Simple Trading Strategy with Clean Exits by Davin Clarke

Last updated: 20240328

This simple yet effective trading strategy aims to capture the movement out of a contraction area into an expansion area. 

Trading strategy components

Although classed as a “simple” trading strategy, Davin shows how this covers many critical aspects of trading including:

  • Risk and trade management;
  • Shows areas to exit the market into potential counter-trend moves;
  • Trade with the overall direction of the market;
  • Strategy with potential reward greater than 1:1  This is a key consideration, as many traders focus only on a strategies win rate/accuracy however it is essential to view this figure in conjunction with risk/reward; and
  • Allows us to be consistent in our application.

Technical indicators and chart type used

The chart type Davin uses in the video is the Renko chart or “Better Renko” bars.
Indicators used in the presentation include the:

About Davin Clarke

Davin Clarke has over 20 years experience trading as a full time professional. He has extensive experience in trading shares, futures, options and foreign exchange markets both in Australia and other worldwide markets. He has developed a keen insight into market structure and understanding of market dynamics.

Davin is a popular and sought after speaker throughout Australia and is featured in a number of books including The Wiley Trading Guide published by John Wiley & Sons, 20 Most Common Trading Mistakes and How You Can Avoid Them published by Wrightbooks and, Real Traders, Real Lives, Real Money published by Wrightbooks.

Davin Clarke has also co-authored his own books:
Options Made Simple: A Beginner’s Guide to Trading Options for Success” published by John Wiley & Sons; and
Trading Plans Made Simple: A Beginner’s Guide to Planning for Trading Success” also published by John Wiley & Sons.

If you would like any information please contact us via the contact form.

Thank you and good trading.
Davin

RISK WARNING:
You understand and acknowledge that there is a high degree of risk involved in trading securities, currencies/foreign exchange and/or derivative products. Trading securities, currencies/foreign exchange and/or investment in derivatives can be very speculative, involves considerable risk, may result in losses and is not suitable for every investor. Global Trading Tools does not take into account the objectives, financial situation or needs of individual users. Hence, You should carefully consider whether trading in securities, currencies/foreign exchange and derivative products is appropriate for You in the light of your financial circumstances. You should be aware that dealing in products that are highly leveraged carry significantly greater risk than non-geared investments such as share trading. As such, You could both gain and lose large amounts of money. You may sustain losses in excess of the moneys You initially deposit and also in excess of the margin required to establish and maintain any positions in leveraged products.
No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any form of media (including but not limited to web sites, email, print or banner advertising, social media sites and/or Global Trading Tools affiliates) by Global Trading Tools.
The past performance of any trading system or methodology is not indicative of future results.
View Full Risk Disclosure.

 
THIS VIDEO IS FOR EDUCATIONAL PURPOSES ONLY.

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