ICT Silver Bullet Trade Setup Summary

Jul 25, 2024

ICT Silver Bullet Trade Setup Notes

Introduction

  • Focus on ICT Silver Bullet trade setup as a time-based algorithmic trading model.
  • Applicable for all asset classes.

Key Concepts

Ticks, Points, and Pips

  • Minimum trade framework:
    • Index futures: 10 points (40 ticks)
    • Forex: 15 pips
  • Amplification:
    • Framework represents expected price movement, not actual trade entry/exit range.
    • Aim for forgiving setups, not requiring perfect precision.

Relationships Between Forex & Index Futures

  • 10 handles in indices is comparable to 20 pips in Forex.
  • 5 handles in indices equates to 10 pips in Forex.
  • Example:
    • 5 handles in E-mini S&P = 10 pips
    • 10 handles = 20 pips for Forex pairs.

ICT Silver Bullet Setup Frameworks

Draws on Liquidity

  • Previous Day High/Low:
    • Bullish: Expect buy stops above previous day's high.
    • Bearish: Look for sell stops below previous day's low.
  • Previous Sessions and Weekly Highs/Lows:
    • Draw on liquidity or retests of old highs/lows.
  • Opening Gaps:
    • Draw from gaps for potential trades.

Types of Setups

  1. Fair Value Gap:
    • Trend following using gaps as points of entry.
  2. Timing:
    • Focus on timeframes when specific setups form.

ICT Silver Bullet Trade Setups

1. London Open (3 AM - 4 AM NY Local Time)

  • Look for a fair value gap to form.
  • Example: Anticipate a price movement aiming for a minimum 10 handles.
  • Trades can extend beyond the one-hour window.

2. AM Session (10 AM - 11 AM NY Local Time)

  • Monitor for bearish setups and significant sell-side liquidity.
  • Ensure enough movement potential; aim for at least 10 handles.

3. PM Session (2 PM - 3 PM NY Local Time)

  • Identify discount fair value gaps before significant price movements.
  • Confirm shifts in market structure supporting price rallies.
  • Trading can yield gains aligning with or exceeding defined handles.

Closing Thoughts

  • Importance of proper market timing and analysis of liquidity draws.
  • Emphasis on monitoring a limited number of markets to master setups.
  • Goal for students: Independence in analysis and trading without relying on external guidance.
  • Consistency of the ICT Silver Bullet setups provides a foundation for building trading skills.