Lecture Notes on Trading Strategies

Introduction

• Experience: Nearly a decade of trading experience.
• Tried various strategies: Swing trading, scalping, smart money concepts, market structure, supply and demand.
• Challenges: Faced losses and account blowouts, emotional spirals.
• Current approach: Focuses on 2-4 high probability setups per week.
• Benefits: Achieved time and financial freedom, earning $50,000 to $100,000 monthly.

Simplified Trading Approach

• Avoid complex strategies, crazy indicators, and guesswork.
• Implement a simple, repeatable system for consistent results.

Why Choose Scalping?

• Probability: Scalping is often misunderstood as gambling.
• Successful traders and hedge funds like Medallion Fund use lower time frames.
• Scalping involves having a built-in edge, similar to casinos with their 1% edge.
• Focus on having a win rate slightly above 50% and utilize trade volume.

Scalping and Probability

• Probability and standard deviations are critical in scalping.
• Shorter time horizons have increased probability and less deviation.
• Scalpers aim for high probability small moves, not the entire price movement.

Objectives of a Scalp Trader

• High Probability Zones: Focus on catching the most probable part of the move.
• Trend Following: Trading with the trend gives more certainty and better reactions.
• Entry Importance: Precise entry points lead to better protection and lower risk.

Setup Criteria

• Time, Inducement, and Lower Time Frame Confirmations:
  • Time: London and New York are key windows.
  • Inducements: Help identify trends and confirm zones.
  • Lower Time Frame Confirmations: Critical for entries.

Trading Examples

• Analyze market structure and trends for bullish impulses.
• Use refined points of interest (POI) for trading decisions.
• Wait for price to induce key levels and confirm entries using lower time frames.

Entry Strategies

• Use lower time frame models for entry confirmations.
• Aim for high probability reactions using deviations and risk-reward.

Conclusion

• The key is finding high probability, qualified reaction zones.
• Use time-based inducements and lower time frame confirmations to improve win rates.
• A focused trading approach with clear criteria leads to profitable scalping.

Series and Further Learning

• This lecture is part of a series; further parts will explore more concepts and strategies.
• Engage with the series for a comprehensive understanding of scalp trading.