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ICT Charter PAM 12 - Trade Plan and Algorithmic Theory

Last modified by Drunk Monkey on 2024-02-17 08:03

Outline

00:00 - A scalping trading plan using Price Action Model 12.

- ICT shares his Price Action Model 12, a 20 pip intraday scalping model, with a focus on precision and risk management.
- Identify most likely direction of movement for the next week based on past 20 trading days.

04:29 - Trading strategies using order blocks and fair value gaps.

- Targeting external range liquidity using kill zones and fair value gaps with order blocks.
- Order blocks can form outside of traditional ICT kill zones, but must be inside the kill zone for execution.

08:57 - Managing risk in short trading with limit orders.

- Trader enters trades with limit orders based on 5-minute chart analysis.
- The speaker discusses stop loss management and reducing risk in a scalping trading strategy.
- The speaker prioritizes breakeven stop loss reduction over reaching the full 20 pip stop loss, to minimize potential losses.

13:15 - Risk management and position sizing in trading.

- The formula for position size calculation is position size equals account equity times our percent divided by stop loss in pips.
- The model uses 20 pips as the standard stop loss threshold, and the required leverage is 10 cents per pip for micro lots and $1 per pip for mini lots.
- ICT provides sample sets for backtesting a scalping model that focuses on 20 pips per trade, using previous day's highs or lows as entry points.
- ICT warns that these models may overlap, but with enough time and study, traders can connect them to form a tapestry of market movements.

18:59 - Trading strategies using intraday market analysis.

- ICT emphasizes the importance of identifying intraday volatility without bias, as it can lead to 20 pip runners against daily range expansion.
- Avoiding a gambler's mentality and being careful not to abuse the model is crucial for success in this approach.
- ICT teaches a broad spectrum of trading concepts, including hybrid models and blending multiple approaches.
- Danby's pattern repeats often and can be traded in morning or afternoon sessions, with potential for 5 handles per session in a mini contract.

23:54 - Trading strategies and time management.

- ICT's student struggles with attention span and experience, relying on prompts from their teacher to make trading decisions.
- Trader encourages lowering expectations for smaller trades, emphasizing potential for consistent profits.
- ICT emphasizes time management and limiting trades to specific times of day to avoid burnout and prioritize family life.
- ICT encourages students to set realistic goals and avoid the pressure to trade at breakneck speeds, prioritizing income over spectacular returns.

30:15 - Using ICT to identify potential trading opportunities.

- ICT identifies potential short-term bias in the dollar-Swiss pair based on daily chart analysis.
- ICT identifies a pattern in the market where a low is taken up by an institutional buyer, creating an entry point for traders.
- The pattern involves a sweep of the previous day's high, followed by a break of a swing high, and a shift in market structure to the upside.
- ICT teacher explains that a simplified version of their pattern recognition model is available on YouTube, but it's not as comprehensive as the full model.
- The teacher emphasizes the importance of practicing and getting good at recognizing market bias, rather than relying on perfectly accurate predictions.

36:55 - Technical analysis and trading strategies.

- ICT emphasizes the importance of blending different trading strategies to create a unique model.
- He provides examples of how to use surgical strikes and scaling in trading, with a focus on leaving a runner on after taking the bulk of the trade off.
- ICT believes that his students have the potential to become millionaires through trading, but they must put in the work and effort to succeed.
- ICT is frustrated with students who are not serious about learning and are only relying on him and YouTube for knowledge, rather than putting in the effort themselves.

42:49 - Trading mindset and habits.

- ICT extends grace period for downloading videos, encourages community engagement.
- ICT emphasizes the importance of aligning one's mindset with the ladder chart, which reflects one's emotions and actions.
- ICT encourages listeners to continuously improve and trust the process, despite potential challenges and setbacks.

Transcription

1 00:00:00 --> 00:00:11 ICT: Alright, so this is Price Action Model number 12. This is a scalping model. It is 20 pips intraday trade model. And like the previous trade plan for Model
2 00:00:11 --> 00:00:23 number 11. This is again what is considered a bread and butter type model. It's not meant to be a be all end all. It's one of those models where there's
3 00:00:23 --> 00:00:33 something to find every single day. So it's a bread and butter set up. Because it's the bread and butter set up is not going to have a high R multiple attached
4 00:00:33 --> 00:00:43 to it. That is not to say that you can't apply like one minute scalping and reduce it down and make it even tighter in terms of risk. But as you'll see,
5 00:00:43 --> 00:00:52 it's about as low as I want to go with a stop loss. Personally, my lowest is about 15 pips, but as a mentor, I'm trying to keep you around that 20 Pip
6 00:00:52 --> 00:01:03 threshold for stop losses. The reason is, it's going to take you decades to get really really good and precise. And even when you obtain a certain degree of
7 00:01:03 --> 00:01:16 precision. The market is still apt to move beyond you know, 15 pips or 10 pips or don't ever subscribe to anyone telling you to use a five pip stop loss or two
8 00:01:16 --> 00:01:26 pip stop loss. This I just felt that was needed to be said here because there's a lot of Yahoo's out there that are taking my content and trying to rebrand it
9 00:01:26 --> 00:01:34 and showing fake trades and fake this and fake that. And they're not trading with two pips stop losses, because if they could do that, they would do it on
10 00:01:34 --> 00:01:38 trading view and record it as it's happening, and you don't see that happening.
11 00:01:47 --> 00:01:56 Alright, again, it's the ICT Price Action Model number 12. It is a 20 Pip per trade plan. And it's anchored on an intraday scalping model.
12 00:02:02 --> 00:02:19 Like every trading plan, we use the five stages of trade plan development versus preparation, opportunity discovery, trade planning, trade, execution, and trade
13 00:02:19 --> 00:02:30 management. Alright, our preparation is going to be noting all medium and high impact events for the markets that you're following. We're going to study the
14 00:02:30 --> 00:02:39 events on the week to come and consider how the current market structure and the calendar events may suggest a specific weekly profile for that week's range.
15 00:02:40 --> 00:02:51 Basically, we're looking at that weekly expansion, okay, we're trying to find which direction Now notice I said direction, not specific price level, not where
16 00:02:51 --> 00:03:02 the weekly close is going to be. We're trading in that inside that weekly bias that would expand more one sided than the other. It doesn't matter if we close
17 00:03:02 --> 00:03:12 unchanged or even reverse intra week. All we need for a model like this is to know which side is most likely going to expand higher or lower relative to its
18 00:03:12 --> 00:03:23 weekly chart, the very next weekly candle before it even starts trading on Sunday. Where is the most likelihood of moving? Is it moving higher? Or is it
19 00:03:23 --> 00:03:37 moving lower? That's the only thing you need. Preparation, we're gonna be determining the HIPAA data range of the last 20 trading days. Now we're not
20 00:03:37 --> 00:03:47 needing or requiring 40 or 60 days look back only the last 20 trading days. And again, we do not count Sundays, really noting the highest high and the lowest
21 00:03:47 --> 00:04:00 low in the past 20 trading days. This is your current dealing range. Inside this dealing range, we will look for the next draw on liquidity. Where is price
22 00:04:00 --> 00:04:11 likely to trade to next below which old low above which old high? We'd look for a PD array in the direction of the weekly range bias. That's what I just
23 00:04:11 --> 00:04:20 mentioned before going into the preparation stage of this trade plan. In other words, we're looking for most likelihood in terms of moving in expanding on that
24 00:04:20 --> 00:04:31 weekly candle that's just opened on the next Sunday to come is it more likely to trade higher or lower. This is what we'll be using and we're going to be
25 00:04:31 --> 00:04:43 targeting external range liquidity. We anticipate price to move to an order block that has a fair value gap with it. That would support our weekly bias on a
26 00:04:43 --> 00:04:54 day and news release found on the economic calendar for the current or next trading week. This volatility injection is what we wait for. This would be a run
27 00:04:54 --> 00:05:06 based on a low resistance liquidity run condition. opportunity to start Free look for 20 Pip ranges on a 15 minute chart that would enable a run to buy side
28 00:05:06 --> 00:05:15 liquidity when bullish institutional order flow is present or target the sell side liquidity when bearish institutional order flow is present. As you can see
29 00:05:15 --> 00:05:27 here, this is a 15 minute timeframe. And the idea is we're gonna be targeting external range liquidity using the kill zones, and again fair value gap with
30 00:05:27 --> 00:05:42 order block. In on a five minute chart, it would look like this. You have your order block fair value gap, New York session and running to that 15 minute old
31 00:05:42 --> 00:05:55 high for external range liquidity. Trade planning, when the market is poised to decline, we want to look for convergence of both manipulation and price.
32 00:05:56 --> 00:06:07 Opposite to our trade bias at a time the economic calendar suggests a volatility injection will likely unfold. We will short 15 minute premium fair value gaps
33 00:06:07 --> 00:06:21 with bearish order blocks. When the market is poised to rally, we want to look for convergence of both manipulation and price opposite to our trade bias. At a
34 00:06:21 --> 00:06:31 time the economic calendar suggests the volatility injection will likely unfold, we will buy 15 minute discount fair value gaps plus bullish order block setups.
35 00:06:32 --> 00:06:46 So in other words, the order block that we're utilizing, it can occur or form outside to kill them. But the return to the order block must be inside the kill
36 00:06:46 --> 00:06:58 zone of either New York or London. Okay, let me say that again. The order block can reside or be formed during the time of day that is not classically defined
37 00:06:58 --> 00:07:07 as an ICT kill zone. So it could be forming between five o'clock in the morning and seven o'clock in the morning New York time. So that would be like in our
38 00:07:07 --> 00:07:16 quiet time, you know, London lunch or something like that. We're not anticipating a lot there. But we still refer to the price action between those
39 00:07:16 --> 00:07:28 two hours, five o'clock and seven o'clock. So while that is relatively quiet to us, we can refer to order blocks that exist there same way during the time that
40 00:07:28 --> 00:07:40 creates the central bank dealers range. That is not a time when we actually try to trade but we can refer to blocks that occur or have a gaps that occur during
41 00:07:40 --> 00:07:51 that time. It's not always the case that it forms but I'm just throwing this in here as a another point of reference. But the return to the fair value gap and
42 00:07:51 --> 00:08:01 the order block both bearish or bullish relative to our bullish or bearish consideration using this trade plan. The return to the Orbach compare value gap
43 00:08:01 --> 00:08:15 that must that absolutely must be during an ICT kills him otherwise it's not a viable trade trade executions. When we are bearish, we will anticipate a five
44 00:08:15 --> 00:08:26 minute premium fair value gap coupled with a bearish order block to form on a 15 minute retracement higher. Now before I go any further the stage on this is
45 00:08:26 --> 00:08:38 based on that 15 minute timeframe. That's your stage. The setup forms on the five minute chart and it must occur during London Open and or New York open
46 00:08:38 --> 00:08:50 kills HIMS. When we are bullish we will anticipate a five minute discount fair value gap plus bullish order block to form on a 15 minute retracement lower
47 00:08:50 --> 00:09:04 during London Open and or New York open kill zones. short trade management when we are entering a short we will place a sell limit order we will execute with
48 00:09:04 --> 00:09:13 our demo account. We will use the institutional order flow entry drill minus five pips as our entry price when using the sell limit order.
49 00:09:20 --> 00:09:29 When we're entering along we will place a buy limit order we will execute with our demo account. We will use the institution order flow entry drill plus five
50 00:09:29 --> 00:09:39 pips as our entry price when using the buy limit order. Again the orders are placed relative to a five minute chart. So your institutional order flow entry
51 00:09:39 --> 00:09:51 drill price level is going to be derived from the five minute when we're entering a short, we will place a sell limit order to take 20 pips as our
52 00:09:51 --> 00:10:03 objective when a single position. If you capture a 20 Pip objective, close the order via a buy limit order and wait for another opportunity When we're entering
53 00:10:03 --> 00:10:12 along, we will place a buy limit order to take 20 pips as our objective when a single position. If you capture a 20 Pip objective, close the order via sell
54 00:10:12 --> 00:10:23 limit order and wait for another opportunity. Long story short, we're entering on limit. And we soon as we enter, we have our profit objective in the form of a
55 00:10:23 --> 00:10:32 counter limit. And the order sits there. We don't monkey around with it. We don't think about it. We don't obsessively compulsively worry. We put the stop
56 00:10:32 --> 00:10:44 in, we put the limit order in for 20 pips and we let it go. It's either going to stop you out, or it's going to move to your profit objective. Stop Loss
57 00:10:44 --> 00:10:58 management. Stop Loss opens with 20 Pip risk. When we are in profit 10 pips of our expected 20 Pip objective stop loss can be reduced by 10 pips, this cuts the
58 00:10:58 --> 00:11:09 risk in half. Worst case scenario, you get stopped out from entry at a full 20 pip stop loss. A better scenario is as you start moving towards your 20 Pip
59 00:11:09 --> 00:11:20 objective. If you get 10 pips locked in, you can reduce your stop loss by 10 pips. So if you do see a return on your stop, you're only going to get knocked
60 00:11:20 --> 00:11:29 off with half of what your initial risk was. So you want to be a little bit aggressive with this lower timeframe scalping model. And this is one way you can
61 00:11:29 --> 00:11:41 do that. When we are in profit, 15 pips of our expected 20 Pip objective stop loss can be reduced to breakeven. That's important. And I'll read it again. When
62 00:11:41 --> 00:11:53 we are in profit 15 pips of our expected 20 Pip objective stop loss can be reduced by breakeven. Now, why did I add this here? Well, I can tell you when I
63 00:11:53 --> 00:12:05 first started practicing and doing drills on one and five minute charts with a model that was very close to this one, it offered many times 12 to 15 pips, and
64 00:12:05 --> 00:12:16 I'd be expecting those 20 And they would return on me and I would get stopped out what a loss. So as you move towards 10 pips in profit, that 20 Pip objective
65 00:12:16 --> 00:12:26 that you're waiting for, and your limit order to take you out of the trade. You have reduced with to paragraph above, stating that if you're in 10 pips profit,
66 00:12:26 --> 00:12:42 which is half of what you expect to make, then you reduce the stop loss by 10 pips. So that's better than taking a full stop. But there's many times where if
67 00:12:42 --> 00:12:56 it can see 15 pips, it'll go 15 pips 16 pips and failed, expanded at 20 Pip threshold and limit you out. So I don't like to be in situations where I'm that
68 00:12:56 --> 00:13:05 close to profit, and not in a position where I can be stopped out with breakeven. So I don't care about winning every time I'm caring more about
69 00:13:05 --> 00:13:22 managing the risk, because that in itself will take care of the bottom line for you. Money management, position size calculation formula. position size equals
70 00:13:22 --> 00:13:35 account equity times our percent divided by stop loss in pips. position size is the amount of leverage your trade or trades assume account equity is the total
71 00:13:35 --> 00:13:45 amount in your trading account. R percent is the percent of risk you're willing to take on portrayed. The difference between your entry price and your stop loss
72 00:13:45 --> 00:13:56 is the number of pips you will use to divide the result of equity times our percent Alright, in our first example, of our hypothetical account equity of
73 00:13:56 --> 00:14:11 10,000 US Dollars risk portrayed on this model is 1%. And or 10,000 times 1% or 100 US dollars. Stock required for the trade is 20 pips in micro lots at means
74 00:14:11 --> 00:14:24 every one key leverage is 10 cents per pip using a model like this with 20 pips as our go to for our standard stop loss threshold 20 pips at 10 cents equals to
75 00:14:24 --> 00:14:42 as US dollars, or 1% of 10,000 divided by those same $2 equals the leverage of 50 Micro lots portrayed or 1% of the account equity, always round down. Our next
76 00:14:42 --> 00:14:56 example using mini lots 10k leverage or $1 per pip, everything remaining the same hypothetical $10,000 In our equity, using a 1% risk or 100. US dollars will
77 00:14:56 --> 00:15:10 start required for the model at 20 pips 20 pips At $1 gives us 20 US dollars, that 20 US dollars divided into 100 or 1% of 10,000 gives us the potential to
78 00:15:10 --> 00:15:24 trade with five mini lots per trade or 1% of the account equity. Again, always rounding down. And lastly, this model, and the 20 pips and 1% risk does not
79 00:15:24 --> 00:15:36 allow us to trade with a standard lot, so it's not applicable here. If your demo account takes a loss on a trade, and it is the full our percent you assumed drop
80 00:15:36 --> 00:15:45 the RM percent by 50%. And when the losses recovered by 50%, you are permitted to return to the maximum our percent per trade is to reduce our percent trade
81 00:15:45 --> 00:15:57 assumes a loss reduced our percent by 50% until the previous trade loss is recovered by 50%. If you take a series of five winning trades in a row, drop
82 00:15:57 --> 00:16:08 your honor percent by 50%. You're likely to assume a loss eventually. And this will build an equity leveling and reduce the likelihood of a large drawdown. You
83 00:16:08 --> 00:16:21 want a smooth equity curve that slopes or stair steps higher, not erratic distribution with deep declines. Okay, folks, start back testing. Collect
84 00:16:21 --> 00:16:30 multiple sample sets with this trade plan. If you're unclear about some of the process, rewatch the lessons that is price action model, I will provide sample
85 00:16:30 --> 00:16:41 sets but do not rely or wait from on dig into your charts and study what was provided here. This is model number 12 algorithmic theory and lecture for the
86 00:16:41 --> 00:16:53 scalping model and focuses on 20 pips per trade. This one here is kind of like one of those bread and butter setups, these tend to repeat a lot. There's
87 00:16:53 --> 00:17:01 generally something like this every single trading day, you'll have to look through obviously, a lot of the pairs and futures markets, but something is
88 00:17:01 --> 00:17:13 running out a previous day's high, okay, or a previous days well, or making an attempt to do that. Okay, so let me make sure you have that in your notes. You
89 00:17:13 --> 00:17:23 may expect the market to rally up to take out a previous day's high. But if it offers 20 pips before it gets to that previous day's high, that fits in this
90 00:17:23 --> 00:17:34 model. So I think if you've been paying attention, this is what I said before we even started the charter membership. Before I even started doing price action
91 00:17:34 --> 00:17:46 models, I warned all of you in the recordings leading up to it that you're going to find that these models overlap. There's a lot of similar things. And your
92 00:17:46 --> 00:17:56 mind should be thinking this looks similar to this. And this feels like that. And because they're all connected. Over time, how much time I don't know. But
93 00:17:56 --> 00:18:06 each of you if given enough time, working with them studying in your mind, we'll start seeing how all of them plugged together. And it gives you like this
94 00:18:07 --> 00:18:17 tapestry, how they all connect, when one's doing something and when it ends, another model starts working. So there's always something that moves and gyrates
95 00:18:18 --> 00:18:30 between the marketplace. That's why, some days when it's really nice in terms of volatility, I can go in there and a combined sell and buy and sell and move from
96 00:18:30 --> 00:18:39 one thing to the next like spider man webslinger. And to an EFI or someone's been trading for a while and they see that in my recordings where I'm doing
97 00:18:39 --> 00:18:49 executions, both sides of the marketplace, getting out the highs getting short going down to the lows, covering short going long. There isn't a market
98 00:18:49 --> 00:19:04 environment that sees that repeat a lot but when it does manifest itself. You can use this model for intraday web swinging. Okay? It's it's very fun to
99 00:19:04 --> 00:19:11 practice on and demo doing it. But I don't want you to think and go out there, what a Live account, start doing it because none of you are right. At that level
100 00:19:11 --> 00:19:14 yet. Don't be put off by that comment.
101 00:19:15 --> 00:19:29 Trust me when I tell you, especially in the market volatility we have today, in the last 18 months or two years or so. It's very difficult, okay to find real
102 00:19:29 --> 00:19:39 nice pristine symmetry in the marketplace. It's really short lived. When it happens. You gotta get it, secured the money in go, okay, and try not to be
103 00:19:39 --> 00:19:47 thinking at the end of every trade you just closed. There should be an alternative trade, okay? That's a neophyte that is someone that is a gambler,
104 00:19:47 --> 00:19:54 and someone that feels like they gotta be in the market all the time because they're afraid of missing something or they're addicted to winning. Okay, or
105 00:19:54 --> 00:20:03 addicted. It's just the action alone. So this model can present a gambler a lot of problems. And you have to be careful that you don't go in here and try to
106 00:20:04 --> 00:20:17 abuse this one, because it's there all the time. But you have to be careful what you're doing. And try not to be, you know, a gambler, or action hound or a
107 00:20:17 --> 00:20:26 junkie, that way. So this model, you know, it's built on the daily range expansion, so you're not really relying on anything from the weekly. And all you
108 00:20:26 --> 00:20:35 have to do is try to figure out at the beginning of the day, is it likely to run for previous day's high previous day's low, or expand in either one of those
109 00:20:35 --> 00:20:48 directions? A lot allowing for 20 pips. Okay, so it's really an intraday model that takes advantage of volatility, without bias, really, because you could
110 00:20:48 --> 00:20:58 really flip a quarter and heads by tails short. And as long as you know, what you're looking for, through market structure, intraday volatility, chances are,
111 00:20:58 --> 00:21:08 you can probably find a 20 Pip runner intraday, and really be against the daily range expansion. So I'm saying that just to get your gears turning, because
112 00:21:08 --> 00:21:20 there's a lot of volatility in the markets today. And sometimes, it offers that in a very choppy range bound market. And if you put too much emphasis on daily
113 00:21:20 --> 00:21:29 range, expansion, directional bias, you could miss out on some really nice moves. And I don't want to lay that in your lap and kind of like inspire more
114 00:21:29 --> 00:21:41 fear of missing out, okay, but I'm speaking to the more refined you as the student, not right now, because you just completed all the models, you have all
115 00:21:41 --> 00:21:49 the algorithmic principles, you have the trading plans, you have the logic, and what's going to happen now is you're going to go through them. And you're gonna
116 00:21:49 --> 00:21:59 think about which one resonates the most with you. And it may create a hybrid, it might blend one or two, or maybe even three of them with your own unique
117 00:21:59 --> 00:22:11 model, you're not limited to just this, I'm not saying that this is all ICT concepts are limited to, I wanted to give you a pretty broad spectrum of what
118 00:22:11 --> 00:22:19 you can do with the things that you learn here. And obviously, I just gave another one on YouTube this year. And you can make it as simple as you want it
119 00:22:19 --> 00:22:30 to be. And today, you know, everybody without me even talking about what to do. They were out there going short, E Mini s&p and NASDAQ catching the fair fair
120 00:22:30 --> 00:22:41 value gap after Basa liquidity and running to sell side liquidity and their related much like you will be once you settling on your own unique model. And it
121 00:22:41 --> 00:22:53 might be that one that I gave to you too. There's nothing wrong with that. But for this little pattern here is set up our model. This Danby here repeats a lot.
122 00:22:53 --> 00:23:01 And you can trade this in the morning session, you can trade this in the afternoon session, you can be one direction in the morning in the opposite
123 00:23:01 --> 00:23:09 direction in the afternoon, or same direction from the morning in the same direction in the afternoon, if you know your market, okay, and there's a lot of
124 00:23:09 --> 00:23:21 volatility in index futures. And I think this one here, if you treat it instead of 20 pips, if you did something like 20 ticks, okay? That would be about five
125 00:23:21 --> 00:23:33 points, okay, or five handles in the s&p or NASDAQ. One a mini one mini that's 250 hours. There's nothing wrong with that, folks, there's a lot of people that
126 00:23:33 --> 00:23:44 don't even make that in a day, gross before taxes. So if you're able to get five handles in a session, once a day, trading one mini contract, that's awesome.
127 00:23:44 --> 00:23:57 Like my son literally made equivalent to two weeks of his income in his most recent trade on the 31st of May. And his relation was your dad, this is really
128 00:23:57 --> 00:24:05 incredible. I mean, he's had bigger trades, obviously, you know, you'll see some of his statements, but to sit down and say, Okay, I only want to do one
129 00:24:05 --> 00:24:15 contract, try to do you know, what would be my weekly income as he gets paid, thinks about bi weekly, where you get a check every two weeks or something,
130 00:24:16 --> 00:24:24 something like that. In other words, he gets two checks a month. So he has to work two full checks before he gets paid, and has to get paid a whole lot. So
131 00:24:24 --> 00:24:36 equivalent, like 400 hours a week, and I don't pay for his gas. I don't do anything's and he didn't complain at all, but he's sick of his job. So we kind
132 00:24:36 --> 00:24:47 of use this model here and a blend of what I taught one, YouTube. So if for all of you asking, you know, what is he using to run that account up? He's not using
133 00:24:47 --> 00:24:57 a Nygma he's just learning folks. And he really doesn't know a whole lot. And I am sitting next to him. And I'm telling him, what do you see here and what do
134 00:24:57 --> 00:25:06 you see there? Am I pushing the button for him? Absolutely not. Am I trading account for him? Absolutely not. Is he making poor decisions before he pushes
135 00:25:06 --> 00:25:20 the button? Yes. Am I saying something to prompt him to second guess that poor decision? Yes. Okay, so this model has a lot to do with what he does. This one
136 00:25:20 --> 00:25:29 right here, because he has a very short attention span, he doesn't have a lot of experience. So he doesn't have that Oh, was this reminds me of that other trade.
137 00:25:29 --> 00:25:40 Or this reminds me that one time when the market does this or that, he is just looking at old highs, old lows, fair value gaps, after short term, little shifts
138 00:25:40 --> 00:25:53 in market structure. And it's easy for me to spot it. So I'm trying to cultivate that. You may not look at this model and see it as something that's viable for
139 00:25:53 --> 00:26:01 you because you want something more hardy or more beefier, something like model six and seven, because you've heard me say that's closest, all these the what I
140 00:26:01 --> 00:26:13 actually trade like, and I want you to think about how often these little short term moves present themselves. And if you're able to just lower your
141 00:26:13 --> 00:26:34 expectations, and also reduce your well. pressure on yourself about doing bigger trades, okay? Bigger is not necessarily better. If you can find a lot of 10
142 00:26:34 --> 00:26:46 point moves index future, we think about one mini it's 500 hours 10 handles in one mini contract. On the s&p, it's $500. If you did that three times, that's
143 00:26:46 --> 00:26:56 50 100 hours a week. Do you make that a week at your job? How about if you're able to do that once a day? Say get five pips or not five pips of five handles
144 00:26:57 --> 00:27:06 in the morning session, and five handles in the afternoon session, that's 10, four or 500 hours a day, or $10,000 a month. How many of you make 10,000 hours a
145 00:27:06 --> 00:27:18 month? So when I'm looking at this model, I'm teaching it with the perspective that don't think it's just 20 pips, it might be 20 ticks in the Spoos. Market, E
146 00:27:18 --> 00:27:28 Mini s&p, that would be the equivalent. So you can scale that 20 Pip, part of it to whatever you want it to be. Don't be afraid of saying, oh, you know, I'm
147 00:27:28 --> 00:27:38 going to just try to do 10 pips. In Forex. There's nothing wrong with that. You can do 510 Pip trades a week and make 50 pips a week. It's done it you've met
148 00:27:38 --> 00:27:47 your objective? Who's going to complain about that? I just think it's a lot of work. It depends on what you have, in terms of your time, what you have in terms
149 00:27:47 --> 00:28:01 of your well, what's the, what's the schedule like for you? Do you have a whole lot of time to do this? Do you want to be in front of the charts all the time?
150 00:28:01 --> 00:28:12 Do you look at this and not see it as stressful? Because a lot of you're going to discover that being in front of the charts. While it can be profitable. And I
151 00:28:12 --> 00:28:22 can make a whole lot of money. If I sit in front of charts all day long, I can do that. But It wears me out, it's tiring. Because in my mind, I'm racing to get
152 00:28:22 --> 00:28:33 every single price swing, how I want it. So what I like to do is go into a specific time of day. And that's why I created the kill zones. So if you limit
153 00:28:33 --> 00:28:45 yourself to any one of these models, try to emphasize time management. Because when you start getting good, you will start pushing everyone and everything
154 00:28:45 --> 00:28:52 away. And you'll just be wanting to be in the markets. And all of a sudden your children will grow up and you don't know who they are. And that happened to me,
155 00:28:53 --> 00:28:56 literally. So if
156 00:28:58 --> 00:29:11 you're comfortable with trading index futures, you can use that 20 as a 20 Tick, or 20 handles for 10 handles. Okay, whatever you want it to be or you can use it
157 00:29:11 --> 00:29:24 as pips for forex. work could be 20 ticks in the bond market. Okay, $31.25 Each tick, it's a good, that's a good chunk of money. So, if you're doing that over
158 00:29:24 --> 00:29:35 multiple contracts as your equity grows, you can turn this into whatever your imagination can come up with. There's no limit. But many of you are going to be
159 00:29:35 --> 00:29:44 rushed to do this because you've seen many times, need take small accounts, run them up real quick, at breakneck speed. And honestly, I wish I could go back in
160 00:29:44 --> 00:29:53 time and undo that. I wish I wouldn't have done it now. Because it's made a lot of you feel like that that's what's expected of you because you're my student or
161 00:29:53 --> 00:30:02 you've gone through this mentorship and that is not what I want any of you think. I don't want you to think that okay, Could it be a goal for some of you
162 00:30:02 --> 00:30:10 absolutely sure you're getting there and you go crazy when the Robins cup do something, you know, spectacular. I would be the first cheerleader for you. I
163 00:30:10 --> 00:30:19 want to see it. But some of you just don't want that. And you just want to make an income. Guess what, that's this one here. This one right here, it's easy.
164 00:30:19 --> 00:30:26 It's short term. You don't have to hold every day, the whole the whole entire day, you don't have to hold for it. You don't have to hold overnight, no weekend
165 00:30:26 --> 00:30:36 trading, you know, it's, you're in and out, just like that hit and run trading. Okay, that's kind of like what this is really specializing in. So really looking
166 00:30:36 --> 00:30:50 for the daily range expansion. And that might be just is the next session in London is going to be a session where it expands higher or lower. For you look
167 00:30:50 --> 00:30:58 at London overnight, what does it do? Does it look like it wants to run continuously in the same direction that London did in New York. And that range
168 00:30:58 --> 00:31:08 expansion inside the daily range, okay, doesn't need to be the full daily range, we just need the expansion inside that same daily candle. Much like we were
169 00:31:08 --> 00:31:16 discussing throughout the entire mentorship with these price action models. We're looking for an expansion on the weekly range, but we're not trying to pick
170 00:31:16 --> 00:31:26 the closing price, you know, I mean, so it's like, we're looking for a flurry of action, like this little moment of excitement, where it's going in a direction
171 00:31:26 --> 00:31:39 we are looking for, but the technicals and time and price all come together perfectly, then we can engage. So I think enjoy an example here and kind of walk
172 00:31:39 --> 00:31:47 you through something that would have been feasible with this. This is the dollar Swissy. And this is a pair I mainly can't stand but I know some of you in
173 00:31:47 --> 00:31:56 here traded. Here is the daily chart. And looking at the daily chart here, you can see that we have a fair value gap here we have will be equivalent to a
174 00:31:56 --> 00:32:06 potential swing low forming in here. And there's been two up close candles, and it might want to expand up into that fair value gap. Now I do not need and you
175 00:32:06 --> 00:32:16 don't need it to actually get up there. But that's enough to build in a short term bias going into the next trading day. And if we open below this candles
176 00:32:16 --> 00:32:28 high, does it give me an opportunity to run that high and get 20 pips as you can see, the market does in fact, open it trades down to an order block level here
177 00:32:29 --> 00:32:41 hits it rallies up expands through the previous day's high, it does not get the fair value got discount low, it does not need to do that. Alright, and on the
178 00:32:41 --> 00:32:49 five minute chart here, here's an example of what this model is looking for. And it's something you've seen many, many times is nothing new. I'm not creating
179 00:32:49 --> 00:33:00 something new. I'm not reinventing the wheel of ICT. You've seen this before many times, but we have the previous day's high. You can see we swept that and
180 00:33:00 --> 00:33:11 then it comes back down in to an order block here. We wait for an expansion swing it creates it. It breaks a swing high up here. So all the structure here
181 00:33:11 --> 00:33:20 is broken to the upside. So we have a shift in market structure. It trades back down into the fair value gap that's created right here. This low is taken up by
182 00:33:20 --> 00:33:29 one pit that right there guess what that is that is your institutional reform entry drill. But the pattern is what for your Vega so you can be a buyer there.
183 00:33:29 --> 00:33:41 Run to the previous day's high. So if you're buying here at Melissa, you got to fill that 9605 Worst case scenario you got slippage. You were slow. It's just it
184 00:33:41 --> 00:33:52 is what it is. 96 05 What's your feel, okay. 96 are things 10 pips 9625 Guess what that is, that's your 20 pips. And it doesn't even take out the rough. There
185 00:33:52 --> 00:34:03 we go, Hi, zip here. And you can leave a small portion one to seating, catch a runner. And there you go. So this is like one of those, always in your back
186 00:34:03 --> 00:34:16 pocket model where if you want to do an exercise with yourself, okay, go into a random pair that you don't like to look at, you know, a lot. And during the New
187 00:34:16 --> 00:34:24 York session or during the London session, open it up and do a quick exercise on what you think it's going to do running out what direction and then look for
188 00:34:24 --> 00:34:35 this pattern. And I promise you, you will be surprised how easy it is to find this, just like that. Because you know what you're looking for. What makes this
189 00:34:35 --> 00:34:45 pattern in this whole model here, not as sexy is because it doesn't have central bank dealers range and Asian session range and flout and it doesn't have any
190 00:34:45 --> 00:34:57 standard deviations across the chart and it doesn't have breakers. It doesn't have all the things that you want to apply to it. It doesn't have CBOT it
191 00:34:57 --> 00:35:09 doesn't have seasonal tendency because it's If you want a PhD at the end of your ICT student name, PhDs are not required to be profitable in the marketplace. All
192 00:35:09 --> 00:35:21 you need to do is have something that works that really resonates with your personality. And this is one of the stripped down versions of all of them. The
193 00:35:21 --> 00:35:31 only thing that's less than this one is what I showed on YouTube. So the most simplest one is YouTube. And in this one here, both of them can create a career
194 00:35:31 --> 00:35:39 where you don't need to do anything. You don't need to look at anything else. You don't need to complicate anything. Where is it likely to draw to next? And
195 00:35:39 --> 00:35:46 some of your like, that's the problem. If I could just know what the bias is, I've already taught you bias. The problem is you haven't done the work to
196 00:35:46 --> 00:35:55 practice and get good at it. And guess what some of you want bias to be perfectly accurate for yourself every single day. And I'm not that way either on
197 00:35:55 --> 00:36:07 the air every single day. I'm requiring things that to support the ideas I'm looking for. Sometimes I get it, sometimes I don't. And I know when I'm likely
198 00:36:07 --> 00:36:16 to get it wrong, which is nonfarm payroll weeks, after Wednesday, New York session, I'm probably going to get it wrong. So if I know what that's likely to
199 00:36:16 --> 00:36:25 occur, guess what I'm doing, I'm sparing myself the grief, I'm going to be focusing on times when I'm feeling more in tune with the marketplace, and the
200 00:36:25 --> 00:36:37 markets more likely to give me what I'm looking for, regardless of what model I'm using. So now, because you have all these models in front of you, some of
201 00:36:37 --> 00:36:45 you probably still feel confused, that's normal. Because you have to go through the work of going through each one of these models or one of them, and figuring
202 00:36:45 --> 00:36:56 out which one you want to work on. And it may build your expectations about something else that's not specifically taught in one of these models. And you
203 00:36:56 --> 00:37:07 might blend something from another one. And then that becomes your unique model. It's happened already folks, I got students have done that. Or a framework from
204 00:37:07 --> 00:37:16 one model, but an entry strategy in logic with another, or maybe two. And blending that together. Because all these concepts of mine, again, are like that
205 00:37:16 --> 00:37:25 jigsaw puzzle where it just they all connect. And all you need to know is this one little thing like this, where it goes here and it's probably going to go
206 00:37:25 --> 00:37:33 above there. You don't need to know it's gonna go up there. Don't be like the Yahoo's over there on Instagram, Twitter and Facebook, who want to make you
207 00:37:33 --> 00:37:43 believe that they knew this high was gonna form for that always doing 200 to one are multiple trades, or 50 to one or multiple trades. But yet, they're still
208 00:37:43 --> 00:37:55 showing examples where they're only trading with one micro lot. Does the math support that? No, no. So all you're looking for is these small little surgical
209 00:37:55 --> 00:38:06 strikes with this model. Small little get in and get out hit and run trading. Okay, that's what used to call it on America Online. Get in, get your money and
210 00:38:06 --> 00:38:16 run. And let them have all the extra you leave on the table. Who cares? This pattern repeats so many times you don't need the full move. But you understand
211 00:38:16 --> 00:38:22 how to leave a runner on after taking the bulk of your trade off. So if you took this long here, and you know you're looking for this previous day's high to be
212 00:38:22 --> 00:38:32 taken out, but you also have the relative equal highs 80% your trade comes off soon as crosses that candles high 1/5 pet, just one pit that above that. You're
213 00:38:32 --> 00:38:39 done. 80% of trade comes off bang, you roll your stop to something plus, you know, breakeven, you don't want to be just at breakeven, you want to put
214 00:38:39 --> 00:38:52 something in your pocket in case it comes back against you. And let's see what it does. In this event, it goes above this high here. We'll call it 25 It's
215 00:38:52 --> 00:38:56 1020 30 pips long you know about that right
216 00:38:58 --> 00:39:11 1020 30 pips above and Ohio or below and below. Here it is. That's where you can take your scaling 80% comes off here certainly you got 20% Right. Well runs up
217 00:39:11 --> 00:39:24 10 pips more tips on partial off that the runner go to another objective of 10 or 15 or 20 and then or show your stop loss underneath the candles when a close
218 00:39:24 --> 00:39:32 squeeze it up here that's come out of Alexander elders book trading for a living. I did that a lot as a commodity trader and I always used to come back
219 00:39:32 --> 00:39:40 and knock me out because institutional furniture grill that I didn't know about them. And they would take me up and then it would continuously move up and I'd
220 00:39:40 --> 00:39:51 be mad. I didn't get that last four cents in the grain market. I miss $2 And I was mad about that. And sometimes I would get stopped out and go back in mad
221 00:39:51 --> 00:40:02 because they stopped me out not realizing that it's about to turn around go the other direction. So anyway, I digress. I believe that you have been equipped
222 00:40:03 --> 00:40:16 with, in my opinion, and I'm obviously biased, but I believe I have equipped you with the absolute best in terms of technical understanding. I've given you
223 00:40:16 --> 00:40:32 skills and concepts that will hopefully serve you and your family exceedingly well. Will all of you become millionaires? Now? Will you be better than the
224 00:40:32 --> 00:40:42 average person out there trading? I believe, yes. But I'm biased. If you've been fumbling around to the content, and not really been serious about doing it, just
225 00:40:42 --> 00:40:51 Netflix, watching, you know, just putting videos in and watching them and seeing what happens, and thinking that's going to do it. Hopefully, by now you've
226 00:40:51 --> 00:41:00 discovered that's not what it is. Look around everybody that's doing these trades and showing you examples. They're in they're working really hard, they're
227 00:41:00 --> 00:41:11 hungry, they want to get in learn it. And because some of you are acting all bougie, like you're in here, like this is the new there's a place down in
228 00:41:11 --> 00:41:26 Florida called 30. A, and we frequent in a lot down here. And these, these people are very snobbish, like very snooty. And for like me, I don't understand
229 00:41:26 --> 00:41:37 why why do you think themselves, but I'm walking through the app, I got more money knowledge. And that's sometimes the attitude that my veteran students have
230 00:41:37 --> 00:41:46 here. Okay, it's like, you know, I don't need to do that. But if you're not really doing well, in the content, just because you're part of our community,
231 00:41:46 --> 00:41:59 you're really not doing what it is you should be doing. So what's holding you back? You have to do it. And it might be you don't want to feel like you've done
232 00:41:59 --> 00:42:06 it wrong. So it just feels better to entertain yourself watching videos and keep telling yourself, well, you know, there's something that will happen, he'll
233 00:42:06 --> 00:42:15 teach something easy, it'll be like a push a button, it'll jump off the page, and there it is, that has never happened yet has the closest thing is what I've
234 00:42:15 --> 00:42:25 given on YouTube. That's the closest it's gonna get, there's nothing else I can make it any easier than that. Like that is the limit of ICT making it simple, I
235 00:42:25 --> 00:42:35 cannot make it any more plainer than that. So if none of these models here, have scratched that itch, and YouTube model hasn't scratched the itch for you, I'm
236 00:42:35 --> 00:42:46 tapped out, folks. There's nothing else I can do to make it happen for you. You have to put the work behind, you gotta roll your sleeves up, and say, You know
237 00:42:46 --> 00:43:01 what, I'm gonna get in here and do it. Because there is no other videos. Now, you're listening to the last one. This is the last ICT mentorship video,
238 00:43:01 --> 00:43:09 anything that goes on inside of our mentorship now will be posted in the forum. There'll be posted by me as a chart. There won't be any of that tonight, because
239 00:43:09 --> 00:43:18 you have had a number of these videos, the surprise factor model, algorithmic videos posted to the forum tonight. Y'all have them, they'll be downloading them
240 00:43:18 --> 00:43:29 watching them or whatever, we're completing the rest of your downloading. I've extended that grace period to Friday, at nine o'clock, at nine o'clock, the
241 00:43:29 --> 00:43:38 forum will have only the charter member area in it, there will not be any commentary section threads, there will not be any kind of price action model
242 00:43:38 --> 00:43:51 threads. So you need to download these videos, folks, okay? And put them where you feel secure and having them. And then we'll continue obviously, on our
243 00:43:51 --> 00:44:02 journey together in the form, much like it was on baby pips, where we all communicated, typing out things and sharing charts. Trust me, I love that.
244 00:44:03 --> 00:44:16 Because it's quick, it's easy. It's efficient. And I don't have to do all these videos anymore. And I don't want my life to be all this. Okay, I want to teach
245 00:44:16 --> 00:44:26 you how to enjoy teaching. But I need my time back. And you'll have your time back to you won't be sitting in and listening to these long winded droning on
246 00:44:27 --> 00:44:40 messages that you write on. Listen to. But for all of you that have come this far, I want to congratulate you. You have endured some of the hardest things to
247 00:44:40 --> 00:44:51 learn. You may not have them underneath your belt yet. You may not be proficient with all of it yet. But you have endured what many people have come into my
248 00:44:53 --> 00:45:12 company and started to learn and for whatever reason, tapped out Can't do it. You didn't. That deserves an applaud. Because it's so easy to tap out. Because
249 00:45:12 --> 00:45:24 it's not easy. learning it. It's not easy, encountering those demons that every one of us have. And these charts are mirrors, they're going to reflect back what
250 00:45:24 --> 00:45:34 you had inside. If you're angry, impatient, you're going to see that in the charts, and it's going to manifest in your actions. If you're scared and
251 00:45:34 --> 00:45:46 apprehensive, these charts are going to show that and it's going to manifest in your traits. If you're grounded, you're not moved by emotion. You don't fear
252 00:45:46 --> 00:45:55 missing anything, and you're not greedy. It's gonna manifest itself in your trades. And you're gonna be consistently moving in the right direction with that
253 00:45:55 --> 00:46:06 mindset. It's been my goal, and will remain to be my goal to have all of you get aligned with that ladder mindset. However, you have to prune all those bad
254 00:46:06 --> 00:46:15 habits that you know what they are, when you're journaling, and keep the bad toxic stuff out. When you're in form, you don't post anything negative, not
255 00:46:15 --> 00:46:29 because I want to sugary sweet and level gums and gum drops in here. But there's a way of talking about adversity, you being all emotional about it, or angry and
256 00:46:29 --> 00:46:38 venting, that's this is not where you do that. You don't do it in your journal, either. Take yourself a drive and talk to yourself, say you know, I need this, I
257 00:46:38 --> 00:46:49 need this, this this this to be handled. But then get it out of your system. But then go back to your journal, and then self talk, cheerlead yourself, go back
258 00:46:49 --> 00:47:05 into the charts, and you'll see that it is therapy. Or don't, in stay exactly how you are right now. Because unless you make changes in the order of what you
259 00:47:05 --> 00:47:18 do in processes that you do, you're not going to get better at this. Because you have to take action, you have to put effort behind it. And the amount of effort
260 00:47:18 --> 00:47:28 that you think you've already put in, it's probably not even close to what's required for your unique experience. So are you going to quit, you're going to
261 00:47:28 --> 00:47:36 tap out and say it's too hard. It didn't happen for me, already went to the charter level went to the last price action on model. You gave us all the stuff
262 00:47:36 --> 00:47:46 and I don't have to do it yet, when there's other people already doing it. So the question is, is why are they able to do it and you're not? They're doing
263 00:47:46 --> 00:47:57 something that you aren't? What is that? continuously trying to improve? And it's all you need to do. It'll happen for you. You just got to trust the
264 00:47:57 --> 00:48:07 process. And it may take longer than what you originally thought exactly how I promised it would be. And so I'll talk to you next time in the forum. Not in
265 00:48:07 --> 00:48:16 video. Obviously, you probably hear me in YouTube tomorrow night, but in the forum we will be communicating by way of threads. The thread will be locked down
266 00:48:16 --> 00:48:24 for me only is that we will be cluttered up. But it'd be my post that whatever I can track what I'm doing on a day by day basis. And I think that's gonna be it
267 00:48:24 --> 00:48:26 until I talk to you next time. Be safe.