ICT Charter PAM 1 - Trade Plan and Algorithmic Theory
Last modified by Drunk Monkey on 2024-01-05 06:25
Outline
00:05 - Price action model trading plans.
- ICT anticipates questions about the price action model one entry scalping trade plan, especially from new students who haven't studied the mentorship content.
- ICT encourages students to review the price action model one lessons and free supplementary lessons on YouTube to fill in gaps in their understanding.
- ICT emphasizes the importance of collecting and analyzing data to develop a trading plan, rather than relying solely on videos and lectures.
- ICT encourages viewers to use the provided foundational trading plans as a starting point and add their own insights and strategies to enhance their trading.
05:22 - Creating a trading plan with a focus on preparation.
- ICT emphasizes the importance of responsible trading and warns against rushing through the mentorship program.
- He encourages students to take their time and study the material thoroughly to avoid mistakes and achieve success in live trading.
- Preparation is the first stage of every trading plan, where patience is applied and time is used wisely.
- The speaker emphasizes the importance of having a unique and personalized trade plan, with the least amount of moving parts possible.
11:12 - Using economic calendar for trading bias.
- The speaker discusses using the economic calendar to identify potential market impacts and determine the IP to data range for the last 20 trading days.
- The speaker looks for the next draw on liquidity inside the dealing range, which is determined by the highest high and lowest low of the last 20 days.
- ICT provides a framework for anticipating price movements based on institution order flow and daily chart analysis.
- Practicing these techniques can help traders develop a high accuracy in directional bias, despite not being 100% certain.
16:18 - Market analysis and trading strategies.
- Trader looks for specific market scenarios to unfold, based on economic calendar and bias.
- Identify liquidity pools and anticipate market movements based on economic calendar and market sentiment.
- ICT: When bearish, wait for price to move up into a daily premium PD array, then trade lower.
- When bullish, wait for price to move down into a discount daily chart discount PDRA, then trade higher.
22:51 - Trading strategies using chart patterns.
- ICT: Identify optimal trade entry points in 5-minute charts during retracement periods (7am-10am EST) for New York sessions.
- When bearish, target sell side liquidity below old daily low inside last 20 days, with initial objective of at least 15-20 pips.
- ICT uses sell limit orders with 62% fib level minus or lower as entry price for short trades, managing risk with multiple orders.
- Trader outlines entry and stop loss management for scalp trades, including using 60% retracement level and managing multiple positions.
29:27 - Risk management and position sizing in forex trading.
- Trader explains risk management formula for position sizing.
- ICT explains that for a $20,000 equity base, one can trade 15 mini lots with a 20 pip stop loss, assuming a 1.5% risk exposure.
- The stop loss required for the trade is 20 pips, which equates to $100,000 in leverage on the platform, or $10 per pip.
34:35 - Trading plan and risk management.
- ICT emphasizes the importance of managing risk and building wealth in a controlled manner, rather than relying on flash wins or lottery trading.
- ICT personally uses a strategy of taking 5-10 winning trades before expecting a loss, acknowledging that even experienced traders can have losing trades despite their analysis.
- ICT outlines the Price Action Model #1 and its components, including protocols for avoiding detrimental drawdowns.
- ICT demonstrates how to apply the model in a trading plan, using daily charts and five-minute charts, and emphasizes the importance of consistency and understanding price.
40:29 - Using algorithmic theory in trading.
- ICT emphasizes the importance of having a sound thesis and understanding the core concepts of the price action model to be successful in trading.
- ICT uses a variety of tools and techniques, but prioritizes those that excel in specific market conditions and timeframes.
- ICT explains algorithmic theory as a step-by-step approach to problem-solving, using examples from everyday life and computer programming.
44:56 - Trading algorithm development using price action models.
- The speaker discusses problem-solving using an algorithm, using an old lamp as an example, highlighting the importance of identifying key ingredients (trusted PD arrays) in trading.
- Identify bullish institutional order flow, breakout on daily chart, and premium absence for trade entry.
49:39 - A trading model using Fibonacci levels and stop-loss placement.
- ICT sets stops and takes partial profits based on Fibonacci levels.
- Develop a step-by-step trading plan using price action model number one for bearish algorithmic theory.
53:12 - A price action trading model for consistent setups.
- ICT: Identify bearish optimal trade entry points on 5-minute chart, adjusting stop loss and profit targets based on time of day.
- The speaker presents a detailed price action model for trading, including entry and exit criteria, and emphasizes the importance of consistency in trading.
- The model is based on the speaker's YouTube content and other courses, and is designed to be easy to use and consistent in finding setups.
Transcription
| 1 | 00:00:05 --> 00:00:16 | ICT: Okay, folks, welcome back. And it says our price action model number one entry scalping trade plan. And the idea is to capture 15 to 20 pips per trade. |
| 2 | 00:00:17 --> 00:00:27 | And before I get into this, I want you to understand, I already know what some of your complaints are going to be. Okay. So just know that, as I mentioned, |
| 3 | 00:00:27 --> 00:00:38 | them warned, well, before we even got to the topic of how these trade plans are going to be delivered, the frustration would be is if someone just simply gets |
| 4 | 00:00:38 --> 00:00:48 | their hands on these trade plans, they're really not going to be as beneficial to those individuals that have intimately studied the price action models, and |
| 5 | 00:00:48 --> 00:01:01 | also went through the mentorship content, core content, and also have seen how I use the concepts on a week by week basis on the commentaries. So it's built and |
| 6 | 00:01:01 --> 00:01:11 | written with the perspective that the audience which is namely the mentorship students that have paid actively and participated in this mentorship for at |
| 7 | 00:01:11 --> 00:01:25 | least, the very minimum of a calendar year. And I know some of you who've been here since 2017, had been waiting patiently for this. The groups that just made |
| 8 | 00:01:25 --> 00:01:37 | their way to charter member did not have to wait that long. So it's, we get new people in and content is delivered, those new students won't have that long |
| 9 | 00:01:37 --> 00:01:48 | wait, just like the first group had to wait, the second group will have to wait until the new content is delivered. So it's, it's, it's a natural process. |
| 10 | 00:01:49 --> 00:01:56 | There's no way around it because I have to give the information out over time, I can't just drop everything at one time, because it's simply impossible for me to |
| 11 | 00:01:56 --> 00:02:13 | do. So as a reminder, just know that already anticipating a large influx of questions by email, do us both have a great deal of service and go back through |
| 12 | 00:02:13 --> 00:02:25 | price action model one, okay, and go back through the lessons and go back into the scalping series, that's for free. On my YouTube channel, okay, it'll help |
| 13 | 00:02:25 --> 00:02:34 | answer a lot of the gaps that you probably have forgotten, because there's been some time between when there was first introduced, and the installments in |
| 14 | 00:02:34 --> 00:02:44 | between the supplementary lesson for price action model one. And there's been some time between those, okay, and invariably, I know some of you are going to |
| 15 | 00:02:44 --> 00:02:51 | be impatient, you're going to be lazy. And yes, that's probably going to be offensive to some of you. But that's exactly what it is. You have not taken good |
| 16 | 00:02:51 --> 00:02:57 | notes you have not studied, you just wanted to go to the next video, like it was gonna completely unlock it for you without going into your charts and looking |
| 17 | 00:02:57 --> 00:03:06 | for the setups yourself. I'm gonna say this at the end of the video, but I'm saying it to you again. Now before we get into it, you're going to be encouraged |
| 18 | 00:03:06 --> 00:03:18 | to go back into your charts using this plan. Okay, which is basically just an overview. It's this remind you of the salient points that we use to build a |
| 19 | 00:03:18 --> 00:03:31 | price action model and then the trading plan aspect, all the moving parts and the understanding that goes around those things were all collectively gathered |
| 20 | 00:03:31 --> 00:03:41 | by you or should have been collected and experienced by watching the videos watching me throughout the calendar year, looking at how price is delivered, |
| 21 | 00:03:41 --> 00:03:49 | looking at the reoccurring phenomenon that takes place in institutional order flow, how prices move from imbalance to rebounds, or above an old high for Beisa |
| 22 | 00:03:49 --> 00:03:59 | liquidity or below an old low for sellside liquidity. So all those factors come together with this plan. Now you're not trying to put a commitment of traders |
| 23 | 00:03:59 --> 00:04:11 | into this, okay, you're not trying to put all the facets that I've introduced into this plan, you don't need all those things for a specific model or plan to |
| 24 | 00:04:11 --> 00:04:20 | be efficient. Now, they will make them better if you implement all those things. And that's what I'm leaving room for each of you to do. I'm not spelling out |
| 25 | 00:04:20 --> 00:04:31 | million dollar trading plans. 12 of them. I'm not given the duck. That doesn't. Okay. million dollar makers. Okay, I'm giving you bread and butter foundational |
| 26 | 00:04:31 --> 00:04:43 | trading plans using very specific trading models that have outlined for you in charter member. And there's lots of room to grow with these lots of things that |
| 27 | 00:04:43 --> 00:04:55 | we can do to enhance them. You can grow into them, add some things that you've picked up through the mentorship to build it up a more I guess more friendly, |
| 28 | 00:04:55 --> 00:05:06 | personal approach to doing it begins. My interest is This, this is where we're going with it. I want to see what each of you do a couple months from now, I |
| 29 | 00:05:06 --> 00:05:13 | don't want you to do it right away, and saying, Okay, this is what I've done with price action model one. And my trading plan is this, I want the community |
| 30 | 00:05:14 --> 00:05:26 | to go into the forum, and outline their specific trading plan using each individual Price Action Model. Okay. So, again, this is just a foundation, it's |
| 31 | 00:05:26 --> 00:05:38 | just a guideline, it's a, it's a skeleton, okay, and each of you are going to build this skeleton up into a trading plan that's uniquely yours. Okay, I'm |
| 32 | 00:05:38 --> 00:05:46 | giving you the bare essentials, what's necessary for you to find it to be profitable. But you still have other rules and things that you have to apply, |
| 33 | 00:05:47 --> 00:05:55 | and you're going to lose, okay, if you put money into this, with a live account, I'm not promising you that you're going to have 100% strike rate, I'm not |
| 34 | 00:05:55 --> 00:06:02 | promising you that you're going to be profitable. And the reason why I'm telling you that and I'll say it again, I am not promising you that these will be |
| 35 | 00:06:02 --> 00:06:12 | profitable. Because each of you are responsible for your own actions, I'm not responsible for you putting in a live trade, I'm not responsible for that your |
| 36 | 00:06:12 --> 00:06:22 | interpretation of price action is not the same as someone sitting next to you, if we were in a, in a classroom, you're going to be impulsive, it's human |
| 37 | 00:06:22 --> 00:06:31 | nature. Okay. So it takes a great deal of responsibility. And again, this is the reason why. And I'll make sure I preface it by reminding you this is exactly the |
| 38 | 00:06:31 --> 00:06:43 | reason why I teach with the medium of a demo account, because most human beings, and none of you are an exception to this rule. And neither am I, when you are |
| 39 | 00:06:44 --> 00:06:54 | not versed in something, but you're motivated to get a result that you believe will come from doing something specific, or process, you're going to skip over |
| 40 | 00:06:54 --> 00:07:02 | things in a rush to get to it. Okay, just think about how you get to work most of you speed, instead of giving yourself more drive time. Everything is a |
| 41 | 00:07:02 --> 00:07:08 | shortcut. With a human being, they don't want to go through the process, you want me to get started with this video, probably some of you already skipped |
| 42 | 00:07:08 --> 00:07:21 | ahead. But it's important that the mindset aspect is aligned. Because you're not going to have the results you're looking for. If you hurry through the |
| 43 | 00:07:21 --> 00:07:28 | mentorship, if you went real quick through the core content, if you don't really watch the commentaries I give each week, if you're not focused on the side of |
| 44 | 00:07:28 --> 00:07:36 | the market, I'm putting your attention on every Wednesday and weekend, if you're trying to do your own thing, okay. And you've done that throughout the entire |
| 45 | 00:07:37 --> 00:07:49 | course and process of the mentorship, they aren't going to click for you. So just know that already know that now what will happen for those individuals that |
| 46 | 00:07:49 --> 00:07:57 | have taken the mentorship serious, They've devoted time and study and they've not tried to rush to get into the live account trading. They haven't been |
| 47 | 00:07:57 --> 00:08:08 | forcing themselves to, to know everything, to have allowed the flexibility of development to take its natural process, you're going to find simplicity in |
| 48 | 00:08:08 --> 00:08:18 | this. And you're gonna find out that it's not that hard is it? The process itself is not that hard doing it, and having the discipline and confidence to |
| 49 | 00:08:18 --> 00:08:23 | execute on it. That's what you're gonna develop in your demo account using it. Okay, so let's get into it now. |
| 50 | 00:08:32 --> 00:08:42 | Alright, so I see the price action model number one, this is a scalping model trade plan. And the ideal scenario is to capture 15 to 20 pips per trade. And |
| 51 | 00:08:42 --> 00:08:54 | the overview is this, there's essentially five steps to every trading plan. Some of these slides will be used in every trade plan, and certain portions in the |
| 52 | 00:08:54 --> 00:09:02 | content will obviously be more involved as we go through each model. But the first one was pretty simple, hasn't doesn't have a whole lot of moving parts in |
| 53 | 00:09:02 --> 00:09:13 | it. But each stage of the trading plan, it starts with preparation. Okay, and usually when patience is being applied, and what are you basically waiting for, |
| 54 | 00:09:13 --> 00:09:22 | what are you doing with your time, that's the first stage and then the next stage is opportunity discovery. So when you see something that is developing, |
| 55 | 00:09:23 --> 00:09:31 | okay, the opportunity has been discovered because of your experience, studying price delivery. Then once you understand the framework that you're looking at, |
| 56 | 00:09:31 --> 00:09:41 | you are going to trade your plan. Okay, so we go into a trade planning. And then the next stage is obviously once you have your opportunity and you've prepared |
| 57 | 00:09:42 --> 00:09:53 | and you planned the trade framework, then you want to execute on the trade. And then after that, once you're in a trade, what do you do? Once you get in the |
| 58 | 00:09:53 --> 00:10:01 | trade? It's like deer in headlights for some of you. I don't know what to do. Most of you are sending the emails while I'm in this trade. Um Michael, you |
| 59 | 00:10:01 --> 00:10:08 | know, where do I put my stop? And when should I take profits, that's not your trade, then it's my trade. If I tell you, and I never answer inquiries about |
| 60 | 00:10:08 --> 00:10:17 | that, I always remind them, it's not my trade, it's your trade. So there is the five stages for every trading plan. Now, you can use this also, if you want to |
| 61 | 00:10:17 --> 00:10:30 | just build your own model, you don't have to just stick to this, or every trading plan that I've done for the mentorship. The idea is you want to develop |
| 62 | 00:10:30 --> 00:10:41 | and flesh out your individual unique personal trade plan. With these five, step by step processes, you can make them infinitely detailed, and building all kinds |
| 63 | 00:10:41 --> 00:10:55 | of algorithmic principles, and relationships that must be met, for the trade to go forward. But the least amount of moving parts, the better. Once you have a |
| 64 | 00:10:55 --> 00:11:04 | dozen years or so, under your belt, you can probably start getting fanatical about it, like I've done in the past, but it's just because of my personal |
| 65 | 00:11:04 --> 00:11:15 | interest in it, you don't need that to be efficient. Alright, for the first stage, it's preparation. And we're going to refer to the economic calendar for |
| 66 | 00:11:15 --> 00:11:22 | the coming week. And we're going to note on medium and high impact events for the markets that you are going to be following. Now, it's not limited to Forex, |
| 67 | 00:11:22 --> 00:11:31 | obviously, you can do this with futures, you can do this with the bond market, you can do it with metals, commodities, all those other assets, but you want to |
| 68 | 00:11:31 --> 00:11:39 | be aware of what economic impacts are going to be on the horizon in terms of the economic calendar. And the wonderful thing is, is they give us this information |
| 69 | 00:11:39 --> 00:11:49 | ahead of time. Forex factor, as you know, we've been using its economic calendar is as good as any. And we use filters to reduce the number of events in markets |
| 70 | 00:11:50 --> 00:11:58 | as to narrow your focus on the markets that you are particularly interested in trading. It's no advantage by having all these other like, I don't look at the |
| 71 | 00:11:58 --> 00:12:05 | yen, I don't look at Swissy, I don't look at all these other pairs, I look at the ones that's going to be germane to the markets, I'm trading relative to the |
| 72 | 00:12:05 --> 00:12:17 | dollar. Okay, and what we're gonna be doing is, you're gonna be determining the IP to data range for the last 20 trading days, and we do not count Sundays. And |
| 73 | 00:12:17 --> 00:12:29 | what does that look like? Well, when you look at a chart, obviously the bottom is time and it's by date and many seconds if you have that capability for |
| 74 | 00:12:29 --> 00:12:41 | creating charts, and the other axis is price. So what we're doing is, we want to know what today is obviously. And then from that period, we want to look back, |
| 75 | 00:12:41 --> 00:12:53 | not counting Sundays, the last 20 trading days. So whatever that date is, we want to go back and determine what that date is, and 20 days ago, that becomes |
| 76 | 00:12:53 --> 00:13:05 | your specific current dealing range. Now, inside this 20 day, look back of the HIPAA data range, it's important we understand where the highest highest and the |
| 77 | 00:13:05 --> 00:13:15 | lowest low is inside that range. That's all we're requiring for this model. You don't need anything more than this. Now, if price has a fractal that has |
| 78 | 00:13:15 --> 00:13:24 | elements that go beyond the scope of the last 20 days. In other words, it's a it's in a real tight consolidation, you have to consider going into a 40 day |
| 79 | 00:13:24 --> 00:13:32 | look back. But that changes the model just a little bit in terms of your scope of how far you look back. Otherwise, all the framework resides inside of the 20 |
| 80 | 00:13:32 --> 00:13:43 | day look back. Inside this dealing range, we look for the next draw on liquidity. Where is price likely to trade to next? Is it reaching for a |
| 81 | 00:13:43 --> 00:13:54 | liquidity pool? Or is it looking to rebalance at a particular pdra this is going to be your bias. Now this slide right here already starts the whole process for |
| 82 | 00:13:54 --> 00:14:03 | some of you that have been really relaxed in your approach to going through this mentorship. If you've been watching me like it's just Netflix, okay, just binge |
| 83 | 00:14:03 --> 00:14:16 | watching ICT right now, you're already zapping out because you're thinking but I don't know bias. I was training you for long for diverse group. Now yours. You |
| 84 | 00:14:16 --> 00:14:26 | all know how to do bias. The problem is, you don't want to be wrong. Okay? The truth of the matter is that's what you're fearful if you know the process. But |
| 85 | 00:14:26 --> 00:14:34 | you know, also that you don't have the experience because you haven't been practicing for those individuals that are feeling this right now. You haven't |
| 86 | 00:14:34 --> 00:14:41 | been practicing, you have not been putting the effort into determining where the next move is going to be on price. And you haven't done the exercises. And now |
| 87 | 00:14:41 --> 00:14:52 | you're feeling that and I want all of you to discuss exactly where you would be feeling and what you'd be feeling at this moment if you didn't take it serious. |
| 88 | 00:14:52 --> 00:15:04 | So this is your cue card. You can fix this. It's not a it's not an N urgency, okay, it just means you're gonna have to go back through the processes and do |
| 89 | 00:15:04 --> 00:15:13 | the exercises, you don't need to do a whole lot of it, okay? In fact, a couple months of practicing using institution order flow and practicing with your, your |
| 90 | 00:15:13 --> 00:15:24 | daily chart, and working towards where the markets are trying to reach for and studying price in relationship to how time affects it. And its daily bias, all |
| 91 | 00:15:24 --> 00:15:32 | those things. Again, I've taught this in the mentorship, okay, it's in there. And you see me using it every single week, okay? When we do the commentaries, I |
| 92 | 00:15:32 --> 00:15:42 | outline why I believe the markets gonna go to where it goes to. Okay. And I have a pretty high accuracy in terms of directional bias. I'm not 100%. And you're |
| 93 | 00:15:42 --> 00:15:49 | never going to be 100% here. So why are you afraid, you were fearful all this time to practice thinking something magical was going to happen. And now here we |
| 94 | 00:15:49 --> 00:16:03 | are the rubber meeting the road, and you're uncertain, you feel like you don't know something when it was taught to you, because you didn't practice. Okay, |
| 95 | 00:16:04 --> 00:16:16 | now, we want to anticipate price, moving to a PD array that would support our bias on a day and economic event found on the economic calendar with the current |
| 96 | 00:16:16 --> 00:16:26 | or next trading week. So I'm gonna say it's the weekend. And we're looking at our charts and we're looking at the economic calendar, we start framing specific |
| 97 | 00:16:26 --> 00:16:39 | scenarios that would lead to our bias coming to fruition, and what stages of manipulation or rebalance could potentially unfold. So we do specific scenarios. |
| 98 | 00:16:39 --> 00:16:48 | And we're not doing plan a plan B directional up or down. We're looking for our bias to unfold, but then we look for scenarios that would lead to that bias |
| 99 | 00:16:48 --> 00:16:59 | unfolding. This is exactly what you wait for. You're sitting there still waiting for that to come to fruition. And again, what is it, we're looking for our bias |
| 100 | 00:16:59 --> 00:17:10 | to line up with possible dates in the economic calendar for that particular market where an injection of volatility would lead to a specific scenario that |
| 101 | 00:17:10 --> 00:17:20 | we don't always know right away before the market starts trading in the week. But as time goes on, and usually when Monday puts its trading in, we have a |
| 102 | 00:17:20 --> 00:17:29 | better feel for what it's going to do. Again, it's not 100%, but nothing in trading is. Now this can either be in the form of a run on liquidity, or it |
| 103 | 00:17:29 --> 00:17:40 | could be rebalancing inefficient price delivery. So again, it's a matter of determining the bias, is it likely to go higher? Okay, great. If it's not, is it |
| 104 | 00:17:40 --> 00:17:51 | likely to go lower? Wonderful. If you don't have an obvious one sidedness to the marketplace, then you sit on your hands and you wait, you prepare to wait |
| 105 | 00:17:51 --> 00:18:01 | longer. If it's going to move higher, is it moving higher? Because it needs to rebalance and go to a fair value gap? Or is it likely to run equal highs and run |
| 106 | 00:18:01 --> 00:18:06 | out liquidity? Either there's two scenarios is a justification for a bullish bias. |
| 107 | 00:18:08 --> 00:18:19 | What we do at those price points once it gets there is a completely different scenario and it's outside the scope of this model. Okay. Identifying the |
| 108 | 00:18:19 --> 00:18:30 | liquidity pools under old daily lows inside the last 20 days look back for the data range. When the bias is bearish. We're going to be identifying the |
| 109 | 00:18:30 --> 00:18:44 | liquidity pools above old daily highs inside the last look back of 20 days for the entire data range when the bias is bullish. We identify the discount PD |
| 110 | 00:18:44 --> 00:18:54 | arrays inside the last 20 days if the data range when the bias is bullish. And we identify the premium PD arrays inside the last 20 days if the data range when |
| 111 | 00:18:54 --> 00:19:07 | the bias is bearish. So what we're doing is we're framing what the market could key off of as we view support or resistance not in the scope of retail version |
| 112 | 00:19:07 --> 00:19:18 | of it, but we're looking at how if the rebound says or runs to liquidity. Okay, now we're gonna get to trade planning stage of it. When the market is primed, |
| 113 | 00:19:18 --> 00:19:28 | that means there's an opportunity to see price expand and move and treat an opportunity. So it's primed to move and waiting for that scenario. Once it's |
| 114 | 00:19:28 --> 00:19:37 | there, whether it's bullish or bearish. It doesn't make a difference. Okay, this comment is generic for either side. We want to look for a convergence of both |
| 115 | 00:19:37 --> 00:19:49 | manipulation in price opposite to our trade bias. At a time the economic calendar suggests a volatility injection will likely unfold. What does that |
| 116 | 00:19:49 --> 00:19:59 | mean? It means that it's a we're bearish. We think that the markets going to go lower. We want to see a day where the economic calendar suggests volatility is |
| 117 | 00:19:59 --> 00:20:09 | going to be In market a specific time of day, for that particular day for a particular market, we wait for that to unfold and then we anticipate a measure |
| 118 | 00:20:09 --> 00:20:20 | of manipulation and rally, we want to see it get a market protraction to the upside or Judas swing. When it does that this will cause retail to chase price |
| 119 | 00:20:20 --> 00:20:32 | and thus provide us excellent liquidity for our own trade trading in the opposite direction. When we are bearish, we will frame a short entry when price |
| 120 | 00:20:32 --> 00:20:45 | has moved up into a daily premium PD array, then trades lower. Okay, so now we have the framework that we've seen price run to a previous pdra in premium |
| 121 | 00:20:45 --> 00:20:57 | sense, they went to a bearish order block it ran out of old high it went to a bearish breaker, okay, and then starts going lower when the market then retraces |
| 122 | 00:20:57 --> 00:21:07 | off of a discount condition, or near term and into a new swing high formation. Now I have the estrus there next to the new, this is the part that it did not |
| 123 | 00:21:07 --> 00:21:21 | have in the teachings, okay. You can wait for the actual swing high to form. Okay, and trade after the formation of a swing high. Or the highest order of |
| 124 | 00:21:21 --> 00:21:31 | order flow is when we see for instance, like the market goes up into fair value gap, it fills the fair value gap. And we would anticipate naturally going lower |
| 125 | 00:21:31 --> 00:21:42 | if our bias is bearish. We don't need to see that swing high actually formed, we could trade on the very next candle in the New York session the very next day. |
| 126 | 00:21:43 --> 00:21:54 | And then as you've been taught in this model, that we waited for the actual swings the form, that's the confirmation approach, the highest order where you |
| 127 | 00:21:54 --> 00:22:03 | understand your institutional order flow, you know you're looking for the the idea is you want to be ahead of the curve, and you don't need all that extra |
| 128 | 00:22:03 --> 00:22:11 | confirmation. So that's what that little asterisk there is. Okay, so we can be trading aggressively if we understand the market has ran out on old high, so |
| 129 | 00:22:11 --> 00:22:18 | it's probably a turtle soup sell, or it's traded back up into some other premium array and therefore price should immediately start to reprice lower, and we |
| 130 | 00:22:18 --> 00:22:28 | don't really have to wait for that swing high to actually complete its third candle. We will short the very next New York session optimal trade entry |
| 131 | 00:22:28 --> 00:22:44 | pattern. When we are bullish, we will frame a long entry when price has moved down into a discount daily chart discount pdra Then trades higher, the market |
| 132 | 00:22:44 --> 00:22:55 | will then retrace off of a premium condition and into a new swing low formation. We will buy the next New York session optimal trade entry. So basically what I |
| 133 | 00:22:55 --> 00:23:03 | just said was a reverse of the previous slide everything is just completely reversed. And if you didn't catch it, just rewind it again and you'll see |
| 134 | 00:23:03 --> 00:23:15 | everything is just completely the opposite. When we are bearish, we will target the sell side liquidity below an old daily low inside the last 20 days if the |
| 135 | 00:23:15 --> 00:23:26 | data range. The immediate or next logical old daily low will be the initial objective. There will likely be multiple old daily lows inside of the IP to data |
| 136 | 00:23:26 --> 00:23:40 | range, but we use the one that frames the potential for at least 15 to 20 pips when we are bullish, we will target the buy side liquidity above any old daily |
| 137 | 00:23:40 --> 00:23:50 | high inside of the 20 day IP to date range. The immediate or next logical old daily high will be the initial objective. There will likely be multiple old |
| 138 | 00:23:50 --> 00:24:02 | daily highs inside of the IP the data range, but we use the one that frames the potential for at least 15 to 20 pips okay for trade executions. When we are |
| 139 | 00:24:02 --> 00:24:12 | bullish. We will note the seven o'clock in the morning, East Coast of the United States. And basically if you set a clock to local time in New York, you'll know |
| 140 | 00:24:12 --> 00:24:27 | what this time is 7am PST to 10am time window in a New York session. So your there's your very specific generic New York session kills them. Sometimes it can |
| 141 | 00:24:27 --> 00:24:38 | extend to 11am as you seen in the slide in the teaching, but primarily you're gonna see seven o'clock to 10am that your New York kills him. Why would it be 11 |
| 142 | 00:24:38 --> 00:24:47 | o'clock on Sundays if you look at the economic calendar, sometimes there's a crude oil inventory number that comes out 1030 Or some other news release that |
| 143 | 00:24:47 --> 00:24:58 | comes out that will generally push the New York kill zone till 11am. We will anticipate a five minute this is important now we're talking about the actual |
| 144 | 00:24:58 --> 00:25:07 | timeframe we're looking at what charter we look Get Michael. We will anticipate a five minute chart optimal trade entry to form inside of a retracement lower |
| 145 | 00:25:08 --> 00:25:19 | between the times outlined above. When we are bearish we will note the seven o'clock to 10am. New York local time window in the New York session for the kill |
| 146 | 00:25:19 --> 00:25:33 | zone. We will anticipate a five minute chart optimal trade entry to form inside of retracement higher between the times outlined above. short trade management |
| 147 | 00:25:34 --> 00:25:47 | when we are entering a short, we will place a sell limit order on all positions we will execute on with our demo account. We will use the 62% fib level minus or |
| 148 | 00:25:47 --> 00:26:00 | lower by five pips as our entry price when using the sell limit order. If multiple orders are used, all use the same entry price in the sell limit order. |
| 149 | 00:26:03 --> 00:26:12 | When we are entering a short we will place a limit order to take 15 pips as our objective on one position, we will place a second limit order to take 20 pips as |
| 150 | 00:26:12 --> 00:26:22 | our second objective, we will use multiple orders to manage the trade idea, if you wish, a third position can be used to capture a longer term objective. In |
| 151 | 00:26:22 --> 00:26:31 | other words, if you want to leave a leader in the market to catch a, a runner, if it happens to be one, that's your option, you can do that. Now for money |
| 152 | 00:26:31 --> 00:26:40 | management sake, just realize that didn't include us when we get to that portion of this video. Whatever your risk percentage that you're willing to take, if |
| 153 | 00:26:40 --> 00:26:49 | you're going to be doing multiple orders, then the number of your orders, you divide that by your total risk, and you divide that accordingly. In other words, |
| 154 | 00:26:50 --> 00:27:03 | if your risk is 1%, in say that equates to $900 of risk. Total, each one of these trades would only have 300. If it's three positions you're taking on for |
| 155 | 00:27:03 --> 00:27:12 | that one trade and doing what I'm suggesting here, each trade would have a limit of a total exposure of 300 hours per trade. You're not doing your total risk per |
| 156 | 00:27:12 --> 00:27:25 | trade times three because that will be three times your natural risk and you'll want to do that. When we're entering a short, we will note the 7am Eastern Time |
| 157 | 00:27:25 --> 00:27:38 | 2:10am Time Window and in New York session highest Hi, we will place our stop loss above this high plus five pips. very specific, very specific. That's what |
| 158 | 00:27:38 --> 00:27:48 | we're doing. We will not reenter if the trade stops out. We can monitor it for experience but no reentry is taken one and done. These are scalps. We demand |
| 159 | 00:27:48 --> 00:27:57 | everything on the position. We do not go back in and try to capture we don't do revenge trading. We don't say Oh, I figured out what I did wrong. We don't do |
| 160 | 00:27:57 --> 00:27:57 | it. |
| 161 | 00:28:00 --> 00:28:08 | When we're entering along we will place a buy limit order on all positions we will execute on in our demo account. We will use the 60% retracement level on |
| 162 | 00:28:08 --> 00:28:19 | the FIB plus or added to five pips to that level as our entry price when using a buy limit order. If multiple orders are used, all use the same entry price on |
| 163 | 00:28:19 --> 00:28:30 | the buy limit order. When we are entering a long we will place a limit order to take 15 pips as our objective on one position, we will place a second limit |
| 164 | 00:28:30 --> 00:28:40 | order to take 20 pips as our second objective. We will use multiple orders to manage the trade idea if you wish a third position can be used to capture a |
| 165 | 00:28:40 --> 00:28:51 | longer term objective as outlined for the short trade management. When we're entering along, we will note the 7am Eastern Time to 10am time window and the |
| 166 | 00:28:51 --> 00:29:03 | New York session slowest low we will place a stop loss below this low minus five pips or five pips below the slowest low in the New York session. We will not |
| 167 | 00:29:03 --> 00:29:12 | reenter the trade stops out we can monitor it for experience, but we will not take any re entries again one and done stop loss management alright when we are |
| 168 | 00:29:12 --> 00:29:26 | in profit by 25% of our expected objective stop loss can be reduced by 25%. When we are in profit 50% of our expected objective stop loss can be reduced by 50%. |
| 169 | 00:29:27 --> 00:29:36 | And what am I saying there? Whatever the amount of risk due to assuming when you put your trade on, you want to figure out what 25% and 50% of that is and when |
| 170 | 00:29:36 --> 00:29:48 | the trade provides you the specific ratios, then only then are you able to move your stop loss in this increment. When the position is at 75% of the expected |
| 171 | 00:29:48 --> 00:29:58 | profit objective stop must be at breakeven. The estrus is there to say if you have a commission based broker, okay? Say they say they have a spread, okay and |
| 172 | 00:29:58 --> 00:30:09 | a commission or whatever Whatever transaction costs you have, you got to include that for your breakeven. Okay, so it needs to cover that cost. And money |
| 173 | 00:30:09 --> 00:30:18 | management now position size calculation formula, this is something that all of you should already know. But I know there's a lot of you that don't understand |
| 174 | 00:30:18 --> 00:30:26 | it. So we're actually going to outline here for this model, and it'll be done. Basically, the slide will just be repeated with different figures for each |
| 175 | 00:30:26 --> 00:30:37 | model. So just get used to hearing this 11 more times. position size calculation formula, its position size, equals account equity times our percent divided by |
| 176 | 00:30:37 --> 00:30:50 | stop loss and pips. Now that formula is basically explained in the following position size is the amount of leverage your trade or trades assume account |
| 177 | 00:30:50 --> 00:31:01 | equity is the total amount of your trading account. At flat, that means you're in no open position. R percent is the percent of risk you are willing to take |
| 178 | 00:31:01 --> 00:31:11 | per trade. And the difference between the entry price and your stop loss is the number of pips you will use to divide the result of equity times our percent. So |
| 179 | 00:31:11 --> 00:31:21 | let's look at some examples of what that looks like. An example of your account balance, inequity is at $20,000 US dollars. The risk per trade you're willing to |
| 180 | 00:31:21 --> 00:31:35 | assume is one and a half percent, or 20,000 times 1.5% equals $300. The stop for your trade requires a 20 pip stop loss in micro lots, which would be in your |
| 181 | 00:31:35 --> 00:31:55 | platform one kg each, or 10 cents per pip 20 pips for a trade 20 pips times 10 cents per pip gives us $2 US dollars. That is your per pip cost. Now, we have a |
| 182 | 00:31:55 --> 00:32:11 | total of 300 hours, which is 1.5% exposure on our 20,000. Our equity base $2 divided into 300 ollars gives us the leverage of having 150 Micro lots per |
| 183 | 00:32:11 --> 00:32:24 | trade, or one and a half percent of our equity. Always round down if you get a remainder. Moving into mini lots, same example here 20,001 and a half percent |
| 184 | 00:32:24 --> 00:32:36 | risk. Again, three enlarges our total risk assumption in many lots, which is 10k Each for your platform. So when you see a 10k That's the equivalent one mini 10k |
| 185 | 00:32:36 --> 00:32:49 | or $1 per pip. And a stop loss again, is 20. pips, if we have a traded set up with the gearing that requires us to have a 20 pip stop loss, and using $1 per |
| 186 | 00:32:49 --> 00:33:06 | pip, which is one mini lot 20 pips times $1 is $20 per pip. So if we divide that into our total allowance for risk per trade, which is $300, again, $300 divided |
| 187 | 00:33:06 --> 00:33:18 | by $20 equals 15 Mini lots per trade, or one and a half percent of equity, always round them. What I'm suggesting here is if you have an equity base of |
| 188 | 00:33:18 --> 00:33:32 | $20,000, and you are willing to assume risk of one and a half percent, you can trade 15 Mini lots. And as long as you have a 20 pip stop loss, that's how many |
| 189 | 00:33:32 --> 00:33:44 | stops that's how many lots you can do 15 and still be within one and a half percent total risk. And last example here is same thing $20,000 One and a half |
| 190 | 00:33:44 --> 00:33:54 | percent risk exposure, the stock required is 20 pips in standard lots, which is $100,000 for your leverage on your platform, which equates to $10 per pip. The |
| 191 | 00:33:54 --> 00:34:02 | Stop Loss required for the trade is 20 pips, and again, these are all theoretical stops, it could be a stop of 15 pips or it could be a 30 pip stop |
| 192 | 00:34:02 --> 00:34:15 | required. But 20 pips times $10 per pip is 200 hours. Now, we can't lose more than one and a half percent, that's our limit. So we have 300 hours, which is |
| 193 | 00:34:15 --> 00:34:28 | 100% of 20,000. You take $300, which is 120,000 by 200 hours, that gives you one and a half standard lots, you can't trade a half a standard if you're using an |
| 194 | 00:34:28 --> 00:34:38 | account that does just standards. So one and a half standard lots or one lot portrayed, we always round down. So what this shows is many lots are actually |
| 195 | 00:34:38 --> 00:34:52 | more flexible in the optimal approach to trading. If your demo account takes a loss, okay, now we're talking about managing risk and what we do go into |
| 196 | 00:34:52 --> 00:35:02 | drawdown or a similar loss. If your demo account takes a loss on a trade, and it is the full our percent that you assumed What happens? Well, the first thing |
| 197 | 00:35:02 --> 00:35:13 | you're gonna do in your next trade is you drop the percent of risk by 50%. And when the loss is recovered by 50%, you are permitted to return back to the |
| 198 | 00:35:13 --> 00:35:24 | maximum, our percent per trade. If the reduced our percent trade are the second trade you took after the initial loss is also a loss. The next trade is reduced |
| 199 | 00:35:24 --> 00:35:38 | again, by 50%. And you hold that until the previous trade losses recovered by 50%. If you take a series of five winning trades in a row, drop your your our |
| 200 | 00:35:38 --> 00:35:51 | percent by 50%. And why you're on a roll right? Keep pushing your edge. Know, you are likely to assume a loss eventually. And this will build in equity |
| 201 | 00:35:51 --> 00:36:01 | leveling, and reduce the likelihood of a large drawdown. You want a smooth equity curve that slopes or stair steps higher, not a jagged roller coaster with |
| 202 | 00:36:01 --> 00:36:10 | deep declines. Nothing affects you more psychologically than seeing your equity curve go all over the place and having deep deep declines, you don't want that. |
| 203 | 00:36:10 --> 00:36:22 | You're not looking for aggressive, steep increases, either your development is key here. You just went through a series of training. It's not lottery trading. |
| 204 | 00:36:22 --> 00:36:32 | Okay. I'm not trying to get you flash win windfalls. Okay. That's not what this was all about. You're learning to build wealth, but you have to do so in a |
| 205 | 00:36:32 --> 00:36:42 | controlled manner. And you have to have protocols and procedures in place to protect you from harming yourself. These are those things you have to do them |
| 206 | 00:36:42 --> 00:36:53 | already know most of you are saying no, I'm not doing it. Okay? If it's not five winning trades, then let's say, eight winning trades, or 10, winning trades, the |
| 207 | 00:36:53 --> 00:37:04 | likelihood of you having 10 winning trades in a development stage of a trader and not have a single loss in between is pretty unlikely. Okay, so that's the |
| 208 | 00:37:04 --> 00:37:15 | reason why I said five, five is to me what I actually personally use, I like to have five wins, and then I expect a loss, I expect myself to be wrong, I expect |
| 209 | 00:37:15 --> 00:37:27 | that to happen. Does it always happen? No. Do I have a series of losses sometimes. But I'm building in the allowance for being human, just like you |
| 210 | 00:37:27 --> 00:37:35 | should, doesn't matter how good you are. And your analysis doesn't matter. Because when you get yourself into a trade, it changes everything. And that |
| 211 | 00:37:35 --> 00:37:47 | paradigm needs to be compensated with, again, protocols. And if you follow this, it will keep you from having detrimental drawdown, which completely removes you |
| 212 | 00:37:48 --> 00:37:52 | from the game. Alright, folks, probably |
| 213 | 00:37:52 --> 00:38:01 | doesn't feel like much, but I just outlined the entire Price Action Model number one, and put it into a trading plan. Now is a lot of words that I gave you on |
| 214 | 00:38:01 --> 00:38:07 | here. But do you overall concept, you could still write on the back of a business card because you understand the moving parts. And if you gave that |
| 215 | 00:38:07 --> 00:38:13 | business card to someone else, they wouldn't know what to do with it. Okay, much like some of you're looking at this thinking, this is a trading plan. That's |
| 216 | 00:38:13 --> 00:38:23 | exactly what a trading plan is. It's very specific things very concise. But those things if you had to sit down and explain them would take a great deal of |
| 217 | 00:38:23 --> 00:38:33 | effort and time and examples, and teachings and lessons and examples and examples and examples to see. So where do you go next, you have to start back |
| 218 | 00:38:33 --> 00:38:43 | testing, collect a month or two of sample sets with this trade plan. If you're unclear about some of the process, rewatch the lessons on this price action |
| 219 | 00:38:43 --> 00:38:56 | model, I will provide sample sets, but do not rely on me or wait for mine. Don't do that. Dig into the charts and study what was provided here. If you do that, |
| 220 | 00:38:56 --> 00:39:04 | it will start to click a little bit more you want to be collecting information. And the wonderful thing about forex factory is you can do a search on old |
| 221 | 00:39:04 --> 00:39:15 | calendar and still see the events that were there. So nothing in this model is going to be outside the scope of your research, you can do it. Okay. And once |
| 222 | 00:39:15 --> 00:39:24 | you do this, and you have your charts set up, and you capture what the chart look like from the daily dropping down only into a five minute chart, using what |
| 223 | 00:39:24 --> 00:39:33 | you've understood through the core content bias and then applying this very specific things in this price action model and now trade plan. You will have |
| 224 | 00:39:34 --> 00:39:47 | just about 90% of what I do on Twitter every single week. Now I'm gonna say that again, for some of you, you're thinking all this is crap. I was wanting him to |
| 225 | 00:39:47 --> 00:40:00 | give me this and adapt this. Again, your expectations as a developing student is not in line with reality. The reality is this. I actually use a A lot of what I |
| 226 | 00:40:00 --> 00:40:12 | just gave you here on Twitter. And look at the reaction people give, like they, they're just completely blown away because it's consistency, why it's not |
| 227 | 00:40:12 --> 00:40:24 | because this model is any better than six, or seven, or five, or 10, or 12. It just means that they're seeing someone that understands price, and has a |
| 228 | 00:40:24 --> 00:40:35 | specific recipe that he or she follows, and namely myself. And I go through the process of doing the same thing over and over and over again. Consistency starts |
| 229 | 00:40:35 --> 00:40:48 | with having a plan, that plan has to be leaning on a sound thesis, the thesis is the price action model, the price action model is not useful. It's not |
| 230 | 00:40:48 --> 00:41:03 | efficient. It's not profitable, unless the understanding of the core content is known, and practiced, and understood intimately. This is why I said it's a |
| 231 | 00:41:03 --> 00:41:10 | gradual process that you had to submit the time, if you've been lazy, and you've just been waiting for these to come like this, I told you, they would not be |
| 232 | 00:41:10 --> 00:41:19 | that helpful to you unless you understood the framework, the concepts individually. And now I'm putting pieces not every piece, not every piece is |
| 233 | 00:41:19 --> 00:41:27 | required, I don't have one model that has every single piece that comes together, it doesn't work like that. Certain conditions in the market. Certain |
| 234 | 00:41:27 --> 00:41:36 | timeframes, certain things that I like to look for, are very generic, and they don't require other facets of my toolbox and repertoire. I don't need to have |
| 235 | 00:41:36 --> 00:41:45 | every piece. But my experience has taught me where certain things Excel over others, and therefore I don't need to reach for that particular tool. If you |
| 236 | 00:41:45 --> 00:41:51 | ever watched a painter, what I mean by that, as an artist, not a House Painters, something like that. And artists, they usually have several different types of |
| 237 | 00:41:51 --> 00:42:02 | brushes. And they have a specific brush they they go to most. But if they want to go in with fine detailing, they have a brush for that. And they have a |
| 238 | 00:42:02 --> 00:42:12 | smaller brush for even more fine detailing. And have big fan brushes for dirt and certain things that they like to create the effect on the canvas with the |
| 239 | 00:42:12 --> 00:42:24 | paint. They don't use every single paintbrush every single time they sit in front of a canvas. And that's the point. Your mentorship experience with me is |
| 240 | 00:42:24 --> 00:42:36 | knowing when I grabbed what tool and where it's not just the it's not just videos, it's not PDFs, okay? It's not just binge watching, you have to roll your |
| 241 | 00:42:36 --> 00:42:49 | sleeves up and do this. But I promise you, I promise you if you do this, okay, go back, break the information down like I just explained, you will see it. And |
| 242 | 00:42:49 --> 00:42:58 | if you haven't captured it by now, by doing it with this trade plan with the benefit of having the price action model now that you can rewatch again study |
| 243 | 00:42:58 --> 00:43:08 | and you have the access to go back and research certain points of the core content. It will be very quick for you to get yourself right up to speed with |
| 244 | 00:43:08 --> 00:43:15 | everyone else that does know what you're doing with it now. This is the st mentorship Price Action Model number one algorithmic theory |
| 245 | 00:43:22 --> 00:43:33 | Alright, model number one algorithmic theory, before we get into it, what is an algorithm an algorithm is a set of instructions designed to perform a specific |
| 246 | 00:43:33 --> 00:43:46 | task and or solve a problem. Now you can take algorithmic theory and look at it through the lens of everyday life like cooking. Like the average recipe, that's |
| 247 | 00:43:46 --> 00:43:58 | an algorithm or a list of instructions for teaching your child how to brush their teeth, or wash their hands. And it could be taken to an extreme in terms |
| 248 | 00:43:58 --> 00:44:11 | of detail and used for computer programming. But the idea of algorithmic theory is a step by step approach to doing a task, a process or problem solving. |
| 249 | 00:44:19 --> 00:44:30 | As an example, using everyday life, this is an example of an algorithm used in the form of flowchart. Now I'm not going to be breaking the models down into |
| 250 | 00:44:30 --> 00:44:41 | flow charts. That's not going to be happening. But for the sake of simplifying and trying to show you what we're doing by taking some of the central tenants to |
| 251 | 00:44:41 --> 00:44:52 | the core content in his mentorship and creating price action models. They're used to give you a baseline or to inspire you to build upon them or to |
| 252 | 00:44:52 --> 00:45:04 | completely create your own with the core content. This algorithm is assuming that you found an old lamp. Okay, so you're going through some boxes, someone |
| 253 | 00:45:04 --> 00:45:15 | left some things that you inherited or whatever. And you open up the box, and you found that old lamp. Okay, so the lamp is not on obviously, in this example, |
| 254 | 00:45:15 --> 00:45:28 | we're assuming that the lamp is not one. So to problem solve this or an algorithm, you ask yourself a question. Is the lamp plugged in? If the answer is |
| 255 | 00:45:28 --> 00:45:41 | yes, then next thing is, is the bulb burned? If the bulbs burned, then you replace the bulb, then you go to Step turning the lamp power switch on, and then |
| 256 | 00:45:41 --> 00:45:50 | does the lamp Come on, and enjoy the light that it gives you. If you check to see if the lamp is plugged in, and it's no then you plug the lamp in, then you |
| 257 | 00:45:50 --> 00:46:02 | go to turning the power switch on. And as the lamp Come on, if it's no, then you replace the lamp. So there's a process that you can go through that leads to an |
| 258 | 00:46:02 --> 00:46:10 | outcome. Trading is just like that, okay, you have to have a recipe, you have to have key ingredients. So what ingredients are they? Well, they're going to be |
| 259 | 00:46:10 --> 00:46:23 | your specific PD arrays that you have grown to trust, you have an affinity for. And you don't necessarily need everything else that's available to you in this |
| 260 | 00:46:23 --> 00:46:32 | mentorship. As I mentioned many times in the past, I have already taught profitable trading in a simplistic manner with the optimal trade entry on my |
| 261 | 00:46:32 --> 00:46:44 | YouTube channel. You can take what I've taught you in this mentorship and create very intricate and complex price action models and algorithms. You don't need |
| 262 | 00:46:44 --> 00:46:52 | that level of sophistication to be profitable. But it's available to those who are inclined to do so. |
| 263 | 00:47:01 --> 00:47:10 | Now when considering what was shown to you in price action model number one, I'm going to cover first the price action model number one bullish algorithmic |
| 264 | 00:47:10 --> 00:47:24 | theory. I'm of the opinion that a model or trade plan should be so simplified that it can be written on the back of a business card. And if you go through |
| 265 | 00:47:24 --> 00:47:39 | this with me step by step, you're gonna see that it's very simplistic. It's a role based idea. And it's a step by step process. It's an if, then, or end |
| 266 | 00:47:39 --> 00:47:52 | process. And by going through each individual question and answering a condition, it gives you the reason to pause or negate the idea or wait for more |
| 267 | 00:47:52 --> 00:48:06 | information or go to the next step in the algorithm or model. So for price action model number one bullish algorithmic theory you're gonna be looking to |
| 268 | 00:48:06 --> 00:48:20 | determine the previous highs in the past 20 trading days do not count Sundays. If institutional order flow is bullish, and price has broken a swing high on the |
| 269 | 00:48:20 --> 00:48:46 | daily and price is not in a premium. If price is in a premium, there is no trade. And today is Monday, Tuesday or Wednesday, conditions are ideal. Or Today |
| 270 | 00:48:46 --> 00:49:00 | is Thursday. And price has yet to trade up to a previous high. So notice what I'm giving you here I'm giving you conditions that must be present. And if the |
| 271 | 00:49:00 --> 00:49:20 | condition is amplified, it gives you the details that must be met then look for a bullish optimal trade entry in the 7am to 10am local New York Time Window on a |
| 272 | 00:49:20 --> 00:49:39 | five minute chart. If today is Friday, no trade if the five minute chart formed a bullish optimal trade entry between 7am and 10am New York local time. Then by |
| 273 | 00:49:39 --> 00:50:01 | long at the 62% fib level, plus five pips. If long trade is entered, use five minutes fib ote anchor low, less five pips. For in initial stop loss order |
| 274 | 00:50:01 --> 00:50:14 | placement. So what am I saying there? If we're taking along the load you're drawing your Fibonacci from for the optimal trade entry. That is your anchor |
| 275 | 00:50:14 --> 00:50:31 | low. So your stop will be five pips below that. If stopped out, no re entry today if trade rallies to optimal trade entry anchor high, take first partial |
| 276 | 00:50:31 --> 00:50:42 | off at that price level. So where we draw the Fibonacci from the low up to the swing high, that swing high is your anchor high. So if it trades up to that, |
| 277 | 00:50:44 --> 00:50:56 | that's your first partials taken. Then raise protective stop loss up to lock in five to 10 pips of profit. Notice you're not moving your stop loss until your |
| 278 | 00:50:56 --> 00:51:09 | first partials taken, where's the first partial taken to optimal trade entry anchor high. If trade rallies the previous high or Fibonacci extension number to |
| 279 | 00:51:11 --> 00:51:14 | take second partial off at that price level. |
| 280 | 00:51:22 --> 00:51:32 | If trade rallies the previous high for symmetrical swing extension, close balance of trade at this price level. Symmetrical swing extension is simply the |
| 281 | 00:51:32 --> 00:51:40 | same range that it's used for the optimal trade entry range. If it doubles that it's a measured move. You want to be completely closing your trade there, it can |
| 282 | 00:51:40 --> 00:51:54 | obviously go more than that. But as I taught in the model, it's better just to get out entirely there. If time of day is after 10am, there is no trade. That's |
| 283 | 00:51:54 --> 00:52:05 | it. That's all there is for price action model number one. Now looking at it like this with a step by step approach, looking at it like a recipe, you do |
| 284 | 00:52:05 --> 00:52:16 | this, you do that you don't do this if this condition is there, or if it hasn't met that condition. And it gives you a step by step process. That's algorithmic |
| 285 | 00:52:16 --> 00:52:31 | theory. It's taking the ideas and the points of which make a condition up in the model and puts it in a trading plan format. So it's a step by step process in |
| 286 | 00:52:31 --> 00:52:43 | the order of importance, and when it would be considered. This is what it looks like this is a trading model fleshed out in a concise, very detailed manner. |
| 287 | 00:52:48 --> 00:52:55 | Now we're gonna look at the price action model number one for a bearish algorithmic theory. As you might have already guessed, it's just everything |
| 288 | 00:52:55 --> 00:53:09 | reversed. Price Action Model number one bearish algorithmic theory you're gonna be determining the previous lows in the past 20 trading days we do not count |
| 289 | 00:53:09 --> 00:53:27 | Sundays. If institutional order flow is bearish and price has broken a swing low on the daily and price is not in a discount. If price is in a discount, there is |
| 290 | 00:53:27 --> 00:53:50 | no trade and today is Monday Tuesday or Wednesday conditions are ideal or Today is Thursday. And price has yet to trade down to a previous low then look for a |
| 291 | 00:53:50 --> 00:54:09 | bearish optimal trade entry in the 7am to 10am window on a five minute chart if today's Friday there is no trade if five minute chart forms a bearish optimal |
| 292 | 00:54:09 --> 00:54:29 | trade entry between 7am and 10am then sell short at the 62% fib level minus five pips if short trade is entered use five minute fib optimal trade entry anchor |
| 293 | 00:54:29 --> 00:54:48 | High Plus five pips for the initial stop loss order placement. If stopped out no re entry today if trade declines to optimal trade entry anchor low, take first |
| 294 | 00:54:48 --> 00:55:07 | partial off at that price level. Then lower protective stop loss down to lock in five to 10 pips profit If trade declines the previous low or fib extension |
| 295 | 00:55:07 --> 00:55:21 | number to take second partial off at that price level. If trade declines the previous low or symmetrical swing extension, close balance of trade at this |
| 296 | 00:55:21 --> 00:55:41 | price level. If time of day is after 10am, there is no trade. That's it. That's model number one fleshed out in a price action model, from trading plan theory |
| 297 | 00:55:42 --> 00:55:55 | to algorithmic theory, that's a complete treatment of a trade idea, or a specific way of looking at price and engaging with price and then turning it |
| 298 | 00:55:55 --> 00:56:07 | into a step by step price action model trading plan. And with the algorithmic theory here, when you do what, when Don't you do other things? What conditions |
| 299 | 00:56:07 --> 00:56:17 | must be met for you to consider a trade? When is the trade taken? When is the trade not to be taken? This is a completely flushed out price action model. It |
| 300 | 00:56:17 --> 00:56:27 | doesn't look all that impressive like this. But once you've gone through the core content, and you understand the things that you were learning, then you |
| 301 | 00:56:27 --> 00:56:36 | learned the price action model, presentation. Then trading plan. Now you have the algorithmic theory, everything is complete. Now for price action model |
| 302 | 00:56:36 --> 00:56:48 | number one. So anyone that is familiar with the core content, the try to remember, price action model number one, can look at this. And see this is |
| 303 | 00:56:48 --> 00:57:04 | exactly what one would do. To find consistency, trading this model. And you can obviously see where it focuses its time and price. And it's day of week. Heavy. |
| 304 | 00:57:04 --> 00:57:15 | It's basically primarily looking at Monday, Tuesday and Wednesday setups just in the New York open kills him. But it allows it makes concession for Thursday, if |
| 305 | 00:57:15 --> 00:57:26 | is yet to trade up to a previous high when it's bullish, or trade down to previous low when it's bearish. But ideally, you want to be taking the trades on |
| 306 | 00:57:26 --> 00:57:42 | Monday, Tuesday and Wednesday. Friday, we don't take a trade you have a complete price action model. Now. There's absolutely no reason why anyone that's a |
| 307 | 00:57:42 --> 00:57:54 | charter member now cannot go in and find consistency and setups using at least this price action model. I taught a very simple one in the beginning. This is |
| 308 | 00:57:54 --> 00:58:06 | one that I felt that should have been understood just by my YouTube channel, and the content that I taught from 2010 on what the optimal trade entry pattern |
| 309 | 00:58:06 --> 00:58:19 | recognition series, all of that all the what I need now, the market maker primer course, which used to be for Xmas series. All those videos brought together. |
| 310 | 00:58:20 --> 00:58:29 | Someone that studied very diligently would have came up with a model very close to this. But now because you're here and you're being mentored, you have it now |
| 311 | 00:58:29 --> 00:58:38 | in your hot little hands. So there's no excuse now, you have every reason to get out there in the coming weeks and months and years to be able to find setups |
| 312 | 00:58:38 --> 00:58:46 | that meet this criteria. And I can tell you that this is a very easy, very simple but very consistent model. |