I Simplified ICT's Turtle Soup Strategy

Summary

In this informative video, the presenter demystifies the 'Turtle Soup' trading strategy, a powerful intraday model based on internal to external range liquidity. With real trading examples, including a recent successful trade, the video offers a no-fluff breakdown of the concept, highlighting key elements like recognizing market models, identifying resting buy and sell sides, and using fair value gaps for entry points. The presenter emphasizes the importance of backtesting, journaling, and continuous learning to improve trading skills, also mentioning a mentorship program for further guidance.

Takeaways

• 🐢 Turtle Soup is a trading strategy based on internal to external range liquidity.
• 📈 It involves selling above old highs and buying below old lows, aligning with the overall market bias.
• 💰 The strategy is powerful when applied correctly, offering a high-quality entry model with good risk-reward ratios.
• 🔍 Key levels in the market, such as fair value gaps, can provide additional conviction for trades.
• 📊 Turtle Soup entries are identified by observing the market's reaction to resting buy and sell side liquidity.
• 📈 In a bullish scenario, the strategy involves buying sell stops and targeting an expansion towards external liquidity.
• 📉 Conversely, in a bearish scenario, the strategy involves selling above old highs and targeting new lows.
• 📚 Recognizing market models, such as the market maker model, is crucial for identifying Turtle Soup opportunities.
• 📈 The script provides a real-life example of a Turtle Soup trade taken by the speaker, demonstrating the strategy's application.
• 📚 Reflecting on trades and journaling is recommended for improving trading skills and understanding market dynamics.
• 💡 The speaker offers mentorship and educational resources for traders looking to enhance their skills and understanding of trading strategies.

Q & A

What is the main topic of the video script?

The main topic of the video script is explaining and demonstrating the 'Turtle Soup' trading strategy, which is a powerful intraday trading concept based on internal to external range liquidity.

Why might people find 'Turtle Soup' difficult to understand?

People might find 'Turtle Soup' difficult to understand due to its unusual name and the overly complicated explanations found in some YouTube videos.

What is the basic definition of 'Turtle Soup' in trading?

The basic definition of 'Turtle Soup' is selling above old highs and buying below old lows, but it involves more nuances such as aligning with the overall market bias and considering intraday models.

What does 'dumb money' refer to in the context of the script?

'Dumb money' refers to traders who are getting chopped up in the middle of a trading range, constantly fighting back and forth without a clear strategy or understanding of the market.

What is meant by 'resting buy side' and 'resting sell side' in the script?

'Resting buy side' and 'resting sell side' refer to the areas of the market where smart money is looking to buy or sell, respectively, typically outside the range where 'dumb money' is actively trading.

How does the 'Turtle Soup' strategy utilize the concept of 'internal range liquidity' and 'external range liquidity'?

The 'Turtle Soup' strategy uses 'internal range liquidity' to identify potential entry points by selling above old highs or buying below old lows. It then looks to target 'external range liquidity' as the exit point, aligning with the overall market bias.

What is the significance of 'fair value gaps' in the 'Turtle Soup' strategy?

'Fair value gaps' provide additional conviction for trades in the 'Turtle Soup' strategy. They are key levels where the market is expected to bounce, offering potential entry or exit points that can enhance the risk-reward profile of a trade.

What role does the 'SMT' play in enhancing the 'Turtle Soup' strategy?

The 'SMT' (Supply and Demand Time) adds conviction to the 'Turtle Soup' strategy by indicating a favorable external draw, confirming the market's direction and increasing the likelihood of a successful trade.

Why is the risk-reward ratio of 'Turtle Soup' entries considered favorable?

The risk-reward ratio of 'Turtle Soup' entries is favorable because traders are buying below sell stops or selling above buy stops, which often results in a significantly reduced risk while targeting larger potential profits.

What advice does the script provide for traders who are new to the 'Turtle Soup' strategy?

The script advises new traders to start backtesting, look for 'Turtle Soup' patterns in historical charts, keep a trading journal, and constantly reflect on their thoughts and decisions to improve their understanding and application of the strategy.

What additional resource is mentioned for traders looking for more help with their trading?

The script mentions a mentorship program where traders can join a community for live trading sessions, educational content, and support from the mentor, which can be found through a link provided in the description.

Outlines

00:00

📈 Introduction to Turtle Soup Trading Strategy

The speaker addresses a common question about the 'Turtle Soup' trading strategy, which is a popular Intraday trading model based on the concept of internal and external range liquidity. The strategy involves selling above old highs and buying below old lows, aligning with the overall market bias. The speaker aims to clarify the concept with real examples from their own trading experience, emphasizing the importance of recognizing market models and key levels for potential market bounces. The strategy is highlighted for its powerful potential when applied correctly, offering a good risk-reward ratio.

05:00

📉 Applying Turtle Soup in Live Trading Scenarios

In this paragraph, the speaker discusses the practical application of the Turtle Soup strategy in real-time trading. They describe a specific trade they took that morning, starting with recognizing the market's bias and the existing liquidity draw. The speaker illustrates how to identify a potential Turtle Soup opportunity by observing market displacement and the development of a new market structure. They explain the importance of waiting for the right moment to enter a trade, such as when the market has generated enough sell-side liquidity and the price has expanded, bringing the range back into play. The speaker also mentions the use of supplementary indicators like the SMT (Supply and Demand Time) to add conviction to the trade. They conclude by recommending traders to backtest the strategy, keep a trading journal, and reflect on their decisions to improve their skills.

Keywords

💡Turtle Soup

Turtle Soup is a trading strategy mentioned in the video that is based on internal to external range liquidity. It is defined as selling above old highs and buying below old lows, but with a more nuanced approach that involves aligning an intraday model with the overall market bias. The video aims to demystify this strategy, showing it can be a powerful tool if applied correctly, as it offers good risk-reward scenarios.

💡Internal Range Liquidity

Internal range liquidity refers to the price area within a market's established trading range where 'dumb money' is often caught, leading to potential trading opportunities. In the context of the video, it is the area where the market is consolidating and where traders can potentially identify a Turtle Soup entry point by observing the market's behavior within this range.

💡External Range Liquidity

External range liquidity is the price area beyond the established trading range where 'smart money' is looking to buy or sell. The video explains that in Turtle Soup trading, once the internal range liquidity is identified, traders look to trade in the direction of the existing draw on liquidity, targeting the external range as a potential exit point.

💡Accumulation Area

An accumulation area is a price zone where buying pressure is building up, indicating potential support. In the video, it is mentioned as part of the setup for a Turtle Soup trade, where the accumulation area helps define the internal range and provides context for where the market might find support or resistance.

💡Resting Buy Side

Resting buy side refers to the price levels above the current market where buyers are waiting to enter the market, potentially providing support. The video uses this concept to explain how the resting buy side can be used to identify potential sell opportunities in a Turtle Soup strategy.

💡Resting Sell Side

Resting sell side is the opposite of the resting buy side, where sellers are waiting to sell at certain price levels below the market, potentially providing resistance. The video script mentions this as part of the analysis for when to enter a Turtle Soup trade by selling above old highs.

💡Fair Value Gap

A fair value gap is a price level that the market may find attractive to trade at, often serving as a point of interest where the market may bounce or reverse. In the video, the presenter discusses using fair value gaps as additional confirmation for potential Turtle Soup entries, adding to the conviction of a trade.

💡SMT (Supply and Demand Zones)

SMT stands for Supply and Demand Zones, which are areas on a price chart where there is a concentration of buying or selling pressure. The video script uses SMT as a tool to add conviction to a Turtle Soup trade, indicating that if the market forms an SMT going into the soup area, it can be a high-quality entry signal.

💡Key Levels

Key levels are significant price points on a chart that can influence the direction of the market. The video emphasizes the importance of identifying key levels, such as fair value gaps, where the market may react, as part of the Turtle Soup strategy to anticipate potential bounces or reversals.

💡Risk-Reward

Risk-reward is a fundamental concept in trading that refers to the potential loss versus potential gain of a trade. The video highlights that Turtle Soup entries offer a good risk-reward ratio, as traders are often buying below sell stops, which can lead to significant gains if the trade is successful.

💡Backtesting

Backtesting is the process of analyzing a trading strategy using historical data to see how it would have performed. The video script encourages viewers to backtest the Turtle Soup strategy to gain experience and understand its dynamics, which is crucial for successful implementation in live trading.

💡Mentorship

Mentorship in the context of the video refers to a program or service offered by the presenter to help traders improve their skills and mindset. The video mentions a mentorship program with educational content, live trading sessions, and a community for support, which can be beneficial for traders looking to refine their approach.

Highlights

The 'Turtle Soup' trading strategy is introduced as a powerful ICT method when applied correctly.

The strategy is based on internal to external range liquidity and market manipulation recognition.

Turtle Soup involves selling above old highs and buying below old lows to exploit market imbalances.

Intraday models should align with the overall market bias for effective Turtle Soup trading.

Key levels within the trading range are important for market bounce and entry conviction.

Fair value gaps provide additional reasons for price to bounce at specific areas.

SMT (Supply and Demand Time) can add conviction to Turtle Soup entries.

Turtle Soup offers a favorable risk-reward ratio, especially when buying below sell stops.

The importance of recognizing the existing draw in liquidity for a Turtle Soup trade is emphasized.

A step-by-step breakdown of a bullish Turtle Soup scenario is provided.

The video includes a real-life example of a Turtle Soup trade taken by the presenter.

Market structure and displacement are crucial for identifying Turtle Soup opportunities.

The presenter discusses the importance of journaling trades for improvement and reflection.

Backtesting and chart analysis are recommended for understanding Turtle Soup in live markets.

The presenter offers a mentorship program for traders looking to improve their skills.

Daily bias videos and live trading sessions are part of the mentorship program offerings.

The video concludes with an invitation to join the community for further trading support.

Transcripts

one of the questions I get asked the

most on social media is Justin how do I

trade turtle soup I'm not sure if it's

because of the weird name or the overly

complicated videos on YouTube but people

honestly just don't seem to get it since

it is one of the most powerful ICT

strategies out there if applied

correctly I want to show you the path in

this video I'm going to give you guys a

no fluff breakdown of turtle soup with

real examples of using this concept in

my own trading and one of those examples

I actually took this morning now turtle

soup is an entry model that is based

around internal to external range

liquidity in this drawing I want you to

focus on this here we have an

accumulation area and above us there

could be resting buy side below us there

could be resting sell side currently

like this now in the middle of this

range is what we consider dumb money

right people that are getting chopped up

in this range constantly fighting back

and forth because they don't know what

they're looking for now below all these

lows is resting sells side liquidity

where smart money is looking to buy and

above this is resting buy stops where

smart money is looking to sell so the

basic definition of turtle soup is

selling above old highs and buying below

old lows but it's not just that black

and white in turtle soup we are looking

to align an intraday model with the

overall bias as you can see in this

chart there's a buy side and a sell side

which means this is internal range

liquidity and this is external range

liquidity so when we're using turtle

soup we have a bigger time frame draw on

liquidity existing so what normally

would look to happen is is let's say the

drawn liquidity is sell side in this

example what we are looking to do is

sell above old highs and look to

continue to Target new lows and then

continue to Target external cide

liquidity and this here becomes turtle

soup now it's the same thing for the buy

side if the draw on liquidity is buy

side and we have an internal range where

we are generating liquidity to the lows

we are looking to buy those sell stops

where Market comes down takes all those

sell stops and then continues towards

the external draw and again this becomes

our turtle soup entry one thing that

also pay attention to is above these

areas of buy side and sells side

liquidity in this range you should be

looking for key levels that the market

can bounce off of for example a lot of

the times I'm looking for a fair value

Gap either Below sell stops or above buy

stops and what that does is it gives me

conviction and another reason for price

to actually bounce at those areas so if

we were looking to take a long in our

external draws buy side liquidity we're

looking to take Longs Below sell stops

but also see if there's a reason for us

to bounce here if there's a fair value

Gap let's say we're back in OT of this

previous price leg right all of these

are possible reasons that we could look

to see in continuation higher one of my

favorite things to add conviction to

turtle soup is an smt for example if

this is what we're looking at buy side

liquidity is the draw we end up selling

off taking these sell stops and Es does

not for example let's say this is NQ we

then form an smt going into the soup so

not only are we souping the lows

bouncing off of an imbalance but also

having an as in favor of the external

draw you get a very very high quality

entry model and one of the biggest

reasons why I like taking turtle soup

entries is because it's one of the best

risks that you can possibly have for an

entry model because you're buying Below

sell stops a lot of the time your risk

is going to be significantly increased

meaning if I'm looking to take an entry

below cell size and I end up buying

putting my stop loss in place and then

targeting the external draw I get really

good risk reward with these types of

entries so just in overview turtle soup

is only turtle soup number one when you

have an external draw you are buying or

selling internal range liquidity to

external range liquidity when you

already have an existing draw in

liquidity we're looking to sell above

old highs and buy below old lows here's

a less complicated drawing of what the

last one was I guess if you didn't

understand that this would just be a

bullish turtle soup where we have a move

the upside continue to generate

liquidity on both ends buy side sell

side we take sell stops we're looking to

buy sell stops and then have the

expansion towards the external draw and

again of course bouncing off of some

sort of key level and again it would be

the same thing reversed for sell now

let's take a look at the actual trade

that I took today and compare them and

see if you guys can see the relationship

so this was the chart going into the day

this morning and my first thing I want

to recognize is again what's the draw in

liquidity so going into the day my bias

was overall bullish I was really

expecting to see an expansion move to

these buy side levels in the morning we

had two generated liquidity levels here

as well as a 15-minute F Val Gap if we

zoom out sell side to the left of us

will taken it also was kind of looks

like an AMD where we had a lot of

accumulation a manipulation and then

expecting distribution back to the

upside but now just want you to focus on

number one drawn liquidity is bullish

buy side when Market opens we get

displacement to the upside a market

structure shift and now this is when I

want to zoom in and I want to recognize

if they're possible could be a turtle

soup opportunity so what has to happen

first for turtle soup to happen well

once we get displacement or once we're

in an a range and The Bu model or the

sell model is already playing out this

is why also recognizing models are very

important I'll link the market maker

video that I have down in the

description but your goal is to First

recognize the model going to the morning

I can recognize it is going to be a

market maker buy model and we're going

to look to run up to these buy side

levels once we get displacement I'm

expecting structure to start to build

out what happens we put in a swing low

this becomes my turtle soup low so I'm

looking for the market to come down to

this low take it again what happens here

we come down we generate more sells side

liquidity and then we expand to the

upside so this is when a lot of people

are starting to jump in and chase this

trade now what also happens here though

when we have this expansion move you

might be questioning why did we not take

the low right here and instead we add an

expansion move two reasons we generate

more sside liquidity and when we have

this move to the upside this low brings

this entire range back into discount in

oce so now now that we had this

expansion move turtle soup is now back

in OT of this range which is an area

which again we already expect a balce so

we're overlapping a key level with the

turtle soup as well as again a fair

value Gap as the key level too so Market

comes back down the low gets taken I

enter long put my stop right below here

and again this becomes the turtle soup

entry now another thing too I won't over

complicate you guys but do keep in mind

what time price starts to move 950 macro

aligned immediately gets reversed 950

opens up right here which is the macro

and we get a big expansion move to that

high and this was the trade in the

turtle soup I ended up taking this

morning now turtle soup is one of those

things where it takes a lot of

experience and it takes a lot of time to

actually see it happen live so my

biggest recommendation is start back

testing go into the charts start looking

for it see if you can find it and when

you're actually trading journal

constantly even if you don't take a

trade look at the chart and say hey I

think this is going to be turtle soup

take a screenshot Journal it after that

trade ends up playing out Journal hey

did this end up playing out or did it

not end up playing out and why when you

actually take the time to reflect on

your thoughts in your day you actually

start to improve because you're soaking

in your knowledge when you simply just

go about every day looking at the market

and then not questioning your decisions

or you're not questioning why you

thought that you're not improving those

thoughts don't change you don't get

better so look at the market start

questioning these ideas constantly

Journal constantly be looking to improve

if you found this video helpful you also

might like my daily bias video that I

just dropped whether daily bias is brand

new or just a refresher to you highly

recommend just to go check it out and if

you're someone who's still constantly

struggling with your trading you keep

making the same mistakes you can't seem

to get out of your head and honestly you

just don't know what's wrong because

trust me I've been there I recently just

opened up my mentorship I spent the last

3 months making 60 videos of pretty much

everything I know out of my brain about

trading the mindsets that made me

successful the setups that made me

successful and pretty much everything in

between a community where I live trade

in the mornings we do educational

sessions and just being surrounded by

amazing people if you're interested

about getting extra help from me joining

our community watching us live trade

together I'll leave the link in the

description so you can go check that out

as well thanks for tuning in and I'll

see you guys in the next one