MXM Traders Mentorship Lecture Notes

Introduction

• Credit given to Inner Circle Trader, Michael J Huddleston.
• Study ICT 2022 mentorship as a prerequisite.

Overview of Topics

1. Core Concepts
2. Market Maker Models
   • Time Frame Alignment
   • Mitigation Blocks
   • Trading Market Maker Models
   • The Silver Bullet
3. Top Down Analysis
   • Long-term Perspective
   • Intermediate-term Perspective
   • Short-term Perspective
4. Models and Risk Management
   • Universal Model
   • Asian Session Model
   • Funded Accounts

Core Concepts

Power of Three

• Essential for understanding candle formations.
• Daily candle opens and closes at 5:00 p.m. EST.
• True day open is from 12:00 a.m. EST.
• Five candle formations: bullish, bearish, and consolidation.

Market Structure and Liquidity

• Failure Swings: High that fails to take another high and vice versa.
• Low Resistance Liquidity: Easy targets for market moves.
• High Resistance Liquidity: Indicates where market might struggle.

Market Maker Models

• Original Consolidation: Starting point.
• Accumulation Phases: Multiple stages leading to market move.
• Smart Money Reversal: Key level hit before market turns.

Top Down Analysis

Long-term Perspective

• Monthly and weekly charts for broad market direction.
• Use with seasonal tendencies for better prediction.

Intermediate-term Perspective

• 4-hour and 1-hour charts align with long-term bias.
• Look for structure breaks to align perspectives.

Short-term Perspective

• Entry execution using 15-minute to 1-minute models.
• Bread and butter model between 8:00 a.m. and 12:00 p.m. EST.

Models and Risk Management

Universal Model

• Works for swing trading, intraday, and scalping.
• Aligns long-term, intermediate-term, and short-term perspectives.

Asian Session Model

• Focuses on AUD/JPY.
• Kill Zone: 8:00 to 10:00 p.m. New York time.
• 15-minute turtle soup strategy (swing high/low run).

Funded Accounts

• Phase 1: 8% profit target.
• Phase 2: 5% profit target.
• Manage risk by building buffers and aiming for consistent wins.

Key Trading Strategies

• Use premium and discount arrays for entries.
• Target low resistance liquidity for better risk-reward.
• Utilize mitigation blocks from sell to buy side.
• Consider seasonal tendencies for long-term perspective.

Additional Concepts

• Order Blocks: High probability when formed at key levels.
• Mitigation Blocks: Used for managing positions during market reversals.
• Balanced Price Range (BPR): Indicates fair value.
• Silver Bullet: Intermediate term high/low for secondary market moves.

Conclusion

• Comprehensive trading strategy covering multiple time frames and market conditions.
• Emphasizes risk management, market structure, and liquidity understanding.
• Strategies are universal and adaptable to various trading styles.