In my Discord, I will be sharing all the coding for all the scripts, all the strategies that I review every single week. I will also be sharing the exact trades that I'm personally taking myself in real time every single day with entries and exits. If you guys are interested, go down to the description where I have a link to my mentorship group. Also, make sure to check out this video that we just did last week where we tested a trading strategy on trading view that was claimed to have an 80% accuracy. I think you guys will be shocked at the results. Click the video on the screen right now. I'll see you guys on the next one. As always, peace and love.