hey guys Chad trades here in this video I'm going to be back testing the trend pullback strategy that makes me 40K per month okay so I'm going to show you my exact confirmations my exact strategy I use then we're going to back test it together not only so you can see how I back test but also if you don't have a strategy that works for you you're kind of just you know taking random trades in the market this will give you a good structure to follow to start seeing some consistency in your trading so you
can see what I follow is the trend pullback strategy okay so this is the actual system this is what it looks like all confirmations we have now first before we go into the back testing you want to make sure you understand the strategy right because you don't want to be biased with your back testing you want to know exactly what you're looking for you be like oh that probably worked oh that probably worked right people kind of just go back a few days on the charts right again you want to make sure everything is there
and have no biases because that's a big mistake a lot of people make they'll have their bias in their back testing they'll get all excited they'll only look at the trades that worked then they go into the real markets and end up losing some trades right so here's an example of a trade I took today as you can see I made $376 in 16 of my PA accounts on apex made around $6,000 in total profit now if we go into the charts here this is the trade I ended up taking today on Gold Futures okay
so I mainly trade the S&P 500 and gold trade a few other things but I mean this strategy pretty much works on anything okay because it follows the principle of trading with the trend and getting in on the pullbacks so if you go to the system here first thing is Trend Plus Market structure okay so I want to establish what the trend is on what I'm Trading so if we go into the 4our time frame as we can see uh this is on gold Futures like I said we started out the pre-market with green high
kosi candles on the 4our time frame which means we're starting to go into a bullish Trend and I knew this before the market opened okay we can also zoom into the chart we go to a 5 minute time frame make sure the market structure is good we're putting in higher highs higher lows higher highs higher lows higher highs so that checks out as well so now that we know the trend is up right we only want to trade with the trend we know we want to go long for the day the next thing we want
to see is we want to see a pullback to a level or an EMA or even a vop so if we go back to the Chart as you can see um we're on a 5 minute time frame we first pulled back to our EMA we didn't hold this and then we end up pulling back to our vwap and our old resistance turning new support here so that also checked out as well now we want to wait for entry confirmations okay that's pretty much everything else on this sheet so if we go back here now I
like to go into a 2-minute time frame and this is where I'm going to look for the next thing which is going to be volume on candle or lows okay so basically I want to see a bunch of volume kick in and this will act as defense to where my stop loss is okay this is very important this the most important confirmation you're going to use okay as you can see we drop down here and what do we notice right right when we drop down we started getting big volume coming in elevated volume this is
a little bit of reversal candle okay so once I saw this candle close keep in mind I didn't enter my trade yet now I was like okay we're at the next step now I can put my stop loss below the lows I have a place to put my stop loss next thing on my list is I want to see a signal go off okay so my signal is the macd keep in mind I do use a zero lag macd um you can see on the left here it says zero lag macd Works a little bit
different than the regular macd it just makes it so there's less lag especially when the Market's more volatile like it's been lately so what we can see is after this volume got kicked in right we can see it gives us a green Arrow right here this basically acts as a Buy Signal and we got it after this candle closes okay keep in mind this macd is a custom indicator you won't see it available on TOS you have to have a custom code for it if you guys want free access to this indicator we have the
link for it inside our resources section inside our Discord Community our Discord Community is completely free to join so if you want access to that custom indicator plus access to my trading plan on the S&P 500 in Gold every single day along with an awesome community of all kinds of Traders you can chat network with ask questions in here like I said all that is for free inside our Discord Community we'd love to have you inside all you have to do is go to the first link in the description below this video or just head
over to this link right here okay so we got our signal to show up after this candle Clos we also got the volume confirmation on the same exact candle now we can go to the next step of our list and we want to see a candle close within two candles okay what I mean by this is I basically want to see um a green candle close if I'm focused on Longs within the first two candles of the volume or the signal going off okay as you can see it was the very next candle we got
this green candle closed and this is where I actually entered my position okay so once this candle closes now I can actually enter my position I can put my stop loss below the lows and from there I'm just managing my trade okay so use whatever risk reward you want to use um but basically I like to watch the volume on the first rise up obviously if it's elevated volume I'm going to hold the position longer try to make more money if the volume's not that good then I'm probably going to cut it early which is
basically I said right here on the last line here so what you can see is we had a couple of choppy candles with low volume we got our first rise up we had pretty good volume here got another rise up pretty good volume at the top here we sered flatlining and since I am trading my Apex accounts I didn't want to risk any trailing draw down so I simply cut my trade here giving myself around a 1 .3 risk reward ratio which I'm fairly happy with for this trade okay so now that you know exactly
how my Trend pullback strategy works you know my exact confirmations let's go ahead and start back testing so what I'm going to do here is I'm going to go over to trading View and if you don't know trading view has a replay section and you can literally back test from any day you want okay so keep in mind I'm on a 2-minute time frame I'm going to Press replay right here then I can select the date right here so we're just going to go to a random day so let's do I don't know um let's
do July 11th on Thursday okay I'm going to go to when the gold Market opens which is 6:30 my time so we're going to put it right at 6:30 and press select all right so what we're seeing so far is we basically went up overnight so we do have an uptrend going on uh the past hour past few hours or so have been pretty choppy so for this back test I'm going to be focused on only taking long setups and just knowing that it could be more choppy since that's how the pre-market was looking like
okay so let's go ahead and Skip forward we're going to go keep in mind every candle is 2 minutes long um looks like I picked the worst day because we had massive news come in so that was pretty random um so obviously trend is up we're going to wait for a pullback okay so we're just going to skip forward here so again going back to our system uh we're looking for a pullback to a level EMA so we need to see a decent pullback come in here so let's just skip forward here here um yeah
that wasn't enough of a pullback for me let's keep going all right here's a pullback we're getting now we want to pay attention to the volume um you know just seeing how the volume looks like that is the next step on our system right volume on candle or lows so let's go ahead and look at that we're going to skip forward to the next candle all right we're going to keep going we're going to keep going okay as you can see this is starting to look good high volume came in high volume stayed right and
now we're holding this pull back area okay you can also notice we just got our first green signal all right so I'm going to skip forward right here okay so that candle closed I'm going to go ahead and get into my position so I would normally use uh 16 contracts or 10 so let's just do it to 16 that's what I'm trading with right now so I'm going to go and buy right here we're going to have our stop below the lows at 401 so let's go and see how this thing plays out and also
keep in mind to manage our trade with the volume okay so let's go and look at what happens next right this doesn't really tell us much uh we're going to keep going here okay so on this rise up we're getting a little bit of an increase of volume not too much uh currently up around three points on gold which isn't bad um so let's see what this next candle looks like I want to see a push into this area where we had this consolidation so let's see if we can get that push here okay so
we got it here and it looks like we're at a nice risk reward ratio so this is where I'd either trim the position um or just take it off as you can see the volume is elevated here so what we can do is I'm going to go ahead and sell um let's sell 10 contracts all right so I'm going to trim a bunch and let's go and keep going see if we can break the highs here okay this volume didn't tell us much and there we go okay we can close this position out and we
just made 9,000 on that back test right we had a nice R reward we followed system to this te I did not know what the price was going to do this day I didn't cherry pick this day right I literally picked a random day following our system all right so let's go and go to another random day and see how this works again so I'm going to go and select date and we're going to go let's go a little bit further back let's go to like I don't know June let's do June 26 okay we're
going to do June 26 at 6:30 a.m. again I have no idea what happened this day we're going to press select okay so taking a look here Market's about to open on gold on June 26th if we look at the pre-market and our current Trend it is down um it is a bit choppy once again but the overall trend is still down so I'd be more likely to focus on shorts so let's go and see if we get any opportunities here so I'm just going to go and Skip forward and see if we see anything
we like okay all right I'm just going to keep skipping forward um I want to see some kind of Market structure build all right so we're getting the sell off now I basically just want to see a pull up pull up back up that we can take short back to New lows um that's the whole idea of the trend pull back strategy so we're to keep going here and we're getting just a massive selloff straight down broke the lows uh we're going to keep skipping forward haven't seen any pullbacks yet that we can take so
let's keep going all right we're starting to get that pullback now we want to make sure that we're not any key support level not really seeing anything um it doesn't let us go too far back on trading view so hopefully we're not in like a key demand Zone where this trend can completely reverse but we're going to see okay so looks like that was a very shli P pullback um by the time we get our signal uh the trade was already done so want to see a little bit more of a pullback and kind of
trade sideways for a minute so let's keep going here okay so we got our pullback here close to our EMA we also had good volume come in and now we're starting to get our signal okay so basically we just have to wait for this candle to close so I'm going to skip forward one more candle and now let's go ahead and enter short I'm going to go back to 16 contracts and let's go ahead and play the short um like I said we're going to have our stop loss just above the highs here so let's
go ahead and Skip forward okay all right we almost got stopped out there you can't really see it to well but it basically just came straight to it um pretty much now we're at break even so let's go and see if we get the sell off all right so again pay attention to the volume here we want to see increasing volume we're going to let it ride one more candle all right so we just had a bigger sell off on that last one uh we have decent volume the thing I don't like about this is
the wick at the bottom so honestly I'd kind of want to take this off even though we're only up like two points or so on gold but I just don't feel comfortable because you know look at the volume on these lows that got bought up compared to the volume now you know it just looks like buyers are kind of stronger in this level maybe it's kind of tired of the selloff so what I would probably do here is you know either put my stop loss at break even or we could trim most of the position
so let's just trim I don't know we can trim um let's trim 12 contracts so we're going to buy it back okay and we're going to see what the rest does okay and now we're back we're out of Break Even okay so in that trade we made $2,000 so you can see it wasn't as clean as that last trade but that's how trading Works your trades aren't always going to be perfect you want to manage the trade by looking at the volume and get into the trade by making sure all your confirmations are there you're
trading with the trend right and just for fun let's go and see what ends up happening next and look at that we oh we almost would have got stepped out uh still would be a break even here I'm curious to see what even happens all right and there we go um oh it got really close did we get no we wouldn't have got stopped out there it goes there's where we would have got stopped out um yeah so again I'd rather make 2,000 than to get stopped out okay even if you have to cut the
trade early even though it's not a big trade right it's okay to play a little defensively if the trade's not going exactly how you want and hop out of the trade so I'm telling you guys this is the best way to start getting lots of screen time and practice in the market you feel a little emotional with you're when you're back testing uh just cuz you know it it is paper money it's fake but it kind of feels real because there is a p&l right so I'd really encourage you guys to use that fature on
thinker swim or trading View and start actually back testing when I say back testing actually trade but make sure you have a system to follow offers right don't just randomly trade based on what you think is going to happen put a system together whether you want to use my strategy or a tweak of your own strategy whatever it is and then start back testing it in real time pick random days in the market that you don't know what happened and start trading that and see how your results are and I guarantee you guys this going
to help you be so much more consistent and comfortable inside of your trading so anyways guys I hope you enjoyed this video on back testing the trend pullback strategy that makes me 40K per month like I said before if you guys want to join our free Discord Community to get access to that zero lag macd indicator plus also get my exact levels every single day for gold NASDAQ and the S&P 500 like I said this Discord Community is completely free and open to viewers of this YouTube channel we'd love to have you inside if you
guys do want to join us in here all you have to do is go to the first link in the description below or just head over to this link right here let me know if you have any questions in the comments below and I look forward to seeing you you guys in my next video with another day trading lesson
