Order Block Trading Strategy | Where is the BEST Order Block?
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- Опубликовано: 20 май 2022
- Order Block Trading Strategy: Where is the best order block?
Well, if you follow supply and demand, with a correct bias on market direction, it really doesn't matter which order block to take, as long as it is within the discounted zone. Why? Well there are often several order blocks to choose from, and your backtesting will help you determine which order blocks you like best - but even if you took each one, you should ultimately end up profitable if you use the rest of the strategy.
From practice, experience and a little intuition, you will soon start to learn which order blocks to take, and which to leave. I demonstrate in this video that it ultimately doesn't matter, just to be profitable, but if you want to increase your strike rate and profitability overall - you'll need to put in the work.
I have data on roughly 10,000 trades from different timeframes in different pairs, so I know which Order Blocks I am comfortable taking, yet it doesn't stop me from experimenting with new ideas - this should ultimately be the same with you.
Any questions? Put them in the comments section :)
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I follow a few channels on trading but yours have certainly taught me the most and your backtesting videos have been a revelation. Thank you so much for the lessons that you provide. I appreciate you.
Thank you so much - glad they've been helpful!
Hey Paul, great to see you again. Thanks for putting yourself out there for us with this information, generous as always. Take care :-)
Thanks mate very kind of you :)
Thanks Paul, my trading is improving already watching your vids, so much honest detail. and this is spot on, you look at a solid order block and it gets smashed but there is always another one to trade. Managing risk is key knowing what you lose vs what you win. thanks, mate.
I really appreciate that mate - and I hope YOU are the guy at the top of the leaderboard right now (FTMO) :)
Hi Paul, I have started to see several of your videos and I wanted to thank you for sharing your experience. It is not your obligation to do so and yet you freely make your knowledge known.
I normally use volume profile, order flow and high volume, but order blocks help me too to learn and grow with my trading.
Thank you so much and greetings from Barcelona.
Really kind of you to say mate, I appreciate it
👍Just rewatched this. Thanks. Yes, your maths-based system is valuable here and at all times: -- you are stopped out for one unit on the first order-block fail but win out for 10 units on the next successful order block, at 9 units of profit.👍
Exactly dude, you've got it
Thankyou. This vid really helped me alot compared to other vid saying that it works 80-90% of the time. This vid changed my entire life.
Really appreciate that mate. Glad it's helped
👍The 22- minute duration of the learning video here is very digestable. Thanks. 👍
Thank you! I will aim to shorten the length of the future videos. Probs between 12-20 mins (ish)
...and if anyone watched recent PA this week on EURUSD - price didn't continue to fall, it actually continued its journey upwards literally within a pip of the equilibrium of the 4hr leg moving upwards.
Its ok to have a bias, but price action always wins (I got it wrong on this occasion by preferring bias over the plan) 😅
Thanks for the content brother. Love what you do. Just dont forget about yourself
Thank you so much 💛
"Your analysis of the financial markets is very sharp and your point of view is clear. Really enjoyed your in-depth insight into the financial industry!"
Thank you
You're a legend bro so helpful
Aww thank you 😊
Thanks for making theses videos. It’s nice to seeing a clear and practical approach to trading forex without all the hype.
Thank you! I hate the standard 'RUclips 'trader""
Paul does it better for me. Thanks man
Weeey, that's great, thank you :)
Thank you Sir Paul i am from the Philippines. ive been watching your Order Blocks videos. i loved your strategy . Thanks a lot. God Bless!
Oh wow! Half way across the world 🙌🏼 glad you're enjoying mate!
I've watched all your backtesting videos and now this, all amazing. This video just made trading seem ridiculously easy. I shall backtest this. Thank you, man!
Thank you so much!
Paul, we love your OB strategy videos with my trader friends, thanks a lot from Turkey.
Dude I love this thank you 🙌🏼💛
Thanks for the video Paul =)
Thanks hanny
Nice to see u back ..
Thanks Julie
Good Stuff Sir, Interested to understand this concept
Thank you
Thank you brother, u hv been so so helpful, your videos are so easy to understand and simple, and frankly it is helping me a lot 👍
Thanks so much! How are you getting on?
I really appreciate ur reply, i think im getting better day by day and specially ur videos changed how i see the market, still im in learning process n hopefully ill be successful IA sooner or later, Again thanks a lot.
Really love this. You'll get there. Keep trying- it takes absolutely ages but when it clicks you'll be on fire 💪
Just done 3 weeks worth of backtesting on AU using this system and looking at 15R. Great video thank you 🤑
Weyhey! There we go mate 🙌🏼🙌🏼🙌🏼🙌🏼
Paul, this is amazing. I have been livetesting this on the M1 with micros in a live account (100 EUR). I have to stop overleveraging and only risk between 0.1 and 0.2 %. For example if you load up an account with 100 bucks and only open 0.01 lots never more than 3 pips risk (whitch is like 25 cents risk) per entry you will at the end of the day have like 20 entries and 6-8 losers. You give away maybe 15-30 pips and make 200 - 400 pips, making something ridic like 20-40 % on the account. Now with a funding account of 100k you can open 1.5 lots and only risk 50 bucks per entry. Most risk between 250-500 bucks per entry (or 0.25-0.5% because you can only lose 10 % overall). On good days you can make 3-5% (! 3000-5000 $ on a 100k USD account) with this. I would suggest only risking 25 bucks or only open 0.5 - 0.75 lots with a 3 pip loss. Also there are other entry types besides OBs. Flip zones, roundings, liquidity grabs, quasis. Essentially it is about getting as many entries in trend direction into the market as possible, keep the risk extremely low and HOLD to completion without getting frustrated with losing. Especially the latter can be difficult, but it certainly is learnable. Days where price is in a range will have maybe 10-20 losers. But if they are really small, you can still keep the overall risk per day below 1 % or so. Even with 20 losers. I dare everybody to TRY losing 20 times in a row. Only with a demo acount of course ;-) There will be days of many losers. There will be days that are in massive profit, that still lose because of deep retracements/liquidity grabs/news. All of this does not matter if you just keep on pounding the market with your entries. Really looking forward to your next ideas. (With no pressure, of course)
Absolutely perfect mate! Now take all of those trades and analyse what created the winners vs the losers and adjust moving forwards. Which order blocks hold, and which do not - then only take the ones that tend to do so and see less losers and a lot more winners. Happy days!
WTF?. Exactly what i have been thinking about lately. This guy just cemented it and proved to me that am not crazy
thank you for your replies.
Always welcome
Hi Paul, thank you for another great video plus a very good looking trade idea. I'll do back testing today.
Also thanks and great you answer in the comment section!
15:50 I think there is a Pending Sell on that Supply zone too, with a SL. Correct?
Correct! Not sure how I missed that!
nice one sir
Thank you!
hey paul great video. How do you distinguish mitigation? retest of 50% or more of the down or up move first? cheers- J
Thank you. Depends on the timeframe, but typically 50% is done for
I've been struggling with this strategy quite a bit. It seems to make sense, and I'd prefer to place trades off of price action instead of indicators. One thing that may be the missing piece of the puzzle though, and I'm curious if this is your experience: are you waiting for a major break on higher timeframes--essentially waiting for a strong trend--before even bothering with the 15m?
It seems any time the market begins running sideways on a higher timeframe, the lower timeframes are equally choppy.
I might be able to land one trade in 15 that plays out how I'd expect, but oftentimes I'll get caught out in a sharp retrace or reversal.
Similar boat to a lot of people mate, and myself included a lot of the time. Just think - the market tends to move from zone to zone and it's just a case of identifying a reversal pattern or a continuation pattern to get there from the previous one... On the lower timeframe to that zone though, each trade is essentially a 'reversal' pattern if you're using limit orders
Hey, your trading looks really good now! Do you still use the London breakout or are you just using order blocks instead?
Keep up the good work 👍👍
Using order blocks exclusively at the moment mate though having done that I've left sooooo much on the table in recent months
Hi Paul. Thank you for your great video. I was just wondering why you are not using LTF confirmations. It could grow up significantly your strategy win rate. Am I wrong? :)
Hi Giovanni! I often do, but lately I've dropped to just the 15 min. I get a lot of stop outs on the 1m and below, and find I dont have as much time in front of the chart as I used to
tha k you for your informative reply ..I also find pending orders while I. not monorittoring it does not pan out.
holding I find hard ..
Holding is soooo hard, and it feels 10X worse when it nearly reaches your target and it ends up losing... there's a few ways to scale in and also scale out which one day I think I'll make a video on
Still struggling here.. at 6:27, why do you keep that high when the small bearish candle (right before that huge one) is now the ChoCh? Shouldn't the ChoCh be the top of the range? I think that's where I fuck up..
Your backtesting videos are great! You said to let you know if we want more videos like this. The answer is yes! I trade fx (currently Guerrilla Trading) so I would love to see your forex pair backtesting videos, but I am sure I can still learn a lot from your metals backtesting videos as well. I am trying to manage expectations, so I will ask, do you have losing weeks with this strategy? Max draw down for many prop firms is 10%, have you ever come close to a 10% draw down with your Order Blocks strategy? Thanks. Keep up the good work! P.S. You remind me of Ricky Gervais :)
Hahaha! Some people do say Ricky Gervais! Mate, I used to be in GT for a while - you might see some of my old backtesting stuff in their forums!
Yes - I get negative weeks! I get some very bad negative days as well, but I'm trying to stamp that out. A lot of it is ego, some of it is peer pressure, but combined, it's because my live trading I try to use 0.5pips and less - it's frankly idiotic and I should trade only like I do on the backtesting videos :D Accuracy on sticking to Daily, H4, 15M and 1M is around 70% whereas live trading with tickchart etc is around 30%
@@TradeForexwithPaul Thanks for the reply! Thanks for being honest about some of the ups and downs of the business, hit rate, etc. Can't even imagine working on the 1M, much less tickcharts at this point with a 9-5. I love the concept of your strategy. This may be naive, but your system seems a bit less discretionary than GT (get in on a retest of an unmitigated order block). Love the backtesting videos, so much still to learn. Keep up the good work, but don't burn out (taking care of a kid and family, real estate development, forex/metals trading, youtube videos, instagram, discord, etc.). Take care mate!
Your videos have impacted my trading journey positively. I'm really grateful. Please do you take partial profits
I'm so sorry for the late response Ukana! Yes, sometimes I do. Often with funded accounts I will do as well. I'll typically take them at swing points or supply/demand zones if going counter to the upper timeframe trend
Thanks for sharing your 14 year experience Paul! we all started with blown up accounts. when did you start to get profitable month by month? i understand that markets are always changing but in general whats your average monthly gains in % not pips of your account if you risk 1% per trade? thanks and have a lovely day.
Thanks mate, very kind. Month on month with my own stuff - October 2019. Made 27% in my first FT month as a trader... Was the best month for about 6 months. Then I think I joined a community and changed my trading to their style and lost about 10 months in a row pretty much. Then took a 6 month break and been back to good months again. (So much harder when you go FT in trading though) - Hold out as long as you can before doing this
Hi Paul can you please do order blocks on US30? Can you also post maybe screenshots of your daily analysis i the mornings or something like that if thats not a stretch. Thank you I love and appreciate your content please keep up the nice work❤
Hi mate, I had a brief look at US 30 and it was soo hard to look at. Will try and do a video on it, but I'm pretty certain I'm probably going to end up with a very negative number (Don't forget, US30 trades a bit like a stock, rather than FX)
@@TradeForexwithPaul Hi Paul, Hope you are doing great with SM break. I am writing here coz i have a query regarding behavior of stock vs index vs fx...am an Indian trader who trades index here. What changes with respect to these different instruments? Thanks again
how do you trade when the news comes out? The news don't pay attention to the structure
But it pays attention to liquidity. Not blowing my own trumpet but I'm the best red news trader I've met. Love it. Will reveal this to people over time.
Have you still got room in your Discord Paul? Keen to be involved and be part of the community. My main Style of trading has been inside bars for the past 7 years, wanting to incorporate orderblock into my trading strategy, hence on your videos :)
Yes mate for sure. I've not opened it yet - I think I should just open the doors and let people in. It's anxiety and time-constraints at home which is slowing me. Will do it soon though dude
Does it mean that directional bias dont matter much? coz you will take a trade as long as it shows reversal pattern in poi zone
Directional bias is key, but generally, on the lower timeframes, you can go zone to zone on a HTF POI
Hey paul what are your Fibonacci settings??
Hi mate I use Gann instead so I can control all 4 corners : 00/.25/.5/.75/1
Thanks, a lot to be learnt here. Paul, sorry, I didn't understand the self-contradictory muddle of word-terms and colours and action-prompts and up-down placement that is Premium/Discount. All seem at odds with one other.
Thanks for the honest feedback mate. I try now to make more sense when I'm talking on here
@@TradeForexwithPaul Usually on these vids you're clear, polite and calm
Thank you :)
people dont appreciate how straightforward your approach is ! they just love complicated voodoo crap on youtube
Thanks amigo! I just like to keep it simple! I've noticed that as well - sooo much crap out there - I think people like to make out they're smarter when they are... just follow the basics
It striked me a while ago as well. Do you want to risk 1% per trade? You have 3 entries? divide it on 3. Now you er risking 1% per trade IDEA. Plan the trade and trade the plan. Money will become a side effect :)
You've got it mate! Spot on! 🙌🏼🙌🏼🙌🏼
how do you put on the trades on the retract .......and exit when the trade has reversed ......without being infrastructure of the computer
in front
Just pending orders. If I do have time to look at the charts and ive set an alert, then I'll jump on my phone and market execute using a smaller timeframe and smaller stop loss. The drawback to pending orders is that there are a LOT more losses
I'm confused. .. you say not to get into the first bottom its confirmation of the reverse in trend .....then you enter at discount to go to premium.
I'm not sure i follow - which part Julie?
I wish u would answer this Bro, please knowing it's a down trend, why didn't u get set for entry on the 1st orderblock
Hey mate, which part in the video?
I believe wrong Premium/Discount array. You want to start shooting when price gets back to premium.
@@TradeForexwithPaul thanks for the reply, around 11: 45min price came to your first OB and I notice u didn't even get set for entry to the downside, you had to let it ride to the extreme OB above, so my question is please why didn't you get set for entry at that first OB price rallied to ???
👍👍👍.
Thank you 😊
Bro how can i be a part of your community? I have already finished the survey but got no response 😔
Hey hey - apologies - still gathering responses from people. And the pc was broken the last month so I couldn't reply back to everyone / get things going. Will be able to get things on track shortly - thanks for your patience 🙌🏼
if your not infrint of the trades all day. ....how can you get involved in all the trades?
I dont - ill take maybe 2-3 per week. I set my alerts on the HTF order blocks and wait
But on this... im just showing here that you can be involved in so much more
What about money management with prop firm and their MAX 5% drawdown ? If you take 1% risk by trade, you are out after 5 lost in a row even if then you get a 10% or 20% hit.
Use smaller risk
@@TradeForexwithPaul How small to be safe ? in your videos, I know it's to make the calculation easier, you talk about making 10% or 20% on those good trades and lose 1% on bad one. But if we can loose 5 trades in a row we will MAX out our daily lost.
If to be more secured you suggest to risk 0.20% the result with be x5 less.
Asking because I failed few challenge and looking for a good strategy to help me. I like you way to trade the Order block and i'm interesting in your training.
I understand to not care even if we loose 10 trades in a row if then we hit a 20% or 30% profit. But 10 losers at 1% will make you failed. That why I would like to know what do you suggest as % risk ?
@@strategiesdeforex1970 if a challenge maybe 0.5% or even 0.25%. I just say 1% on the videos as its easier to calculate
Is it you that's first on the ftmo leaderboard?
Not after this weeks blunders 😅
@@TradeForexwithPaul your doppelganger from USA is killing it in first place, his name is also Paul M.
Haha yeah I love that. Let's just hope he took the trend today and not get slippage!
And can you explain reversal price action patterns in next video with your experiance please?
Sure mate
You lost me at "i don't care, I don't trade ICT". Obviously you are trading OBs so you are trading ICT.
There's always one in the comments
Hi Paul! Good to have you back in your comunity😃 hope that this PC will hold🙃 and no worries about us, we'll be here and patient! When i watch the vid, i understand... but when i am in the charts i cannot see anything🥹🙈... hopefully i'll understand it someday
My man! Thanks so much for your help with it. The new hard drive seems to be holding up well! Gonna experiment with a zoom later and see if I can replicate what caused it to crash before then hopefully I can open the doors and live stream a bit as well 🙌🏼
@@TradeForexwithPaul my big pleasure😁anytime, my dude! I hope that it will hold too