STEAL The 1-Minute Strategy That Made Him $1.8M+ (Works Every Session)

I started with about $5,000. First month I made  $17,000. Second month another 20 and then 40   and then 60 and then 80 and then 100. So these  are, you know, the two setups that you've used   to achieve over $1.5 million in payouts. No  indicators, pure price action and in essence   really simple. I studied quantitative finance  in college. Basically just applying it to the   charts in a mechanical way. If you can follow  a bias on props, you're going to make a ton of   money. He is the world's number one youngest  quant trader with over $1.8 million in total   payout so far. Introducing JJ Simon. There is  going to exist a statistically optimal risk and   take profit for every single trade you take.  First, the draw down that you have available,   the rules of the account. Lastly, your win rate.  If I'm taking like a one to four risk-to-reward,   then my bias only needs to be right about 20% of  the time. Pair that with optimal risk and you can   be incredibly profitable. Low risk, low reward  is not going to get you anywhere. [music] You   have to utilize the proper capital that they're  giving you. So, in my opinion, high risk, high   reward is the way to go. But in this episode, JJ  shares his exact strategies which led him to such   insane payout numbers. He goes through the exact  rules dependent on the prop firm rules. If I buy   an eval, I have a 91% chance of getting nothing.  Nine times out of 10, you lose $100. Basically,   optimize for your take [music] profit first.  The stop loss on the other hand is going to be   essentially random. Do you ever find though with  that methodology that price could take you out   and still the whole bias and everything still be  intact? 100%. But thankfully I have 45 accounts   and I'm ready to enter again. I'll start with one.  I'll get the payout, reinvest that payout. Now I'm   going to run five funded accounts and go for max  payouts. He goes through how he manages multiple   prop firm accounts and he shows his complete  system with live trading. This is the episode   you've been waiting for to see a true want trader  trading prop firms and exactly the system behind   it. If I'm trying to trade reversion and I lose  three in a row, then I'm done. It's just a market   that's most likely not going to revert according  to my statistic. The sessions are 90 minutes long   that I trade. Okay. [music] So, you just focus on  that 90 minutes. Yeah. First 90 minutes of every   single session. New York, Asia, New York TM. Okay.  So, every every session. Okay. A very easy way for   literally anyone watching to automatically check  if they're going to make money on proper before   they buy a single account is to JJ, thanks for  being here with us today and I'm super excited   to dive into this. I know that the people are  probably super interested into you know exactly   how you've been doing everything that you've been  doing and achieve such incredible results on prop   firms in such a short amount of time. Um you know  where where's best to begin? Yeah 100%. I think   we should start with the strategy and then I'll  show everyone how you can adapt the strategy to   run on prop firms specifically. Perfect. Let's go.  Let's do it. So the strategy that I use is called   fair pricing theory. Now, I studied quantitative  finance in college and this is sort of some stuff   that's taught there. Uh, basically just applying  it to the charts in a mechanical way. You have   a theory which creates a bias and if you can  follow a bias on prop firms, you're going to   make a ton of money. So, this is the main theory  behind the strategy. Now, fair price is what I'm   trying to use to price the NASDAQ futures. And  NASDAQ futures, we're trading companies because   it's the NASDAQ. And what that means is I'm  only looking at external factors that impact   the price. So pretty much just news and session  opens. So I'll give a little demonstration here   of a session open and how I would use fair pricing  theory to trade that open. So if you assume price   is coming in at whatever level and then this down  here would be 9:30 a.m. EST. So just the normal   New York session. Mhm. From here, there's going  to be an influx of volume from overnight orders   being executed and institutions entering. This  is going to create an initial unfair move. So,   coming into the session, this is going to be  my fair price, just the opening price of the   9:30 a.m. session. Now, the first trade that I'll  take once a day, every single session that opens,   I will take a continuation trade. pretty much  it's just going to be in the direction of the   opening candle assuming it aligns with a high time  frame bias that I have and high time frame bias is   just for reversion. So pretty much just inverting  whatever happened for the previous 6 to 12 hours.   But the main entry signal that I use is literally  just the opening candle. It allows me to get in a   slightly plus EV trade on a proper environment.  Then when you pair that with optimal risk, you   just want to take as many trades as you can with  your bias. So the first trade literally the color   of the first candle as long as it breaks structure  of the previous candles then I'm good then I'm   good to enter and I will do a 38 point take profit  and a 25point stop-loss for this trade. If the   opening candle is larger than 25 points I'll just  simplify it. Cut my contracts in half. That would   make this 76 and that would make this 50. But  that is literally it for the first trade. Just   a very quick continuation of the opening move  trying to capitalize on an unfair displacement.   After that though, what I'm looking for is  reversions to the opening price. Okay? Again,   opening price just 9:30 a.m. The initial move,  whichever way it goes, it doesn't matter to me.   All I'm looking to do is revert back towards what  I claim to be the fair price, which is sort of   what fair pricing theory is, just a return to the  opening price. And in terms of the entry, there's   a few different entries that you can do. The first  one is a displacement candle. Now, what I use for   a displacement candle means the body of the candle  must be larger than the body of the previous   candle. And it also must close below the wick.  So in this example, it's a slight displacement   candle because it closes below the wick of the  previous candle and the body is larger. So that   is the first and uh the easiest entry signal. Very  mechanical, literally only two things to look at.   If you're getting a displacement towards the fair  price, then I would take a short. Which time frame   would you be, you know, looking for that candle  on? Only the one minute time frame. Everything.   So everything we talk about will be on the one  minute. Yeah. Everything here is 1 minute. The   only thing I'll do on the 5 minutes is look for  my high time frame bias. But you could also just   look at the one minute for 12 hours previous  and then still get that same bias. Um, that's   pretty much what that's used for. But anyways,  displacement candle will tell me to send the   first entry in. And displacement candles are it's  the first entry requirement. The second one is a   breakup structure. Now, for breakup structure,  it is pretty similar to a displacement entry,   but it's slightly more profitable. The reason  why I take displacements, even though they're   less profitable, is because I have so many profit  accounts that I'm trying to trade daily. Mhm. So,   if I'm trying to get through 40 accounts, I want  to spread my risk across all of my accounts and   then take as many trades as possible with a  slight bias towards a fair price. Okay. Now,   for the break of structure entry, it's similar to  the displacement, except it's just the traditional   definition of structure. When there's a wick down  here that is lower than the two candles previous,   the candle before and the candle after. If the  wick is lower and then a candle comes in here   and it breaks the structure, then I will take a  short position. just a standard break of structure   entry. Now, the interesting thing about this with  prop firms is you can see if I was to enter here,   then I'm getting however many points this is in  my favor towards a fair price. It could be 50,   it could be 25, it could even be 100 points  just depending on how far the market moved in   the initial continuation. So, when it breaks  structure, I have it on my chart marked out   exactly how many points I'm looking to see  in a return to the market open price. Okay,   based on that, it's going to be a value near  these. Like most of the time, I will choose a   different prop firm account based on the rules  that the prop firm gives me. Some prop firms,   it's better to have 100 point take profits. Some  it's better to have 50. Some it's better to have   25. So I'll optimize in this prop firm specific  way by taking funded accounts based on exactly   how many points are in my favor. What are the sort  of differences that would then dictate that? So   like what are the specific rules that prop firms  might have that then make you make this decision   100%. So the way I trade profits is using static  risk Mhm. and static take profits. So every single   trade or not every single trade but a majority  of the trades that I take the risk is going to   be something like this with a 1 to 1.5. And this  is great for an evaluation. The reason why is the   evaluation has a $3,000 profit target and then a  $2,000 max loss. This in and of itself is a 1 to   1.5. So if you separate your trades into a 1  to 1.5, you're automatically going to have a   higher pass rate just because of how the draw down  trails. But then for these funded trades up here,   I'm going to choose to take the 100 point trades  on funded accounts that don't have consistency.   Basically, if I can let let an account run for  100 points with one contract, two contracts,   three contracts, whatever, the larger win, I'm  able to realize all of that expected value if the   prop firm does not have a consistency rule. Same  if the prop firm does not have a strict policy   where they move you to a live account. If you get  moved to a live account, usually your SIM capital   gets reduced and then you have a smaller live  account. So there's no point in going for like   20 $30,000 wins when your live account is going  to be a fraction of that. Mhm. So basically these   optimizations here is built on a proper specific  environment to maximize the expected value of a   funded account and then in the transition to  live account make sure that I'm being moved to   the live account in a way that's going to benefit  me. either taking a payout at the end or getting   a large enough live account to make it worth my  time trading it. Evaluations always going to be   a 1 to 1.5. It's going to be 2538 or change the  contract size to make it 5076. Evaluations as well   will be all of my displacement candle entries.  Funded accounts I like to save for the breakup   structure just because it's a much stronger entry.  But evaluations, I'll send as many of them as I   possibly can off displacement candles. Anytime I  see a displacement towards fair price, I have a   bias. I have an entry and I have optimal risk. And  that's what I'm going to do on my evaluations. If   you're a trader, you have to know about Chart  Academy. Chart Academy is the first all-in-one   free trading education platform. That's right,  absolutely free. No catch, no upsells, no links   to sell you something. All free. Proven worldclass  traders providing an A to Z masterclass on their   strategies, their concepts, and their processes  that make them the best. From futures, options,   crypto, stocks, and forex, everything is covered  on chartacademy.com. Whether you want to fix your   trading psychology or learn from a market wizard  directly, you can do it all on chart academy. Not   only that, by just spending time on Chart Academy  and bettering yourself as a trader, you can get   points that unlock exclusive discounts, free  trials, and free accounts with your favorite   prop firms and trading softwares. Don't take my  word for it. Chart Academy is live. The link is   in the description below. Now, let's get back to  the episode. When it comes to the firms that do   have a consistency rule, how does that then  differ? How does what changes do you have to   make when when in that scenario? Yeah. So firms  with consistency rule, just like the evaluations,   the evaluations have a 50% consistency rule. So  automatically when I'm assigned a consistency   rule, I'm trying to limit my winners. If you win  too much, then you have to win even more and more   and more and your chance of getting that payout  decreases because your profit target increases by   way too much. So what I'll do is I'll take a one  to 1.5 risk-to-reward on consistency accounts.   It's very simple. Same reason as devaluation.  Sometimes I'll do a one to two, but this is mostly   based on the firm and the profit targets that  they assign you to reach for payouts. But these   entries are better for consistency. And then you  can even do one to three, four, five, even six,   as many points as in your favor towards fair price  on the non-consistency accounts. Close. Yeah. All   right. So now let's talk about news events because  like I said in the intro, fair pricing theory is   mostly determined by news events. The open is kind  of an event in and of itself just because there's   an influx of volume that creates an initial unfair  move. After that though, and during times when   it's not a session open, by the way, the sessions  are 90 minutes long that I trade. Okay. So,   you just focus on that 90 minutes. Yep. First  90 minutes of every single session. New York,   Asia, New York PM. Oh, okay. So, every  every session. Okay. Yep. I just want to   realize my bias as many times as possible with an  optimal risk. Now, let's talk about news events. The reason fair pricing theory works is because  you're trying to have a bias towards what a fair   price of the future should be. If you can get your  bias right, then you're going to be profitable on   prop firms. That's it. Now, the way news impacts  futures is by changing the fair price. There's two   types of news. There is expected and then there  is unexpected. So the expected news, this is 8:30   a.m. Red folder news EST. Unexpected is stuff like  tweets, speeches, things like that. You don't know   what's going to come out. My favorite trade to  take is the expected news reversion. Basically,   what that means is if we have news coming out  here at 8:30, the price is coming in 8:30, you are   going to see a huge candle coming off of news. It  could be multiple in a row, it could just be one,   but it's going to be a very large candle. If the  news is expected, meaning it's the 8:30 scheduled   red folder news, usually happens twice a week,  CPI, PPI, whatever. This is already priced in.   The price action that's happened for the previous  6 to 12 hours is moving the market up or down   to a fair price because the news is priced in.  Basically, that means there's a forecast and 90%   of the time it's going to be very very close to  the forecast in a way where if there is an initial   move is extremely unfair. So basically the theory  is that news is priced in it is forecasted. If the   outcome is extremely similar to the forecast, then  you can trade a reversion because this here is a   fair price. So I use the exact same entry model as  previous just to trade these reversions. So that   same premise really and same philosophy behind the  trade. Yep. Now of course there is also unexpected   news that would mostly be Trump tweets, speeches,  Fed chair, whatever. Example for this would be the   price is here and then out of nowhere Trump  tweets something extremely positive for the   economy and then it goes all the way up here.  Instead of trying to revert like I would here   this is actually changing the fair price of the  futures. The reason this one doesn't is because   it was already expected what the result would be.  So the initial move is unfair. This one completely   unexpected. No one expected him to tweet this or  that. So it's going to change the fair price of   the futures. After the fair price has changed. I  will use the most recent consolidation as the new   fair price going forward. So this would be my new  fair price. You are allowed to do two different   types of trades with unexpected news. The first  one is a continuation. If you are able to get   in somewhere here, you're going to have a slight  positive expectancy in terms of news drift. News   drift is basically a common studied phenomenon  where if news is positive is more likely than not,   just very slightly to continue upwards just  over the next few hours. So if you're able to   get in as soon as you see that tweet, soon  as you see the chart having a huge jump,   then that slight positive EV, then follow it with  optimal risk. Of course, after this, you could   also take a similar type of news drift. There's  consolidation here. So if it breaks structure up,   then I would take another news drift trade long.  On top of that, I would trade a reversion. So   consider it keeps going up. After that, I would  revert back to the most recent consolidation.   Okay, this consolidation is what I determined to  be the fair price because it is where the price   has stagnated after an unexpected news event. So  these are pretty much the only ways to trade my   strategy. Continuation, reversion, continuation,  reversion, continuation, reversion. In terms of   the the drift side of things, like how do you  determine your take profits in those scenarios?   Because it's probably going into more of a price  discovery area. Y maybe not like within alltime   highs or anything but just generally speaking in  comparison in these trades you're targeting the   fair value in the reversion here you're targeting  the fair value but the drift is obviously very   different it's heading in a in a direction where  you might not have a fixed target exactly yeah so   continuations are always a little bit worse than  reversions just for me and in general because you   don't know exactly where the fair price is if for  some reason it's up here and you don't know how   far it's going to continue reversion so easy you  just mark out that exact price the market open   at and just revert to that. But like you said,  the continuations are hard. What I will do for   continuations is give myself the largest possible  stop-loss. Okay. And the reason why I do that is   if you have a slight positive bias, so a slight  linear drift that you're expecting the chart to   go through, there's a ton of different equity  curves that the price could go through on its   way to complete this positive equity curve. Mhm.  So pretty much you're realizing a bias and you   want to have a stop loss large enough to where a  small amount of these random simulations of price   come down to stop you out. So most of the time  I'll take these on funded accounts and that's   because if you have a bias that small percentage  of edge in your favor is much more valuable to   capture on a funded account than an evaluation  because obviously you don't make money on the eval   funded account gets you the payouts. So that's  where you want to realize most of your bias,   which is why I take the strongest trades here and  these trades here with a very large stop-loss and   a strong bias. Understood. So in terms of the  large stop-loss in this scenario, for example,   would that look to be below the sort of previous  consolidation? Yeah. Okay. It's a very simple   mechanical optimization. I assume on a live  account even more optimizations would exist,   but it's very important to simplify your  strategy as much as physically possible   for a prop firm environment. And with this one as  well, in terms of the target, would you still be   looking at your sort of 1 to 1.5 as an average or  would you literally just wait until price starts   to consolidate? I'll do two different things.  First, I won't have a profit target. And it   is a continuation trade, so obviously you don't  know how far it's going to go. But if it's on an   uptrend in my in my favor in a continuation and  it's forming structure on its way up, if it ever   breaks structure against me, I will exit. Okay.  Will you trail the stop or you just manually be   monitoring? I'll just manually monitor and exit  whenever it breaks structure because sometimes   it could wick and then continue up and that's  technically not a break of structure. So it's   really important. So do you wait for a candle  close? I will. Yes. Always waiting for candle   closes on displacement and breakup structures.  Understood. Yeah. Perfect. And then so these are,   you know, the two setups that you've used to  achieve over $1.5 million in payouts. What's   so interesting about this though is that there's  no indicators, pure price action. And in essence   really simple yeah when broken down you know and  would you say though that there's a real need to   understand these numbers and I guess that leads  to a question of like what was your process to get   to this point where you have these very specific  models specific numbers that you follow specific   time windows how did you build you know that sort  of really detailed approach y you know what led   you to do that obviously you mentioned you know  as we came into this episode like having that   uh degree in quant finance Is that something  that has helped and and sort of pushed you in   this direction? Yeah, 100%. I think just studying  a lot of math, statistics and uh finance of course   helped me develop this approach. Um but I think  for people watching the most important thing to do   is try and find the optimal risk for prop firms.  There is going to exist a statistically optimal   risk and take profit for every single trade you  take. And that's based on a few factors. First,   the draw down that you have available. the rules  of the account like consistency, winning days,   whatever. And lastly, your win rate, basically  your risk-toreward and how often you win that   trade. So, if you have a very high win  rate, meaning very small risk-to-reward,   maybe like a one one. Mhm. Then it is  okay to risk more. Futures traders,   it's time to hear about Apex Trader Funding, the  largest futures firm in [music] the industry. They   have completely changed the game with their new  evaluation. So far, they've already paid out over   $600 million to traders around the world just  like me and you. Now, not only that, Apex actually   holds the record for the largest payout to  traders, which is of course with Jadecap,   no stranger to chart fanatics with $2.5 million  in a single payout. And the person before that   was Trader Kane with $2 million in payouts. Now,  what sets Apex apart? Apex you can get up to 20   accounts which no other firm offers. Now, not only  that, they have extremely clear rules with their   revamp. There's no MAE rule, no 5:1 risk-to-reward  rule, no hidden rules, no gray areas, clearly   defined draw down models. So, you have two options  now. end of day draw down and intraday trailing   draw down which means no payout denials, no  payout reviews, no discretionary decisions and no   surprises. What sets them apart as well? Traders  receive 100% of approved payout requests up to 20   accounts as I mentioned and one day to pass. Now  the other thing that I love about Apex, not only   can you get 20 accounts, but there's different  account sizes. So if they have 20k accounts all   the way to 150k accounts. So you can get 20 of  any of the account sizes that you choose. Not   only that, you have various trading platforms  from wealth charts to trade of to rhythmic. The   choice is yours. So make sure you use the code  CF to get up to 90% off on evaluations right now   using the link in the description below. Trader  Apex today. Let's get back to the episode. If you   have a very low win rate, like you're targeting  1 to six, you'd want to risk less. Yeah. And the   reason the reason for that is within the proper  environment, you want to make sure that a trailing   draw down does not impact your expected  value. Basically, anytime you make profit,   a draw down trails up. Yeah. You're losing that  because if you make $1,000 and it trails up, then   you still only have $2,000 worth of draw down. At  least you're $1,000 in profit, but you didn't make   any new draw down to trade with. So basically  the the way that I made money on prop firms is   finding a good risk-to-reward for the evaluation  which is is probably just going to be 1 to 1.5 for   everybody if it's a minus 2k plus 3k and then on  what account size is that all that's a 50k that's   a 50k yep and this is all futures NASDAQ only is  what I trade but the funded account is where it   gets a little bit more difficult to model expected  value pretty much if you're technically savvy   You could code simulations basically imitate  the prop firm rules combined with your exact   risk-to-reward and exact win rate and from there  you'll know exactly what is the optimal amount to   risk on every trade and the optimal amount to have  a profit target on every trade if you're modeling   for the expected value of the prop firm. Now  obviously it's a little bit difficult to simulate   things like this. Even AI can't do it. I tried to  have it simplify some things for me but it's it's   unable to which is unfortunate. But a very easy  way for literally anyone watching to automatically   check if they're going to make money on prop firms  before they buy a single account is to back test   in a prop firm environment. I see everyone online  back testing these equity curves for live accounts   and then okay it went up good equity curve over  time the strategy works then they're going to try   it on a profit account and they're going to get  confused why they keep hitting the max loss. Mhm.   It's because prop firms are designed in a way  where those positive equity curve live account   strategies don't work. And what you should do is  go into your back test and pretend you have 10   accounts with tops of lucid whatever you have 10  funded accounts. From there you're going to trade   the same risk-to-reward on every single account,  every single trade on the evaluation. From there   you can determine your pass rate. All you need to  do is back test for your pass rate. And don't back   test for your equity curve. Your equity equity  curve like this one that doesn't matter on a prop   firm. Hm. All you need to find out is your pass  rate. And from there, I have a nice little formula   where you can find how much it cost you to get a  funded account. That would be the cost of a funded   account, an evaluation like $100 divided by your  pass rate. If your pass rate is 25%, that means   you pass one out of four. So, it cost you $400  to achieve your funded account. Mhm. From there,   you simulate that a bunch of times to find your  exact pass rate. Divide it from the cost of your   evaluation. you'll know exactly how much it cost  you for a funded account in the long run. Assuming   you're assuming you follow the same strategy  and risk in the actual market. From there, once   you have this value, all you need to do is make  sure your expected value of your funded account   is larger than this. That means you're going to  make money. The expected value of a funded account   is pretty much how much you can take out of the  account in its lifetime. Only payouts, that's the   only thing that matters. Yeah. Hitting your max  loss, all you lose is $400. you don't lose the   $2,000 of SIM capital or whatever. So, you only  lose 400. So, take that same exact back test and   now pretend that you have 10 funded accounts. Same  exact thing. Try different risk-to-rewards. See   which one of the risk-to-rewards in terms of,  and by risk-to-reward, I mean static numbers.   I don't mean only do a 1 to2 or only do a  1 to 1.5 based on your account, your rules,   the strategy. You should be following a static  risk. And one static risk must be theoretically   optimal. if there's so many to choose from and  it's applied to these specific rules. So again,   same thing with the eval back test to find your  expected value of the funded account. Basically,   if you were to have a 100 funded accounts over  the course of a year, how many payouts in total   would you get with what specific risk-to-reward?  One of them will be optimal and that's the one   you should choose. And then your expected  value should be greater than your average   cost to get a funded account. From there, you  automatically know your strategy is profitable.   All you have to do is follow it in the actual  proper market. Would you say though using that   model is there limitations or things to sort of  be aware of especially with these sort of changes   within the futures industry that we're seeing well  futures prop firm industry that we're seeing over   recent months and probably going to continue  to see going into the future as well. Yeah,   100%. The two things to be aware of. The first  one is variance. 100%. Anyone who trades should be   aware of variance. 100% basically just means how  lucky you are or not. And you need a sample size   large enough to where variance is not going to be  a problem. I'd recommend 50 evaluations. Back test   50 evaluations. At that point, you'll have a good  estimate of your pass rate. If you only try three   and you lose all of them, it's not because the  strategy doesn't work. It just has a slight draw   down period. You shouldn't change after that  because again, you could have a very positive   equity curve on your valuations and you just hit  a little draw down and you stop. That's not going   to it's not going to get you that positive bias  over time. in terms of what you were saying with   the futures profer environment changing is very  true. Rules are changing day-to-day live accounts   are being introduced more often to traders. So the  same expected value could be lower or it could be   higher and most of that is based around the live  accounts. Um it's every trader's goal obviously to   get to the live account on a prop firm and then  scale their capital. So you need to be aware of   how that would change your expected value. Now,  thankfully, it is a pretty easy formula to find   your expected value of a live account. Assuming  I had a $10,000 live account, the expected value   of this account is $10,000. Mhm. If I have a  funded account with $2,000 worth of draw down,   maybe it's a,000, maybe it's like 1,200, whatever  I can on average get in payouts. Live account,   very easy to find the expected value. Assuming  you're a break even trader, it would just be   $10,000 because you start at 10K and then you have  equity curves that pretty much oscillate around   $10,000 in the long run. You do pay some fees  which can decrease your equity curve a little bit,   but assuming you're slightly above break even  and you wouldn't be profitable on a live account   on your own. That's why we're trading prop  firms, then you would have $10,000 worth of   expected value in the live account. So, as you're  simulating, be sure to understand if you run up a   huge SIM balance, you're likely going to get  a live account worth 10,000 or whatever. So,   you need to definitely definitely include that  in your expected value calculation. And when it   comes to these particular models, would they be  something you can replicate on the live account   or is this specifically modeled around prop firms  only? All of this stuff with a specific profit   targets and riskreward is proper specific. If I  was to trade a live account, I would only trade   reversions first of all. Okay? I would only trade  breakup structure. Second of all, okay, and third,   most likely only trade expected news reversions.  Those are the strongest of the trades that I take.   That's why I risk the most on them in my funded  accounts. Um, but in general, on a live account,   you would not want to do a static risk and a  static take profit. You would want it to be   discretionary based on what the market is  showing you. But in a proper environment,   static is 100% the way to go. M and why why is it  that the expected sort of news reversion is the   sort of A+ setup for you, right? It's because news  every single time is priced in. There's always a   forecast for it. You can see it on Forex Factory.  Like 99% of the time it's going to be very close   to that forecast. Sometimes it's going to be an  outsider and the outsiders are pretty obvious to   tell on the chart. Basically, it's just going to  go up and it's going to keep going up. You won't   even see a short entry. So, you don't even get  concerned with losing that sort of trade. Um,   but the expected ones are 100% the strongest since  the initial candle is 100% of the time unfair. The   reason why the market open is a little bit worse  is because sometimes this initial continuation   could be going towards a fair price that is up  here. Mhm. The market open is not fair 100% of   days at that exact price. Yes, it's just a very  strong bias that you can use on profirms. But with   news, I I can't say 100%. But I'd say a very good  portion of the time the pre-news price is going to   be fair. And with these two models and and well  examples that we have in front of us, they're   obviously showing sort of a bullish example with a  reversion to the downside. I'm guessing the exact   same would be the if it was to flip. If we were  to have obviously the sort of push aggressively to   the downside and the reversion upwards, it would  just be the same principle just flipped over.   Yeah, exactly. I'll take reversions continuations  anyway that the chart is showing me. Cool. So as   we move on to the sort of the next question which  would be in regards to when you've seen people   trying to implement this you know what has been  if you were to sort of really think about it what   would be the the key struggles or hurdles because  no doubt you probably have people coming to you   who have been trying your ICT strategies even  maybe orderflow strategies or price action based   or indicator based and now you're really taking  them I won't say out of their comfort zone but   really just showing them hey here's a mechanical  ical system and a lot of the time with those other   systems you can make it mechanical but most  people are obviously using a lot of discretion   um and probably unfortunately a lot of people  don't actually have an edge or an expected value   they just have a a a particular set of sort of  rules and concepts that they're using and they   might even be using them you know day-to-day in a  random sort of uh combination y so when it's come   to actually you know using a mechanical system you  backed by data something that you've used yourself   And now you've seen success with other people  as well of course. But what has been sort of   that that hurdle if you if any if any you know  that stand out to you when sort of making that   transition making that change uh to trading in  this this manner? Yeah 100%. I think the thing   most people get wrong about my strategy there's  two things. The first one is that for whatever   reason people are going to try and back test it  on a live equity curve. They're going to pretend   that they have a live account and they're going to  back test for that equity and they're going to be   surprised. Why am I not making money? Well, you're  using a static risk and using a static riskreward   that's optimized for prop firms. If you personally  want to optimize this bias for live accounts, go   for it. But prop firms right now are so incredibly  profitable where you should only be trading prop   firms. So basically what I'm saying is please back  test in a prop firm specific environment. Find   your pass rate, find your expected value. Don't  be surprised when you use a static minus 500 plus   750 when it doesn't work on a live account because  it's optimized for a prop firm. That is more of a   macro thing that most people are confused about  and get wrong. But in the specific strategy,   something most people are struggling with is the  adaptation of fair price. For example, we think   the open is fair, so I'm going to trade reversions  to the open. It's not going to win every day. The   days that it doesn't win are days where you don't  want to keep shorting into a bullish market or   keep buying into one that's absolutely dumping.  So, I try to adapt fair price if my trades are   losing. So, I won't keep trading back towards  the market open if it's trending heavily in one   direction. That's a little a little optimization  that you can do. It does unfortunately change the   strategy from very step-by-step mechanical to a  little bit discretionary. But as you get better at   it, you can add your own discretion. Of course,  everyone has stuff that they know, stuff that   they've learned, some of it might work. You should  try to use the bias of fair price. Maybe you have   a different entry model than mine. Maybe you have  other confluences, but if you're on a prop firm,   at least use the bias. The bias is what is so  incredibly profitable and that's why I take   so many trades per day. In terms of that, that  was one of the questions I was going to have in   terms of like do you have certain rules around the  number of trades you take? Um do you have to have   put some sort of control or limits because even  though it's mechanical obviously that human nature   element of you know maybe taking quite a few  number of trades, maybe having a number of losses.   Y how do you find one the focus on the discipline  side to make sure that each trade is alongside   your mechanical system um versus you know maybe  taking a handful of trades that were with the   mechanical system but taking losses y and then in  the process of going on tilt and then overtrading   because you know that you're taking a large number  of trades in a day but then suddenly does that   open the door to you going off system and going  off your mechanical playbook. 100%. Just with the   opportunity to take so many trades throughout the  day, I guess it could be very easy to fall into   that gamblers mindset of I just want to enter.  I don't really care where it's going to go. But   there's a few things that I could say regarding  that. Personally, if I'm trying to trade reversion   and I lose three in a row, then I'm done. It's  just a market that's most likely not going to   revert according to my statistics. So, I'm just  done at that point. Second, tilt on prop firms   is a very interesting thing to talk about. Most  people attribute all of their losses on profits   to going on tilt, but it's not actually as bad  as most people think. It's actually a completely   random entry, which should be break even expected  value. The only thing that changes is you're   introducing a bunch of unneeded variance. You  can have the possibility to blow your account   or possibility to have huge wins. The problem with  huge wins is they're usually capped because it's   a prop from environment. But going on tilt is  not really a problem for me. Uh, I think just   because I have such a statistical approach where  I know if I follow it step by step, I'm expecting   to make X amount per month and I don't really get  mad at a loss because I know it's just part of the   system. It's part of a positive equity curve of my  bankroll that can have down moments at some time.   The most important thing though is to simulate  back up your confidence that you know it's going   to make money in the long run. An additional thing  that I'll tell people with tilting, and like I   said, it's not that bad because it's just break  even if you're randomly trading, and it's not   the worst thing, but if for some reason you feel  you're going into tilt and you have an account   that's at $2,000, you're going to get a payout  from it soon. If you're on Tilt, do not trade that   account. You're risking $2,000 of your account  to win whatever. So, it's break even. But if you   go on Tilt, you buy 20 new evaluations for $100  each. That's the same $2,000. It is much more fun   and it will get you off tilt way faster to trade  all 20 of those evaluations correctly. Instead of   just gambling and coin flipping your one funded  account, it's about to get a payout. You can risk   the same amount, have more fun, make more money,  and then your downside is capped because if you're   trading 20 evals individually, your risk will  spread across all of them. Worst case, you have a   really bad pass rate because you're gambling them  and it's like 30, not 30%, 20%, 15%, whatever. At   that point, you're not coin flipping $2,000 worth  of expected value, your variance is extremely   reduced because it's spread across 20 valuations.  So, if you ever go into Tilt, do it on the eval,   not the funded accounts. Mhm. Would you say as  well when you're trading these accounts as you say   about individually is that individually in terms  of per firm or do you mean literally each account   even if let's say you have five or one firm are  you trading each of those account individually or   you trading say the five set at this firm five at  this firm get 20 at that firm whichever it may be   like how do how are you doing that are you sort  of treating them as an individual firm set of   evals or individual accounts yeah so let's talk  about how I'm able to place 30 trades throughout   the day. Yeah. I'll just simulate everyone a  random New York session. I'm just going to draw   a random curve, a random chart. It could even go  like that. Like it doesn't matter where it goes.   This is just going to be a New York session. I'm  going to trade it from 9:30 until 11. And the way   I'm getting 30 accounts in is I see this is the  fair price. I'm just going to trade toward to   and from it the whole session. And there's a few  different entries that I could take. Obviously,   the displacement entry is going to give me a bunch  of entries. And if it's coming back down, like 95%   of the time, there is going to be a displacement.  Sometimes it reverts in one candle. So, I can't   really catch that. But most of the time, I'm gonna  have a a reversion there, there, there, there,   there, there. Just so many reversions throughout  the day. And what I do is I notice how many points   are in my favor on this one, how many points are  in my favor on this one? And then, of course,   trade the different account based on that because  it's optimal to do so. But in terms of getting   that many trades throughout the day, um days like  this are actually harder. Days where it's going   up and down, staying near the fair price is much  harder. Another example of or like a day where   it's only going one direction. So it go like this,  it won't revert. It'll continue going down. Maybe   it'll stay stagnant and continue going down like  a non-reversion day. Obviously, those are worse   for me because I have a bias back towards 9:30  here. Yeah. And it doesn't revert. So most my   trades are going to be losers. Not all cuz I get  in here and maybe I hit take profit. Get in here,   maybe it wins, maybe it doesn't. But that's three  entries and when it's stagnant, I'll usually take   a trade in the stagnation. The reason for that is  again I do have a bias and if my bias is correct,   then it's slightly profitable to take that  trade with an optimal risk. Now days like this,   I do what's called layering evaluations. I don't  really want to copy trade because it just gives   me extra variance that there's not really any need  to take if I'm able to get in a bunch of different   trades. Mhm. So, what I'll do is I'll send one  account in here and if there's some structure here   and it breaks structure again, I'll send another  one. But basically, I'll enter on displacement   really early and if it breaks structure, I'll get  in again on another account. So, these moves here,   they give me basically two entries, but the same  exposure. Okay, just reducing variance through a   little bit of a And would it matter if it's on the  same firm or or different firms? It doesn't matter   as long as the accounts and you know the rules are  right. as longable to your system. Yeah. As long   as you've optimized for the risk-to-reward and  the specific rules, it doesn't matter which prop   firm you traded on. It does make it easier just to  do all within the same one because my evaluations   are mostly static. Even if I see 50 points to a  fair price, I'm not going to go for 50 points in   the eval. I'm only going for 38 because 38 is  optimal according to my static risk-to-reward.   Mhm. And then in terms of uh as you mentioned the  sort of free loss rule that you have would is that   per session because as you mentioned like you'll  do this particular session obviously probably one   of the more popular trading sessions the New York  open but then as you said the lunchtime Asia you   say London as well. Yep. Works for London. So  when you have the free loss rule is that for   that session then you stop. Yeah it's three losses  in a row in one session in a row. Yep. In a row.   Three in a row. It should be pretty clear that the  price is trending in one direction and just not   reverting. But days like this where it's a little  choppy, maybe it could still come back. These   days, I'm just going to keep taking trades. It's  just these right here where I lose three attempts   all very quickly. And you can see price moving  away still. Yeah. Okay. At that point, there is   something that I don't know. For some reason, the  fair price is up here. I don't know something. So,   I'm not going to trade anymore. And when something  like that happens, let's say, and then it moves on   to the next session. Yep. is your fair value then  this let's say in this scenario this area here y   um which then again you would mark out and then be  waiting to see what price does in the next opening   session. Yeah, exactly. So going into following  sessions the new fair price would be up here.   Understood. 9:30 is not a target after 11:00  a.m. Okay. It is just a high time frame bias   for reversion because in the long run markets are  reverting. Markets are reverting on the 1 second,   the 1 minute, the 10 minute, the 1 hour markets  are reverting. And the reason why 930 is only a   high time frame bias is because it's too far in  the past for it to still be considered a fair   price. If for some reason 930 was fair and it was  all the way up here, when volume is introduced,   it would 100% come back down to 9:30. Mhm. But  obviously it's not. So I didn't pretty much   disclassify 930 as a fair price going forward  after 11. Okay. So you won't there wouldn't be   a scenario where you're using say on that day  uh the 9:30 or previous days sort of fair value   prices. is always based on what the latest most  recent session open and where that fair value been   placed in or news related wise where that's been  placed in right now. Yep. And fair value could   change throughout the New York session if for some  reason there's an unexpected tweet or something   like that. Yes. And you get a very quick move up  then you 100% have to adjust fair value to the   consolidation after that tweet. Understood. Okay.  One last thing about fair price and different   sessions is a little bit discretionary, but you  can try to apply it as best you can. Between 11   to 2 p.m. there is basically no volume. It's kind  of a dead time in the market. So, it is possible,   slightly possible for price to be trading at an  unfair price between 11 and 2 p.m. Mhm. Then when   the 2 p.m. session opens, which is another session  that I trade, if 2 p.m. opens down, I will try to   trade it all the way back down to 9:30. Okay?  Basically just using the influx of volume from   the 2 p.m. session as a continuation trade and a  reversion trade back towards what could possibly   be a fair price. Again, it's a bias. And if I'm  taking like a one to four risk-to-reward, then   my bias only needs to be right about 20% of the  time. And it should be pretty easy to have that   bias especially on a prop firm. Then just pair  that with optimal risk and you can be incredibly   profitable. When it came to separating the  accounts, you know, with uh different consistency   rules for example, do you just find when it comes  to say large trades like this example, would you   just purely take those only on evaluations or  funded accounts that don't have the consistency?   Yes. or is there a world where you know even if  it has a consistency you would just make sure   that every trade is fitting the similar R. So in  terms of this you know particular example one to   four you would just have to keep hitting one to  fours on that account so that consistency sorts   itself out or would you purely just say make it  easier for yourself by saying okay let's just take   them on no consistency either. So I'll add some  little space here to talk about this um with a 1   to four on a consistency account you should never  do that. Mhm. The reason why is in order to pass,   if it's 20% consistency, then you need 20 RR.  Basically, 20%* 4 gives you 20 because it's five   trades of four riskreward to be up 20. Mhm. Now,  it is going to take you most likely 3 to 6 months   in order to keep doing 1 to four once a day. It  is going to take about 3 to 6 months to get your   20 RR if you're doing minus 1R plus 4R once a day.  And the reason for that is because of oscillation.   So assuming you start here at zero and your goal  is 20, we'll even assume you're a very profitable   trader with this strategy. If you go up four,  down one, up four, down one, it is not possible to   continue that exact same profitability all the way  up to 20. Mhm. Realistically, you're going to win   four, lose 1 2 3, win four, lose 1 2 3, win four,  lose four, win four. Like, you're going to have   you're going to have a positive equity curve if  your strategy is good. But it's going to take you   absolutely forever to reach 20. That is another  reason why I prioritize the lower risk-to-reward   of like a one one or a 1.5 on the consistency  accounts. It's because I'm much I'm getting to   the goal much faster because the goal here if  I'm doing one one is only to hit five R. And   with a one to one I am still going to oscillate  and it's going to take a little bit of time but   significantly faster than getting all the way up  to here. And your win rate naturally will probably   be higher as well. Yeah, the win rate definitely  is higher if the lower your profit target is. And   the higher your win rate, the faster you're  going to pass the valuations and get towards   payouts. And what would you say in terms of uh  the limitations that you face? Is there like you   are at 1.5 million right now in under 18 months  which is incredible but would you say there's   like almost a cap when it comes to trading in this  manner which might be around that sort of figure   1.5 maybe 2 million etc. Y um obviously there's  more futures firms that are coming out every   single day for better or worse. Y like what what  is your mindset when it comes to saying okay these   you know the top five or top 10 firms I've already  sort of you know maximized my return and sort of   moved to live. So the opportunity cost might not  be there anymore. That expected value might not   be there anymore for the system, but now you have  a lot more options that might be available. Yeah.   You know, what does that look like for you when it  comes to okay, making that decision of okay, maybe   we have to go to some of these newer firms. How  do you look at that? How do you sort of observe   that and make your calculations accordingly? Or is  it just a risk you have to take in terms of okay,   yes, the rules might be similar, but then you're  not sure about, you know, achieving certain payout   amounts. Right. It is it is a little bit of  both. I think the most important thing to do   is understand how your expected value changes as  you move to a live account. Every single pro firm   in their help center will tell you exactly  when they move you to live exactly what the   rules are on live. So you could simulate that as  well. Find out the expected value of that proper   specific live account. Okay? As well as if you  have five funded accounts with whatever balance,   understand that when you go live, they're removed  and they become the live account. So any profit   that you had there is no longer your profit. Mhm.  So what I do now is mostly optimize my approach   around the live accounts. When I first started,  it was only optimized for the funded accounts   because like a year and a half ago, there was  basically no risk of ever going live. But now   everyone goes live on prop firms. As soon as you  make a little bit of money, they're trying to move   you live so that everyone can make money. And it's  a good thing, but you need to be aware of how your   expected value changes and then optimize that as  well. Basically, the way I structure my approach   to firms that move me to live is I want to only  go live when it's going to make me money. So,   I see the requirements for going live.  I know if I go live with this firm,   I'm getting a $15,000 expected value account.  So, what I'm going to do is I'm going to keep   my SIM funded balance below $15,000. I'll I'll  trade in between 13 and 14K. If I go over 15K,   like I run it up to 20K and I get moved live, then  I lost 5K in expected value. So, I optimized for   how I'm getting moved live and the expected value  there. So, then my approach specifically will only   make me money if I go live. Understood. There's  also a bunch of different firms coming out like   you said, and I definitely love trading with  new firms. Um, new firms have very good payout   policies because they're trying to compete and get  into a very difficult market. If it's a new firm,   they also have to pay you out or else the  reputation's gone and then they can't grow.   So, these new firms are actually kind of a little  gold mine because they have really good rules and   they have to pay you out or else their company's  not going to make it. So, I like to get into these   new little firms and I'll only trade one account  at a time. Okay, I wouldn't grab five evals,   get five fundeds, make $10,000 on all of them just  in case, right? I'll start with one, I'll get the   payout, reinvest that payout. Now, I'm going to  run five funded accounts and go for max payouts.   Understood. And in terms of the let's say breaking  down the numbers that 1.5 million, what's the sort   of cost um to make that sort of amount so far for  you? It's about 400,000. Really? Yeah. Okay. So,   it is quite expensive, but I started with about  $5,000. You started with 5,000. Y first month,   I made $17,000. Second month I believe was another  20 and then 40 and then 60 and then 80 and then   100. And it unfortunately is getting a little bit  lower. So, I'm not able to stay above six figures   every month. It's mostly like 100, then 75, then  60, then 100. Is that because of like sort of the   changes in terms of moving to live, etc.? Yeah.  Expected value is getting a little bit worse   because prop firms are increasing their prices.  Just just straight up. Um, but it's still very   possible to make six figures a month, especially  if you're new. If you're new to prop firms,   they're not going to try and limit you and send  you live until you've proven profitability. So,   if you were to just come on to Prop FMS today,  you could 100% hit a few six figure months in a   row before eventually it would come down to  about 50, 75, 100K a month. And would you say   that obviously this is a an amazing opportunity  you know and and you've achieved such a great   success with the changes. Would you say that your  mindset is to develop something for a live account   and develop something that you would whether  it's a live account on a firm or just your own   personal live account now that you've achieved  these figures for yourself and and have this   return. Is that where your sort of mind goes  next? Yeah 100% profits were an excellent way   to build the bankroll. M um I do have a bunch of  money in my funded accounts right now. So if I was   to stop spending and only go for winning days and  just withdraw all of that, I'd probably get about   250k back. Okay. So if I just totally stopped  trading profarmms right now and just only did   winning days, I could get about 250k back more. So  then it's like 400k spent, 1.75 million in profit,   which is a really good amount to start your own  live account, obviously like seven figures. But   my main goal right now is to get to a $5 million  net worth and then open a hedge fund. So I   want to trade strategies like this and capture  inefficiencies in the market on a live account   but with profit specific live accounts. You can  take a similar approach where you're optimizing   expected value. The reason for that is they're  not traditional live accounts. A traditional live   account is $10,000 in your balance. You grow it.  Whatever your payout is, you can take it whenever   just like it's a normal brokerage account. The  proper specific live accounts still have a bunch   of rules. Thankfully they do have bonuses but  they have draw down limits. They have payout   limits. They have payout splits. But the bonuses  are the best part. So when I move to live, I will   optimize for my chance to receive that bonus. A  quick little example with Lucid or Tradeify. If   you make $4,500 on a 150K live, then you get a  $4,500 bonus, which is great because if you're   essentially you start with zero and you have  a $4,500 max loss, if you reach plus400, you   get an extra $4,500 added to your account. So the  expected value there is basically doubled because   if you make 4.5k then you get a 4.5k bonus. So I  will optimize for my chance of getting that bonus   and the instant I hit 4.5K in the account I'm not  going to trade it again just because I want to get   to that bonus and I want to receive it. If I'm at  4.5K and I'm risking that 4.5K try and like double   it again and get it to 9K. Most people think okay  I'm trading with lot of capital. I want to grow   it. But you need to wait until the bonus hits your  account. And the reason for that is if you're at   4.5K worth of account and you have a 4.5K bonus  that should be coming in in a few weeks once you   qualify for it and you still risk that. You're  actually risking 9K when 4500 when your account   only has 4,500 in it. So there's a few ways to  optimize around the profit specific live accounts.   That's mostly what I'm doing right now. But in the  future definitely the goal is to run my own hedge   fund. Understood. Would you say that a large part  of this in terms of being able to be disciplined,   stick to the mechanical edge is understanding  what a mechanical edge actually means uh in   terms of you've done the data, you know the  numbers and that only by sticking to it and   following that process will the again as you say  you can't say guaranteed in trading but this is   closer to a guarantee or at least a understanding  you know how they say you know trade statistics   understand your numbers. That's essentially what  you're doing when you're trading mechanically and   it may be a bit of a leap or change in mindset  that a lot of traders probably have to do. Like,   have you always traded this way or did you trade  more discretionary before? I have always traded   with the statistically optimal proper approach.  The strategy has pretty much been the same for   16 months. When I first started out, I was  kind of messing around with the strategy. Um,   but the risk-to-reward, how much you risk per  trade, what your profit target is per trade,   that must be statistically optimal or you're  not maximizing your potential on the prop firms.   Understood. Well, now we're going to go over  actual trade examples from the charts. Right.   Let's take a break for a minute there, guys, cuz  a quick word from our official platform sponsor,   Ninja Trader. If you've been following along on  this channel, you know how much time we spend   breaking down charts and market structure. And  Ninja Trader is an awardwinning futures trading   platform built for exactly that. You get advanced  charting, depth of market tools, and market replay   so you can work through historical sessions  and practice in a fully simulated environment,   all without risking real money. Here's how to  get started. If you're new to the platform,   use the link in the description below to download  Ninja Trader and explore it in the simulator.   You get two full weeks for free [music] to test  everything out. And if you're already trading   prop, choose Ninja Trader as your platform at  checkout. It's the best platform for the job. So   go check it out and let's get back to the episode.  All right, so there is no news this week. So I'm   going to go over Tuesday, July 14th, and then  Wednesday the 15th because those were the red   folder days of last week. Mhm. This was CPI. This  is 8:30 a.m. red folder news. Like I said earlier,   it's priced in. So this right here is the price  before news. Obviously, green candle means it   started here and ended up there. So this is going  to be the fair price going forward. Now in terms   of the entry, of course, every entry is going to  be short just back towards this fair price here.   Now what I'll do is I'll wait for a displacement  candle or a break of structure. Now we can analyze   them one by one. First, this is not a displacement  candle. Two qualifications needed. The body must   be larger and it must close below the wick. This  one only the body is larger. So no displacement   here. Then we do get a break of structure right  here. This is obviously structure because it   is a wick lower than the two candles next to it.  Okay. From there breakup structure and my target   is going to be all the way back down here towards  the fair price. When you say the the wick side of   things is that with the understanding that on  the lower time frame. Yeah. Because normally   structure for people, you know, the if you will  the conventional way or how people observe it is   they observe it like lower lows, lower highs,  etc., right? And then that being a break here   below the previous low. So is it just taking the  mindset of without having to go into the seconds   etc. that that would in this essence be low  lower high and then that broke. Yep. Uh and   then obviously the next candle obviously trying  to break and then it's broken through. Yeah,   exactly. So, I'll just use these little intra  intra candle structures like normally structure   obviously stands out a lot more and the more it  stands out the stronger it is. Gotcha. I just   would use these because it's going to give me a  pretty easy entry and it's just something I can   mechanically say the instant it closes below this  when I classify structure then I'm just going to   short. Got there's no thinking is it going to go  down? I don't know. I'm just going to enter. So   having speed and having kind of a an aggressive  approach is very good. And what would you need to   do in terms of uh execution? Are you executing  off a phone? You got to trade on Trading View.   Like what's going to allow you to have that  speed? I've just traded on this computer for   uh all 18 months. Really? Yeah. I have a desktop.  I have Trading View and Forex Factory open. And I   have all my prop firms on this computer. Um I've  just always done it. Didn't really want to switch   away. Um but one important thing that I will add  for the entries is you can look down here at the   bottom right. You can see the clock. Right now  it's 11:40 and then 50. As soon as this hits 51,   then you're noticing like it's the next second.  So, as soon as it's going to hit 60 and then 61   or like the next minute, you know that the candle  closed. So, I'm just watching the clock and then   boom, next minute I check over here to see if it  closed and then enter. So, it's like split second.   Did it close below? Yes or no. So, just very easy  aggressive entry style that I take. So, in terms   of this one, stop loss goes above the structure. I  guess there's actually a few different options for   the stop loss. Okay. basically optimize for your  take profit first. Okay, on a proper environment.   So, I'm seeing 170 167 points in my favor. Now,  what I'm going to do is I'm look at my dashboard,   which is just coded to tell me the optimal risk  for all of my accounts, and it's going to say you   need 150 points on this one, 200 on this one,  175 on this one. This is closest to 175. So,   my profit target is just going to be 175 points.  After it hits fair price, it's essentially random.   Okay? But in this case, it's close enough to my  take profit where I don't really have a problem   letting it run for an extra seven or eight  points. Now, the stop loss on the other hand   is going to be essentially random. It's going to  be static, but again, optimized based on a prof.   Because if my profit target down here is 175 and  it's telling me to use one contract or whatever,   so it's going to make me exactly 3,500 or  whatever with one contract. Then the stop loss,   if my account is telling me to risk 500, then  it's going to be at that amount of points be at   25 points. if okay with one contract because my  profit target is what I'm really optimizing for   like it's just going to be 3,600 for the specific  account based on the expected value of it okay   then the stop loss is just going to be whatever  the reciprocal of the take profit is basically um   so it's going to be completely random I guess in  a way where the takerit is more important that's   interesting very interesting because obviously you  know a lot of people will take the the opposite   mindset with it sort of focusing on the stop loss  and normally the conventional rule being you know   an invalidation point right so this kind of goes  against that in the sense that you're focused   on the takerit and then optimizing that so which  then will then dictate the stop loss accordingly   uh for for the dollar amount right exactly because  there's a bias my bias is all the way reverting   down towards a fair price do you ever find though  with that methodology that price could take you   out then still the whole bias and everything still  be intact 100% but thankfully I have 45 accounts   I'm ready to enter again Okay. Okay. Every entry  in the direction of my bias, win or lose. So, this   would just be the first and kind of the only entry  in terms of the reversion towards the pre-news   price. But there's also a bunch of entries within  this move down that I could layer in on more   funded accounts or valuations. Here's a really  good example. There's a bunch of structure here.   1 2 3 four wicks that have not broken this level.  So, it's outstanding structure. And this candle,   very strong breakup structure, obviously. And then  this one here, it's giving me 94 points. Okay,   with this trade. So, this one seems like it'd be  fine to go for 100 because I have some that need   75, some that need 100. Okay, usually it's like  split up by 25 points. Just I guess that's how   the the optimization turned out. But this one's  going in for 100 and then the stop loss is going   to be exactly whatever the account says. Um, the  most common stop losses that I end up seeing from   my optimization is 25 points. Yeah. 37.5, 50,  and 75. So, a few different options, but again,   you have to optimize it for your specific account.  So, stop loss is just going to be what it's going   to be. I don't really mind if I lose here. Mhm.  It totally could have been possible. I had a 50   point stop. Totally could have been possible. I  had a 25 point stop. I don't really remember and   it doesn't really matter. Um, all that matters  is I traded according to my bias. Okay. Then,   as it continues farther down, up and down, up and  down. Um, you have outstanding structure here,   which gets wicked but not broken. So, I would  not take a trade here. In terms of that trade,   would that be on a different account? This  one? So, the first trade? Yeah. Okay. Yep. So,   every trade is on a different account. They're  all getting layered in short because I want to   capitalize on the bias. How do you have to put a  system in place for you to manage, you know, to   make sure that you don't accidentally, you know,  put a second trade on the same account? Yep. So, I   use trade of eight. Okay. Because I'm able to open  literally 10 trade of eight tabs. Okay. And I just   start on one prop firm, start sending them all  short, go to the next one, sending more short as   long as the bias is short, obviously. But another  thing you can do is take evaluations. So as these   two funded trades are still running short, you  can take an evaluation trade here. And the reason   for that is it's still a break of structure.  So it's a strong entry. Yeah. But if I felt   I had too much exposure to this trade where I had  like a funded account. Exactly. I'd already seen a   very nice reversion for 100 or so points. I might  think I don't really want to short the bottom on   more funded accounts because I am getting a bias.  I'm getting an edge, but this one is way more of   an edge because I've entered way higher. So, more  points in my favor. So, maybe I'm getting a little   concerned. I have too many funded short right  now. It's a little bit too much exposure. So,   I'm going to send evals in. And evaluations, like  I said earlier, it's going to be 38.25. So pretty   much at least half of my trades would be 38.25.  Interesting. And the other half obviously would   be the funded accounts going as close to fair  price as the risk on the account says. So this   one would be 38 points for evaluation. It loses  but whatever. Then here comes 930. Now this is   a really important one. But does it lose or does  it I guess that one won. It ends up taking profit   and then Yeah, I didn't even notice. I guess  that one won. Mhm. But here comes 9:30 which is   very important. Now, if you mark this out and say  this is my fair price cuz it's 930, unfortunately,   you're going to be wrong. And the reason for this  is because when the market opened, the volume came   in and it's going to move to a fair price, which  is the pre-news price. So, it instantly comes down   and taps the pre-news price. If for some reason it  opened up in like maybe like a continuation of the   news, if the news was so green, like more green  than the the forecast, Yeah. then the open would   be fair. So if it continued up, I'd only revert  to the open instead of the pre-news. But okay,   when trading news, the news price is stronger than  the open, especially when it opens and comes right   back down to it because there's an influx of  volume here and it's able to get towards that   fair price. From here, I would delete this one.  No longer look at the open at all. I'd only look   to trade to the pre-news price. Now, in terms  of the entries, you're not going to get much   unfunded here just because it's really close to  it. Yep. So, the only thing you can really do   is take displacement candle entries towards the  fair price. I don't have any funded accounts that   need 33 points. Mostly it's going to be larger.  Sometimes I do, maybe 25 points, but this looks   like a great example of an evaluation trade. It's  giving 38 points or so in your favor. So, it seems   pretty strong for a 3825 eval trade. After that, I  would continue to revert towards this price here.   There's nothing that has convinced me that fair  price is anywhere else. Mhm. I would need a huge   volume spike in one direction. Like if there's  there's a good amount of consolidation here and   consolidation is usually what I confirm to be a  fair price. So would you say that consolidation   almost might even be the fact that you had your  930 price and then you had your news price and   we sort of just trapped in between 100%. So what  I'm going to do is just I'm going to stick to my   bias. Yeah. As strongly as possible trade towards  my bias of the previous news price down here. But   if it broke structure up, see there's like 1 2 3  4 5 6 7 8 9 10 wicks or whatever. It's just not   breaking back up. If it broke structure up, then  I would adjust there price to right here, which is   the most recent consolidation. But it breaks down  right here. Breaks this structure. Another nice   Eval trade for 38 points back towards the pre-muse  price. There's also a few other entries in here.   This seems like another good one. I believe  I took just these three entries on this day,   but it's only 10:00 a.m. and I've already won a  bunch shorting back to the pre-news price, but   the pre-news price is still fair. So, I'm going  to trade back towards it from the other side. I'm   just trying to get through as many accounts as I  can every single day. Now, this is not an entry.   None of these are displacement candles, okay?  Because none of them are closing above the wick.   Even if it did close above the wick, I wouldn't  take it cuz it would already be back at the price.   Yes, this one is a displacement candle, though.  This one's not because it didn't close above the   wick, but this one clearly closes above all three  of these wicks and the body is much larger. So,   another nice trade. This one's giving 65 points.  So, it could be possibility take it unfunded for   50 points if I have a funded that needs 50,  maybe 75. Um, I tend to go lower if it's like   in the middle of two. Yeah, because as soon as  it gets back towards this fair price right here,   it's essentially random. So, I don't really want  to be exposed to that. So 50 would probably be   a little bit better than a 75 point target in  this example, but nonetheless very good for an   evaluation giving 3825. Do you ever take both  on an evaluation and a funded or do you you   know hard rule one account per trade? I try and  do one account at a time. Sometimes I will copy   trade like in this first trade I would copy trade  that just because it's such a strong setup. It's   the breakout structure which is the stronger  of the two and it's right after news. Yeah.   such it's almost the peak high. Yeah, it just it  stopped going up. It broke structure down. So,   I'm really excited to revert that to the pre-news  price. Another thing an optimization that people   could do here's probably a good example of it  actually is using some sort of an ATR and that   would be for your your stop-loss perspective, but  of course keeping it static. So if I'm doing 25   and 38 with one contract of NQ features, this is  -500 plus 760. Mhm. If I wanted to keep the same   static, which you should do on the Eval, always  do the same static, whatever works best for your   strategy, then you can if if for some reason I was  going to enter here. It's just a nice displacement   candle. So this is kind of an entry that I'd see.  This one's giving me 76 points in my favor. Yeah,   if you double this and double this, now you have  a 50 point stop loss and a 76 point take profit.   But what you should do is you cut your contract in  half. So instead of using one contract, now you're   using five micros. Yeah. And it's going to be the  same. The dollar amounts remain. Exactly. The same   dollar amount is the most important thing to do  on prop firms because it's optimal. Mhm. So this   is a slight little optimization people could do.  Obviously a little discretionary, but the reason   why I like doing trades like this sometimes is I  can take this entry here and then I see there's   structure here. So if it breaks structure here,  I could layer in another trade. Just get in here   off this break of structure. This one's giving 60  points. So I'd probably just go for 38 here. So   now I'm in two evaluation trades short. A little  bit of different entries, but the same bias,   different risk exposure because one stop loss  all the way up here. The other is pretty close.   So interesting. A little bit of optimization can  allow you to get more accounts in. I used to do   that, but now that I have so many accounts, that  little 1% optimization that I can find in a few   different places isn't really worth it. All I want  to do is 3825 and get through as many accounts as   I physically can. So, I get through one here, it  breaks structure again, displaces here, I'd get   another one in there. I'd get as many accounts as  possible in the direction of my bias. And like I   said earlier, the only time where you would try to  do a different one of the actual 76, like when you   should actually do 76 instead of 25 or when I'll  do it is on the opening candle when it's more than   25 points. This opening candle is 43 points. And  I guess we didn't even go over this continuation,   but it is a continuation. The opening candle  was red and we even thought the fair price was   down here. So it's kind of a continuation and  reversion in one, which makes a really strong   trade. Probably one that I'd take on funded.  Usually evaluations are continuations are only   for evaluations, but I'd kind of classify this  as both because the fair price is down here. So,   it's kind of a reversion in itself. Then it seems  to have hit 11:00 a.m. right here. There's no   entries to take on this move up because there's  no displacement candles, but that was the CPI day   last week. Very strong reversion multiple times.  Even went farther down, reverted, went back up,   reverted. So, really nice day there. Now I'll go  to Wednesday for PPI. All right, here is PPI. So   like I said with CPI, you can take continuations  of the news if you're getting in here. I don't   really like to do it. It's sort of an aggressive  tactic to pass evaluations quickly. Um but I sort   of stay away from that mostly. Now all I'm going  to do is try to revert towards the pre-news price   and again stop after three losses. So let's look  through to see what sort of entries there are.   This one is not a displacement because it didn't  close below the wick. Yeah, same with this. Same   with this. But then we get a break of structure.  This one would be my first entry short. Stop loss   seems like it'd be about 25 just because there's  not too many points in your favor. But probably   something like 50 point take profit, 25 stop loss.  After that though, there is no displacement here.   The reason for that is a displacement also has to  displace a candle of the opposite color. Okay? You   can't really displace a red candle because it's  still going down. And unfortunately, nothing   displaces this candle because the bottom's all  the way down here. So, no entry there. Same. No   displacement here. It didn't close below the wick.  Same here. Then we get the first displacement   right there. Yep. That seems like a pretty strong  entry. The stop loss is what it's going to be. I   don't really do less than 25 points. I don't think  ever in the New York session. Actually, I guess I   could say never. Never. Never less than 25 points  in the New York session. And then 104 points in my   favor. seems pretty strong to send for about 100  points if I have a specific account that needs   that. Uh this was a displacement entry which is  fine to take on funded but it is a bit weaker.   So ideally you would wait for this entry here  which is just a break of structure right there.   Structure gets broken pretty much same trade all  the way back down towards the pre-news price with   the market open though didn't really give the best  entries this day. It kind of chopped around wicks   every single direction. No real displacement  to the downside until this candle here. Yeah,   first displacement candle down. Definitely just  going to short back towards the pre-news price.   Um, unfortunately, I lost this one. I was going  for 3825 and then barely stopped me out before   unfortunately going to take profit in one candle.  So, couldn't even re-enter really. Uh, I try not   to enter midcand. I'll wait until the close. It's  just more confirmation. Um, after that though, it   does drop even further down. So, um I will trade  back towards this price here instead of trading   back towards the open just like the previous  day. I'm only trading back towards the pre-news   price because when it opened, it came down to  the pre-news price. On non-news days, the open   is going to be fair most of the time, like 95% of  the time. But just on these news days, which news   reversions are the strongest of the trades, that's  why I'm showing them. Um this pre-news price is   going to be fair. Now, definitely could just buy  all the way back up towards it. So, in terms of   the entries, pretty much same thing as the other.  There's a nice displacement candle. Same thing   with a takerit, I'd probably go for about 75 if  I have an account that needs that. And the stop   loss, honestly, just is what it is based on the  account optimization. Could be 37 and a half,   could be 50, could be 25. Um, I don't really  care what the the price action is doing in terms   of stop loss. I'm just trying to enter as many  positions in my favor as possible. That one loses,   but then you get a nice break of structure. So,  this one is the stronger entry and this is the   one that ended up winning. Um, interesting thing  here, about 76 points. So, you can do those five   micros and do a 50 point stop, which gets it below  that low. Probably more likely to win just because   uh the stop loss is much larger. So, you're able  to realize more of your bias. Mhm. But again,   76 points in your favor. And as this one's going  up, I could layer in more evaluations on its way   up through more displacement or breakup structure.  So, this one would go for 38 or something like   that with a 25 point stop loss. After that though,  uh, it dumps all the way down here for whatever   reason. I bought here off displacement trying to  get it all the way back up to the previous price,   but lost for the first time. Then this is  not displacement because it's not displacing   the red candle. Then entered here off breakup  structure. Eventually lost this one as well. Uh,   and then I was done for the day because it hit  11 a.m. right here. So unfortunately, two losses   to end off the session, but pretty good reversion  here. And then of course, very good reversion of   the news. So again, just getting the bias in. Even  though you're trading mechanically, do you find   yourself just being human at times? Like let's say  this session in particular, had some wins, had a   few uh losses, finished with losses. Do you ever  find yourself frustrated or or feeling heightened   in any way? Or do you are you you at this point  is it become more of a a part of the process and   you just kind continue to move on? Yeah, at this  point it's honestly just part of the process. But   when I first started, it was definitely getting at  me more and more if I was losing. The good thing   about trading this many accounts and taking one  trade at a time, all with a bias, is on average,   you're going to be making money. Basically,  the reason why a bias is so good on prop   firms is because you're utilizing the whole loss  limit. Even if you only risk a fourth or a half,   if you do it across multiple accounts through a  bunch of different entries like here, here, here,   and here, then you're essentially getting exposure  to the entire max loss that they give you. So with   a bias, more often than not, combining up all the  money across all of your accounts, the end of the   day, you're going to be up. Plus, you're only  risking the valuation fees. So your bank account   is really going to be up as soon as you get the  payout. So sort of just looking forward towards   those payouts and understanding losses are 100%  part of the game and nothing you can do to avoid   them. But the numbers lie in your favor as long as  you have an optimal approach. And would you say,   is there a bare minimum that you would think is  best in terms of starting this approach? as you   said like you started with $5,000 you said like  is that optimum or is there a particular number   that you think hey if you don't have this this is  probably not the right approach until you do yeah   um I was definitely thankful to start with 5k I  just made my money playing poker at the casino   so I was very thankful to have a a larger bankroll  that means my ruin was very small um but if you're   taking an approach like this where it is a little  bit high risk high reward that's kind of the only   way to make money on props low risk low reward is  not going to get you anywhere you have to utilize   the prof capital that they're giving you. Um, so  in my opinion, high risk, high reward is the way   to go. But you need to calculate your risk of  ruin and you want it to be below 5%. Ideally,   it's below 5%, but obviously you need a larger  bankroll. Um, but the way you can calculate your   risk of ruin is take your pass rate, maybe it's  like 33% or 30%. Take your payout rate, meaning   your chance of getting a payout on the funded  account. Multiply these two together and then   you'll know, okay, so if I buy an evout, I have a  0.09% 09% chance of getting a payout, which means   if I buy an Eval, I have a 91% chance of getting  nothing. But remember, even with these rates,   it lies in your favor because you're spending $100  and then nine times out of 10, you lose $100. So   you lose 900, but that time you win and you do  get that payout, it's likely going to be about   $2,000 or more, okay? Because you still have  expected value in your account after taking a   payout. So net, you're making a bunch of money,  but per EVA, it's a 91% chance to make nothing.   So basically do 0.91 to the power of 10. If you  have $1,000 in your bank account, that will get   you 10 evaluations. So that would be your chance  of losing everything. Understood? I've got to tell   you something. Hundreds of thousands of traders  have already made the switch to Tradezella. And   the biggest reason, the AI. Tradezella is the  all-in-one platform built to turn you into a   profitable trader. And at the center of it is an  AI co-pilot [music] that does the heavy lifting   for you. It watches every session. It learns  exactly how you trade and your strengths and   your weaknesses, the patterns you keep repeating  without even knowing it. And it tells you in   plain language what's working [music] and what  needs to change. The moment you close a trade,   your AI captures it automatically. Fully synced  to your broker or prop firm. Zero manual entry,   you can replay any trade tick by tick, pip by pip,  to see the full picture. Back test your strategy   on years of real data before you ever put up real  money behind it. Your AI co-pilot ties all of it   together, surfacing insights you'd never find on  your own and guiding every decision you make going   forward. Hundreds of thousands of traders, one AI  powered platform, [music] real lasting results.   Now, if you want that AI co-pilot, and see your  trading excel, the link for Tradezella is in the   description below. Use the code CF20 for 20%  off your yearly subscription or CF10 for 10%   off your monthly subscription. Let's get back to  the episode. What is up, chart fanatics? Coming   to you live with some live market trading after  we finished up that whiteboard session. Excited   to get into it. I am trading on Tuesday, August  25th. So, let's see what we can do today. Here   we have the chart. Haven't had any positions yet  on my funded accounts. There was one continuation   just off the second candle from open, which is  a pretty nice win, but I'm only here to show   you funded accounts, which is the most important  part. So, still waiting on a funded setup. Market   has barely moved. It's just been reverting uh  around fair price split as I'm recording this.   We are getting a nice move up. So, we'll be  looking for funded account shorts back down   towards what I think to be fair. So, definitely  excited for that. The reason why I think this   blue line here is fair is this is the chunk of  consolidation right before the market open. Now,   I know market opened down here. But when it  opened, it went straight up to this consolidation   and then even farther beyond. So, open not  likely to be fair. most likely this consolidation   here. So I am going to be looking for a short  reversion back to this consolidation fair price. All right, in the first position just wanted to  get in a little bit early. Uh we had a nice wick   rejecting longs. Um basically it broke structure  long but it did not continue farther up. Uh,   so we'll just be looking for shorts back down  to the open right now. Bit of an early entry,   but ideally this account would  be winning 3,000. Unfortunately,   it is a little bit too close to the open, so  I have to get in early to get as close to my   $3,000 target as possible. So, it's looking  like 2520 as the profit target on this trade. Of course, would be fine to let it run for 3,000. Actually, I'll just be letting it run for 3,210. Just checked my dashboard and 3210 is the exact  profit target that this account wants to win and   it's got at least 80% of that in its uh pursuit  down towards what I think to be fair. So, that   should be fine. Basically, what I mean is like  if I want to target 100 point win, then I need at   least 80 points in my favor to take that trade. If  I only have like 40 points to fair price, there's   no way I should let a trade run for 100. 80% 75  if I'm getting a little bit greedy is sort of the   mark that I continuously go off of. So we are in  shorts. Just going to hold it all the way down for   3210 because that's what my account needs to win.  All right, I will be entering on a second account   here just because we're getting more confirmation.  Another wick rejecting longs and looks like it's   about to displace this green candle. Uh it's  a little bit 50/50 but strong enough for me to   be taking another position. I guess I guess this  one's bugged, but still just taking shorts. Um,   this account has a different target. Let me check.  This one needs 1500. So, we'll be letting this   one run for 1505. Not sure why this is saying  that here, but I guess you can see the profit   down here. All right. So, just hit profit target  on the $1,500 funded trade. And then let's see   about the 3200 if I can get it. There we go. So,  two funed trades in first reversion of the day.   Perfect setup so far. Now, I'm just going to chill  a little bit. Needed to move away from fair price   so I can take another reversion. Um, but that is  two accounts down and got a few more to do. Also,   the one that won 1500, I will be trading it again.  Uh, 1500 was just the first profit target of that   account uh for today. The reason why is if I go  back to it, you see the trade was pretty much from   here to here. Uh, like I said, I like to have 80%.  Technically, it needs a larger profit target on   the day. Uh, just according to my dashboard, which  is which is optimized for that. It needs a larger   profit target on the day, but I couldn't send it  for like a 100 points all the way short because as   soon as price gets below fair price, its bias is  going to be back towards it. And I don't want to   be trading away from the bias for too long. I'll  let it go for like, like I said, about 80%. Um,   so this blue line here would be 80% if my  full take profit is 100% if that makes sense.   That is the most that I'll be willing to or the  least I'll be get willing to give away. Um so   very nice trades there. Layered in this one here  just because there was a wick that failed to break   uh failed to displace long basically. Um  obviously you can have two short confluences,   you can have actual displacements and you can have  failures to go long. The reason why it's not like   too technical is because it's a bias. Um and with  a bias the entry doesn't matter as much. Anyways,   just gonna wait for another move away and  then I'll be looking for more reversions   on this account number three that I had  just taken the win on. Account number one,   which I took a continuation win on and I forgot to  record. Sorry about that. Uh, account number two,   which we took the big win on. I'm done for  today. And then account number four. So,   four fund is coming in today. We're going to work  on all of them. See if we can get them all up into   a good amount of profit, but definitely need to  wait for a move away. All right, I'm looking for   longs back to the open. We just had a huge wick  rejecting shorts failing to break structure. Now   I just need a green candle to print and that will  be enough for me to get in. It is pretty close.   So not going to have too large of a profit target,  but oh thankfully it's going to drop down farther.   So we'll get another opportunity here once it  moves away a little bit farther. So we have   a larger profit target on our funded, which is  always more fun. But it did technically just break   structure short. So, I think it might be a little  while until we see our long position opportunity. I would not be taking this green candle even  though it is a little bit looking like a   displacement just because it did break structure  short, which is the opposite of what I want to   see if I want to go long. All right, I'll be  taking another position long right now. Huge   wick rejecting shorts as you can probably tell.  Uh anyways, we'll just be trading this one back   up to the open. First one unfortunately lost  because of whatever the hell that is. This one   then is going to go for a little bit more  profit because obviously we just lost some   money. But second attempt, final attempt for  the day most likely because if I lose then it   will be essentially breaking structure short and  then it's just going to drift um likely all the   way back down towards 6 p.m. So I will just be  done. Um but good start to the day. Hopefully   we get a nice end to the day right now with this  trade. All right, just broke structure short and   stopped me out. That is it for today. So, quick  little summary. We had continuation long on open,   which I forgot to record. Uh, this one won  me 1,200. Then first attempt at reversion,   wick rejecting longs, half a displacement candle  was enough for me to get in onfunded. This one was   3,200. Then another wick rejecting longs. I think  I got in on this candle. Something like this for   another trade for 1,500. And then unfortunately  bad way to end it, but that's just how it goes.   Two more attempts at longs. First one off double  displacement. Uh this one also tried to be off   double displacement. Got in a little early. Uh if  I didn't get in here, I would have gotten in here   and then lost anyway. So it's fine. Just trying  to revert to the open, but it is not going to   be reverting today. Um two losses is fine because  it's minus 2Kish. I think the account lost at 2K.   I don't know why it's so low, but minus 2K plus  5.7 or something like that. So net up on the day.   Also good when I lose a funded because I only lost  the evals that it cost me to get there. Uh so kind   of only lost like three or 400 bucks here because  the eval um got like 33% pass rate. So pretty   cheap to take these losses which is why I'm just  so aggressive with them as long as you're getting   amount of points in your favor that you need.  And these ones are all going to be realized in   payouts pretty soon. I just need to get a few more  winning days, but the expected value is there. So,   pretty strong day today. Few wins, few losses,  but I'll take it. So, we'll be on to the next day.   What is up, chart fanatics? This is day two of  live trading. Today, you can see on my accounts, I   have three new funded accounts to trade with Blue  Sky. They're on the buffer phase, so basically   funded accounts. And then over here, FXI, I have  two funded accounts to trade. I've got different   size accounts, 150ks here and some 50ks here. I'm  going to be looking for $1,000 profit on these   three to end the day. And then these two is going  to be $6,000. So obviously very large difference   in that optimal profit target for these different  accounts. So we'll see how we can get through   those. The continuation I'm going to be taking on  blue sky accounts. Got a nice 25 point trade here.   If I use two contracts, it'll make me thousands.  Just going to wait for the close of the candle   just to confirm it does actually break structure  and then uh we'll be in for 25 point take profit. Um I definitely need to wait  for the close of the candle. All right, in continuation shorts. Bit of  a bad fill, but nothing you can really do   about it. Obviously lots of volume at the  market open. Um barely broke structure,   but nonetheless it counts. It broke this and  it broke this. So was going for a 25point   profit target. Uh we'll see how this one plays  out, but feels like a pretty standard trade.   The opening candle wasn't too biased. There  were pretty large wicks on both sides, but   uh opening 1 second was red. Higher time frame  bias. The short opening candle was red. Brookke   structure. Um a little bit weak displacement.  Okay, TP.edge, but I don't care. A little bit   of a weak displacement, but no way. I'm not taking  this, right? Uh, so we'll let this one play out. All right, there's take profits. We'll be entering another one soon as this candle  displaces. I can just use a limit actually. Just   looking for it to go below the previous close  and I'll just take another continuation short.   Um, I usually limit my continuations  to the first five minutes. So, uh, we'll let this one play. Um, there  is no real displacement for it to revert. So,   um, I'm basically short biased until  proven otherwise with displacement   or breakup structure long, in which case  then I would flip and then start going long and uh, just these short account positions.  No, no huge account positions yet. If we get two green candles, it's enough  for me to classify as displacement. So,   I would start looking for longs. It is kind  of hard obviously to displace this one huge   red candle. But, if we get two green ones in  a row, it's a little bit more confirmation,   but of course, still holding shorts. Uh, risking  about a one because if this candle were to turn   green, then it would be above this one,  which is why my stop is above that one.   Uh stop losses don't really matter on prop firms.  It's all the same EV. The profitari is where the   EV is generated or lost. So um that's why I care  a lot more about those specifically. We'll see   what happens with this trade though. It might be  a longer one. Uh the initial volume seems to have   died out a little bit. First trade was great  though just as usual continuation. So if this   one loses then I will be entering on account  number 567 which is my long biased account.   But of course, we'll hold. We'll wait.  See what ends up happening with this one. Seems to have hit its short resistance. Okay.  So, I'm longing now. It is midcand. So, bit of   an aggressive entry as well, but uh clearly shorts  are getting rejected by this huge red candle. Um   so, I'm long biased back up towards the open. Got  a nice two contract trade for about or exactly 25   points. Um because the open is here. Possible fair  price. There's a few. Obviously, the bias is long,   so that's why I'm in longs. Um, for now, I'm just  thinking it's near the open. Possibility it's all   the way up here, but lots of consolidation at this  level throughout the night. Would definitely be   interesting to consider. Uh, it's also where  Asian session opened. I am on PSD right now,   which is why you see the PST times, but yeah, just  going to hold longs for now. back to the open and   we'll see. Could obviously layer in more accounts  here on this candle. We'd wait for a little more   confirmation. Then I'll get in with number 542  as well. All right. This one specifically needs   a larger win obviously because it just lost a,000  on the first trade. All right. So, first account   hit take profits. Second account I'm holding  for 50 points. Um the target was 25. I lost   basically 25 points on the first trade. trades  and now I need 50 points. So I'm just holding   this one up to the consolidation above the open.  Always possible the open is fair. Usually at at   25 after there is sometimes a volume spike which  creates an unfair move. So instead of having the   open price is fair. I'm looking more towards that  uh 24 after candle which is just what it looks   like today. Obviously you can see the 25 after  candle has pretty large volume. Uh anyway it's   just going to hold once it takes here. Once it  takes the 24 candle, I could go break even. Yeah,   it seems fine to go break even now because  if it dumps, since opening candle was red,   there is a slight short bias, at least for me.  Uh, so when it wicks, what could be fair now,   I'm just wanting like less exposure to that  position. So that's fine. Break even. But anyways,   definitely a good trade to hold. Definitely not  not ex like I personally am not going to exit   early. See, it I thought fair price at 24 and  it just wicked it. Um people would definitely   consider having their profit target at fair price.  Um but it is much more valuable to have a specific   profit target based on the prop firm environment.  So not based on what the market is showing you. It   is much better to have those static ones like  I talked about in the previous live video. Um   even though obviously based on what the chart is  showing, it would have been nice to get out there,   but no. much much better much higher EV  to have your profit targets set out for   the prop environment specifically which is why  I'm going to hold this one but definitely break   even is is a good opportunity because again it's  essentially random in my opinion once it wicks   what I think to be fair which as you can see it  did so let's hope the randomization is in our   favor still generating positive EB though because  it is the firm's draw that I'm trading with and   uh profit targets optimal so all right started up  the recording again it's like one point from take   profit didn't want to jinx it But figured might  as well capture it. U so still just in the same   position. Had a nice displacement long. Okay. It  filled one out of the two contracts. Oh man. So we   got a little while maybe longer to wait because  it just filled one out of the two. Anyways,   just going to hold. This is a one to two trade.  One to two R by the way. Um so we'll give it some   more time. All right. There we go. So, Blue Sky  is done for today. These three accounts down here,   well, they're supposed to win a,000, I guess,  that fills, but nonetheless, 1,000 was profit   target on these. Um, they're not eval. They're  like, it's a buffer phase where you got to make   some money on the buffer before going to funded  account. So, it's technically funed account,   expected value. Um, so pretty good of 3K to  start. Now, hopefully we get another nice move   away because I do have these accounts here. Um,  with these accounts here, I'm probably going to   be targeting I'll just target this area here as  fair just because on its way up it consolidated   here for a little bit. Um, it could obviously  be like here, but I'll extend it a little bit   just cuz when I'm looking to short, oh man, it's  going to be a long trade. 100 point trade. I could   obviously size up and get a 50 point trade. Like  I could just double the contracts. So, we'll see   exactly what market gives. Uh might have to be  back to you guys in a while because it's going   to take a while to move away um from from fair for  reversion. All right, I'm in a six contract short   onfunded. Uh the reason why is I have $6,000  profit target and with 50 points that would   be six contracts. So that's the reason for that.  Just trading a one to one here. Um just thinking   reversion is more likely than longs. And I just  had a limit 50 points away from a fair price just   to make it a pretty easy entry. So we'll see  exactly what happens with this one. It is very   aggressive. I will admit. Uh plus or minus $6,000  is quite aggressive, but uh the expected value is   definitely there. So, I'm in shorts quite early.  Just my limit order got tagged. Unfortunately,   the candle didn't actually displace. So, bit of a  weak entry. Could obviously get out, break even,   and wait. Uh but it sort of long sort of gave up  now. Just looking for shorts back to the open. All right, getting a nice displacement short.  So, I will get back to you guys when this trade   finishes. I'm definitely not going to be altering  anything mid trade. I'm just going to be holding   all the way back to the open. No break evens  because I think fair is at the open. So, obviously   not going to really go break even. So, we'll just  let it play out. I'll let you know what happens.   All right, we're back. Been holding for a little  while. Uh, but trade is looking good. But it never   broke structure up. So there was no reason for  me to exit. Had a nice break of structure short.   I considered setting the other account in. But uh  okay. Okay. I considered setting the other account   in but uh it would have been a little bit too  close. I would have need to use like 10 contracts   which is probably a little bit too aggressive. Um  anyways, why is that twice happening now? Oh man.   Anyways, just gonna let it run. I was hoping  I could catch it on camera, but now I got to   commentate a little bit longer. We'll see. Um,  just standard reversion trade. Um, I saw 50 points   in my favor and I knew 50 points, six contracts  at $6,000, which is just the profit target for my   account. Um, if it had gone up 100 points, then I  would use three contracts because three contracts   100 points, $6,000. So, it's all about the profit  target on the account. And then, of course,   you want the profit target to be as close to  fair price as possible. So, you can adjust your   contracts in that regard. But again, profit target  is the most important part of all of this. Now,   actually could be an opportunity to go break even  just because it wicked essentially wicked what I   think to be fair, which is my take profit, but  okay, another one contract filled. Um, I guess   I could go break even, but it's probably not  going to Okay, there. It's not going to matter. All right. So, that is one, two, three of these  smaller ones done and then one larger one done   of 9K. Um, could have layered in another one  here. Probably should have. Uh, 6K is like a   lot though. Like $6,000 plus or minus is kind of  a lot even for me. Uh, so one account at a time is   probably a little bit better to reduce variance.  I'm just going to wait for another move away and   then obviously another reversion. So, I will  be back to you guys when we see another move   away and then another entry on this account here.  Whether it's 50 points for six contracts or 100   points for three just cuz I need to win 6K. All  right, there is news coming out at 7 a.m. PST. So,   10 EST, the dude is speaking. So, probably not  going to be taking any trades at 10:00 a.m.   afterwards or 7 my time obviously afterwards. And  it seems a little bit too close to fair price. So,   probably just done for the session. four for four  on our accounts. 6K 111. So up 9K, four for four.   Uh pretty good result today. Obviously reversions  played out once, twice, continuation played   out once. Uh second continuation lost, but uh  reversion made it back. So I guess four for five,   whatever you want to call it. So anyways, done  for today. Uh here were the trades from the other   days because I recorded the previous session was  on Tuesday and then this one was on Friday. So,   I figured uh I can show you guys what happened  on Wednesday and Thursday as well. Um I was   waiting for a really trendy day. I wanted to  find a trendy day because those are obviously   worse for me version. I wanted to find a trendy  day. Um but anyways, here's Wednesday. Wednesday   I couldn't live for you guys because I was  live trading for my students. But anyways,   uh we have pre-news price here at 8:30 a.m.  EST. That creates an untra move away. And then   on the open, I'm just buying midcand because  the opening 1 second was green. You can see   there's no wick here. Uh so it opened up and you  could just take a very nice funded trade or EBS   whatever you want. Uh back to the open after that  consolidating here at pre-news price. Uh news is   priced in. So just looking for reversions back  to the pre-news price. Maybe you catch something   here. Uh if not definitely catch something in  here. Great displacement here. So just trading   back towards there and then it jumps all the  way back down here. Displacement here. Break   structure here. Whatever you want to enter on.  All seems great. So uh Wednesday was a pretty   good day. just reverting to the pre-news price.  Um, again, it's priced in this move is unfair. So,   just looking for a reversion on open. Could also  definitely get in reversions here. Like, it's   it's fine. Just make sure you're break even when  market opens. Um, consolidation at the previous   price. Just confirming that it would be fair.  Slight reversion here, slight reversion here,   great reversion here. Now, Thursday was uh another  decent day. Lots of reversions on Thursday. Here's   the open. Continuation trade loss. It is what  it is. Uh but then you get a nice break of   structure back to the open here. Nice displacement  reversion here. Nice displacement reversion here.   Um I took one two losses in here and then I took  another trade here which lost. Um here another   one lost and then where was it? Final ones was  one two three four five that won. So ended net   very positive on this day. Um I usually don't  go past 11 a.m. EST unless I haven't finished   trading a majority of my accounts. This was a day  I hadn't done a lot because it was like one, two,   three losses and like you saw earlier in this  trade. Today when I lost, I took another one. Um,   just cuz I like my accounts to either be at profit  target or gone. So, I'll take multiple trades   on them throughout the day. Um, so when I take  one, two, three, three, or four losses in here,   um, then I'm obviously going to take more trades  because my accounts are down, but they're not done   yet. So, um, if you lose, like you need to win  that back plus more. Kind of a weird mentality,   right? But it's what works for me. Uh, I just like  speed on prof. know, caught this entire reversion.   Um, I was hoping today would be a trendy day.  Uh, so I could show you how I trade reversions   in trend, but unfortunately it was not. So,  this whole week tried to give it a a good try   for the live recording. No trends and that dude's  speaking now, so probably going to be done. But,   hope you enjoyed the video. Um, definitely  was happy to talk with Riz about my strategy,   talk with you guys about the strategy. So, show  us some live. Um, most important thing you should   take away from this and a of my content is that  focus more on the proferm rules, uh, like like   you probably saw with my profit targets being  like static versus what the market is showing.   It'd be a little bit more discretionary if it's  based on what the market's showing, targeting the   exact area stop-loss a specific place. A lot more  static for the prop firm specific environment. But   thank you so much for watching and I'll see you in  the next one. So important really, you know, off   the back of this entire episode is knowing your  numbers. Yeah, you know, regardless of whether   you're using this strategy or not, that really  is a a fundamental thing that every trader should   have an understanding of their numbers and and  therefore, you know, when people complain about   psychology or even uh their discipline and so  on. Really having that understanding of numbers,   it doesn't fix things straight away, but it  definitely helps to to really trust your system.   And in this particular case, you have to really  understand your numbers and trust your numbers to   follow a mechanical system in the first place, but  then also to understand, you know, the model that   you're trading these prop firms with. Um, and to  be able to then, you know, bankroll accordingly.   Yep. And know what that looks like, you know,  the reality of that process. Yeah, JJ, it's   been absolute pleasure. You know, I'm sure it's  very eye opening for the people at home as well.   probably the first time that they're getting a  real deep insight into the, you know, full process   and the data behind it all. And I thank you for  breaking it all down and then being so transparent   as well in terms of your journey as well. And uh  well, everyone at home, drop a comment of your   biggest takeaway from this episode. you know,  something very different. But as we said at the   very beginning, a proper money-making machine,  uh, if done correctly, and that's something   we want to really highlight at the end of this  is to, you know, really don't just look at the   numbers that we talked about in terms of payouts  or payout amounts or, you know, in the time that   it's been done. More so understand exactly what JJ  went through, which is the numbers of, you know,   your expected value. uh understanding the numbers  in terms of you know the exact ones we just broke   down right now in terms of your you know win  rate and uh pass rate and so on. Those are the   things that you have to do the work on you know  links for JJ will be in the description below   so make sure you check those out as well. Other  episodes are on screen right now. Make sure you   hit like. Make sure you subscribe and until next  time everyone this has been Cha Fanatics. Take a