Lessons
Chart school · Lesson 13

Choose one strategy and master it

Do not learn ten methods at once. Pick one, write its rules, and practise only that until you have real numbers.

equal lowsFVGCHoCH1sweep23entrystoptarget4
Example model: sweep, CHoCH, FVG. (1) Price sweeps liquidity against the higher-timeframe trend. (2) A displacement breaks structure the other way. (3) Enter when price returns into the FVG. (4) Stop below the sweep, target the next liquidity.Teaching diagram, not real market data

Write your rules like this

RuleExample
MarketXAUUSD only
Time1:45 PM to 9:45 PM Kathmandu time only
Bias4-hour trend up = buys only
Setup15-minute sweep of a clear low, then CHoCH up with an FVG
EntryLimit order at the top of the FVG
StopJust below the sweep low
TargetThe next swing high, at least 2 times the risk
Risk0.5% to 1% of the account per trade, maximum 2 trades a day

The practice plan

  1. 100 examples on past charts. Use TradingView's Bar Replay. For each one, write down the result in R (how many times your risk you won or lost).
  2. One month on a demo account, following the rules exactly.
  3. Only if both are positive: small real money or a prop challenge.

Stop-loss, take-profit and R

Every trade has an automatic exit at a loss (stop-loss) and at a profit (take-profit). R is the money you risk between your entry and your stop. Here the risk is $50, and the target is twice as far away as the stop.

Take-profit: +2R = +$100Entry: BUY hereStop-loss: −1R = −$50riskreward
In a buy, the stop is below the entry and the target is above it. In a sell, it is the opposite.Teaching diagram, not real market data

What risk means in money

$10,000 accountRisk per trade5 losses in a row
0.5%$50−$250 (−2.5%)
1%$100−$500 (−5%)
3% (too much)$300−$1,500 (−15%)

Five losses in a row happens to every trader. With 1% risk you survive it easily. With 3% you fail most prop challenges.

Quick check

How many strategies should a beginner practise at once?

With 1% risk, what do 5 losses in a row cost on $10,000?