How to Trade Powell's 10AM Strategy + Back-testing

Yo, what's going on guys? Today, I'm going to be showing you guys how I trade Powell's 10:00 a.m. Cuban strategy, how it works, and when to spot it, basically. So guys, put it simply, Powell's 10:00 a.m. strategy works by however the 10:00 a.m. candle opens, you're basically going to be looking for the opposite, right? So, over here, let's say the 10:00 a.m. candle opens, actually no, let's try that. Let's say the 10:00 a.m. candle opens Uh guys, I'm not Wow. Okay. Uh let's say the 10:00 a.m. candle opens uh bullish, what you would be looking for is um for example, let's say a manipulation to the upside, [music] we take out this um this is a big fair value gap on the 1-hour, by the way. Um we take that out, >> [music] >> and price would proceed to go all the way down. We have This is the candle it opened bullish, so that means we're going to be looking for sells. >> [music] >> So, we'd have the open right over there, right? It'd go down, >> [music] >> and what I usually look for is two candles closing below the 10:00 a.m. open that align with my bias, right? >> [snorts] >> So, because I'm going to be looking for sells, I'm going to wait for two candles [music] to close that are both bearish, and once they do, that's when I'd place my limit at 10:00 a.m. have a 10- or a 20-point stop loss, usually it's 20 points. [music] It really just depends on what I'm targeting, right? If I'm going for like 50 points, 60 points, then I can have a 10-point stop loss. But if I'm going for a 100-point, 110-point, 120-point, that's when I have a 20-point stop loss, and I target 100 points to get a lovely 1:5. So, what I'd look for after this would be retracement back into 10:00 a.m. and movement all the way down, right? And that's exactly what we have over here. So, [music] let me just get rid of this. Um Yeah okay. Right, so over here, this is the first example that we have. This is um cherry-picked, and the reason why this is cherry picked is because obviously I just want people to learn with the best examples. Obviously, you're not always going to have the perfect example when trading um 10:00 a.m. But for the sake of learning and for the sake of education, this is a cherry picked perfect example in [music] my eyes. >> [snorts] >> Right, so as you guys can see, we have this pretty huge high, right? Over here that is also aligning with a 1-hour fair value gap that we have right over here, right? So, that's the draw liquidity that I want 10:00 a.m. to go and take. So, here we go. Okay. So, let's see how 10:00 a.m. opens, right? Boom, 10:00 a.m. opens bullish. That means we're looking for bearish. We're looking for sales, right? So, I'd wait for it to go in, tap into here, take out that high, and also enter this fair value gap, and rally all the way downwards right? Some people put their entries at the at the area where they think price is going to go take and then rally down. But, the reason why I don't do this is because sometimes price has some other draws of liquidity that it might want to target. For example, this high right here um or that high or that high, right? So, it's just better I just wait for it to go down to 10:00 a.m. But, yeah, let's just see what happens. So, I'll just move this here just for as an example. So, boom. As you guys can see, this Wow. Well, if you entered off If you had your entry right over here at that high being taken and this fair value gap being tapped into, this would have been a lovely trade for you, right? So, I'm just going to put that here. I'm obviously going to expand on it a bit um a bit, but just not now, right? So, as you guys can see, we went, we took out the previous high, we tapped into this huge fair value gap, and now we're rallying downwards. That was the um that was the manipulation, and now we're looking This is the distribution right? >> [snorts] >> So, boom. Um yeah, as you can see, this trade would have been really nice, actually. Now, first thing, you guys can see first candle closure below 10:00 a.m. Some people would enter off of this and be like, "Okay, nice. That's shorts." 20 point stop loss, you're stopped out. Right? That's not a good trade. We also have this fair value gap right over here, but that's 1-minute fair value gap, right? So, we can just brush that off. The reason why this isn't a good entry is because I didn't have two candles close below 10:00 a.m. that co-aligned with my bias right? So, I wouldn't have entered this. As you guys can see, retest, but it still didn't close below. And yeah, perfect. Okay. Okay, no, still the same thing. We have this huge fair value gap. Price is probably going to push back into here, and then we might see a reaction right? So, let's see. Yep, we entered that fair value gap. That was a close below. Okay, perfect. Another close below. So, we've had two candles close below 10:00 a.m. This is where I would place my limit, right? 20 point SL and because the we have a 20 point SL and there's no other big draws of liquidity that I see that are around here, we can target this place, right? That's 118 points, right? [music] And the reason why I'm targeting this place is because we have that huge fair value gap, even though it's been tapped into, right? Huge fair value gap. So, there's actually a really high chance it rallies further downwards because this fair um this fair value gap has already been tapped into. But anyway, let's just see what happens, right? Okay, boom. We get tapped into the trade. And let's see. Let's see. Okay nice. Take profit um gets hit. As you guys can see, it taps into this fair value gap, and we have quite a bit of chop, right? But yeah, perfect. If you wanted to target this previous low, that would have been a 200 point trade. You would have hit that, right? If you are the person that entered off this right here, right? And you wanted to target let's say that, >> [music] >> right? We wanted to target that because that that would have probably been better. That would have been a 300-point trade. That would have been a 1:15 with a 20-point stop loss. And with a 10-point stop loss, which would have been valid as well, you'd have had a 1:31 RR trade. Obviously, I wouldn't have entered off this because I mean, it is a high time frame. Actually, no, this would have been a good entry. It's a high entry draw of liquidity, aka being a 1-hour fair value gap. And you also [music] have this 1-minute um Sorry, you also have these highs, the previous highs, >> [music] >> right over here that were aligning with this um fair value gap. So, this would have actually been a perfect entry, and you'd have had an insane trade that would have passed you almost any account size in one trade, right? This trade would have been absolutely insane. But yeah, I mean, if you were targeting off the short that we entered from, if you were targeting, let's say um this low, would it have hit? Let's see. Obviously, I wouldn't recommend this. I would never recommend somebody to target something this far down, right? Actually, this looks like a rejection block. I could actually just put it like right over there. That's 270 points. Would you have hit TP? No, you would not. Yeah, that would have been That would have been a painful reversal. Yeah, but anyway, as you guys can see, the trade was absolutely fantastic. It went hit our take profit, which was right at that Sorry, which was right at the top of this fair value gap right over here. And that would have been 120 points in or a 1:6 RR trade. If you took this trade on a 100K account, risking about 500 Oh, no, risking about $600, which is 0.6%. Actually, no, it'd be about With a 20-point stop loss, you'd be risking about 0.7. It'd be about $700. Um this would have been a $5,000 trade on a $100,000 account, right? Which is absolutely amazing. But yeah, guys, that's uh that's pretty That's like a perfect example of Powell's 10:00 a.m. working out. We went hit the high time frame, dropped liquidity, rallied all the way downwards, waiting for a retest into the 10:00 a.m., and boom, right? That's exactly what we had, >> [music] >> and we had our full TP. Now, let's move on to the next example. Hi guys. So, here is the next example. As you can see, we have the 10:00 10:00 a.m. opened right over here. And as you guys know, I'm using this indicator, 10:00 a.m. open with rejection blocks America/New York. It's amazing. It marks it out for you, the rejection blocks, everything, and how many points it even has, right? So, over here, market it Well, it opened bearish, right? So, that means we're looking for longs. So, what I would hope would be it go down, either tap into this rejection block, or take out the previous day's low, and then we rally upwards, have a retest into 10:00 [music] a.m., and then rally further upwards. So, actually, let me go into the higher time frames over here. >> [music] >> Yeah, there's nothing really that's like enticing right? That Yeah, there's nothing nothing really worrying. [music] Yeah, yeah, yeah. Okay. So, yeah, that's what I would be looking out for. So, let's just see what happens. Okay. Okay. Perfect. Perfect. We took out that low. We rallied upwards. We're already seeing huge upward movement. Okay. Well, two candles closed above. That's That's pretty good, right? But we We're not really getting an entry off 10:00 a.m. Doesn't look like we're getting an Yeah, it doesn't look like we're going to get one. Yeah. Yeah. Yeah. We don't get an entry for 10:00 a.m. today. Yeah. Um this would have just been sad, right? Because you had this amazing and this is why sometimes people enter off of the area where you think price is going to go, take out, and then rally towards your actual bias um from. Because sometimes this happens. You just don't get an entry on 10:00 a.m., right? It just doesn't retest. So, over here, if you [music] did like in the previous trade, if you went to I mean, if you waited for it to take out this low right here and had Well, actually, no, it wouldn't have mattered. >> [music] >> Unless you had a 50-point or 40-point stop loss, you'd have gotten stopped out, right? And this is just one of those times where it's like it's unfortunate, you know? You can There's nothing that you can really do to avoid this, right? This is just how trading gets sometimes. You had amazing manipulation. The distribution was great, but just we just didn't have that trace back into the 10:00 a.m., right? Which is unfortunate, but like I said, that's just how trading is sometimes. Most people would have missed out on this, and it's you can't do anything about it, right? But yeah. Let's move on to the next example. Okay, so this is insane. This is um this is the next day, day right after that right? After a day where you have Wow okay. After a day where you have Let me get the um the sessions, right? So, these are the sessions. As you can see during from the start of How much How many points did we go up? Okay, during Tokyo session, we went up about 300 points. During London session, it was pretty stagnant. I mean, 130 points during the entirety [music] of London. But, as soon as early New York opened, we dropped like This is insane. This is We dropped almost a thousand points, right? I wouldn't say this is a good day to trade cuz that is That is an insane drop. But anyway, um let's see what happens with 10:00 a.m. here, right? I imagine it might take out this low and then rally upwards or because of this insane sell-off, yeah, maybe that. Let's Let's just see. Let's just see what happens. Okay, 10:00 a.m. opens bullish. That means we're looking for sells as per Powell's 10:00 a.m., right? One, let me go up to the higher time [music] frames see what a good Okay, this is just Yeah it's That's just insane, right? There's nothing that you can really enter off of from there. Maybe you wait for this high to get taken out and then it rallies downwards, but I don't think I would have traded [music] today. Let's see. Okay. Nice. Well, the high got taken, but I don't think we're going to get an entry. Yeah. Yeah, we don't get an entry for this day. It's Just wait, yeah. Um I stop trading after midday, right? That's After 12:00 I stop trading for I stop looking for entries on Powell's 10:00 a.m. But as you guys can see, another example of just it being unfortunate, right? You guys can see this It just wouldn't have been a good day to trade. You had over 900 You had a 900 what? A 1,000 point drop and just looking for a trade after something like that would be a bit silly, right? So, I personally would just recommend not trading this day, right? If you have days where price action before that on the sessions before that was absolutely abysmal, like north of 400, 500 points, right? I'd say be a bit skeptical about taking a trade that day. But anyway, yeah, that would have just It's unfortunate, right? You wouldn't have caught this trade. But, looking at the bright side, you are up a 1:5. You're up five RR's because we hit that 100 point um that 120 point RR trade earlier, and we haven't had any other losses, right? We've just had that win, and with the other two days we haven't had an entry at all. So, let's go on to Friday and see how that looks. I'm too Okay, Friday. Now, uh Just look at the previous sessions, see what happened during them. I actually forgot to mention this earlier. Um keep an eye out for the sessions, right? Always look at what the sessions before you did, um how much they moved, you know, how many points they moved. See this? Um Asia session moving 600 points is that's a bit crazy, right? That's that's quite a lot. So, this is for example another day when you can be a bit skeptical when taking your trades because that's that's a bit insane, right? But anyway, let's just see what happens. I'm pretty sure we were bearish on all time frames. Let's just check really quick. Um I use this indicator. It is paid um SMRT algo. SMRT algo, it's the only algo that I well, really look at. The main reason why I use it is because of this, right? So, yeah, as you can see, the 4-hour and 1-hour are both insanely bearish. 8-hour's bullish, but daily is bearish. [music] So, we're looking for sells. Which makes sense because market dropped over 600 points during Asia session, right? So, let's see. We had this this Yeah, this previous [music] high was just taken. Let's see what happens. And if we draw from that high, let's see. Yeah, that's the 0.706 OTE level was just hit. We Yeah, this will probably be Let's see. Yeah, it opens up bearish I mean bullish, that means we're looking for sales. That's pretty good because we were already looking for sales, right? This is a high. It went took that instantly. We have this huge fair value gap. And yeah, let's see. Let's see what it does. All right. Okay. So, we took out the highest previous high, right? See [snorts] what happens. Do we get a retrace? Oh, yeah. Okay. Okay. Yeah, so we closed below 10:00 a.m. but like I said, we didn't have two candles that closed below. Yeah. Yeah, this would have just been like I said another another pretty painful trade, right? Um another painful loss as well because I mean this this looked like it should have been a perfect trade, right? But at the end of the day, it's perfectly fine. It's okay. Like I said, that's just how trading is especially when you're trading 10:00 a.m. to the book. If you were trading the rejection blocks, you would have had this right here. Waited for an entry. Waited for longs. Maybe yeah, over here. 20-point stop loss. Oh, you'd have gotten stopped out. Yeah, you'd have gotten stopped out. Which would have been devastating, right? But anyway. >> [snorts] >> Yeah guys, that's that's just how it is sometimes, right? You don't get entries. Um sometimes you do. Sometimes the entries get, you know, completely destroyed, right? And you go and you have a loss, right? But it's okay. At least for this week, you would have had a lovely 1:6 RR trade that would have passed you your accounts or any funded account that you'd have had. But um yeah, it's a bit it's a bit devastating, but that's just how it is with trading sometimes right? Obviously, 10:00 a.m. isn't the only thing that I trade. It's just one of the confluences that I usually use. I mainly trade with OTE, and I will be having an OTE backtesting video coming out sometime this week. But, uh yeah, guys. This uh this video was requested by quite a few people quite a few times. So, I decided to just bring it out and um kind of explain how Powell's 10:00 a.m. kill zone strategy works with a bit of [music] backtesting, right? I also just wanted to show you guys the lack of trades or the losses that you'd have taken if you tried to take if you tried to trade on, for example, Friday and Thursday and Wednesday as I showed before, that you're not always going to get a perfect setup, right? And you're not always going to get a setup at all, right? And like I said, that's just the reality of trading. Nothing's ever going to be perfect regardless of whoever you are. You can be the biggest hedge fund in the world, and you're not going to be able to get perfect trades, right? But, um yeah, guys. Thank you so much for watching. Be sure to like and subscribe. Comment down below what you guys want to see more of. There will be an OTE backtesting video coming out soon. >> [snorts] >> And um yeah, most of the trades that you guys see me post are mainly taken off OTE as you can see in the titles. Like I said before, Powell's 10:00 a.m. is just one of the confluences or strategies that I usually keep in mind when I am actually executing my trades. But, uh yeah. Thank you so much for watching, guys. Take care. Stay safe. Have a lovely week ahead, and happy trading. Take care, guys.