Transcript for:
Asia Model vs Midnight Snap Trading Strategies

all right so yeah um the Asia model has a ver uh is very similar to the midnight snap the only differences uh that we're going to be seeing here is we're driving from the initial balance range in Asia so you literally have we have to wait for this range to form and wait for a breakout um and that's going to be opposed with the confirmation candle once after this happens it's very similar to midnight snap all we're doing is looking for retracement trades back to uh our opposite side of the range um the the basic thing that I want you guys to do for right now um Austin's going to be sharing um a Google sheet um but essentially I just want you to see how how powerful this this retracement is going back to the opposite side of the range I mean you can pretty much see it here just happening over and over again right some days it doesn't fully complete but we'll get into that later on what you what we what we do around those sit situations um but yeah what's nice about this uh unlike we're unlike we're you know following 25 points 35 points or whatever this is going to be a variance um so there's going to be sometimes where you catch moves that are like plus 70 points like this move right here you you would have you would have caught over 95 points um utilizing this modeling um but yeah like I said we'll get into that later but right now the only data that I want you guys to collect is you have to wait for the range to form so it starts at 1930 and it's going to be completed by 2030 after 20:30 you're just waiting a breakout for any side of the any side of the range and it has to be confirmed by a confirmation candle closure um I know most of you guys don't have uh access to a script but I I'll create you guys a basic script like this that will um I have I have a basic one that I'll show you like the confirmation candle and everything so it'll make back testing and stuff easier um all the information that I want you to get for right now is just the success rate of actually pulling back to the opposite side of the range um and then getting your price range tool and going from the confirmation candle uh collecting the collecting the data to that uh Max that Max extension or your uh your your distribution going out from the confirmation candle not from the range or anywhere else specifically from the confirmation candle that's where all of our measurements are going to uh be from and this is where we're going to deter determine our distributions um the other piece of data that I want you to collect is the range sizes so all you're going to do is take the extremity uh from the 1930 to 2030 so just the just the wick on opposing sides of that range um like this one for instance is 70 points that is the that is the data that you would you would collect and you would jot down and put it in the spreadsheet uh the purpose of this assignment uh is pretty much for you to get familiar with the model before we start talking about entry methods and risk profiling around the model I just want you to see the basics of it um and how similar it is to the midnight snap so we're you're we're literally not changing anything up you're going to be doing it the same way minus the entry Aid right so once you collect all this data uh we are going to show you how to kind of like utilize it uh and kind of how to Envision it um so you can kind of create your DCA process off of it um you can technically um utilize um the uh the entry a too as well I mean if you want to I mean of course you would have to uh back test that out um but simply I just go strictly off of uh off of a distribution table um and I'll kind of show you that like I said later on hey Quantum real quick I dropped the Google sheet in the pack chat if you want to like show show that with requested access there there we go it should be fixed now okay all right here we go all right I think I can probably pull this up side by side can you guys see that good or is it too small okay perfect so yeah date day um that's pretty explanatory um on the trigger the trigger is basically you know if we're going to be uh long or we're going to be short so long position short positions obviously if we confirm to the up upside we're going to be looking for shorts we confirm to the downside we're going to be looking for Longs um the objective achieved that's just going to be like a yes or no statement saying that you know we mean reverted back to the opposite side of the range the max distribution uh was that measurement that I was talking to you guys about earlier so basically you're just going from that confirmation candle closure and capturing your your max Mae or your max Distribution off of that confirmation candle um this is essentially almost like almost like your draw down tracker if you can kind of put it in those terms right so Mae is pretty much Essential to um like your like your draw down uh that's why I use those terms Mae and MF um the distribution Zone we don't have to get anything for the distribution zone for right now you can just leave that Blake the range size yeah we're just we're just capturing the size the sizes of the range from 1930 to 2030 um so if you don't have any access to the scripts right so basically you're just you can do it like this so just get your box and where's our 1930 so taking 1930 to 2030 so taking your high and your low from 1930 to 2030 drawing a range out and you're waiting for a confirmation candle closure which actually happens right there so just to make sure did I get the range wrong oh yeah I did I went a little five minutes over my bad so yeah it's actually going to be on this candle so obviously we'll be in shorts from the close you'll be measuring the extremity which is going to be right here until we actually meain revert to the other side um also too that data that we're going to collect is in percentages the only thing that's going to be in points is the range size and that's to pretty much kind of like give you the vision of how many points like you can actually collect off of the system right you what's nice about this is your range size is going to vary uh especially after all the t+1 rollovers the ranges have been pretty aggressive so they've been like 50 60 even going into like 90 points um which is which is pretty wild um so yeah you'll you'll see a lot you'll see a lot of nice uh moves out of this model but other than that I don't want to make anything too complicated uh leave everything pretty simple then if you guys have any questions about it or um any concerns yeah ju just one question Wix are are you looking at this is the 15 minute time frame so we're doing this on the 15 minute or or on a different time frame yes so so for this exercise um we're going to do the 15minute and we're also going to do the five minute so we're going to do both we're going to do both time frames and you're and and you're going to do kind of like a like a comparison what you what you see different between the the two time frames so I can pretty much tell you that both both time frames are uh are pretty accurate um the only difference that you're going to see really is your confirmation candle um obviously like if you drop down to the five minute your confirmation candle might be lower compared to a 50-minute candle so that's why we swapped over to a uh I was doing some testing on the 50-minute uh because you'll get some you'll get a a nicer entry off of that 15 candle uh 15 minute candle for the most part um Mickey and I were doing a big study around that all right bro thanks a lot I'll have that I'll have that by tomorrow you don't have to you don't have to do it by tomorrow but you know y'all guys can work in groups or whatever you get in a back test session and knock it all out together uh to be honest I mean uh when Makey and I were gathering data for the 15 minute it's nice to have somebody viewing the chart and somebody collecting the data like it just goes it just goes way way fast um it's a real quick process to be honest um everything that I've been working I've been working for the from the five minute from like the past year uh I've been doing a lot of refinement though uh this past couple weeks uh around the model so I wanted to get my I wanted I was removing a lot of the discretion out of the out of the model cuz I I do have uh some discretionary bits and pieces of it just because of uh my studies around the initial balance um however this systematic approach um that we're doing it's very very in line with uh with the midnight snap and I want to I want to keep everybody like on that same um kind of like that same level I don't want you to deviate from what you guys are already learning here so that's why I'm I made it more of a systematic approach um I know Jonathan has been doing some extensive testing on this so he can pretty much even you know kind of say like it's there's a lot of similarities to the midnight snap you're not doing anything different also also just real quick in the Google sheet guys what you're GNA see is I added a few like I added mqz 2023 and I had like all the 2023 and 2022 202 one contracts but obviously as you guys fill that up just feel free to copy the example Tab and paste and then whatever contract it is put it in the name down there in the bottom don't you don't have to request a copy or anything like that just I'm going to give you guys edit access after this workshop and you guys can enter it directly in there so we can all see it together but yeah uh alpha bravo I just saw your question Yeah so basically basically is just uh it's not a wick confirmation so you see here you have a wick confirmation this is this is not your uh true confirmation of the breakout your true confirmation of the breakout is going to be on the candle closure so that's why like this one for instance is sign uh signified with the with the downwards Arrow so this is going to be your breakout candle so it has to the body closure has to be beyond the range I just made it uh edit access as well so you guys should be able to just just uh go into e whichever tab you want and I can make like a little so I can put uh [Music] Discord username and then in the Discord username box in every Tab and I'll copy and paste this into all of them just put who did this so that way people can kind of like save their spot and no one's like trying to build data on top of each other doing the same thing also too guys um if you want some help like uh you don't want to physically draw these uh ranges out uh there's a lot of free indicators um there's a lot of free like Dr indicators that will draw out ranges um there's a free Dr IDR one there's um also one made by uh Lux algo yep drr candles these will draw out the the 1930 to 2030 uh ranges for you so that way you don't physically have to draw them out just make sure all your your your time is aligned yep so we'll go through drawing the the range again if you're going to be doing it from scratch so all you're going to do is go from 1930 so from 1930 to 2030 you're just taking the extremities between that between that range right so if we're on the if we're on the 15 minute it's between the uh the four candles right so 1930 20 30 and this is going to that will be your range going out my dumb ass grab the price range tool though so this will be your range 1930 2030 and that's including uh body weights right body is that that's including the body and the W yeah sometimes the body will uh create the extremity but it's basically you're just grabbing the extremity so basically you're high and your low from 1930 to 2030 you're grabbing your highest reference your lowest reference um building your box on that and then extending it out and you're extending and you're extending this out to the end of day so like uh like 1600 right there so this is how your range would look if you were drawing the range out yeah um like gibbo said you guys can use the tenacious drro and just put in the 1930 to 2030 time and it'll draw that range for you so that way you can easily Trace over it so you don't have to like find another random indicator yep and just know too that 1600 is your uh cut off so it doesn't it doesn't go beyond that so it's just to it's just to the end of the day and if you want to and you finish this pretty fast um you could pretty much go look at the same same occurrence on other assets like uh crude light uh gold uh ym es um soybean um there's a there's a whole lot of others uh gasoline like like this literally this system is like accurate across a whole lot of assets like it's just not strictly on inq yeah uh what question WS for you so you're saying that that the um Mae is going to be in percentages but the high and the low you want that in points am I correct yes yep the the range the range is going to be the range is going to be in points yep yeah we can go over [Music] CL so yep you can kind of see kind of see where all the accuracies play on other assets ym gasoline all the all your medals silver gold D trade 4X you got Forex on here your od's bad but um let's see what else it's not good on Dax Dex is pretty rangy during this time or uh can you can you look at a crypto pair maybe like Bitcoin or ethereum bit Bitcoin works just fine too there there's a there's refinement on bit Bitcoin I think if um yep there the five minute is where you want to be for Bitcoin etherum really these are good around the Perpetual contracts so like um don't remember if it's yeah this this data is bad from Finance um 6 E is good six Bravo's good yep so there's so so many assets that just work beautifully beautifully on this and like I said there's a ever since uh the t+1 roll over just you have these just beautiful beautiful ranges but yeah feel free if you guys want I mean you can dig into other assets play around with it um just this morning I was doing a study on crude and I'll show you this later on too like you um basically what you can do around all this data as well is you can create filters right so like example like just for Monday Tuesdays and Wednesdays for shorts only uh you can you can uh you can just trade this sample size only when shorts are initiated right and going back the past 73 uh samples um it has a 91% strike rate uh basically later on you know you can do some refinement around this and only trade like the high probable days there's some days that um like going back like 15 you know even 20 samples like just for Tuesdays only you know for Longs or shorts or even Longs only on some assets uh provide provides 100% % strike rate going back for that certain day but this is the purpose on why I want you to back test and the purpose of you jotting down all those days and stuff so you can kind of create your own like filtering around the around the assets yeah norski so so basically yeah right after uh right after your confirmation uh closure you're just looking for a a retest to the opposite side of the range looking for that retracement yep uh yep it's always going to be from uh 19:30 to 2030 uh there's there is some modifications around some Commodities and stuff like that uh with the time difference but I mean we'll get into that like later on that's when you guys areb building familiarity with the model um you know we can get into those time changes later on but everything with the indices um the metals uh any 4X pair 6 E6 Bravo um any currencies they're all going to be driven from uh 1930 to 2030 and what's nice about this which you even start to notice is um even the ranges that are not successful and I'll kind of show you here they don't they don't go um unmitigated they always come back and get tagged out they always come back and get cleaned up right I've done a study yeah like over two over two three years worth of data and yeah they don't they don't stay unmitigated long they come back and it gets taken out even like uh even like my shorts on uh Saturday or uh Saturday okay uh last week on uh Thursday's a AIA session um like I didn't I didn't trade the meanor version off um off of the model what I was paying attention to was ym because if you see here we already we just cleaned up in uh our unmitigated levels uh that we didn't take out that same day so what I noticed was NQ cleaned them up but ym didn't um and the past the past uh at least the past week ym and uh NQ uh have been kind of U in suit So based off of what ym was doing and it had an object objective to be achieved uh with lower price action that's why I took the I took a short out of here I shared that trade with you guys on Friday so that's that was my depiction on why I was kind of bearish in the uh in this range but yeah this is a a very very uh powerful model um if you do trade with a bias or anything like that this is probably the strongest bias indicator that I've I've ever seen or I've ever came across especially that like you come across these days where you're going into New York and you're trading midnight snap and this range hasn't been taken that's just more Confluence added to the midnight snap so it just it also plays very very beautifully with a midnight snap especially if you have your Chuck nor Zone Your settlement price midnight and also the the Asia low here that was left unmitigated this was all more reasons for you to be taking these shorts here so what adds another uh another plus to your A++ plus plus setup so so right now gibbo uh don't concentrate on the execution part just just the data um because that's what's going to be the most important uh teaching out of this is knowing where knowing where to enter and your execution process based off of the data alone but yeah as far as the as far as the rules of the model um when to execute when to close trades out um anything like that that that will be discussed you know later on whenever you guys have all the basics down of the model you know how it works um and once you build the data collection for it of course yeah I have indicators to make this you know easier make your guys uh life a lot easier but I want you guys to do this work to actually see the model see how it plays out I want you to get comfortable with it you know I I want honest feedback um you know some things that you're know you know that you're seeing uh the power of it uh yeah yeah of course I mean eventually you guys are going to have access to an indicator that's going to make your life easier but I I think knowing how this plays out and how to actually utilize the data is what's going to be very very beneficial to you um my suggestion is at least I have I have like a little my own personal little rule when it comes to data like I like to see my data like kind of like split up in quarters so at minimum I would at least say you know uh going 3 months back like having at least a sample size of like 60 days you know anywhere ranging from 60 to 90 days um if you just want to work off of like if you're working off the 15minute like going all the way back to going back to January or February or whatever I mean that's that's that's fine that's sufficient and I and I'll kind of go into that later so normally like what I do with my data collection um and Mickey will tell you too Mickey's done a very extensive you know back test off of this I mean um we ran it through a system with over like 4,000 plus samples um and he got back you know 3,400 with a with a success rate so if you figure that that's like 20 years plus worth of data uh that he went through over over this model um so it's obviously it's been attacked for a very long time um and what's crazy is this this works across many of assets but we all know majority of assets like to range in Asia so this is why this is so powerful this is why the midnight snap is so powerful but yeah going back to to the the quarterly kind of like um why I why I keep like short data intact is because you can start seeing shifts right so like if you have an indicator that's telling you your strike rates and you got averages and you're paying attention to everything when you start having uh anomalies just like this right like we had three days in a row uh where we didn't mean revert right um this this kind of tells you to hint at something so in other words you're not it it kind of teaches you to pump the brakes a little bit and to kind of like observe like the observe like your price movements and not just keep you know keep trading it like kind of see kind of like forces you to see what's going on you know what's uh what depiction is like that and then you go back to your data and you see like you go to other quarters and see if you've seen this shift before and seen it happen that way you can kind of see how everything played out from there um and and notice like how everything how how everything was driven you know after after that anomaly but but just in referencing I mean we got a lot of things you know kind of going on right now I mean we're coming up on elections we're um all the all the war news you know all all kinds of stuff going on um but yeah I mean I've pretty much been trading this model for for over a year back and forth um never never took it out of my Arsenal what you're measuring for distribution oh yep so all that's doing is going off of your confirm conf information candle closure and you're just seeing how far we we extended out for that session uh the cut off look oh I didn't even tell you guys about the cut off um so at at 08 you're going to you're that's when you're going to cut off your measurement so you're not going to you're not going to measure Beyond uh 8:00 that's that's another thing I forgot so your extremity is just going to go to 8:00 so be right there if you already if you already went past this uh Jonathan don't worry about that it's I know you're already collecting collecting data there but I'll discuss that later on we have um we'll show you what to do with that distribution data uh later on you'll see some very uh some very unique stuff with that you can use uh you can use both charts if you want um HRC just like if you're working from the 5 minute just make sure all your data pull stays with the five minute don't like flipflop back and forth between the 5 minute and 15 minute so if you're doing on the five minute and then you want to go back and you want to see what it looks for the 15minute and do like a comparison um you can do that as well to totally up to you the whole purpose of this exercise is I just want to see if you guys understand uh the model or if you need any help with it um and just get getting familiar with it um as a primary purpose actually um most of the trades uh they're actually completed between um they're usually completed between uh like 2,300 to like 0600 uh that's that's the closure of uh most of the time I know here's here's a here's the beautiful thing like I said we'll go on we'll get into this later but when you're taking these positions um and you're trading this model it's basically just going to be setting limit orders and then you're going about your day it's not so much about um staring at the charts for like 10 hours like just for me for instance I don't stay all the way up till 5 o' in the in the morning 3:00 in the morning like I take my positions and you know I go to I go to bed or I get back on coding work or you know do do something else um but yeah we'll get into the execution process uh later on