A Step-by-Step Guide for Consistent Profits
In the world of trading, complexity doesn’t always equal profitability. Some of the most successful traders rely on simple strategies that are easy to understand, easy to follow, and consistently profitable over time.
This guide will help you create a 1-3 strategy setup — that means risking 1 to gain 3 — one of the most powerful risk-reward models used by smart traders.
🔥 Why a Simple Strategy Works Best
Many beginners think that using 10 indicators or complex setups makes trading better. In reality:
Simpler strategies are easier to execute
You make fewer emotional mistakes
You can stick to the plan without confusion
You get consistent results without overtrading
Let’s now dive into how to build this strategy.
⚙️ Step-by-Step: The Simple 1:3 Profitable Trading Strategy
✅ Strategy Name: Breakout + Retest + 1:3 Risk-Reward Setup
This strategy works in any market: crypto, forex, stocks, gold, etc.
1. Choose the Right Time Frame
For beginners: Use 1-hour or 4-hour chart
For swing traders: Use daily chart
This strategy also works on 15-min charts for quick trades
2. Identify a Key Support or Resistance Zone
Draw horizontal lines where price touches multiple times and reacts (bounces or gets rejected)
This becomes your major zone (support if below, resistance if above)
✅ Tip: Use tools like TradingView and mark 2–3 clean zones.
3. Wait for a Breakout
When price breaks above resistance or breaks below support with a strong candle, it’s called a breakout
Do not enter immediately. Wait for the next step.
4. Wait for Retest (Entry Signal)
After breakout, price often comes back to the same zone — this is called a retest
On the retest, if you see a rejection candle (e.g. pin bar, engulfing candle, or doji) — that’s your entry signal
📌 Example:
Breakout above resistance → Retest back to old resistance → Bullish pin bar → Enter a BUY
5. Entry, Stop Loss, and Take Profit
✅ Entry: Enter on the close of the confirmation candle after the retest
✅ Stop Loss: Place SL below the retest wick (for buy) or above the wick (for sell)
✅ Take Profit: Set TP at 3 times the risk
Example:
Risk = 20 pips → Reward = 60 pips
SL = $10 → TP = $30
This is your 1:3 Risk-to-Reward Ratio.
6. Risk Management is the Key
Never risk more than 1–2% of your capital per trade
Even if you win only 40% of your trades, with a 1:3 ratio, you will still make money!
Win Rate Risk:Reward Profitability
30% 1:3 Profitable ✅
40% 1:3 Very Profitable ✅✅
50% 1:3 Extremely Profitable ✅✅✅
📊 Tools You Can Use
Charting Platform: Trading View.(Free and powerful)
Indicators (Optional):
RSI (For overbought/oversold confirmation)
EMA 50 (As trend direction filter)
Trading Journal: Track your trades, wins, losses, and emotions
💡 Pro Tips for Success
Be Patient – Let the setup form. Don’t chase candles.
Trade Fewer, Better Trades – One solid trade is better than 5 weak ones.
Backtest the Strategy – Go back in the chart and practice on past data.
Stick to the Plan – Do not move SL/TP emotionally.
Avoid Trading During News – Volatility can hit your SL unexpectedly.
✅ Real-Life Example (For a BUY)
BTC is at $60,000. Resistance is at $60,200.
Price breaks above and goes to $60,500.
It comes back to $60,200 and gives a bullish engulfing candle.
Entry: $60,250
SL: $60,150 (-100)
TP: $60,550 (+300)
Result: 1:3 Profit
🔚 Conclusion
You don’t need 10 indicators or insider signals. You need discipline, a clean strategy, and risk management.
The Breakout-Retest 1:3 Strategy is simple, powerful, and profitable — even for beginners.
