Full transcript (2141 words)
In the next few minutes, I'm going to show you the exact trading strategy that made me my first $100,000 and my second 100,000 and my third 100,000. All of my wins that you are seeing over here have came from trading this strategy and also all of my students wins over here have came from trading this strategy. So, stick with me here and I'll show you the exact strategy from start to finish. And then I'm actually going to show you the mistakes that people make with this strategy that actually stop them from using it successfully. And just so you guys know that I'm not some random bullshitter guru that passed a couple of funded accounts and is selling a repackage strategy. I've been trading since COVID. I'm going to show you some of my recent trading dashboards. This is Lucid Trading. Um I'm on Lucid Max status. We can look at take-profit trader. We can look at pages of this. We can look at Topstep. We can look at futures elite which I don't like. We can look at Blue Guardian. We can look at even vest markets. I just started trading with Vest. Not only that, I am live funded by over five prop firms. Okay, this is Blue Guardian. They moved me to live. This is Futures Elite who moved me to live. This is my funded futures who moved me to live. This is Lucid who moved me to live. And this is TakeProfit Trader who moved me to live. A lot of these I can't even go back to simulated funds. But anyways, more on how I'm actually able to do that with prop firms at the very end of this video. For now, let's actually just get into the meat and bones of this and look at the strategy. So, I want to keep my strategy as simple as I possibly can so I can hone in on exactly what matters and also focus my other half of my attention on the prop firm and risk management side of things. So, the way my strategy works is we literally only have one indicator that we use and this is not an EMA, it's not a VWOP, it's not some orderflow stuff. Literally, all it is is just a higher time frame candlestick right next to whatever lower time frame we are on. So, what you want to do is go to indicators. You can look up HTF power 3 or open high low close should be labeled under one of those depending on where you're at Trading View. But anyways, all we want to do here is we want to go to settings and make sure the time frame is on the 4 hour. Okay. Next, what we want to do is we actually want to be on the one minute time frame for executing. So, I'll show you exactly how we use this high time frame candlestick to find lower time frame precise executions. So essentially every single candlestick in the market is going to have a correlated lower time frame genetic makeup. And I know that sounds really complicated but first let me explain the anatomy of a candlestick. So essentially a candlestick as you can see has three parts. We have the candlestick body, we have the top wick and we have the bottom wick. This is open high low close data as the market makers call it. And the entire theory of my trading strategy is based on me being able to predict which wick is going to get put in first and when it's going to get put in. And I'm going to show you exactly how to do that. So generally if we are expecting the next 4hour candlestick to be bullish, we will expect its bottom wick to form first. That's what happens a majority of the time when that candlestick is actually bullish and it closes bullish. So, if we're expecting a bullish candle, we have a bullish bias. All we're going to do is we're going to wait for the bottom wick of a brand new 4hour candle to be put in and then basically we're going to long in the other direction. Now, vice versa. If we're bearish on our bias and expecting a bearish 4hour candlestick, we will first open, then the 4hour candlestick will make its top wick and then once we see the top wicks formed, then we're basically going to short in the opposite direction and we're basically just trading an entire high time frame candlestick, but we're getting our entries on the low time frame, which I'll show you how we actually operate with a low time frame. Now, the correlated lower time frame to a 4hour high time frame candlestick, basically what we're trading is just the one minute. So, we're just executing on the one minute. This is where we spot that lower time frame genetic makeup of this candlestick. So, if you are an ICT trader or a trader in general, more than likely you have heard of the power of three P3 or AMD. What this is, it's accumulation manipulation and distribution. This is how all real orders in the market end up getting filled, right? The market slows down, orders are being gathered, liquidity is being generated. We then see a fake out move and then the market proceeds to make the real move in the market. You can go on any time frame on any chart. You can see the biggest moves are formed with a PO3. So this is actually just the lower time frame genetic makeup of a 4hour candlestick. So basically what I'll do like for example in the New York session is 30 minutes right after the market open a new 4hour candle opens. So right before that 4hour candle opens I'm going to want to see price moving sideways. Now again this doesn't have to be in the New York session. This exact strategy applies to New York AM session New York PM session Asia London every single session every 4 hour candle you can trade like this if you are able to spot this and see a clear trend. Now, when we talk about timing, when is this going to happen? If we don't see accumulation before the 4hour candle opens, then it might take up to around, I'd say on average from 10 to 20 minutes. We'll probably accumulate right at the opening of that 4hour candlestick since we didn't before. But if we see that accumulation before, we can assume that almost right when this new 4hour candlestick is going to open, we're more than likely going to see the bottom wick put in pretty quickly. So, as you can see, when this new 4hour candle opens in this scenario, we start to put in what might look to be a bottom wick relatively quickly. This is the manipulation within our power of three. Now, you might be thinking, "Oh, Jack, well, isn't this just like pattern trading? So, all I have to do is spot accumulation manipulation and wait for the bottom wick of 4 hour candle to be put in. That sounds way too easy." No, you can't just do that. You need two things. You need real narrative on the low time frame and real narrative on the high time frame. High time frame is just bias. You can go back to my other YouTube videos and learn how I do bias. It's based off of like daily candlesticks, how they move like this. But essentially, you have to have some sort of narrative for this manipulation. It has to grab some sort of liquidity. So in this scenario right here is you can very clearly see we sweep a significant low in the market right now. Okay. So we've swept a significant low. What this can also look like this can come in forms of a fair value gap closest to price on the 5m minute or 1 hour depending on where you're looking at. Could even be a 4 hour gap. But anyways it's all just liquidity and gaps. This manipulation has to tap some sort of gap on higher than the one minute time frame majority of the time or it has to sweep some sort of significant low closer to price in the market. So, as you can see, what we do is we sweep the low because if you're just assuming that this right here is the bottom wick of the 4 hour candle because you're like, "Oh, we had accumulation. We had manipulation. Look, price is coming back to the upside." And you decide to long here, you're going to get burned because nothing happened. We didn't sweep this liquidity, which is very clearly right below price, right? So, you have to wait for something to sweep. Okay? And then when you're really good at this, um, you can enter right at the bottom. Okay? But when you're starting out with this and you don't have that discretionary to muscle to know, okay, price is about to reverse, you don't have to predict it. You can just react to the market, which is also what I do on more than half of my setups. Okay, so basically, essentially what I'll do is I'll wait for some sort of confirmation here. Okay, what I like to do typically is I like to see two things. I like to see new buyers after we manipulate and put in the supposed bottom wick get respected. So that means any new fair value gap, any new bullish gap formed right after that manipulation needs to be respected for me. Okay? Or it doesn't necessarily need to. It's situation by situation, but this is a really good way to tell that we're ready to reverse. So right here, we tap into this gap. Okay? Now, I'm waiting for this to get respected. I'm not just entering because we tapped into a gap. I'm going to wait for even one more entry confirmation. This is called a change in the state of delivery. If you don't know what that is, it's an ICT entry confirmation. But anyways, what do we do here? We tap into a bullish gap. We respect it and we see an additional break to the upside. We see a candlestick body closure above what started this leg to the downside. Okay, so that very clearly tells me, okay, this is a bottom wick. I'm ready to long here. Safe stop loss is always going to be at that 4hour low. And then in this scenario, the accumulation range is pretty wide. So, we can basically just take this up here. But on a lot of occasions, accumulation range might be lower. We can take it a lot higher than this. Something that I do is I do optimize my risk-to-reward based on my prop firm accounts. That's a big reason I have over $300,000 in prop firm payouts. But, as you can see, this plays out very cleanly. You can go and back test this model uh tomorrow when you get on the charts. I would look for this and try and spot it on all of the 4hour candles or the specific one that kind of fits your trading the best with wherever you are. If you're at work during the New York session, go and watch the Asia 4hour candle and try and spot this. So, that was really just the entry model side of my trading. There's also a very big portion to my trading that has helped me do this with virtually every single prop firm, get over $350,000 in total prop firm payouts thus far and get moved to live funding over five different times with five different prop firms, which by the way is a top 0.1% top performance statistic inside the trading world. So, strategy is only half the game. But lucky for you guys, I actually made a YouTube video on the second half of the game, which is exactly how I trade with prop firms and how I'm able to be a part of that top 0.1% performers club and get all the payouts that I've gotten. So, go ahead and watch that if you want to learn the other half to this game. If you did enjoy this video, please let me know in the comments if you have any questions or any topics you'd like me to cover on YouTube. I'm more than happy to do so. I'll be posting twice a week now and I'm really trying to give you guys all the sauce I can. So, I'll see you in the next one.