okay folks welcome back this is our price action model number one entry scalping trade plan and idea is to capture 15 to 20 pips per trade and before I get into this I want you to understand already know what some of your complaints are going to be okay so just know that as I mentioned and warned well before we even got to the topic of how these trade plans are going to be delivered The frustration would be is if someone just simply gets their hands on these trade plans. They're really not going to be as beneficial to those individuals that have intimately studied the price action models and also went through the mentorship content. core content and also have seen how I use the concepts on a week-by-week basis on the commentaries so it's built and written with the perspective that the audience which is namely the mentorship students that have paid actively and participated in this mentorship for at least the very minimum of a calendar year and i know some of you have been here since 2017 have been waiting patiently for this um the groups that just made their way to charter member did not have to wait that long so it's we get new people in and content is you delivered those new students won't have that long wait just like the first group had to wait the second group will have to wait until the new content's delivered so it's it's it's a natural process there's no way around it because i have to give the information out over time i can't just drop everything at one time because it's simply impossible for me to do so as a reminder just know that i already anticipate a large influx of questions by email do us both a great deal of service and go back through price action model one okay go back through the lessons and go back into the scalping series that's for free on my youtube channel okay it'll help answer a lot of the gaps that you probably have forgotten because there's been some time Between when it was first introduced and the installments in between because they're a supplementary lesson for price action model one and there's been some time between those okay and Invariably, I know some of you are going to be impatient.
You're going to be lazy And yes, that's probably going to be offensive to some of you, but that's exactly what it is. You have not taken good notes. You have not studied.
You just want to go to the next video like it was going to completely unlock it for you without going into your charts and looking for these setups yourself. I'm going to say this at the end of the video, but I'm saying it to you again now before we get into it. You are going to be encouraged to go back into your charts using this plan, which is basically just an overview. It's just reminding you of the salient points. we use to build a price action model and then the trading plan aspect all the moving parts and the understanding that goes around those things were all collectively gathered by you or should have been collected in experience by watching the videos watching me throughout the calendar year looking at how price is delivered looking at the reoccurring phenomenon it takes place in institutional order flow, how prices move from imbalance to rebalance, or above an old high for buy-side liquidity, or below an old low for sell-side liquidity.
So all those factors come together with this plan. Now, you're not trying to put commitment of traders into this, okay? You're not trying to put all the facets that I've introduced into this plan.
You don't need all those things for a specific model or plan to be efficient. Now, they'll make... them better if you implement all those things and that's what i'm leaving room for each of you to do i'm not spelling out million dollar trading plans 12 of them i'm not giving the dot the dozen okay of million dollar makers okay i'm giving you bread and butter foundational trading plans using very specific trading models that have outlined for you in charter member And there's lots of room to grow with these, lots of things that we can do to enhance them.
You can grow into them, add some things that you've picked up through the mentorship to build it up a more, I guess, more friendly, personal approach to doing it. Because my interest is this. This is where we're going with it.
I want to see what each of you do. couple months from now I don't want you doing it right away and saying okay this is what I've done with price action model one in my trading plan is this I want the community to go into the forum and outline their specific trading plan using each individual price action model okay so again this is just a foundation it's just a guideline it's a it's a skeleton okay and each of you are going to build this skeleton up into a trading plan that's uniquely yours. Okay.
I'm giving you the bare essentials, what's necessary for you to find it to be profitable, but you still have other rules and things that you have to apply and you're going to lose. Okay. If you put money into this with a live account, I'm not promising you that you're going to have a hundred percent strike rate. I'm not promising you that you're going to be profitable. And the reason why I'm telling you that, and I'll say it again, I am not promising you that these will be profitable.
Because each of you are responsible for your own actions. I'm not responsible for you putting in a live trade. I'm not responsible for that.
Your interpretation of price action is not the same as someone sitting next to you if we were in a classroom. You're going to be impulsive. It's human nature.
Okay, so it takes a great deal of responsibility. And again, this is the reason why, and I'll make sure I'm reminding you, this is exactly the reason why. I teach with the medium of a demo account because most human beings, and none of you are an exception to this rule, and neither am I, when you are not versed in something, but you're motivated to get a result that you believe will come from doing something specific or a process, you're going to skip over things in a rush to get to it. Just think about how you get to work. Most of you speed instead of giving yourself more drive time.
Everything is a shortcut with a human being. They don't want to go through the process. You want me to get started with this video. Probably some of you already skipped ahead.
But it's important that the mindset aspect is aligned because you're not going to have the results you're looking for if you hurry through the mentorship. If you went real quick through the core content, if you don't really watch the commentaries I give each week, if you're not focused on the side of the market, I'm putting your attention on every Wednesday and weekend. If you're trying to do your own thing, okay, and you've done that throughout the entire course and process of the mentorship, they aren't going to click for you. So just know that I already know that. Now, what will happen for those individuals that have taken the mentorship serious, they've devoted time and study, and they've not tried to rush to get into live account trading, they haven't been forcing themselves to know everything.
to have allowed the flexibility of development to take its natural process you're going to find simplicity in this and you're going to find out that it's not that hard is it the process itself is not that hard doing it and having the discipline and confidence to execute on it that's what you're going to develop in your demo account using it okay so let's get into it now Alright, so ICT price action model number one. This is a scalping model trade plan and the ideal scenario is to capture 15 to 20 pips per trade. And the overview is this. There's essentially five steps to every trading plan.
Some of these slides will be used in every trade plan and certain portions in the content will obviously be more involved as we go through each model. But the first one was pretty simple. It doesn't have a whole lot of moving parts in it, but each stage of a trading plan, it starts with preparation.
Okay, and it's usually when patience is being applied. And what are you basically waiting for? What are you doing with your time?
That's the first stage. And then the next stage is opportunity discovery. So when you see something that is developing, okay, the opportunity has been discovered because of your experience studying price delivery.
Then once you understand the framework. that you're looking at you are going to trade your plan okay so we go into a trade planning and then the next stage is obviously once you have your opportunity and you've prepared and you planned the trade framework then you want to execute on the trade and then after that once you're in a trade what do you do you know once you get in the trade it's like deer and headlights for some of you i don't know what to do most of you are sending me emails I'm in this trade Michael you know where do I put my stop and when should I take profits that's not Your trade then, it's my trade if I tell you, and I never answer inquiries about that. I always remind them it's not my trade, it's your trade.
So there it is, the five stages for every trading plan. Now you can use this also if you want to just build your own model. You don't have to just stick to this or every trading plan that I've done for the mentorship. The idea is you want to develop and flesh out your individual unique personal trade plan.
with these five step-by-step processes. And you can make them infinitely detailed and build in all kinds of algorithmic principles and relationships that must be met for the trade to go forward. But the least amount of moving parts, the better. Once you have a dozen years or so under your belt, you can probably start getting fanatical about it, like I've done in the past.
It's just because of my personal interest in it. You don't need that to be efficient. All right. For the first stage, it's preparation.
And we want to refer to the economic calendar for the coming week. And we're going to note all medium and high impact events for the markets that you are going to be following. Now, it's not limited to Forex.
Obviously, you can do this with futures. You can do this with the bond market. You can do it with metals, commodities, all those other assets.
But you want to be aware of what. economic impacts are going to be on the horizon in terms of the economic calendar and the wonderful thing is is they give us this information ahead of time Forex Factor as you know we've been using its economic calendar is as good as any and we use filters to reduce the number of events and markets as to narrow your focus on the markets that you are particularly interested in trading it's no advantage by having all these other like I don't look at the yen I don't look at Swissy I don't look at all those other pairs. I look at the ones that's going to be germane to the markets I'm trading relative to the dollar. Okay, and what you're going to be doing is you're going to be determining the IPTA data range for the last 20 trading days, and we do not count Sundays. And what does that look like?
Well, when you look at a chart, obviously the bottom is time, and it's by date and minute, seconds if you have that capability. creating charts and the other axis is price so what we're doing is is we want to know what today is obviously and then from that period we want to look back not counting Sundays the last 20 trading days so whatever that date is we want to go back and determine what that date is and 20 days ago that becomes your specific current dealing range now inside this 20 day look back of the updated range it's important we understand where the highest high in the lowest low is inside that range that's all we're requiring for this model you don't need anything more than this now if price has a fractal that has elements that go beyond the scope of the last 20 days in other words it say it's in a real tight consolidation you have to consider going into a 40-day look back but that changes the model just a little bit in terms of your scope of how far you look back otherwise all the framework resides inside of the 20-day look back now inside this dealing range we look for the next draw on liquidity where is price likely to trade to next is it reaching for a liquidity pool or is it looking to rebalance at a particular PD array this is going to be your bias now this slide right here already starts the whole process for some of you that have been really relaxed in your approach to going through this mentorship. If you've been watching me like it's just Netflix, okay, just binge watching ICT, right now you're already zapping out because you're thinking, but I don't know bias.
I was training you for, well, for the first group, now years. You all know how to do bias. The problem is you don't want to be wrong, okay? The truth of the matter is that's what you're fearful of.
You know the process, but you know also. That you don't have the experience because you haven't been practicing for those individuals that are feeling this right now. You haven't been practicing.
You have not been putting the effort into determining where the next move is going to be on price. And you haven't done the exercises. And now you're feeling that.
And I warned all of you that this is exactly where you would be feeling and what you'd be feeling at this moment if you didn't take it serious. So, this is your cue card. You can fix this.
It's not an emergency. It just means you're going to have to go back through the processes and do the exercises. You don't need to do a whole lot of it. In fact, a couple months of practicing. using institutional order flow and practicing with your your daily chart and Working towards where the markets are trying to reach for and studying price in relationship to how time Affects it and it's daily bias all those things again.
I've taught this in the mentorship Okay, it's in there and you see me using it every single week. Okay when we do the commentaries I outline why I believe the market is going to go to where it goes to okay, and I have a pretty high Accuracy in terms of directional bias not a hundred percent and you're never gonna be a hundred percent either So why are you afraid you were fearful all this time to practice? thinking something magical was going to happen and now here we are the rubber's meeting the road and You're uncertain you feel like you don't know something when it was taught to you because you didn't practice Okay. Now we want to anticipate price Moving to a PDA array that would support our bias on a day and economic event found on the economic calendar with the current or next trading week.
So let's say it's the weekend and we're looking at our charts and we're looking at the economic calendar. We start framing specific scenarios that would lead to our bias coming to fruition and what stages of manipulation or rebalance. could potentially unfold.
So we do specific scenarios. We're not doing plan A, plan B, directional, up or down. We're looking for our bias to unfold, but then we look for scenarios that would lead to that bias unfolding.
This is exactly what you wait for. You're sitting there still waiting for that to come to fruition. And again, what is it? We're looking for our bias to line up with possible dates in the economic calendar for that particular market where An injection of volatility would lead to a specific scenario that we don't always know right away before the market starts trading in the week.
But as time goes on, and usually when Monday puts its trading in, we have a better feel for what it's going to do. Again, it's not 100%, but nothing in trading is. Now, this can either be in the form of a run on liquidity or it could be rebalancing inefficient price delivery.
So again, it's a matter of. Determining the bias. Is it likely to go higher? Okay, great. If it's not, is it likely to go lower?
Wonderful. If you don't have an obvious one-sidedness to the marketplace, then you sit on your hands and you wait. You prepare to wait longer. If it's going to move higher, is it moving higher because it needs to rebalance and go to a fair value gap, or is it likely to run equal highs and run out liquidity?
Either of those two scenarios. is a justification for a bullish bias. What we do at those price points once it gets there is a completely different scenario and it's outside the scope of this model.
Okay identifying the liquidity pools under old daily lows inside the last 20 days look back for the data range when the bias is bearish. We're going to be identifying the liquidity pools above old daily highs inside the last look back of 20 days for the data range when the bias is bullish we identify the discount PD arrays inside the last 20 days if the data range when the bias is bullish and we identify the premium PD arrays inside the last 20 days if the data range when the bias is bearish so what we're doing is we're framing what the market could key off of as we view Support or resistance not in the scope of retail version of it, but we're looking at how if the rebalances or runs to liquidity Okay, now we're gonna be at the trade planning stage of it when the market is primed That means there's an opportunity to see price expand and move and create an opportunity. So it's primed to move Okay, we're waiting for that scenario once it's there whether it's a bull or bears.
It doesn't make a difference. Okay, this comment is generic for either side. We want to look for a convergence of both manipulation in price opposite to our trade bias at a time the economic calendar suggests a volatility injection will likely unfold.
What does that mean? It means that say we're bearish. We think that the market's going to go lower.
We want to see a day where the economic calendar suggests volatility is going to be in market at a specific time of day. for that particular day for a particular market. We wait for that to unfold and then we anticipate a measure of manipulation and rally.
We want to see it get a market protraction to the upside or a Judas swing. When it does that, this will cause retail to chase price and thus provide us excellent liquidity for our own trade, trading in the opposite direction. When we are bearish, we will frame a short entry when price has moved up into a daily premium PD array, then trades lower. OK, so now we have the framework that we've seen price run to a previous PDA in a premium sense. They went to a bearish order block.
It ran out of old high. It went to a bearish breaker. OK, and then starts going lower when the market then retraces off of a discount condition on near term and into a new swing high formation.
Now, I have the asterisk there next to the new. This is the part. that it did not have in the teachings okay you can wait for the actual swing high to form okay and trade after the formation of the swing high or the highest order of order flow is when we see for instance like the market goes up into a fair value gap it fills the fair value gap and we would anticipate naturally it going lower if our bias is bearish we don't need to see that swing high actually form.
We could trade on the very next candle in the New York session, the very next day. And then, as you've been taught in this model, that we waited for the actual swings to form. That's the confirmation approach. The highest order where you understand your institutional order flow, you know what you're looking for.
The idea is you want to be ahead of the curve and you don't need all that extra confirmation. So that's what that little asterisk there is. So we can be trading aggressively if we understand the market has ran out on old high, so it's probably a turtle's suit sell, or it's traded back up into some other premium array, and therefore price should immediately start to reprice lower.
And we don't really have to wait for that swing high to actually complete its third candle. We will short the very next New York session optimal trade entry pattern. When we are bullish, we will frame a long entry when price has moved down into a discount daily chart, discount PDR, then trades higher.
The market will then retrace off of a premium condition and into a new swing low formation. We will buy the next New York session optimal trade entry. So basically what I just said was a reverse of the previous slide. Everything is just completely reversed.
And if you didn't catch it, just rewind it again. See, everything is just completely the opposite. When we are bearish, we will target the sell-side liquidity below an old daily low inside the last 20 days IPTA data range.
The immediate or next logical old daily low will be the initial objective. There will likely be multiple old daily lows inside of the IPTA data range, but we use the one that frames the potential for at least 15 to 20 pips. When we are bullish, we will target the buy side liquidity above any old daily high inside of the 20-day IPTA data range.
The immediate or next logical old daily high will be the initial objective. There will likely be multiple old daily highs inside of the IPTA data range, but we use the one that frames the potential for at least 15 to 20 pips. Okay, for trade executions.
When we are bullish, we will note... the 7 o'clock in the morning east coast of the United States and basically if you set a clock to the local time in New York you'll know what this time is 7 a.m est to 10 a.m time window in a New York session so you're there's your very specific generic New York session kill zone sometimes it can extend to 11 a.m as you've seen in the slide in the teaching but primarily you're going to see 7 o'clock to 10 a.m that's your New York kill zone Why would it be 11 o'clock on some days? If you look at the economic calendar sometimes there's a crude oil inventory number that comes out 1030 or some other news release that comes out that will generally push the New York kill zone to 11 a.m.
We will anticipate a five minute this is important now we're talking about the actual time frame we're looking at what chart are we looking at Michael we will anticipate a five minute chart optimal trade entry to form inside of a retracement lower between the times outlined above. When we are bearish, we will note the 7 o'clock to 10 a.m. New York local time window in the New York session for the kill zone. We will anticipate a five minute chart optimal trade entry to form inside of retracement higher. between the times outlined above.
Short trade management. When we are entering a short, we will place a sell limit order on all positions we will execute on with our demo account. We will use the 62% Fib level minus or lower by 5 pips as our entry price when using the sell limit order. If multiple orders are used, all use the same entry price in the sell limit order.
When we are entering a short, we will place a limit order to take 15 pips as our objective on one position. We will place a second limit order to take 20 pips as our second objective. we will use multiple orders to manage the trade idea if you wish a third position can be used to capture a longer term objective in other words if you want to lead a leader in the market to catch a runner if it happens to be one that's your option you can do that now for money management's sake just realize i didn't include this when we get to that portion of this video whatever your risk percentage that you're willing to take if you're going to be doing multiple orders Then the number of your orders, you divide that by your total risk and you divide that accordingly. In other words, if your risk is 1% and say that equates to $900 of risk total, each one of these trades would only have 300. If there's three positions you're taking on for that one trade and doing what I'm suggesting here, each trade would have a limit of a total exposure of $300 per trade.
You're not doing. your total risk per trade times three because that would be three times your natural risk and you don't want to do that when we're entering a short we will note the 7 a.m eastern time to 10 a.m time window in the new york session highest high we will place our stop loss above this high plus five pips very specific very specific that's what we're doing we will not re-enter if the trade stops out we can monitor it for experience but no re-entry is taken one and done these are scalps we demand everything on the position we do not go back in and try to capture we don't do revenge trading we don't say oh i figured out what i did wrong we don't do it when we are entering along we will place a buy limit order on all positions we will execute on in our demo account we will use the 62 retracement level on the fib plus or added to five pips to that level as our entry price when using the buy limit order if multiple orders are used all use the same entry price on the buy limit order when we are entering a long we will place a limit order to take 15 pips as our objective on one position we will place a second limit order to take 20 pips as our second objective we will use multiple orders to manage the trade idea if you wish a third position can be used to capture a longer term objective as I outlined for the short trade management. When we are entering a long, we will note the 7am Eastern Time to 10am time window in the New York Session's lowest low. We will place a stop loss below this low minus 5 pips or 5 pips below the slowest low in the New York Session. We will not re-enter if the trade stops out.
We can monitor it for experience, but we will not take any re-entries again. one and done stop-loss management all right when we are in profit by 25% of our expected objective stop-loss can be reduced by 25% when we are in profit 50% of our expected objective stop-loss can be reduced by 50% and what am I saying there whatever the amount of risk that you're assuming when you put your trade on you want to figure out what 25% and 50% of that is and when the trade Provides you these specific ratios then and only then are you able to move your stop-loss in this increment? When the position is at 75% of the expected profit objective stop must be at break-even The asterisk is there to say if you have a commission based broker Okay, say they say they have a spread okay and a commission or whatever whatever transaction costs you have You have to include that for your break-even.
Okay, so it needs to cover that cost Money management. Now position size calculation formula. This is something that All of you should already know, but I know there's a lot of you that don't understand it.
So we're actually going to outline it here for this model, and it'll be done basically, this slide will just be repeated with different figures for each model, so just get used to hearing this 11 more times. Position size calculation formula. It's position size equals account equity times R percent divided by stop loss in pips. Now that formula is basically explained in the following. Position size is the amount of leverage your trade or trades assume.
Account equity is the total amount of your trading account at flat. That means you're in no open position. R% is the percent of risk you are willing to take per trade.
And the difference between the entry price and your stop loss is the number of pips you will use to divide the result of equity times R%. So let's look at some examples of what that looks like. An example, if your account balance in equity is at $20,000, U.S. dollars, the risk per trade you're willing to assume is 1.5%, or 20,000 times 1.5% equals $300.
The stop for your trade requires a 20-pip stop loss. In micro lots, which would be in your platform, 1K each, or 10 cents per pip, 20 pips for a trade. 20 pips times 10 cents per pip gives us $2 US dollars. That is your per pip cost. Now, we have a total of $300, which is 1.5% exposure on our $20,000 equity base.
$2 divided into $300 gives us the leverage of having 150 micro lots per trade. or one and a half percent of our equity always round down if you get a remainder moving into many lots the same example here twenty thousand one and a half percent risk again three hundred dollars is our total risk assumption in many lots which is 10k each for your platform so when you see a 10k that's the equivalent of one mini 10k or one dollar per pip and a stop loss again is 20 pips If we have a trade that's set up with the gearing that requires us to have a 20 pip stop loss and using $1 per pip, which is one mini lot, 20 pips times $1 is $20 per pip. So if we divide that into our total allowance for risk per trade, which is $300 again, $300 divided by $20 equals. 15 mini lots per trade or 1.5% of equity always round down. What I'm suggesting here is if you have an equity base of $20,000 and you are willing to assume risk of 1.5%, you can trade 15 mini lots and as long as you have a 20 pip stop loss, that's how many lots you can do, 15, and still be within 1.5% total risk.
And last example here is same thing, $20,000, 1.5% risk exposure. The stop required is 20 pips. In standard lots, which is $100,000 for your leverage on your platform, which equates to $10 per pip, the stop loss required for the trade is 20 pips.
And again, these are all theoretical stops. It could be a stop of 15 pips or it could be a 30-pip stop required. But 20 pips times $10 per pip is $200. Now, we can't lose more than 1.5%.
That's our limit. So we have $300, which is 1.5% of $20,000. You take $300, which is 1.5% of $20,000, by $200.
That gives you 1.5 standard lots. You can't trade a half a standard if you're using an account that does just standards. So 1.5 standard lots, or one lot per trade. We always round down.
So what this shows is many lots. are actually more flexible in the optimal approach to trading if your demo account takes a loss okay now we're talking about managing risk and what we do if we go into drawdown or assume a loss if your demo account takes a loss on a trade and it is the full r percent that you assumed what happens well the first thing you're going to do in your next trade is you drop the percent of risk by 50 percent And when the loss is recovered, by 50% you are permitted to return back to the maximum R% per trade. If the reduced R% trade or the second trade you took after the initial loss is also a loss, the next trade is reduced again by 50% and you hold that until the previous trade loss is recovered by 50%.
If you take a series of five winning trades in a row drop your your R% by 50%. Why? You're on a roll, right?
Keep pushing your edge. No. You are likely to assume a loss eventually, and this will build in equity leveling and reduce the likelihood of a large drawdown. You want a smooth equity curve that slopes or stair steps higher, not a jagged roller coaster with deep declines.
Nothing affects you more psychologically than seeing your equity curve go all over the place and having deep, deep declines. You don't want that. You're not looking for aggressive, steep increases either.
Your development is key here. You just went through a series of training. It's not lottery trading, okay?
I'm not trying to get you flash wind, windfalls, okay? That's not what this was all about. You're learning to build wealth, but you have to do so in a controlled manner.
And you have to have protocols and procedures in place to protect you from harming yourself. These are those things. You have to do them. I already know most of you are saying, I'm not doing that.
Okay. If it's not five winning trades, then let's say eight winning trades or 10 winning trades. The likelihood of you having 10 winning trades in a development stage of a trader and not have a single loss in between is pretty unlikely.
Okay. So that's the reason why I said five. Five is to me what I actually personally use.
I like to have five wins and then I expect a loss. I expect myself to be wrong. I expect that to happen. Does it always happen? No.
Do I have a series of losses? Sometimes. But I'm building in the allowance for being human, just like you should. Doesn't matter how good you are in your analysis. It doesn't matter.
Because when you get yourself into a trade, it changes everything. And that paradigm needs to be compensated. With, again, protocols. And if you follow this, it will keep you from having detrimental drawdown, which completely removes you from the game.
All right, folks. Probably doesn't feel like much, but I just outlined the entire price action model, number one, and put it into a trading plan. Now, there's a lot of words that I gave you all in here, but the overall concept you could still write on the back of a business card because you understand the moving parts. And if you gave that business card to someone else, they wouldn't know what to do with it. Okay.
Much like some of you are looking at this thinking, this is a trading plan. That's exactly what a trading plan is. It's very specific things, very concise. But those things, if you had to sit down and explain them, would take a great deal of effort and time and examples and teachings and lessons and examples and examples and examples. You see?
So where do you go next? You have to start backtesting. Collect a month or two of sample sets with this trade plan.
If you're unclear about some of the process, re-watch the lessons on this price action model. I will provide sample sets, but do not rely on me or wait for mine. Don't do that.
Dig into the charts and study what was provided here. If you do that, it will start to click a little bit more. You want to be collecting information.
The wonderful thing about Forex Factory is you can do a search. on old calendar and still see the events that were there. So nothing in this model is going to be outside the scope of your research.
You can do it. And once you do this and you have your charts set up and you capture what the chart looked like from the daily, dropping down only into a five-minute chart, using what you've understood through the core content, bias, and then applying those very specific things in this price action model and now trade plan, you will have... Just about 90% of what I do on Twitter every single week. Now, I'm going to say that again.
For some of you, you're thinking, oh, this is crap. I was wanting him to give me the this and the that and this. Again, your expectations as a developing student is not in line with reality.
The reality is this. I actually use a lot of what I just gave you here on Twitter. And. Look at the reaction people give like they they're just completely blown away because It's consistency. Why?
It's not because this model is any better than 6 or 7 or 5 or 10 or 12. It just means that they're seeing someone that understands price and has a specific recipe that he or she follows, and namely myself. And I go through the process of doing the same thing over and over and over again. Consistency starts with having a plan.
That plan has to be leaning on a sound. Thesis. The thesis is the price action model. The price action model is not useful.
It's not efficient. It's not profitable unless the understanding of the core content is known and practiced and understood intimately. This is why I said it's a gradual process that you have to submit to time. If you've been lazy and you've just been waiting for these to come like this, I told you it would not be that helpful to you unless you understood the framework, the concepts individually.
And now I'm putting pieces. Not every piece. Not every piece is required. I don't have one model that has every single piece that comes together.
It doesn't work like that. Certain conditions of the market, certain timeframes, certain things that I like to look for are very generic and they don't require other facets of my toolbox. and repertoire.
I don't need to have every piece. But my experience has taught me where certain things excel over others, and therefore, I don't need to reach for that particular tool. If you ever watch the painter, and I mean by that as an artist, not a house painter or something like that, an artist, they usually have several different types of brushes. And they have a specific brush that they go to most, but if they want to go in there with fine detailing, they have a brush for that.
And they have a smaller brush for even more fine detailing. And they have big fan brushes for certain things that they like to create the effect on the canvas with the paint. They don't use every single paintbrush every single time they sit in front of a canvas. And that's the point. Your mentorship experience with me is knowing when I grab what tool and where.
It's not just... it's not just videos it's not pdfs okay it's not just binge watching you have to roll your sleeves up and do this but i promise you i promise you if you do this okay go back break the information down like i just explained you will see it and if you haven't captured it by now by doing it with this trade plan with the benefit of having the price action model now that you can re-watch again and study and you have the access to go back and research certain points of the core content, it will be very quick for you to get yourself right up to speed with everyone else that does know what they're doing with it now. This is the ICT Mentorship Price Action Model Number 1 Algorithmic Theory.
All right, Model Number 1 Algorithmic Theory. Before we get into it, what is an algorithm? An algorithm is a set of instructions designed to perform a specific task and or solve a problem.
Now you can take algorithmic theory and look at it through the lens of everyday life like cooking. the average recipe that's an algorithm, or a list of instructions for teaching your child how to brush their teeth or wash their hands. And it could be taken to an extreme in terms of detail and used for computer programming.
But the idea of algorithmic theory is a step-by-step approach to doing a task, a process, or problem solving. As an example, using everyday life, this is an example of an algorithm used in the form of a flow chart. Now, I'm not going to be breaking the models down into flow charts. That's not going to be happening. But for the sake of simplifying and trying to show you what we're doing by taking some of the...
essential tenants to the core content in his mentorship and creating price action models, they're used to give you a baseline or to inspire you to build upon them or to completely create your own with the core content. This algorithm is assuming that you found an old lamp. Okay, so you're going through some boxes, someone left some things that you inherited or whatever, and you open up the box and you found an old lamp. Okay, so the lamp is not on obviously.
In this example we're assuming that the lamp is not on. So to problem solve this or an algorithm you ask yourself a question. Is the lamp plugged in?
If the answer is yes, then the next thing is, is the bulb burnt? If the bulb's burnt, then you replace the bulb. Then you go to the step turning the lamp. Power switch on.
And then does the lamp come on? Then enjoy the light that it gives you. If you check to see if the lamp is plugged in and it's no, then you plug the lamp in. Then you go to turning the power switch on and does the lamp come on? If it's no, then you replace the lamp.
So there's a process that you can go through that leads to an outcome. Trading is just like that. Okay, you have to have a recipe.
You have to have key ingredients. What ingredients are they? Well, they're going to be your specific PDA arrays that you have grown to trust, that you have an affinity for. And you don't necessarily need everything else that's available to you in this mentorship. As I mentioned many times in the past, I have already taught profitable trading in a simplistic manner with the Optimal Trade Entry on my YouTube channel.
You can take what I've taught you in this mentorship and create very intricate and complex price action models and algorithms. You don't need that level of sophistication to be profitable, but it's available to those that are inclined to do so. Now when considering what was shown to you in price action model number one, I'm going to cover first the price action model number one bullish algorithmic theory.
I'm of the opinion that a model or trade plan should be so simplified that it could be written on the back of a business card. And if you go through this with me step by step, you're going to see that it's very simplistic. It's a rule based idea and it's a step by step process.
It's an if, then, or, and process. And by going through each individual question and answering a condition, it gives you the reason to pause or negate the idea or wait for more information. or go to the next step in the algorithm or model. So for price action model number one bullish algorithmic theory you're looking to determine the previous highs in the past 20 trading days. Do not count Sundays.
If institutional order flow is bullish and price has broken a swing high on the daily And price is not in a premium. If price is in a premium, there is no trade. And today is Monday, Tuesday, or Wednesday. Conditions are ideal.
Or today is Thursday. And price has yet to trade up to a previous high. So notice what I'm giving you here. I'm giving you conditions that must be present.
And if the condition is amplified, it gives you the details that must be met. Then look for a bullish optimal trade entry in the 7am to 10am local New York time window on a 5 minute chart. If today is Friday, no trade.
If the 5 minute chart forms a bullish optimal trade entry between 7am and 10am New York local time, then buy long at the 62% Fib level plus 5 pips. If long trade is entered, use 5-minute Fib OTE anchor low less 5 pips for initial stop loss order placement. So what am I saying there?
If we're taking the long, The load that you're drawing your Fibonacci foam for the optimal trade entry, that is your anchor low. So your stop will be five pips below that. If stopped out, no re-entry today. If trade rallies to optimal trade entry anchor high, take first partial off at that price level. So where we draw the Fibonacci from the low up to the swing high, that swing high is your anchor high.
So if it trades up to that, that's where your first partial is taken. Then raise protective stop loss up to lock in 5 to 10 pips of profit. Notice you're not moving your stop loss until your first partial is taken. Where's the first partial taken?
The optimal trade entry anchor high. If trade rallies the previous high or Fibonacci extension number 2, take second partial off at that price level. If trade rallies the previous high or symmetrical swing extension, close balance of trade at this price level.
Symmetrical swing extension is simply the same range that's used for the optimal trade entry range. If it doubles that, it's a measured move. You want to be completely closing your trade there. It can obviously go more than that, but as I taught in the model, it's better just to get out entirely there. If time of day is after 10 a.m., there is no trade.
That's it. That's all there is for price action model number one. Now, looking at it like this with a step-by-step approach, looking at it like a recipe, you do this, you do that, you don't do this if this condition's there. or if it hasn't met that condition, and it gives you a step-by-step process. That's algorithmic theory.
It's taking the ideas and the points of which make a condition. up in the model and puts it in a trading plan format so it's a step-by-step process in the order of importance and when it would be considered this is what it looks like this is a trading model fleshed out in a concise very detailed manner now we're gonna look at the price action model number one for a bearish algorithmic theory As you might have already guessed, it's just everything reversed. Price action model number one, bearish algorithmic theory.
You're going to be determining the previous lows in the past 20 trading days. We do not count Sundays. If institutional order flow is bearish and price has broken a swing low on the daily and price is not in a discount. If price is in a discount, there is no trade. And today is Monday, Tuesday, or Wednesday.
Conditions are ideal. Or, today is Thursday, and price has yet to trade down to a previous low. Then look for a bearish optimal trade entry in the 7am to 10am window on a 5 minute chart. If today is Friday, there is no trade. If 5 minute chart forms a bearish optimal trade entry between 7am and 10am, Then sell short at the 62% Fib level minus 5 pips.
If short trade is entered, use 5-minute Fib optimal trade entry anchor high plus 5 pips for the initial stop loss order placement. If stopped out, no re-entry today. If trade declines to optimal trade entry anchor low, take first partial off at that price level.
Then lower protective stop loss down to lock in 5 to 10 pips profit. If trade declines to previous low or fib extension number two, take second partial off at that price level. If trade declines the previous low or symmetrical swing extension, close balance of trade at this price level.
If time of day is after 10 a.m., there is no trade. That's it. That's model number one fleshed out in a price action model from trading plan theory to algorithmic theory.
That's a complete treatment of a trade idea or a specific way of looking at price and engaging with price and then turning it into a step-by-step price action model trading plan. And with the algorithmic theory here, when you do what, when don't you do other things, what conditions must be met for you to consider a trade? When is the trade taken?
When is the trade not to be taken? This is a completely fleshed out price action model. It doesn't. Look all that impressive like this But once you've gone through the core content and you understand the things that you were learning then you learned the price action model Presentation then trading plan now you have the algorithmic theory. Everything is complete now for price action model number one So anyone that is familiar with the core content the charter member?
price action model number one can look at this and see this is exactly what one would do to find consistency trading this model and you can obviously see where it focuses its time and price and its day of week heavy it's basically primarily looking at Monday, Tuesday, and Wednesday setups just in the New York open kill zone. But it allows and makes concession for Thursday if it has yet to trade up to a previous high when it's bullish or trade down to a previous low when it's bearish. But ideally, you want to be taking the trades on Monday, Tuesday, and Wednesday.
Friday, we don't take a trade. You have a complete... price action model now there's absolutely no reason why anyone that's a charter member now cannot go in and find consistency and setups using at least this price action model i taught a very simple one in the beginning this is one that i felt that should have been understood just by my youtube channel and the content that i taught from 2010 on like the optimal trade entry pattern recognition series all of that all the what i name now the market maker primer course which used to be for xmas series all of those videos brought together someone that studied very diligently would have came up with a model very close to this But now, because you're here and you're being mentored, you have it now in your hot little hands. So there's no excuse now. You have every reason to get out there in the coming weeks and months and years to be able to find setups that meet this criteria.
And I can tell you that this is a very easy, very simple, but very consistent model.