Trading Basics (DIY)
Two simple strategies, clear risk rules, and a quick backtesting loop.
Range Trading (5–15m)
- Mark clear support and resistance where price repeatedly bounces.
- Wait for price to reach an extreme of the box.
- Look for a rejection candle or small double-tap, then enter back toward the opposite side.
- Place SL outside the range; target the other side.
Works best in quieter, sideways periods. Avoid during big news.
Range on USDJPY
Risk/Reward (2:1 to 5:1)
Winning isn’t about being right every time — it’s about math.
- At 2:1 RR, a 40% win rate is profitable.
- At 3:1 RR, even ~34% wins can work.
- At 5:1 RR, you can win 1 in 4 and still grow.
Formula: Expected Value = WinRate × RR − (1 − WinRate)
Trend Tap Trading (5–15m)
- Draw a clean trendline that touches at least 2–3 swing points.
- Wait for price to tap the line and print a clear rejection (engulfing/pin).
- Enter with the trend; SL beyond the recent swing; target 2:1–5:1.
- Skip if the trendline is messy or breaks decisively.
Simple and effective — these two (Range & Trend Tap) are among the easiest to learn and apply consistently.
Trade which has a trending line which gets multiple taps
Backtesting (Proof over Opinions)
- Pick one pair and timeframe (e.g. GBPJPY 15m).
- Scroll back, mark every valid setup (no skipping losers).
- Record entry, SL, TP, RR, and outcome.
- Calculate win rate and average RR. Keep the rules that work.
Backtesting puts your strategy to the test. Tradingview allows you to replay the charts
Quick Checklist (Before You Click)
- Clear setup (Range edge or clean Trend Tap)?
- Defined SL beyond structure?
- Target at least 2:1 RR (ideally 3–5:1)?
- Lot size fits your risk plan?
- No major news in the next 15–30 mins?
Trading involves risk. Educational content only.
Want more examples?
Head back to signals or re-read MT4 basics.