Hey, what's going on everyone, i'm matt and in this video i'll, be talking about one of the most popular stocks on the market, tesla between the cutting edge technology of the product, the famous ceo and the considerable price action of the stock tesla generates a lot of Interest, much of that interest comes in the form of betting against tesla, but that hasn't worked out too well for the bears. I must admit, i follow tesla, but i don't eat sleep and drink it, i'm nowhere close to an expert. Nevertheless, i found it interesting that tesla bears people who think that the socks should go down in value get burned time and time again. This made me curious enough to see if i could find a way to consistently profit off the stocks.

Price swings by doing the opposite, i'm happy to share exactly what i found. I will be fully explaining a profitable tesla trading strategy that doesn't require a fancy trading platform. In fact, this strategy is so simple that all you need is basic charting capabilities. The best part about this strategy is that it uses a daily time frame, which means that you don't have to be glued to your screen.

You just have to be able to check the price of tesla once a day if this sounds as outlandish as a stylish sports car that runs on electricity stick around until the end, i will show you exactly how this strategy performed in the past before we can Proudly announce funding secured, you should know that neither elon nor i are financial advisors. It's your money, please be smart with it. I don't have the stats on me right now, but i have heard that people who hit the like button have far better trades. I don't know, though, give it a try.

Let me know how it plays out as promised it's time for the tesla trading strategy. All good strategies have a concise set of entry and exit rules. This particular strategy has three entry parameters and three possible exits. You would take a position when all three of the entry parameters are true and you would close the position when any of the exit conditions are met.

The first century rule is that it must be a friday. The second entry rule is that the closing price has to be higher than the previous opening price. In other words, the close on friday has to be higher than the opening on thursday. The third and final entry rule is that the closing price on friday has to be higher than the closing price of nine days ago.

If these three entry conditions are met, you would buy tesla as in go long. The next time the market opens monday. Once you have established a long position, you would exit in one of three possible ways. The first possible exit is a profitable close.

If the closing price is above your entry price, you would exit the next time the market opens. The second possible exit is your stop loss. The stop loss for this strategy is rarely used, but it's always good to have a guard against a what. If situation, you could choose to place your stop loss at a decline of x dollars, but i prefer to place mine at a decline of double the average range over the past 20 days.

The last possible exit is a max hold time. If you have the tesla position for five days and there's been no profitable close and your stop loss hasn't been hit, you would sell the position the next day when the market opens, and that is one way you could profitably trade tesla. You would take a long position on monday morning if the closing price on friday is higher than both the opening price on thursday and the closing price of nine days prior, then, you would exit the position after a profitable close when your stop loss is hit, or After five days pass, it's that simple, since i know you're a scrupulous trader who doesn't believe everything you find on the internet, i'm sure you're wondering about the actual performance of this strategy. Unfortunately, i recently lost my magic 8-ball, so i won't be able to tell you the future, but i can show you exactly how it has performed in the past on the screen.

Now are the historic performance results for this tesla trading strategy over the past decade? It has traded 175 times and 137 of those trades were profitable. This means that the strategy had a win rate of just over 78 percent when comparing the gross profit to the gross loss of all of these trades, the profit factor was 4.44. This means that for every dollar lost over four was gained based on a trading lot. Size of 100 shares the average winning trade was 761.

and the average losing trade with 618 dollars. This means that the average trade net profit was just over 450 dollars. I use this lot size in my back testing, because 100 shares is equivalent to the leverage of one option you could take on whatever risk you deem to be appropriate, but the key numbers are the profit factor and the percent profitability. Let's take a look at the equity curve for this particular trading strategy from 2010 to 2013.

The strategy was pretty flat since then it had a nice incline and, most recently it got pretty lucky and took some large leaps. I would personally focus on the equity curve trend from trade 50 to 160, because the most recent ones seem to be a little bit abnormal. If you want the code or any of the analytical reports for this strategy, let me know in the comments or feel free to shoot me an email. I would be happy to discuss the strategy in further detail.

I put out new trading strategies and other finance related content every week. If that's something that interests you subscribe to, the channel hit the like button leave a comment. All the engagement helps make youtube. Think i'm funnier than i actually am thanks for watching.

I hope you have a good one. Oh you want the truth. Tesla stock prices too damn hot you.