My Forever Model: The Strategy That Has Made Me Over Half A Million (INSANE VALUE)

Summary

In this video, the presenter introduces the 'Forever Model,' a high-probability trading strategy focused on identifying manipulation in the market. By recognizing patterns like liquidity sweeps, inverse fair value gaps, and changes in the state of price action, the model aims to predict market movements with high success rates. The presenter emphasizes the importance of aligning with the market’s order flow and targeting opposing liquidity pools. This strategy is presented as a powerful tool for traders seeking consistency and success in their trades, with practical guidance and real trade examples provided throughout.

Takeaways

• 😀 The 'Forever Model' is a high-probability trading strategy that, according to the speaker, rarely fails due to its consistent success.
• 😀 The model emphasizes looking for specific setups in the market that combine liquidity sweeps, inefficiencies, and fair value gaps.
• 😀 One of the core principles of the Forever Model is the manipulation of liquidity, either buy-side or sell-side, followed by an inverse fair value gap.
• 😀 A key feature of the model is identifying a change in market structure, which validates the setup and provides entry signals.
• 😀 The model can be applied on various timeframes as price action is fractal, but aligning with higher timeframe market direction is important.
• 😀 An optional component of the strategy is the SMT (Smart Money Trigger), which further validates a trade setup and can make the opportunity A++ quality.
• 😀 Opposing liquidity must always be present for the trade to have a reason to move in the expected direction.
• 😀 For a bearish setup, the market must first manipulate higher to generate liquidity before moving lower, and for a bullish setup, the opposite occurs.
• 😀 Multiple entry strategies exist within the model, such as entering immediately after a fair value gap is ran through or waiting for a pullback to the gap.
• 😀 The success of the Forever Model is based on the ability to understand and align with market structure and logic, not relying solely on indicators.
• 😀 The speaker encourages backtesting and applying the model consistently to truly grasp its effectiveness and avoid overtrading or emotional decisions in the market.

Q & A

What is the 'forever model' mentioned in the video?

The 'forever model' is a trading strategy that the speaker claims has a very high probability of success. It involves looking for specific setups, such as manipulation, liquidity sweeps, fair value gaps, and changes in the market's state, to identify high-quality trading opportunities.

Why does the speaker believe this model doesn't fail?

The speaker believes the 'forever model' doesn't fail because they have not encountered enough data where it failed. The model is said to work consistently and is described as a high-probability setup.

What are the key components required for the 'forever model' to work?

The key components of the 'forever model' include manipulation (such as liquidity sweeps or market inefficiencies), an inverse fair value gap, a change in the market's state, and optionally, a divergence like an SMT (Smart Money Tool). There must also be opposing liquidity to target.

How does the speaker define 'manipulation' in the context of this model?

In this context, 'manipulation' refers to market movements that clear liquidity in one direction (such as a sweep of buy or sell orders) to set up for a reversal or continuation of price action. This often happens near significant levels like fair value gaps.

What is an inverse fair value gap and why is it important in the 'forever model'?

An inverse fair value gap is a price inefficiency that gets 'ran through' in the opposite direction of the expected price movement. For example, if the market is expected to go higher, it may first drop to manipulate price before moving higher. It is a critical component of the model as it helps identify when price will reverse or continue based on market manipulation.

What is a change in the market's state, and how does it fit into the model?

A change in the market's state refers to a shift in order flow, typically seen when a series of candles close in one direction (such as a series of up-close candles) and then that direction is displaced or reversed. This change signals a potential shift in the market, indicating that a high-probability trade may be forming.

What role does an SMT (Smart Money Tool) play in this model?

The SMT is an optional component that provides additional confirmation. It shows a divergence between two assets, like NQ and ES, where one makes a higher high and the other makes a lower high, suggesting a market inefficiency that could lead to a reversal. An SMT adds extra validation to the trade setup.

How does the speaker use liquidity in the 'forever model'?

Liquidity plays a central role as the market is believed to move in search of liquidity. The speaker looks for liquidity pools (such as buy or sell orders) to be cleared or targeted, and this movement often occurs in the form of a sweep or manipulation before price moves toward the intended direction.

What is the significance of a liquidity pool in the market?

A liquidity pool refers to an area in the market where buy or sell orders are concentrated, often around specific price levels. The market moves toward these pools to either capture the liquidity or manipulate price before continuing in the expected direction.

How does the speaker use timeframes when applying the 'forever model'?

The speaker suggests that the 'forever model' is fractal, meaning it works across different timeframes. Whether on a 15-second chart or a 4-hour chart, the model can be applied. However, the speaker emphasizes that enough information should be present in the larger timeframe to confirm the reasoning behind the trade.