Trading and Crypto

How to trade with trendlines using a boring rule-based system for entries and exits

This boring trading strategy made me $526,454

Video: This boring trading strategy made me $526,454

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· based on the channel Tori Trades

Key takeaways

  • The system relies on trendlines only — no indicators — and has reportedly been used for over 11 years.
  • Entries trigger when price breaks the Action Line; the Safety Line defines the invalidation point for the stop.
  • Top-down analysis starts on the higher timeframe and only then moves to lower timeframes.
  • Position size is calculated from the distance between entry and stop, not from a fixed lot size.
  • Trendlines are maintained over time: they are redrawn as new swing points form.

Trading with trendlines means drawing a line along a sequence of higher lows in an uptrend (or lower highs in a downtrend), waiting for price to break that line, and placing the stop on the opposite side of the structure. The approach described by Tori Trades in her breakdown uses no indicators at all: it combines top-down analysis, two lines — an Action Line for entries and a Safety Line for exits — and a position size derived from the stop distance. The full walkthrough and the waitlist for her material are available through the Tori Trades waitlist page.

What a trendline actually represents in this trading strategy

A trendline is a straight line connecting two or more swing points that shows where buyers (in an uptrend) or sellers (in a downtrend) have repeatedly stepped in. In this framework it is not a decorative drawing: it is the level that defines whether the trend is still valid.

Two properties matter more than aesthetics:

  1. Direction. In an uptrend the line is drawn under successive higher lows; in a downtrend, above successive lower highs. A line that cuts through the middle of the price action is not a trendline.
  2. Touch quality. The more times price has touched the line and respected it, the more meaningful it becomes. A line drawn through one swing point only is a guess.

Because the line is built from price itself, the system needs no moving averages, RSI or MACD. The chart stays clean, and the decision — is price above or below the line — is binary.

Top-down analysis before you draw anything

The first step is always the higher timeframe: identify the dominant direction on the daily or weekly chart before looking at anything smaller. Trading against the higher-timeframe trend is the most common way a technically correct line still produces a losing trade.

A practical sequence looks like this:

  1. Open the highest timeframe you intend to trade (for example, the daily chart on futures).
  2. Mark the last clear swing high and swing low and decide whether price is making higher highs and higher lows, lower highs and lower lows, or neither.
  3. If the structure is unclear, skip the market — a range with no direction gives trendlines nothing to work with.
  4. Only after the higher timeframe is settled, drop to the lower timeframe to refine the line and time the entry.

The same logic applies across futures, forex and crypto: the instrument changes, the top-down process does not.

Rules for drawing trendlines correctly

Drawing discipline is what separates a repeatable system from random lines on a screen. The rules used in the video are simple and can be applied to any chart:

  • Use swing lows for uptrends and swing highs for downtrends, not candle bodies alone; wicks often mark the true extreme.
  • Do not force a line through price that does not respect it. If the third touch breaks the line immediately, the line is wrong.
  • Keep the line outside the price action. A trendline that price spends most of its time crossing is a support/resistance level, not a trend boundary.
  • Adjust the line when a new, more recent swing point forms — the line is a living object, not a one-time drawing.
  • On lower timeframes, redraw the line using the smaller swings, but keep it consistent with the higher-timeframe view.

A useful test: if two traders following the same rules would draw roughly the same line, the line is objective enough to trade.

The Action Line and the Safety Line: entries and exits

The system reduces every trade to two lines. The Action Line is the trendline itself — the level price must break for the setup to trigger. The Safety Line is the opposite boundary of the structure, and it defines where the idea is invalidated.

Entry logic in an uptrend:

  1. Price pulls back toward the rising Action Line.
  2. A break or rejection at the line confirms the trigger according to your chosen entry style.
  3. The Safety Line is placed below the last significant higher low that keeps the structure intact.
  4. If price closes beyond the Safety Line, the trade idea is dead and the position is closed.

This converts a discretionary chart read into a rule: entry at one line, invalidation at the other. There is nothing to interpret in the moment, which is exactly why the framework has survived more than a decade of use.

Position sizing and stop-loss placement

Risk is calculated from the distance between the entry and the Safety Line, not from a fixed number of contracts. The formula is straightforward:

Position size = (Account equity × risk per trade) ÷ (Entry price − Stop price)

If a trader risks 1% of a $50,000 account — $500 — and the distance from entry to the Safety Line is 10 points on a futures contract worth $5 per point, the stop distance equals $50 per contract, so the position is 10 contracts. Widen the stop and the size shrinks; tighten it and the size grows. The dollar risk stays constant.

Two practical notes:

  • Place the stop beyond the Safety Line, not exactly on it, to avoid being taken out by a wick that touches the line.
  • Never move the stop further away to “give the trade room”. That single habit turns a controlled loss into an account-damaging one.

Trailing the stop without giving back the gains

Once a trade moves in your favour, the Safety Line becomes a trailing tool rather than a fixed exit. As new higher lows form in an uptrend, the line moves up beneath them, and the stop follows.

A workable progression is to move the stop to breakeven only after price has cleared the previous swing high, then trail it behind each confirmed higher low. This keeps the trade alive through normal pullbacks while locking in profit if the trend breaks. The trade ends in one of two ways: the trailing stop is hit, or price breaks the Action Line in the opposite direction and the structure changes.

Common questions and doubts from traders

Most pushback on this style of trading falls into a few predictable categories. Beginners ask whether a system this plain can really work when so much content pushes complex indicator stacks — the answer is that simplicity is the point, since fewer inputs mean fewer ways to second-guess a signal. Others worry about the learning curve: the mechanics take an afternoon to understand, but drawing lines consistently takes weeks of screen time.

A frequent concern is the win rate. A trendline system typically produces many small losses and a smaller number of larger winners, so a string of stop-outs is normal and does not mean the method is broken. Traders also ask about markets: the same process applies to futures, forex and crypto, though liquidity and session hours affect how cleanly lines hold. Finally, several viewers want to see a live order placed end to end — broker, leverage, contract size — which is worth practising on a demo account before risking real capital.

Final thoughts on a boring but repeatable trading process

The strategy works because it removes decisions: one direction from the higher timeframe, one Action Line for entry, one Safety Line for the stop, and a position size calculated from the distance between them. Tori Trades presents this framework as an 11-year-old system built purely on trendlines, with no indicators and no guessing, and the structure is what makes it testable and repeatable across futures, forex and crypto. Master the drawing rules first, then the risk maths, then the trailing logic — in that order. To go further with the same material, join the Tori Trades waitlist.

Source: This boring trading strategy made me $526,454 · Markdown version

Questions & answers

Do I need indicators to trade with trendlines?

No. The system is built entirely from price structure: swing highs, swing lows and the lines drawn through them. Indicators are derived from past prices, so they add lag rather than new information. A clean chart with two well-drawn lines gives a binary decision — price is above or below the level.

How long does it take to learn this trendline strategy?

The mechanics — top-down analysis, drawing rules, entry at the Action Line and stop at the Safety Line — can be understood in a single sitting. Consistency is the slower part: expect several weeks of daily chart practice before your lines match what an experienced trader would draw. Practise on a demo account during that period.

Why do I keep getting stopped out just before price reverses?

Stops placed exactly on the line are vulnerable to wicks, so give the Safety Line a small buffer. Also check that your entry aligns with the higher-timeframe trend; counter-trend lines break far more often. Finally, confirm the line is drawn from real swing points rather than forced through candle bodies.

Can this strategy be used on crypto and forex, or only futures?

The process is market-agnostic: identify the higher-timeframe trend, draw the Action Line, set the Safety Line and size the position from the stop distance. What changes is liquidity and trading hours, which affect how cleanly levels hold. Test the rules on the specific market and session you intend to trade before committing capital.

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