Best Day Trading Strategy: The One Setup I'd Trade If I Could Only Choose One

"What's the best day trading strategy?"

I get asked this constantly. And I used to give complicated answers. Multiple setups. Various conditions. Lots of "it depends."

But if you forced me to pick one? Just one strategy for the rest of my trading career?

I'd pick the pullback entry in a confirmed trend.

Why This Strategy

Let me explain why this is the best day trading strategy.

It Works With the Trend

Most traders try to pick tops and bottoms. They fight the trend. They get crushed.

This strategy trades WITH the trend. You're not predicting reversals. You're joining moves already in progress.

It Gives Better Entries

Breakout traders buy highs. They chase. Their stops are wide.

Pullback traders buy dips within trends. Better prices. Tighter stops. Better risk/reward.

It's Simple

One setup. Clear rules. No ambiguity.

You don't need 10 different strategies. You need one good one, executed consistently.

It Works Everywhere

Crypto. Forex. Stocks. Futures.

Trends exist in all markets. Pullbacks happen in all trends. The strategy is universal.

The Strategy Explained

Here's the complete setup.

Step 1: Confirm the Trend

I need a clear trend before anything else.

Uptrend criteria:

• Higher highs and higher lows on the timeframe I'm trading
• Price above 20 EMA
• 20 EMA above 50 EMA

Downtrend criteria:

• Lower highs and lower lows
• Price below 20 EMA
• 20 EMA below 50 EMA

If I can't clearly identify the trend, I don't trade.

Step 2: Wait for the Pullback

Once trend is confirmed, I wait for price to pull back.

For uptrends:

• Price pulls back toward 20 EMA
• RSI drops to 40-50 zone (not oversold, just cooling off)
• Volume decreases on pullback

For downtrends:

• Price rallies toward 20 EMA
• RSI rises to 50-60 zone
• Volume decreases on rally

The pullback is the setup. Not the entry. I still need confirmation.

Step 3: Confirmation Candle

I don't buy the pullback blindly. I wait for confirmation.

For longs:

• Bullish candle at or near 20 EMA
• Candle closes above its midpoint
• Ideally engulfing or pin bar pattern

For shorts:

• Bearish candle at or near 20 EMA
• Candle closes below its midpoint
• Ideally engulfing or pin bar pattern

The confirmation candle shows that buyers (or sellers) are stepping back in.

Step 4: Entry

Enter on the close of the confirmation candle.

Some traders wait for the next candle to break the confirmation candle's high/low. That's fine too. Slightly later entry, slightly more confirmation.

Step 5: Stop Loss

For longs: Below the pullback low. For shorts: Above the pullback high.

This is the logical invalidation point. If price goes beyond this, the pullback has failed.

Step 6: Target

Option A: Fixed risk/reward (2:1 or 3:1) Option B: Previous swing high/low Option C: Trail with the trend

I usually use Option C for trending days and Option A for choppy days.

Real Example

Let me walk through a real trade.

Setup:

• BTC/USDT, 15-minute chart
• Clear uptrend: higher highs, higher lows
• Price above 20 EMA, 20 EMA above 50 EMA

Pullback:

• Price drops from $52,000 to $51,200
• Touches 20 EMA at $51,100
• RSI drops from 65 to 48
• Volume decreasing

Confirmation:

• Bullish engulfing candle at $51,150
• Closes at $51,400

Entry: $51,400 Stop: $50,900 (below pullback low) Risk: $500 per BTC

Target: Trail with trend or previous high at $52,000

Result: Price continued to $52,500. Trailed stop. Exited at $52,300.

Profit: $900 per BTC. Risk/reward: 1.8:1.

Why This Works

The strategy works because of market structure.

Trends don't move in straight lines. They move in waves. Impulse, pullback, impulse, pullback.

The pullback is where weak hands exit and strong hands enter. By waiting for the pullback and confirmation, you're entering with the strong hands.

You're not predicting. You're reacting to what the market is showing you.

Automating This Strategy

Here's how I set this up in dashpull.

Conditions for long entry:

• Price above 20 EMA (trend confirmed)
• 20 EMA above 50 EMA (trend confirmed)
• Price within 1% of 20 EMA (pullback)
• RSI between 40-55 (cooling off, not oversold)
• Bullish candle pattern detected

Execution:

• Enter long on candle close
• Stop loss: 1.5% below entry (or below recent swing low)
• Take profit: 3% above entry (or trail)

The system monitors continuously. When all conditions align, it executes. I don't need to watch charts all day.

Common Mistakes with This Strategy

Mistake 1: Trading Against the Trend

"The pullback is deep, maybe it's reversing!"

No. If the trend is up, look for longs. Period. Don't try to catch the reversal.

Mistake 2: Entering Without Confirmation

"Price is at the EMA, I'll just buy!"

Wait for the confirmation candle. The pullback might continue. Let price show you it's ready to resume.

Mistake 3: Stops Too Tight

"I'll put my stop just below the EMA."

The EMA is not support. It's a zone. Price often wicks through before bouncing. Give your stop room.

Mistake 4: Trading in Ranges

This strategy is for trends. In a range, there's no trend to pull back to.

Check for trend first. No trend = no trade.

Mistake 5: Overtrading

"There's a pullback! And another! And another!"

Not every pullback is a trade. Wait for clean setups. Quality over quantity.

Variations

The core strategy is simple. But there are variations:

Aggressive Version

Enter when price touches the EMA, without waiting for confirmation candle.

Earlier entry. More trades. Lower win rate.

Conservative Version

Wait for price to break above the confirmation candle's high before entering.

Later entry. Fewer trades. Higher win rate.

Multi-Timeframe Version

Confirm trend on higher timeframe (4H). Take pullback entries on lower timeframe (15m).

Better context. More precision.

I use the standard version most often. The variations are for specific market conditions.

The Bottom Line

If I could only trade one strategy, this would be it.

Trend pullback entries. Simple. Logical. Effective.

The rules are clear:

1. Confirm the trend
2. Wait for pullback to EMA
3. Wait for confirmation candle
4. Enter with stop below pullback low
5. Target previous high or trail

dashpull helps me execute this consistently. Conditions defined. Execution automated. Emotions removed.

You don't need 50 strategies. You need one good one, executed perfectly.

This is mine.

Ready to automate the pullback strategy? Try dashpull →