Full transcript (4702 words)
In today's video, we are going to be covering the best futures trading strategy you will probably ever use in your life. Now, this is a strategy you guys see me talk about in almost all my videos, but today I want to specifically cover how perfectly it works every single day by taking a look at some live results. I told you guys in the last video, I said, "Watch for this setup all of next week." And every single day it hit. So, I'm going to explain exactly what I'm looking for to get that one perfect trade, and that's it. So, with that being said, ladies and gentlemen, this will be one of our most in-depth videos on this concept, and it will honestly answer every question you guys have and be able to trade it perfectly. So, with all that being said, let's get directly into the charts and take a look at how the setup works in real time. So, ladies and gentlemen, let's get directly into the video and understand everything we need to about this setup. So, as you guys know, the setup is called candle range theory or CRT, and I've made honestly like 10 million rundowns on this. So, if you guys are already not familiar with it, just go back and watch my videos on it. It will explain everything, all right? But, in today's video, I'll just do a quick little rundown one more time for everybody and understand how the strategy works. Very simple, very easy. Even if you wanted to mess the strategy up, you literally cannot. But, all you're doing is you're going to go on the 1-hour, 30-minute, or 15-minute time frames. And really doesn't matter which one it is. It's just a matter of which one forms first. So, if the 15 minutes the one that gives me the setup, that is the one I'm playing. Now, all I'm doing is I'm marking out the previous candle that just closed, right? So, I'm marking out that candle's high and that candle's low, all right? And this will be again on the 1-hour, 15, or 30-minute time frame. So, very simply, that is candle number one. And this is going to be a three-candle sequence, all right? So, in this case, what happens is I need to see that the next candle of the sequence will come and break either a low or a high, and it will close back inside the range. So, it will close back with the actual body of the candle within the high and the low of the first candle. So, in this case, you get a break, the colored part of the candle closes back inside between the high and the low. That is perfect. In this case, you get a break of the high, the colored part of the candle closes back inside the range of the high and the low. So, that right there is candle number two, ladies and gentlemen, all right? So, we've got that two figured out. If you don't have those two things, then CRT is not possible. You need to have those two things in order for the setup to actually form. Now, for step number three, and honestly the one that really matters the most, is the actual entry candle. So, whenever I have these two levels already marked out, we need to understand what CRT is. CRT is a setup where we collect liquidity from highs and deliver it to the lows, and we collect liquidity from the lows and deliver it to the highs. All right? So, when we end up sweeping these highs and reversing back, price wants to make a move to fill the opposite end of liquidity at the lows, and same thing to the highs. And that is how this strategy works. It is a U-shaped reversal over and over again in the market that we can find almost every single day. For the actual entry, what I want you to do is mark out that middle candle's high. All right? Or the middle candle's low. It doesn't matter which one it is, it just depends on the direction you're trading. From there, you will drop down to a lower time frame, like the 1-minute, all right? And you will take your entry when price breaks that middle candle. From there, you will target your 1.5 to 2R, and that will be your trade right. Very simple stuff, nothing complicated. Right now, I am not doing a full deep dive into it because honestly, if you guys are watching this video, you've probably already have a full understanding of the strategy, so that's all you really need. But again, this is not a detailed explanation. If you need a detailed explanation of what the strategy is, go back and watch my past like six videos. Those are full in-depth guides and they explain everything. Now, what I want to focus on today, ladies and gentlemen, is how do we find that one perfect trade every single morning, do not do any extra BS or anything like that, and just cash out and call it a day. So, every single day you go into the market, if you look in New York session or Asian session, whenever, you're going to find 5 million different CRTs, and people always get confused, which one do I take? Do I take all 200 that form, or do I just take which one? I don't know what to do, right? So, very simply, all you will do, ladies and gentlemen, is you will look for the first CRT of the New York session that forms with the trend, and that is all you are going to play. All right? So, once again, first CRT of the New York session that goes with the current trend on the higher time frame. That is the only trade you will look to take every single day. Now, a lot of people are confused. What is New York session first off, right? I consider that the first CRT after 9:30 a.m. Eastern time is the one we will look for. When we trade that setup, now I don't want to look too late in the day because that is when volume starts to dry out. So, I usually say it's okay to trade until 1:00 p.m. Eastern time, but I personally stop myself around like 12:00 or 11:30 Eastern time. And the second thing that I really hear from people is, well, how do you know what the current trend is, right? And I will show you guys exactly that on the chart in a second, but it's a very easy thing to see. If you open up the hourly time frame, for example, on MNQ, you take a look at the overall trend, it'll be very clear immediately. Like we're on a clear uptrend right now on MNQ, not a single sign of weakness. Why would I like to short that? Essentially, if your 1-hour time frame looks like this, ladies and gentlemen, where you're just going higher high, higher low, higher high, higher low, higher high, higher low. As long as you're holding that formation, I'm interested in longs only. When price does come and break and just start shifting to lower highs and lower lows, then you can start thinking about shorts, but in the meantime, I'm only interested as long as we're in an uptrend continuation and to the exact opposite of that as well. Once again, ladies and gentlemen, let's really quickly run through CRT, mark out your high and low, price will sweep and pick up the liquidity that is sitting at these levels and deliver it to the exact opposite end. And when you play that first CRT of the day, that is going to be the highest quality trade you can possibly get in the market and it honestly is hitting like 70 to 80% of the time, sometimes maybe even more. So, that is all for that quick little rundown, ladies and gentlemen. Now, what we're going to do is I want to go back and actually check every single day in the market on MNQ, MES and see how are these tickers actually performing with this setup. So again, this was in the video that I talked about last week. I told you guys, go and test it every single morning and then we will come back next week in this video and we will take a look at exactly how it fared. So, with all of that being said, let's head over to the charts on MNQ, MES and take a look at what setups worked and what didn't and why. So, ladies and gentlemen, what do I have on my charts? I have my three time frame setup, which is the 15-minute, the 30-minute and the hourly. Now, a lot of people are also asking me, "What is this indicator called?" right? This is a free indicator called ICT HTF Candles on TradingView. Anybody could just pick it up. Doesn't really do much. It just shows you the time frames all in one, so I don't have to flip through uh my screens at all, all right? So, let's go ahead and take a look at exactly what I'm doing. So, the current trend I am aware is an uptrend, right? How do I know that? Let's really quickly take a look. The market currently, guys, is in a very clear uptrend. You can open up this, and honestly, everybody can see this. Even Stevie Wonder can see that this is an uptrend. Let's continue, right? The market is forming higher high, higher low, higher high, higher low, every single time, right? We're just forming higher high, higher low, higher high, higher low. So, as that's continuing, I only want to play an uptrend, okay? For me to consider a downtrend, we would have to come and break these previous lows right here or this one right here with a clean break and actually hold below that level for one or two days and then form lower high, lower low, lower high, lower All that stuff, right? That's what I'm focused on. But, since we don't have any of that, guys, what am I going to short here? I'm only interested in a long position. So, that is where we are picking up our bias, right? Never short at all-time highs. There's no reason to do that, and you really got to be careful with that cuz a lot of people get that wrong about the setup. So, now, we have the hourly bias. I'm going to flip back to my 1-minute time frame, and I'm going to look and see where is the first bullish CRT that forms after 9:30 a.m. Eastern time. Super simple stuff. I am not doing anything complicated, but we are going to sit and watch and see where our setup actually comes in. So, we're going, we're going, we're going. I don't see anything yet. Still going, still going. And here we go. We have a few CRTs here that we can watch. So, this is another interesting scenario. 15-minute, 30-minute, and hourly formed. Which one should I play, right? I personally just go for the 15-minute. If I have all of them, it's just the easier range to play, makes your life way easier. Might as well just play that and call it a day, okay? Could you go for 30 minutes? Absolutely. Could you go for hourly? Absolutely. But, if they're all forming, I just like to go for the 15-minute personally. All right? Now, why is this a CRT? Let's really quickly draw this out. Okay? We have candle low and then we have candle high. The next candle comes and it breaks it, so it actually wicks below the low. So, imagine you are a delivery driver. You just picked up all the orders from the warehouse and now your job is to deliver to everyone's houses, right? And that is point A to point B. That's all you're doing as a trader. Okay? You're delivering package A to destination B. And that is all I'm doing, right? Where does the actual entry come in now? Always remember, the middle candle is where my entry will be taken. So, when price breaks that middle candle, that is where I'll take the entry. Okay? So, what do we just have here? This is the holy grail setup here. You have first CRT of New York session that goes with the trend. It falls between the times that I like to trade. And everything looks clean. There's no issues at all. There's no news coming up or any of that stuff. We're good to go. All right? So, price broke this high right here. So, essentially, this is what my trade will look like. Break of the middle candle, great. Target will be at this high right here because we understand that is our delivery point, right? That is where we were going to go drop off our packages, our liquidity that we picked up, right? And what I'll do is I'll go target here because I know price wants to make a move to that high and then I will drag up my stop loss to make it 1.5 risk to reward. All right? Some people like to do two. I personally just think 1.5 is enough. You really don't even need to go two unless it's a crazy big range. But, let's take an entry on this. Obviously, we are on bar replay, ladies and gentlemen, so it will be a little bit messier. But, overall idea, you guys get it. Okay? Stop loss is placed. TP is placed. And this is our first CRT example that we're taking a look at. Entry has been placed, target and stop loss. You can literally turn off your screens right now and not do a single thing. Come back and hope and see did I hit stop loss or take profit? That's it. Okay, and it's such a clean setup. It doesn't require much from you. You literally take the entry and that's it. So, let's play this out and see exactly what happens. Do we get stop loss or TP? There it is. So, first trade right there, ladies and gentlemen, we can go ahead and mark that out. That is one win for CRT this week. Zero loss at the current moment. But, do you see how simple it is? I don't care what's going on. I don't care what's happening. This was a trade that I actually took in the Discord itself. Beautiful, clean. Can't really ask for more than that. That is one down. Let's head over to Monday and see how our next CRT fares and how we can trade that. So, here we are on our next day. Obviously, Monday was Memorial Day, so there was no trading at all. But, let's go ahead and take a look at how Tuesday fares into the next week. And again, this is Tuesday, May 26th. You guys can go back day after day if you want to check these out yourself. No cherry-picked setups that worked and some that didn't. We're going to take a look at the raw results. So, let's really talk about this day right here, ladies and gentlemen. So, as I said, my cutoff comes around like 11:30, sometimes maybe even 12. This one is at like 1:00 p.m. Eastern time, which is way out of my cutoff zone. I really don't care enough to play this. So, even though you do have that setup, whenever it's this late in the day, guys, volume is dead. You're not going to see much follow-through and it's not worthy enough for you to take a setup. So, again, try to stick within that time frame. And this is where people do kind of get confused as well is you know, they just can't go without a trade. So, even if they see a CRT that they know is outside their boundaries, it's not going to be really clean. They'll still play it. They'll still play it and they'll get destroyed, right? But, in this case, way past my levels, I really don't care. Even though it's technically a valid setup, it's the first one of the New York session. That goes with the trend. Completely out of my zone. Try to stop it by 11:30, 12. That's your most ideal zone. So, for Tuesday, that is it, ladies and gentlemen. You waited, you waited, you waited. That's the reality. Some days you get a setup, some days you don't. So, let's go ahead and continue into the next one and see exactly how that day goes. So, ladies and gentlemen, this was a very interesting day and I actually want to talk about this one specifically. The reason why I made this video was kind of to really talk about this. But, what do you do if the market has news, right? In this case, we had Middle Eastern conflict news. Market dropped literally 500 points. Do I still technically want to long against that much selling pressure? Probably not. Is it the smartest idea? Probably not. So, in this situation, ladies and gentlemen, I would say screw it and just skip the day altogether instead of going for a long CRT or a bearish CRT. I really don't care. Better to just skip it altogether because it becomes very messy here, right? You're going against Yes, we have a long bullish bias, but at the same time, guys, you have a 500 point drop in the market. So, is that ideal at all? Absolutely not. Okay? So, this is a very rare case. Maybe out of 100 trades you take, one of these will be the case. So, it's not really that important, but if I can save you from one loss or one weird setup, even if it does play out, this is my tip. Just watch if the market has some crazy crazy news, just avoid it. Just avoid it, man. I mean, it's not worth the risk. You can always come back the next day or do something better. And that is what we had on Wednesday. It was just not ideal. There was nothing really clean on this setup for me to take it. So, again, Wednesday is one that we'll just skip. We'll come back the next day and see if there's a setup. Even though you can technically get follow through on it, it's just such a low quality setup, man. It's not worth you risking your capital on. So, ladies and gentlemen, here we are on Thursday. And on this day, we don't really have anything crazy. It's not a 400 point drop like we had on the day prior. Bias still remains bullish. Everything looks clean. I don't see any issues here, right? So, we continue with how we regularly trade. We're going to wait for our first CRT of the New York session that goes with the trend. And from there, we will play our setup. So, looks like there is one forming here. Let me see. Boom. So, this right here, ladies and gentlemen, is your first CRT of the New York session that goes with the trend. Right over here. Okay? What do do in this case? Mark out my candle high and my candle low. Boom. We have that down, correct? Middle candle, when that's broken, we take our entry. So, your entry already will be taken on this trade. TP, how do I know what my TP is? Wherever your entry is, drag your TP up to the candle high and drag your stop loss down to make it 1.5 to 2R. Now, in this case, you could go 2R, honestly, because it is a pretty tight range, so I really don't mind, but me, just as a habit, I go 1.5. All right? Just to be safe. So, that is what your trade will look like right over here, ladies and gentlemen. TP and then a stop loss. So, let's place those and let it do its thing now. Okay? First CRT, normal trend, no news, nothing crazy. Let's go. Let's see what happens here, guys. Boom. So, that right there is a straight shot to TP. So, that is another CRT that ends up clicking perfectly. All right? So, that one right there, ladies and gentlemen, was actually pretty quick and this was a pretty nice one that I actually ended up taking. And yes, there was a news candle that did happen, but the setup regardless was going to get that follow through, does not matter. It's just much quicker than we actually anticipated it, right? So, that is another one down. Let's continue into the next day and then we will take a look at a few from this week as well and just continue into that. So, team, here we are on Friday, May 29th and again, no crazy news, nothing, everything's all clean. Correct? We have our overall bullish bias, wonderful. And now I'm just waiting for the first bullish CRT and that will be the one that I play. So, let's continue. Let's see what's happening here, right? So far, no setup. We continue, we continue. This might be one of those cases again like the other day where it just doesn't form in time. Let's see if that's the case here. And looks like one of these setups might end up forming here. Let me see. So, you do have a 15-minute CRT right here that just formed. Okay? And how do we know that that formed? Once again, let's mark that out very basically. High, clean, low, clean sweep. So, now I'm just waiting for price to break this middle candle. That is where my entry will come in. And then, stop loss will be a 1.5 R. And that is literally all I'm doing. So, now we wait. If I get the break, I take the entry. If I don't, then I don't do anything at all. All right? So, if price comes in and breaks it, we'll play it. If not, absolutely zero. There we go. So, there's your break on that candle. So, let's actually go back one candle so we can get a much more accurate SL and TP. Here we go. Take profit to the high. Stop loss right here. And now you just let it ride. Let's see what happens, ladies and gentlemen. All right? Boom. Straight to TP. Taps it. You're done. Collect your profit. That's your first CRT of the day. Let's take a look at another one. I know I'm kind of annoying you guys probably with how many examples we're looking at, but this is necessary. This is necessary cuz I want you guys to be trained and have your eyes kind of used to this. So, ladies and gentlemen, here we are on Monday, June 1st. And again, same idea. No crazy news or anything like that. This was a red folder news, which is not that big of a deal. Um but it wasn't any like war-related news or anything like that. So, we're still good to go. However, this was an interesting one because we formed a CRT right off the open. If you take a look at this, the 15-minute. I don't like trading right off the open. I will be honest with you guys, if it's like 1 or 2 minutes into market open, I'd rather skip that one and just go for the next one. So, that is why I did not take this trade. Even though this played out beautifully, right? It came in and took out your TP so beautifully. I'd rather wait, guys. Honestly, there's no shortage of setups. So, I'm waiting. I'm waiting. I'm waiting. And we're going to see what happens here. Okay? So far, nothing. So far, nothing. There we go. You have a CRT right here that just formed, team. Right over here. Mark out candle low. And then, mark out candle high. What am I going to do? When price breaks that middle candle, which it already did, take my entry, target TP at the high, 1.5 stop loss. All right, make your risk to reward 1 to 5. And let's take our entry, and real quick, take a look at how that works. All right. So, ladies and gentlemen, just again, same repeatable simple like process every single day. I'm not doing anything crazy. There's no extra BS or anything like that. Just simple stuff, right? So, let's go ahead and take a look at the setup and see how this one plays out, right? First CRT, well, technically second CRT if you want to count that one, but either way, that one also hit, too. Let's take a look. All right. What ends up happening here? So, we're chopping around, chopping around. If it's not hitting stop loss or take profit, I'm not doing anything. And boom, straight to TP. That is it. All right. So, ladies and gentlemen, out of all those examples we took a look at, there's only one day that you technically could have lost on, which was the one with the news, where you got your bias wrong. But, other than that, clean. Clean as a guts, right? Even if you do fail, let's say like out of 10 days, two of them, you're still crushing the market. Like every single day, back-to-back, everything's clean. Cannot ask for more than that. So, that right there, in front of your eyes, is how that setup is working in real time, all right? And I gave you guys those kind of clear nuances of what works and what doesn't, so that you guys can understand, hey, what's the special situations where Nitro takes these trades or he doesn't, right? But, it's not really that complicated, super mechanical system. Most of the time, you'll be fine. So, I really do hope this really cleared up a lot of the setups. It's more important for you guys to see this with your own eyes of why I'm taking the trade, what I'm doing, and that's it. And that helps you the most. It honestly helps you more than anything else you can. But again, super simple setup, probably the cleanest one I've ever used, honestly, and it is just a life change. So, your homework, guys, is to go ahead, backtest this more, trade this live more, do all these things, get as much experience as you possibly can. And again, no strategy is 100%. There will be days where you maybe get your bias wrong or maybe you uh you know just the setup doesn't play out just because any strategy is not going to be 100%. But if you do this every single day, it is so difficult to mess up trading. Honestly, it's really crazy. So, with all that being said guys, I will see you guys back in the next video. Thank you guys so much for watching and I really hope these videos are helping you guys become a better trader. So, if they are, drop a comment down below. I love seeing that this is kind of helping people out. So, I'd love to know if you guys have any questions or you need any extra help or anything like that. Feel free to do that anytime. And also, feel free to join the Discord. There's a massive free selection where literally everybody's trading CRT and break of structure for value gap every single day together. Join in. Community is awesome and they will help you guys out a ton as well. With that being said guys, I will see you guys back in the next video. Take care and love all you guys.