#TheStrat learning guide
Since I discovered #finwit, I’ve been consistently spending quite a bit of time on twitter trying to hone my trading skill. I recently came across something called the #theStrat. I’ve backtested the strategy with many old charts and I was suprised by how well it has worked.
As I am trying to get better at #theStrat, I realized there’s so much unstructured information on the internet and it could become overwhelming for someone trying to learn it. I am hoping the following guide can help the new great trader, like you. Help a fellow trader, share this page.
Pre-req: Candle sticks charts
You do need some basic fundamental understanding of the candle sticks charts. Skip this if you already know how to read candle stick charts. Here’s a good candle stick charts explaination if you are unfamiliar with candle stick charts. I’ll capture the basics here. All you have to remember is this
If you use https://stockcharts.com/, using Apple as an example, a hollow candle means it’s a up day and a red one means it’s a down day. Of course, some trading platform allows you to customize the color. In thinkorswim, you’ll see green and red candles by default.
Videos to watch
I watched so many #thestrat videos and I realized by watching them in this order, it’ll make the most sense. It’s like all the Marvel movies, you have to watch them in a certain order :D .
Disclaimer: These are not my videos. I just found the links for you so you don’t have to google hard. Subscribe to these youtube channels and support these individuals.
- Sarah Strat Sniper: https://www.youtube.com/channel/UClY7agIuPv2dR_gT2hZ6Kyw
- Benzinga: https://www.youtube.com/channel/UCqQs28K2zj2dOsc5NfXUKEg
- TrendSpider: https://www.youtube.com/channel/UCVvdnt2An8rC7zeey6Sa7bQ
#thestrat videos
- The #thestrat method is all about 1-2-3. Watch this video by Sarah to get a sense of what these number means.
bonus: complimentary reading is on this page: https://lucid-trend.com/Education/What-is-TheSTRAT-Method.html
After that video, I suggest you watch this
- If you recall from video #1 above, there are three types of bars: 1, 2, 3. They combine to make ‘signals’. Some are tradable and some are not. Sarah here explains the tradable signals in this video
- Another video by Sarah explaining why you shouldn’t trade on inside bars
- This is getting more advanced. Sarah’s trademark SSS50PercentRule. Anticipatory trading at its best.
- now you know the basics, watch this video. This is like the summary, or the recap from the master. I believe he’s the inventor of the #thestrat strategy. Someone correct me if this is wrong.
Chart Scanning
There are scripts out there that can make identifying 1-2-3s much quicker. I use tradingView so I am going to show you an example of how to do this, step by step.
- in trading view, in the Indicators & Strategies modal, seach for “Strat Assistant”. Add “Strat Assistant” to your favourite if you like.
- Make sure “Strat Assistant” is enabled. You should see the candles labelled.
Web resources
I don’t recommend reading the following until you’ve watched the videos above.
- https://www.newtraderu.com/2019/02/13/what-do-we-know-to-be-true-about-price-action/
- Thinkorswim scripts to automatically lable the candles, and screen stocks https://usethinkscript.com/threads/rob-smiths-the-strat-indicator-for-thinkorswim.3312/
- more thinkorswim scripts for #thestrat https://docs.google.com/document/d/1F0lzd19QenSOAaS-InpozgZhOjD4rupT-K-gv6k8MJk/edit