Recently, a trader from the U.S., John Carter, gained attention for reportedly earning $18.2 million in a year using a repeatable trading strategy called "Squeeze." He applied it to high-profile stocks like Tesla, Amazon, and Netflix, and the results were impressive.
This wasn’t luck or insider trading — it was a system built on discipline, timing, and risk management. So what exactly is the “Squeeze” strategy, and is it something everyday investors can adopt? Let’s break it down.
1. Who Is John Carter?
John Carter is a self-taught trader, not a Wall Street insider. He began with just $1,000 he saved from a part-time job. His first trade — a call option on Intel — made him $800 in a few weeks. That early success led him into the world of trading, but like many, he went through painful losses.
One of his biggest turning points was losing $150,000 right before buying a home — an event that reshaped his approach to risk. Since then, his trading philosophy has centered on patience and selectivity, only acting when the odds were clearly in his favor.
2. What Is the “Squeeze” Strategy?
The Squeeze is based on the idea that consolidation precedes expansion — in other words, after a period of low volatility and sideways movement, stocks often make powerful moves.
Imagine a shaken soda bottle — when pressure builds up inside, eventually the cap pops. The Squeeze strategy identifies that moment right before the “pop,” allowing traders to enter just before the breakout.
3. How Does He Spot a Squeeze?
The setup is based on technical indicators:
When the Bollinger Bands contract inside the Keltner Channels, a Squeeze is triggered.
Then, the Momentum histogram is used to determine the likely direction.
Other key filters Carter uses:
Price is above the 21-day EMA
EMA alignment: 8 > 21 > 34 > 55 > 89 (bullish structure)
Momentum histogram starts shifting in the expected direction
At least 5–8 Squeeze dots, signaling sustained pressure buildup
The stock is outperforming the broader market
When all conditions align, the setup is considered valid.
4. How Does He Trade It?
Carter uses a three-stage approach: entry, add-on, and exit.
Entry: He looks to enter on a pullback to the 21-day EMA during the Squeeze. A limit order is placed in anticipation of the breakout.
Add-on (Post-breakout): If the price breaks out and the move is confirmed, he may add size on a retest of the breakout level.
Exit: He takes profits in stages:
First target: +2 ATR (Average True Range)
Second target: +3 ATR
Final portion is trailed to ride a larger trend
Carter frequently uses deep-in-the-money call options instead of buying stock. These provide high delta (price sensitivity), less time decay, and more precise risk control.
5. Real-World Examples
🔷 $Tesla Motors(TSLA)$ , 2020 — $14 Million Profit
Carter spotted a textbook daily Squeeze on TSLA with perfect EMA alignment. He entered using deep ITM call options and spreads to limit downside. Once the move began, TSLA skyrocketed, and he scaled out into strength.
john carter squeeze
🔶 $Amazon.com(AMZN)$ , 2018 — Post-Earnings Play
Following earnings, AMZN stayed flat. Carter spotted a 30-minute intraday Squeeze, then used a Put Credit Spread to position long with defined risk — selling a higher-strike put and buying a lower-strike put to hedge. The stock held above the key level, and the spread expired profitably.
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🔺 $Netflix(NFLX)$ , 2019 — Countertrend Setup
NFLX had pulled back sharply to a key support level. On the 4-hour chart, Carter identified a Squeeze forming. He bought call options with a tight stop. The stock rebounded, delivering a $500,000+ profit.
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6. Risk Management and Why It Works
The strategy’s success lies not in complexity, but in discipline:
Carter never risks more than 5% per trade, even for high-conviction setups. Rarely will he allocate up to 10%.
He sometimes buys SPY puts to hedge against overall market risk when holding multiple long positions.
Stops are strictly enforced, and profits are taken in stages, reducing the chance of giving back gains.
He emphasizes that Squeeze setups are rare — patience is required. Traders may need to wait days or weeks for ideal conditions.
7. Final Thoughts — Can You Learn This?
Yes — the mechanics of the Squeeze strategy are straightforward and can be replicated using most trading platforms that support indicators like Bollinger Bands, Keltner Channels, and Momentum.
But the real challenge is execution:
Can you wait for the setup?
Can you manage risk without overexposing your capital?
Can you accept small losses and avoid emotional decisions?
If the answer is yes, this strategy offers a powerful framework — not just to find trades, but to trade intelligently and sustainably.
In Summary:
The Squeeze strategy isn’t just about capturing big moves — it’s about knowing when not to trade, having the discipline to wait, and the structure to act decisively when the time is right.
Carter's story teaches us that trading success comes less from brilliance and more from consistency. For everyday traders, this approach may not make you $18 million, but it could help you avoid costly mistakes — and that’s already a win.
📌 Disclaimer: This article is a repost based on publicly available educational content and strategy breakdowns from John F. Carter, founder of Simpler Trading. All rights belong to the original author. This post is for educational and informational purposes only and does not constitute financial advice.
Some examples and strategy explanations have been adapted and simplified for clarity.
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