Using Multiple Timeframes to Create Huge Winners!!

Everybody wants to understand how to create big winning trades, I'm going to share with you a mindset of how you do that. So first of all, one of the ways that we can create large or huge winning trades is by using a multiple timeframe approach. I just want to show you here, this is where the E Mini and the E Mini future we're going to look at the average true range of four different timeframes. We have the weekly, which is the average true range is 85.75 points, we have the daily which is 50 points, we have ID one, which is 21 and a half points and we have ID two, which is 8 and a half points. Id one is the first intraday timeframe below daily. So SNPs are 24 hour market, ID one would be a 300 minute chart, or two and 40 minute chart, ID two is the ID one divided by five, it's the second timeframe down from daily. If we have a 300 minute ID one, then we have a 60 minute ID two. If we go through, we look at these average true ranges, we see that as we go down in time, the average true ranges in general get much smaller. So if we were able to come in and do a trade on ID two, and risk 50% of an 82 ATR, we'd be risking four and a quarter points and if we could do this and catch a daily range, we'd make 50 points on the daily range. So 50 divided by a risk of four and a quarter gives us our multiple of 11.75. We make 11.75 times what we risk. That's how we can create really big winning trades. 

I'm gonna share with you, we do a whole course on this, we get into incredible depth in this, so you can't cover it all today, but I what I want to do here is stimulate thought for you to get you thinking about how you could do this. So we set up trades on multiple timeframes. So an example might be we find strong daily support. We find that strong daily support, we line up and overlap of the intraday timeframe on daily support. If we could enter on an intraday timeframe, let's say a 15 minute chart, and take an intraday risk of a 15 minute bar and set our target a daily resistance, then we could let the trade work, go all the way from daily support to daily resistance. Risk from a 15 minute bar but catching a daily range and that sets us up with a huge R winning trade. These trades are out there all the time. When I sit down and talk with students, this is one of the questions I  ask them in their interviews, what's the best trade you've ever had? Most students I talked to, the biggest r winning trade they've ever had is like three or four or five. It's rare, I have a student that I come across, it's had a 10 times 10 r winning trade. You know, they bought Bitcoin at 20,000, and they risked, you know, 5000 and it went to 35,000. They made three r. That's what you typically see is like their best trait, you can have trades that are so much better than that. 

Just today, for example. If we look at SNPs in my charts, there's a lot going on in my charts, so we're not going to worry about that. A lot of cool stuff, but we're not going to get into it. So today, SNPs get down into daily support and then we have what we call an overlap of the intraday one timeframe in the daily timeframe. This gives us a chance to go long at roughly 4470. Now we could buy intraday one timeframe or we can look at this and see well can we go down another timeframe. we go down to intraday two. We actually see right here, both here and here, we're seeing the intraday two timeframe supports lining up on inter day one, lining up on daily. So there's a chance to go long at 4470 and take an intraday to range, which was safe to say we'll say it's 50% of an ATR. That's 5.75 points, going along a 4470 and we're able to take this trade all the way from that support all the way up to daily resistance and the daily resistance was at 4501 and a half. So we keep this really simple. We're making 31.5 points and we were taking a 5.75 point risk. This gives us a five and a half r trade and that's a really nice trade. That's an example what we're talking about.

So this is something you don't see talked about a lot, but if you're able to put these together is such a powerful frame and you can have trades that make 10 r, 15 r , 20 r, 50 r, even more if you do this the way that I taught you. Now, there's more to it. But again, I just want to stimulate thought and get you thinking about are you doing these kinds of trades? This is time that is really well spent everybody intraday trades, and they just make lots and lots of trades, they just kind of spin their wheels. That's not what we're doing here. We're lining up intraday with a very specific purpose of leaning on a higher timeframe support or resistance and then when it works, you can make a really big move. If we can get this particularly in a trend following type environment, then we might be able to buy daily support in an uptrend and then catch a three day move. Where you make 150 points on a five point risk, then you have a 30 r trade. That's totally doable. I want you to think about that. As you know, every Tuesday I come to you and I share techniques with you like we went over today to help you take your performance to an elite level. So have an awesome week and I'll see you next Tuesday.