Key Points from Trading Strategies Lecture

Introduction

• Focus on improving win rate in trading.
• Old strategy, not new but underutilized.
• Potential increase in win rate from 40% to 60-70% by implementing taught techniques.

Strategy Overview

• Importance of time frame alignment:
  • Daily time frame
  • 1 Hour time frame
  • 5 Minute time frame
• Traditional method involves looking for:
  • External Range Liquidity (ERL) purge on the daily chart.
  • Fair Value Gap targeting after confirmation.

SMT Divergence Confirmation

• SMT Divergence: A powerful technique.
• Confirming SMT involves looking at two correlated pairs (e.g., EUR/USD and GBP/USD).
  • Example: If EUR/USD takes out a high but GBP/USD does not, that's SMT divergence.
• Two methods to use SMT:
  1. Daily Time Frame Method:
     • Look for SMT divergence on the daily chart.
     • Confirm SMT with a 1 Hour market structure shift before price takes out the high.
  2. 1 Hour Time Frame Method:
     • If no SMT on daily, check for 1 Hour market structure shift followed by looking for SMT within that time frame.

Execution of Trades

• After confirming SMT:
  • Enter trade from the presented PD Array on the 1 Hour time frame.
  • Partial profit-taking and targeting specific liquidity levels.
• Importance of confirming market structure shift on lower time frames.

Examples Provided

• Example setups comparing EUR/USD and GBP/USD:
  • Tracking highs and lows across pairs to confirm SMT.
• Example setups comparing NAS 100 and US30:
  • Identifying ERL and confirming divergence before entering trades.

Conclusion

• SMT Divergence is a "cheat code" for increasing win rate.
• Encouragement to apply SMT techniques in various trading models.
• Announcement of upcoming course (Fazz SMC 2.0) available to current Discord members for free.

Additional Notes

• Focus on using SMT for all trading models.
• Reminder: Trading is inherently difficult; seek methods that simplify processes.