Effective Trading Strategy by Jesse

Aug 11, 2024

Trading Strategy Lecture by Jesse

Introduction

  • Jesse is a seven-figure day trader with eight years of experience.
  • The strategy presented is backed by data from hundreds of trades.
  • Aims to pass prop firm challenges and make traders consistently profitable.
  • Strategy requires:
    • Zero daily bias
    • Trading one time frame
    • Trading one asset at one time of day
  • Can be a turning point in a trading career.
  • ICT (Inner Circle Trader) claims the strategy can enable quitting a job in 90 days.

Strategy Overview

  • Proven to be massively profitable after 300 trades.
  • Requires strict adherence to every outlined step.
  • Mechanical framework that eliminates stress and guesswork.
  • Suitable for traders of any skill level or experience.
  • Provides clear and simple rules for a consistent trading plan.

Key Concept: Fair Value Gap (FVG)

  • Fair Value Gap: A three-candle formation.
    • Middle candle is expansive, leaving a gap between the wick of the first and the third candle.

Step-by-Step Process and Entry Model

  1. Preparation

    • Start at 9:30 a.m. EST (New York time).
    • Mark out Asia/London 6:00 to 7:30 high or low.
    • Identify the high or low in the specified time windows.
  2. Setup Identification

    • Check if the highs or lows since midnight have been taken.
    • If not, no setup for the day; restart process the next day.
    • If yes, proceed to the next step.
  3. Fair Value Gap Formation

    • Wait for the first 5-minute fair value gap to form between 10-11 a.m. or 2-3 p.m. EST.
    • Ensure the gap aligns with the market conditions (bearish for high sweep, bullish for low sweep).
    • If conditions are met, enter the trade.
    • Place stop loss at Fair Value Gap candle number one.
    • Target a fixed 2:1 risk to reward ratio or close at the end of the day.

Chart Examples

  • Example 1

    • Market takes out London low and 6:00 to 7:30 low at 9:30 a.m.
    • First fair value gap forms after 10 a.m., market retraces into the gap.
    • Enter trade, stop loss at candle one, target 2:1 risk to reward.
    • Additional setup after 2 p.m., market forms another fair value gap.
  • Example 2

    • Midnight to 6 a.m. marks the London session high and low.
    • London high taken out, waiting for a bearish fair value gap after 10 a.m.
    • First fair value gap forms, enter trade, stop loss at candle one, target 2:1 risk to reward.
    • Additional setup after 2 p.m., market forms another fair value gap.

Additional Resources and Support

  • Free access to the entire strategy board via a link in the description.
  • Backtest the strategy to ensure its effectiveness.
  • Mentorship and additional support with trading psychology sessions, trade reviews, and accountability.
  • Free educational videos posted twice weekly on Jesse's channel.

Conclusion

  • Mentorship is optional; traders can learn online for free, though it may take longer.
  • Mentorship serves as a shortcut by learning from someone elseโ€™s mistakes.
  • Links provided for additional resources and to subscribe to Jesse's channel for more educational content.