ICT YT - 2023-09-22 - ICT Mentorship 2023 - High Frequency Trading Algorithmic Entries September 22 2023
Last modified by Drunk Monkey on 2023-09-26 12:09
Outline
00:00 - Algorithmic high-frequency trading entry strategy.
- Trader identifies potential trading opportunity based on order block and candle pattern.
01:30 - Technical analysis and trading strategies.
- Trader identifies potential trading opportunities using technical analysis and volume imbalances.
04:30 - Trading strategies using price levels and stop enrollment.
- Trader identifies potential buying opportunity after price clears a key level.
07:14 - Trading strategies and order placement.
- ICT explains how to use a limit order to adjust the balance of a trade.
- ICT explains how to identify and trade off a bullish breaker in the stock market.
09:59 - Trading stocks with a focus on risk management.
- ICT explains his pyramid trading strategy, emphasizing risk management and market analysis.
Transcript
| 1 | 00:00:00 --> 00:00:12 | ICT: Alright, so we're gonna do an algorithmic high frequency trading entry strategy reading here we came right back to this order block. If you look right |
| 2 | 00:00:12 --> 00:00:13 | here I think the market is gonna go |
| 3 | 00:00:20 --> 00:00:25 | okay now watch the order block here when it trades down touches it again I'm gonna go well |
| 4 | 00:00:36 --> 00:00:45 | as the change in the state of delivery through here the stop below the threshold that will be here |
| 5 | 00:00:55 --> 00:00:56 | my son's been |
| 6 | 00:01:03 --> 00:01:22 | sitting in the morning with me here and we're gonna aim for that my youngest son by the way, so $170 And now because we have this foundation established we have |
| 7 | 00:01:22 --> 00:01:40 | a low high lower low inside of this range of this candle here. Watch what we can do here allows me to do so before it runs away drop down into a 15 second chart |
| 8 | 00:01:49 --> 00:01:59 | now I want to I don't want to see it take this higher rating here we're going to have to get it see that I was a little too quick on the draw to fusee too slow |
| 9 | 00:01:59 --> 00:02:09 | on the draw. I wanted to catch that drop right there. Okay, so that's an immediate rebalanced Watch out runs up. Okay, and as the market keeps running up |
| 10 | 00:02:09 --> 00:02:21 | higher, it'll start to build momentum outside of this breaker. That's what this is we have the sell side it was right below that low there |
| 11 | 00:02:31 --> 00:02:42 | can you see how we hit the sell side here, see our running up there's that volume imbalance or not volume imbalance I'm sorry, immediate rebounds. And the |
| 12 | 00:02:42 --> 00:02:56 | stock is below here. Okay. I like how it came back down and touch that add one more sound with three contracts in risk is very, very small at 310. |
| 13 | 00:03:07 --> 00:03:10 | See I gapped up I'll add one more if it comes down and closes that gap |
| 14 | 00:03:23 --> 00:03:24 | just touch the Orville |
| 15 | 00:03:30 --> 00:03:40 | you get the impression right. It wants to go out there. Right. We've already been positioned now you can use the breaker touch here, which I'll do that if it |
| 16 | 00:03:40 --> 00:04:01 | gets to me. Thank you. And now we'll go back onto a one minute chart and we'll run this up into this volume imbalance right there. That way you can see |
| 17 | 00:04:08 --> 00:04:15 | whatever the price delivery looks like now Jumanji patterns from harmonic animal patterns required |
| 18 | 00:04:21 --> 00:04:36 | these lines are cleaned up a little bit like that, like this, touch the bottom that again. So we're gonna add one more. So now I have $1,100 $575 risk. Once it |
| 19 | 00:04:36 --> 00:04:44 | clears this, I'm going to take the stop enrollment rate up underneath here because there should be no reason for it to go back below the breaker. Once it |
| 20 | 00:04:44 --> 00:04:45 | clears this structure. Hi |
| 21 | 00:05:14 --> 00:05:28 | Now the way you can use this going forward it's because you have you have this high here which can be used for a partial, she can lay a sell limit order at |
| 22 | 00:05:28 --> 00:05:41 | this price level or just above it, take off whatever number of contracts like I have five one now you can take one off here, you can take one off up in here and |
| 23 | 00:05:41 --> 00:05:52 | you can do the balance in here and not even required to trade above this high which is a good place to be in trading where you don't have to have everything |
| 24 | 00:05:52 --> 00:06:02 | come to fruition just movements which are looking for touching the order block right here. So this candle or the very next one should start to really start to |
| 25 | 00:06:02 --> 00:06:04 | accelerate to the upside. |
| 26 | 00:06:43 --> 00:06:55 | Notice some entering inside of the breaker, the breaker is the highest up close candle in the swing prior to a lower low been met. I'm not interested at this |
| 27 | 00:06:55 --> 00:07:06 | point here. On here, when these relative equal lows, I'm not looking at that right now because it's Friday, it's likely to see it run up against by stops, |
| 28 | 00:07:06 --> 00:07:17 | which we've seen over here and folks are going to want to chase it going long as it moves higher. And that's why I'm only electric reach for this as a best case |
| 29 | 00:07:17 --> 00:07:27 | scenario doesn't need to go there. But here would be a good idea for a partial and re here would be a good idea for a partial so how would you do that you can |
| 30 | 00:07:27 --> 00:07:41 | go in and put your cursor when your mouse just right at the low you want to put it in right about race right mouse button click go down to trade put any cell in |
| 31 | 00:07:41 --> 00:07:45 | order for one contracts there we do the same thing up here |
| 32 | 00:07:51 --> 00:08:00 | okay and then the balance automatically will be adjusted from five to three assuming that this limit order gets hit in this limit limit order gets hit as |
| 33 | 00:08:00 --> 00:08:10 | well. Once this high is taken out again the stop loss will roll right below that low right there because it should not go below the breaker again once a |
| 34 | 00:08:10 --> 00:08:11 | structure has been broken |
| 35 | 00:08:30 --> 00:08:44 | It's nine o'clock in the morning we're not going back and forth it's almost eight o'clock in the morning on the York So watch how these orders get filled up |
| 36 | 00:08:44 --> 00:08:49 | the execution tabs and stuff again |
| 37 | 00:08:55 --> 00:09:02 | so what you're you'll see them book as prices are hit |
| 38 | 00:09:16 --> 00:09:37 | Okay, so stop, roll. Here. Now we have $3 risk adjusted they're assessing the is the mean threshold of the bullish breaker which it's already done. It's done |
| 39 | 00:09:37 --> 00:09:45 | enough to do what it would be classically understood as my breaker you all understand it as a trading away, come back down in this will be a good area to |
| 40 | 00:09:45 --> 00:09:55 | add on one more just for the sake of completion shown you. So it kind of gives you some flesh behind the bones that you see me do many times with my alive |
| 41 | 00:09:55 --> 00:10:04 | executions. As you're seeing here. Why I'm pyramid Where I'm pyramiding what's the basis of new Why am I taking that trade |
| 42 | 00:10:12 --> 00:10:28 | and again, this stuff's not in your Wycoff your supply and demand it's not in gain it's not an hearse it's none of those things it's not Elliott Wave on |
| 43 | 00:10:28 --> 00:10:39 | reading about it though and what's the wick consequent courage when it shouldn't breach that they should accelerate best case scenario they should just run away |
| 44 | 00:10:39 --> 00:10:47 | right now you have six contracts risk is 365 Very very miniscule. |
| 45 | 00:11:09 --> 00:11:23 | Think it's even in a rather sloppy marking condition consequent encouragement that right there's also a long time to get that week or two to get touched again |
| 46 | 00:11:23 --> 00:11:32 | if it does I'll buy one more just to prove to you conceptually that's everything's still sound for to go higher. The market is underneath a buy |
| 47 | 00:11:32 --> 00:11:37 | program one more has been added |
| 48 | 00:11:42 --> 00:11:47 | see where the stop was. Let me take this off. I really want you to understand and appreciate where the stop placement is. |
| 49 | 00:11:55 --> 00:12:07 | stops under this love, it can touch that breaker again, in one little tiny little tick below it. That's a mohawk we allow for that. Did you hear any kind |
| 50 | 00:12:07 --> 00:12:21 | of excitement in me? Nervousness Oh, I'm wrong. What happens if I am wrong? If I'm wrong, the stock will do its job and protect the underlying equity. See the |
| 51 | 00:12:21 --> 00:12:22 | expansion off of the |
| 52 | 00:12:27 --> 00:12:40 | International and that, my friends, is how Mr. Rogers makes his neighborhood to talk to you next time. Be safe. |