Dow Jones: The Retail Trader-Friendly IndexI've just begun to trade Stock Index this past week and DJI has become my favorite. As someone who's a newbie in trading world, I've tested US30 to be the most retail-trader-friendly asset class. My winrate is 100% by far and I've only used simple combination of Trendlines, Support/Resistance, Key-level and Break/Retest with 1:2 RR. For an information, this strategy is what's known among retail traders as "Retail" strategy (there is a so-called "Smart Money Concept" strategy on the other side).
An overview about Retail straegy, I used to be constantly relying on technical indicators such as EMAs, Bollinger Bands, ATR, RSI Stochastic and some custom indicators on MetaTrader and Tradingview since the beginning. Until one profitable trader; Dean French, introduced me to this in February 2022. He's a prop-trader himself for Audacity Capital. At that point of time I remember being told that this strategy works well for Intraday or Swing-trading, with 50 - 60% winrate and 1:2 RR, profitability would be inevitable. But I was skeptical and since I was a fan of Scalping by the time, I didn't deploy this strategy until past one month. I came into realization that the cleanliness and simplicity it's made to the chart give positive impact to trading psychology e.g. panics that come with overcomplexity of chart's appearance are kept at bay. The Other than this, once you've set limit or executed an order, you can enjoy and go about your day and wait for the strategy to run its own instead of cramming your back from sitting down all day.
And I've tested Retail strategy on other asset classes such as forex, commodities and other index; EU, AU, Gold, GU, NAS100 and USOil. By far, Dow Jones or US30 is the simplest and friendliest of all. There's a statistics from FTMO (a Czech prop-firm) that shows US30 to be the 2nd most popular among its retail prop-traders, right below XAUUSD. Dow Jones Industrial Average (DJIA) is a price-weighted index, meaning that any of DJIA's 30 blue-chip stocks with higher price carries greater weights than lower-priced stocks inside it. Float-weighted index like SPX and Nasdaq may require more sophisticated techniques to grab adequate profitability, in my opinion.
You can find Strade NinjaFX on Instagram to have a clearer overview of this simple strategy. I attach the screenshot of my recent trades on US30. What do you think about this? Please let me know in the comment forms below.
