Video summary

Backtesting De Mi Nueva Estrategia Forex 2023

Main summary

Key takeaways

Finance

Finance-Focused Summary (Forex Backtest / Strategy Framework)

Asset / Instruments Mentioned

  • Forex pairs (tickers)
    • EUR/USD — mentioned in a previous video as working well
    • GBP (British Pound) — explicitly mentioned at the end
    • Another pair — not named in the subtitles, but price examples and the structure are discussed as being backtested in 2023
  • Not mentioned
    • Bonds, equities, ETFs, commodities, crypto

Core Strategy Logic

This approach is a timeframe-aligned order-block (OB) + liquidity hunt + “choke/check” confirmation method.

  • The author emphasizes trading direction from the 4-hour (4H) chart
  • Execution then occurs on lower timeframes

Key Concepts Used

  • Order Block (OB) / Supply zone / Demand zone
  • Liquidity
    • stop-loss pools
    • “liquidity grabs”
    • “protected highs/lows”
    • “super liquidity”
  • Inducement
    • fake breakouts / manipulation designed to trigger stops
  • Fair Value Gap (FVG)
    • imbalances expected to be revisited
  • CHoCk / choke and check
    • confirmation tied to the last low that leads to a new high
  • Mitigation
    • whether an OB level has already been filled / reacted to
  • Targets (TR language)
    • “near vs far” liquidity targeting
  • Risk management
    • stop placement relative to “last low / last high”
    • moving stop to break-even after partial confirmation

Step-by-Step Framework (As Described)

  1. Step 1 — Analyze Higher Timeframe Structure

    • Start on the daily timeframe to identify trend direction and whether zones/imbalances are already filled
    • Use 4H for primary execution bias:
      • “We trade based on the direction shown on the 4-hour chart.”

  2. Step 2 — Mark the Order Block(s)

    • Identify a key OB zone (refine using 1H or even 30 minutes)
    • Only use OBs that are still relevant (not fully mitigated)
    • Prefer alignment of OBs across 4H and 1H

  3. Step 3 — Wait for Liquidity Creation / Inducement

    • Before entry, the market should create:
      • Liquidity (stop-run / fakeout)
      • ideally a protected high or protected low after the liquidity grab

  4. Step 4 — Confirmation (“Choke/Check”) on Lower Timeframe

    • When price reaches the OB zone, look for choke/check
    • Example logic referenced:
      • “A choke is generated when the last low led to this new high.”
    • Entry is tied to candle-close behavior, then refined on:
      • 3-minute (3m) and 1-minute (1m) charts

  5. Step 5 — Entry Technique

    • Entry is taken on the lower timeframe after confirmation
    • Targets are linked to liquidity:
      • aim for the closest liquidity sweep, or a larger move based on setup quality

  6. Step 6 — Stops and Risk Control

    • Stop loss placed beyond the decisive swing:
      • “Stop Loss below the last low or above the last high,” to allow “breathing room.”
    • After further confirmation:
      • move stop to break-even (“another backstop… move stop loss to break even.”)

  7. Step 7 — Automation via Alerts

    • Use alerts/alarms to avoid monitoring continuously
    • Trigger alerts when price hits pre-marked zones

Key Recommendations / Cautions

  • Don’t force trades
    • “We don’t force any trades, but rather we trade based on what the market shows us.”
  • Don’t enter if the OB is mitigated
    • If the OB is already filled/reacted to, skip the setup
  • Avoid counter-trend precision
    • If 4H trend is bearish, avoid upside setups inside “manipulation” zones unless there’s higher-timeframe confirmation (e.g., 1H/4H structural breakout)
  • Best trades involve extremes, but quality depends on:
    • liquidity creation (inducement)
    • protected highs/lows
    • confluence of OB + FVG
    • timeframe alignment (especially 4H/1H)
  • Losses are expected
    • The author states he anticipates multiple losing trades and provides performance later

Numbers, Timelines, and Performance Metrics Mentioned

Time-Based Examples

  • “Perfect setup” example duration: closes in about 3 hours
  • Another example: ~5:00 to 8:30 (≈ 3.5 hours)
    • noted as working across London and New York sessions
  • Mentions checking “within last month” in relation to backtesting

Price / Outcome Figures

  • Example end-of-operation figure: 5.71 (unit not specified)

Risk/Return Style

  • RR goal language:
    • aims for at least 1 to 1
  • Later notes:
    • “It’s a 1 to 7… very good setup.”

Approximate Performance Claim

  • Claims around ~20% expected from “~4 TRs” across ranges:
    • 1 to 8, 8 to 16, 16 to 24 (exact mapping is unclear, but he explicitly states “more or less 20%”)

Disclosures / Disclaimers

  • A clear “not financial advice” disclaimer does not appear in the subtitles
  • He encourages viewers to test the strategy on the pair they trade

Presenter / Sources

  • Single speaker indicated by subtitles
  • No named individual, channel name, or external source provided

Original video