EXCLUSIVE VIDEO: Beginner Trading Strategy (Patreon)

Beginner Trading Strategy: Optimized Trend & Profit Taking Model

Jacob teaches a basic trading strategy for beginners using Optimized Trend (part of IADSS or PTOS) and Profit Taking.

Core Idea: A simple yet effective swing trading system using the Optimized Trend Model on higher timeframes (e.g., daily charts) to reduce noise, avoid fakeouts, and identify true trends. This approach is especially beginner-friendly and well-suited for the current landscape where short-term trading (scalping) is becoming increasingly difficult.

Key Trading Lessons

1. Use Higher Timeframes (e.g., Daily):

   • Reduces noise and fakeouts.

   • Helps traders focus on real trends rather than choppy market conditions.

2. Optimized Trend Model (Color-coded System):

   • Blue = Bullish trend, Orange = Bearish trend.

   • Enter when the trend turns blue, exit when it turns orange.

   • On average, only a few trades per year ie 4 to 8 trades, but with high potential returns.

3. Fakeouts Will Still Happen:

   • No system is perfect.

   • Use higher timeframes to minimize their impact.

   • Small losses are acceptable; the focus is on capturing large wins.

4. Profit-Taking with LILO Model (Layer In, Layer Out):

   • Anchor to the low when trend turns bullish (especially if under 200DMA).

   • Use a layered profit-taking model (e.g., 6–10 layers).

   • Sell in stages as price increases through predefined levels.

   • Exit remaining position when the trend flips bearish (orange).

5. Compound the Edge Over Time:

   • The system might only offer 6–8 good trades per year, but those can yield massive gains (e.g., 30–50%+).

   • Survivability is key — stay in the game long enough to benefit from the system's edge.

6. The Weekly and OT

   A quick tip here you can even use the optimize trend on the weekly to determine the difference between a bull and a bear market for bitcoin. I also use it heavily on the 4 hour for swing trading.

The Optimized Trend is an emotion removal machine!

This strategy offers a structured, emotion-free way to trade — ideal for beginners or anyone wanting to simplify their trading approach.