A simple trading strategy with ways to improve the winning edge

vanathi Mod Updated   
There are lot of trading strategies which can be easily available. Whatever strategy you use, If you know how to increase the trading edge, and when to avoid the trade will help you to make money. I have taken a simple trading strategy known to most traders, but here I am going to explain how to take the trade which has more winning possibility.
Strategy : Previous day high break out. Go long above 1st 15 mins candle high.
Time frame : 15 mins
Entry condition : 1st candle should close above the previous day high.
Target : 1 : 2 or close at 3 or 3.15 pm if stop is not hit.
Trail : Shift stop to entry once you get 1 : 1 profit
Stop : Low of the 1st candle.
Entry : Above the high of 1st candle.
In this chart I have marked the previous day high.
Now we will see about how to increase the trading edge or winning edge.
On feb 25, the 1st candle volume was normal which indicates participants were not that much enthusiastic about the movement. Volume was not supporting and we did not get big movement as throughout the day volume did not pick up. 1st candle volume gave an indication that the trade was not having high edge.
On Feb 28th, the 1st candle had good volume, but the candle was having selling pressure. So we take the trade after seeing the next candles formation. Here the candles were showing buyers interest in the stock. This trade was having good trading edge.
On March 1st, 1st candle broke the previous day high & closed above it. Volume was good, but the high low difference was big. Position sizing will help but it most of the time we won’t get 1:2 rewards. This trade was not having high edge.
On March 3rd volume was good, but it was a bear candle and closed below previous day high. So no trade.
In this example, price broke the previous day high for 4 days. As per our strategy we got 3 trade set ups, but only one trade has high trading edge.
This is how you can improve you winning rate in a trade.
In this UPL chart, 1st candle broke previous day high, had good volume, but high/low difference was big and it did not give 1:2 profit.
In this Bsoft chart, price close above the previous day high but the candle is having selling pressure and no trade in it.

Whenever you decide to trade on a strategy, back test at least 100 trades to check the winning chances. Always place stop once you enter a trade. Market is having fast direction change nowadays and you should be prepared to handle it.
From the comments, it looks few traders are using this strategy. Have you encountered any problem when trading on this strategy? If so, pls comment below. Thank you.
Ofcourse with charts :)
Today's move.

Roles I play here : Author, Analyst & Moderator.

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