20 Pips A Day Using ICT Asian Killzone Strategy (BETTER THAN SILVER BULLET)

Summary

This video simplifies a trading strategy designed to help traders consistently capture 20 pips daily. The host breaks down a step-by-step guide focused on trading the Asian session 'Kill Zone' from 8:00 PM to 12:00 AM New York time, targeting JPY, NZD, and AUD pairs. The strategy involves identifying liquidity sweeps during the New York session and entering trades based on market structure shifts. The video also shares alternative entry methods and emphasizes back-testing the system for consistent profitability. Viewers are encouraged to join the free Telegram group for further guidance and success stories.

Takeaways

• 😀 The strategy discussed is focused on trading the Asian session Kill Zone, which runs from 8:00 PM to 12:00 PM New York time.
• 📈 The main currency pairs targeted are JPY, NZD, and AUD, avoiding USD pairs due to low volatility during this time.
• 🔎 The first step in the strategy is to search for short-term liquidity formed during the previous New York session.
• 💡 If the market sweeps liquidity to the upside, the strategy looks for sell opportunities; if it sweeps liquidity to the downside, buy opportunities are targeted.
• 🔄 A market structure shift or change of character is used to identify a trend reversal after liquidity is swept.
• 📐 The Fibonacci tool is used to identify an entry point by selecting the high to the low of the displacement leg, with the entry off the 0.62 Fibonacci mark.
• 🚀 The take profit target for each trade is 20 pips, with a tight stop-loss placed above the high or low.
• 🤫 An alternative entry method is introduced, where after sweeping liquidity by 5 pips, traders can enter a position within the Kill Zone.
• 🛠 The strategy is back-tested on different pairs like GBP/JPY, showcasing its application through several market examples.
• 💬 The presenter encourages viewers to join a Telegram group for additional content and offers services to help traders pass their FTMO challenges.

Q & A

What trading strategy is the video focusing on?

The video focuses on a step-by-step guide to trading during the Asian session Kill Zone using JPY, NZD, and AUD pairs while avoiding dollar-correlated pairs due to low volatility.

What is the 'Asian session Kill Zone' in terms of time?

The Asian session Kill Zone is defined as the time from 8:00 PM to 12:00 PM New York time.

Why does the strategy avoid trading dollar-correlated pairs during this time?

Dollar-correlated pairs are avoided because they typically experience consolidation and lack volatility during the Asian session, making them less favorable for this strategy.

What is the first step in this strategy?

The first step is to search for short-term liquidity formed in the New York session, which occurs prior to the Asian session. This liquidity could appear as equal highs or lows, or an old high or low.

What happens after the liquidity sweep in the market?

After the liquidity is swept, the trader looks for a market reversal, indicating a potential entry point. If the liquidity is taken to the upside, the trader looks for sell opportunities, and if it’s taken to the downside, buy opportunities are considered.

What is a 'market structure shift' or 'change of character'?

A market structure shift, or change of character, is a change in the market's momentum, signaling a reversal. For example, the market may shift from forming higher highs and higher lows to lower highs and lower lows, indicating a bearish trend.

How do you enter a trade after identifying a market structure shift?

To enter a trade, use the Fibonacci tool to measure from the high to the low of the displacement leg and enter the trade when the market retraces to the 0.62 Fibonacci level, with a stop loss above the high and a fixed take profit of 20 pips.

What is the alternative entry method taught by ICT?

The alternative entry method is based on sweeping liquidity by five pips. After the liquidity sweep, you enter the trade with a stop loss above the high and target 20 pips profit.

What is the importance of marking liquidity zones in this strategy?

Marking liquidity zones helps identify potential areas where the market might reverse, providing opportunities to enter trades at optimal points after liquidity has been taken.

How does the risk-to-reward ratio typically work in this strategy?

While the risk-to-reward ratio may not always be high (often 1:1.25 or 1:2), the strategy compensates with a high win rate, making it very effective for consistent profits.

Outlines

00:00

📊 Simplified Step-by-Step Forex Strategy Overview

In this introduction, the speaker summarizes a simplified step-by-step guide for trading profitably using a specific forex strategy, which guarantees 20 pips per day. The focus is on trading during the Asian session Kill Zone (8:00 p.m. to 12:00 p.m. New York time) with pairs like JPY, NZD, and AUD, avoiding dollar-correlated pairs due to lack of volatility. The strategy revolves around identifying short-term liquidity formed during the New York session and looking for reversals. Key rules and the importance of following these steps are outlined.

05:02

💡 Liquidity and Market Structure Reversals Explained

This section dives deeper into the strategy's mechanics, explaining how to detect liquidity sweeps in the New York session, which dictate whether to trade for buys or sells. It introduces the concept of a market structure shift (change in momentum), using a reversal pattern to enter trades. The speaker also emphasizes setting a take profit of 20 pips and introduces Fibonacci tools to identify key entry points.

10:03

🔑 Advanced Entry Methods and Market Examples

Here, the speaker introduces an alternative entry method from ICT's strategy, where traders enter after liquidity is swept by five pips. They explain how to use this method for better precision and how to manage stop losses and take profit. The video shares a live market example, demonstrating how these techniques work in real trading, and promotes a service that helps traders pass prop firm challenges and become funded.

📈 First Market Example on GBPJPY Using the Strategy

The first market example on GBPJPY demonstrates how to use the strategy on the 5-minute time frame during the Asian Kill Zone. The speaker outlines how to use the Sessions indicator and follow the steps of identifying liquidity, waiting for market structure shifts, and using the Fibonacci tool to enter trades. This section focuses on demonstrating the strategy’s high win rate, which compensates for the modest risk-to-reward ratio.

🚀 Second Example with Alternative Entry Model

This second example showcases the alternative entry model taught by ICT, focusing on liquidity sweeps and using a five-pip range for entry. The speaker walks through how to mark liquidity, wait for market sweeps, and execute trades with small stop losses and a fixed 20-pip take profit. The example highlights the strategy's effectiveness and reliability, further emphasizing the use of the alternative entry method.

🏆 Third Example: Market Structure Shift and Fibonacci Tool

The third example returns to GBPJPY and walks through another trade using the same strategy. The speaker highlights how to identify market structure shifts, use the Fibonacci tool, and set precise entry points. Once again, the importance of entering trades based on the 0.62 Fibonacci level and targeting 20 pips is reinforced. The speaker concludes by demonstrating the success of the trade, showcasing the simplicity and effectiveness of the strategy.

Keywords

💡Kill Zone

The 'Kill Zone' refers to a specific time frame during which trading activity is most favorable for the strategy discussed in the video. In this case, the Asian session Kill Zone is from 8:00 p.m. to 12:00 a.m. New York time. This period is chosen due to its higher volatility for certain currency pairs, making it optimal for short-term trades.

💡Liquidity

Liquidity in the context of trading refers to the availability of liquid assets in the market that can be easily bought or sold without affecting the asset's price. In this video, liquidity is identified by observing equal highs and lows, which are seen as areas where many traders' stop losses or pending orders might exist. The strategy revolves around identifying these liquidity zones to predict market reversals.

💡Liquidity Sweep

A liquidity sweep occurs when the market 'takes out' liquidity by pushing beyond certain levels of highs or lows. The strategy mentioned in the video looks for these sweeps, as they often indicate a reversal point. For example, if the market takes liquidity to the upside, the trader would look for a sell opportunity.

💡Market Structure Shift

A market structure shift, also referred to as a 'change of character,' is a change in momentum or trend in the market. The video highlights how to identify a market structure shift, such as when the market goes from making higher highs and higher lows to lower lows, signaling a trend reversal. This shift is crucial for identifying potential entry points.

💡Fibonacci Tool

The Fibonacci tool is used to identify key levels in price retracement, specifically the 0.62 level mentioned in the video. Traders use this tool to find optimal entry points after a market structure shift. The strategy suggests placing an entry around the 0.62 retracement level for higher probability trades.

💡Asian Session

The Asian session refers to the trading hours during which financial markets in Asia, particularly Tokyo, are open. The video focuses on the Asian session as a key trading window (8:00 p.m. to 12:00 a.m. New York time), since currency pairs like JPY, NZD, and AUD are most active and volatile during this period.

💡Displacement

Displacement in trading refers to a sudden and significant price move that breaks through a key level, indicating a shift in market direction. In the video, displacement is used to validate a market structure shift, confirming that a reversal has occurred and providing a signal to enter a trade.

💡Stop Loss

A stop loss is an order placed to automatically exit a trade at a predetermined price to prevent further losses. In the video, the stop loss is placed above or below the recent market structure high or low to protect the trader from adverse market movements. It is a key risk management tool in the strategy.

💡Take Profit

Take profit is a trading order that closes a position once it reaches a specific price, securing profits. The video emphasizes a fixed take profit of 20 pips for each trade, ensuring consistent gains based on the strategy’s rules. The goal is to capture small, steady wins rather than large, unpredictable moves.

💡Fair Value Gap

A fair value gap refers to an inefficiency or imbalance in the market where price action quickly moves through a level without sufficient trading volume. In the video, the trader waits for the price to retrace into a fair value gap before entering a trade, expecting the market to 'fill' this gap as it continues its trend.

Highlights

Introduction of a step-by-step guide to becoming profitable with one strategy alone.

The strategy focuses on trading during the Asian session Kill Zone, which is from 8:00 p.m. to 12:00 a.m. New York time.

Only JPY, NZD, and AUD pairs are traded, avoiding dollar-correlated pairs due to low volatility during this time.

Step 1: Search for short-term liquidity formed in the New York session, such as equal highs, lows, old highs, or lows.

Market direction is determined by whether liquidity is swept to the upside or downside, dictating whether to look for buys or sells.

Step 2: Look for a reversal after New York liquidity is swept, particularly focusing on a market structure shift (change of momentum).

Market structure shifts indicate a reversal in momentum, allowing the user to set take profit at 20 Pips.

Step 3: Use Fibonacci retracement to find optimal entry points based on the 0.62 level of the displacement leg.

An alternative entry method involves entering after a 5-Pip sweep of liquidity in the late New York session.

Multiple market examples show how to identify valid market structure shifts and successful trades.

Strategy is recommended for use on the GBP/JPY pair due to high volatility during the Asian session.

The win rate of this strategy is claimed to be higher than the Silver Bullet strategy.

ICT’s alternative entry method allows for profitable trades using 5-Pip liquidity sweeps and reversal patterns.

The strategy focuses on high-probability trades with a fixed 20 Pip take profit and small stop-losses.

Emphasis on backtesting the strategy to see its success rate and effectiveness in live market conditions.

Transcripts

I himself said you can catch 20 Pips a

day guaranteed this was in his 2 and 1/2

hour video however in today's video I'm

going to simplifly it down to a

stepbystep guide you can follow to

become profitable using this one

strategy alone now I will also be

sharing a secret from I that can make or

break the trade make sure you guys like

And subscribe and join the free Telegram

in the description where I post tons of

helpful content so let's get into the

video now before we get into the

step-by-step plan I want to outline a

couple rules R for the strategy so we

are trading the Asian session Kill Zone

which is from 8:00 p.m. to 12:00 p.m.

New York time now this is a very

convenient time for many of you so the

pairs we are going to trade is JPY nzd

and AUD pairs we are not trading any

dollar correlated pairs as dollar pairs

usually are consolidating during this

time there there's not much volatility

in the market however for JPY nzd AUD if

you go look on your charts they are

active during this time so the strategy

will work on any of these pairs now we

are going to stick to the 5 minute time

frame moving on to our step-by-step plan

step one search for our short-term

liquidity formed in the New York session

now the New York session is the session

previous to our Asian kill zone right

here so I've got 8:00 p.m. marked out

New York time and before this we simply

want to look for liquidity in the market

liquidity could be equal highs for

example it could be equal lows it could

be an old high an old low whatever we

just want to look for liquidity I want

to see if Market takes liquidity to the

upside or if Market takes liquidity to

the downside if Market decides to take

liquidity to the upside as we have in

this scenario we are looking for sells

if Market takes liquidity to the

downside we are looking for buyers our

step two is to Simply look for a

reversal after New York liquidity sweep

as you guys can see in this example

we've had our New York liquidity which

in our case is equal highs we've swept

this liquidity and now we are on 800 p.m

our Kill Zone so from here I'm going to

start to look for a reversal after that

liquidity is swept and we do get signs

of Market reversing we simply want to

enter and set a take profit at 20 Pips

now you may be wondering how do I even

catch the entry what is the true

reversal which entry is correct now I'm

going to explain everything so after we

get that initial liquidity sweep in our

case was to the upside we get our kills

on start we want to start to look for a

reversal now the reversal pattern of

choice I'm going to be using is a market

struct shift or some people like to call

it a change of character now all a

market structure shift is is a change in

momentum so if we are forming higher

higher higher higher higher higher we

have this lower low however we get a

lower high a lower high then Market

comes gives us this change in Trend

right here so we get this higher high

higher high higher high then we end up

getting this higher low right here so

Market begins to change in Trend we get

that change in momentum now I presume

Market will come back here fill a fair

value gap before going even lower so

this is all a market structure shift is

it just signifies the change in momentum

from us getting all this bullishness to

then momentum changing into that

bearishness went from higher high higher

high higher high to higher low even

lower lows so our Market structure shift

simply is a reversal pattern it

indicates a reversal in market so now

once we've gotten a clear Market

structure shift with body closure below

this low right here we get that

displacement this is what I would

classify as a valid Market struct shift

that we can use for this strategy now

you may be wondering how do I enter you

want to go to your Fibonacci tool select

the high to the low of your displacement

leg and you simply want to enter Off the

0.62 Mark now you can configure this in

your settings just copy my settings

right here as you guys can see and we're

going to wait for the displacement leg

to come retrace back into our Zone into

our range and wait for Market to tap

into the 0.62 mark from there we will

just simply enter stop loss above the

high and we're going to set a fixed take

profit of 20 Pips now I'm about to show

you guys a secret which IST said you can

enter off now this is our second entry

method which I'll show you guys on the

real live markets however I'm going to

briefly go over it now if you have

liquidity formed in the late New York

session as we do have here these equal

highs right here once Market sweeps this

liquidity by five Pips and we are into

our Kill Zone you can vent enters using

ict's alternative entry method for this

strategy while once we've swept five

Pips if this was five Pips right here we

would enter right here so we place our

stop loss above the high as usual and

we'll Target 20 Pips again so with all

that said let's get into some Market

examples if you are not making at least

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capitals for more information all right

I'm on gbpjpy which is a valid pair to

trade the strategy on as there is plenty

of volatility during the Asian Kill Zone

so to start off guys you want to go get

this indicator so if you type in

sessions you'll see sessions on chart by

orox a you want to come in settings you

want to go to inputs untick everything

else except Tokyo and for Tokyo you want

to put in our Kill Zone which is 8 p.m.

to 12: a.m. so as simple as that now if

I play out Market you can see whenever

the Kill Zone starts we will get this

highlighted which makes it very very

easy for us to trade the strategy so now

what do I see here in our New York

session step one is to Mark out our

liquidity so we have this sells side

liquidity right here sorry buy side

liquidity and sell side liquidity right

here so our step two is to let Market

play out and see which way market takes

liquidity now for us you can very very

clearly see Market has taken out our buy

side liquidity we've taken out this

swing low right here first so now I know

I am looking for buyers so I'm going to

play out Market next and look for a

reversal which for us is our Market

structure shift so if I play out Market

you guys can see there is pretty much

not a clear Market structure shift in

here you could say this is your Market

structure shift it may be valid and if

you were to go into your step

three you would end up getting a perfect

entry so you could possibly have got

this entry which is not the one I got

however it is still valid now if you do

play out

Market there is a much clearer Market

struck shift right here so this is the

market struck shift I deemed valid as

you guys can see there is a convincing

close Above This High we get body

closure Above This High we went from

that bearishness to now going that

bullishness where this high is closing

Above This high from here simply I'm

going to get my FIB tool place it from

the low all the way to the high and as

you guys can see if I move Market back

you guys can see we do tap into our 0.62

level so as simple as that from here you

place your entry and just watch the

profits come and so let me place my long

position

right here stop loss below the low so

our stop loss is very tiny at about four

Pips and you simply want to place your

take profit at 20 Pips

so as so now I'm going to play out the

market as you guys can

see Market will smash our full take

profit now the risk to reward is not

always crazy for this strategy as you

guys can see this is a one 125 however

usually you'll be hitting one to On's

one to twos maybe one to 3es however

what is crazy is the win rate of this

strategy is absolutely something else it

is way better than the Silver Bullet in

my opinions now in this example I'll

show you the extra entry model which IST

has taught us and example where we can

use it in so in this example we have

very clear liquidity right here we have

this swing high and swing low right here

so if I play out Market you guys can see

we do take out this low right here

however Market is failing to displace it

so if I do play out Market you can see

Market is playing around in in this zone

right here this would be a perfect

opportunity to use this strategy right

here so simp going to Mark out this low

and five Pips

is right here

so now before this point once I've

marked our five Pips I would draw a line

so for example if this was our five Pips

as it is right here so it's about our

five Pips so now if I play out Market

you guys can see as soon as we Market

sweeps liquidity five Pips I'm simply

going to enter so right this stop loss

below not have any s load so I place it

at the close of this F Gap right here so

now as usual we are going to Target 20

Pips which is right here so now if I

play a market you guys can see we do

smash full take Profit just like that

now this entry model is amazing as you

guys can see we did catch an amazing

trade from it and it does work very very

well however in my opinion I do prefer

the optimal trade ENT model as it just

works better in my opinion it is easier

for me to catch however use both in your

back testing and find out which one you

like more so on to our third example now

right here step one Mark our liquidity

so we have this high right here and we

have this low right here so let me just

play our market and you guys can see we

do take out the high now step two is

wait for our reversal so I'm going to

let Market play out until we get a solid

reversal

now you guys can can see we do get solid

displacement right here

so we get this lad displaced right here

perfectly and with this being our Market

struck shift let me just mark it out for

you guys as you guys can see Market

struck shift now with our Market struct

shift done we are simply going to look

for our entry now we can see Market is

retracing back into our zone so I'm

going to get out my FIB tool simply

place it as such and let Market play out

until it hits our 0.62 Mark now usually

you should just have your limit set at

the 0.62 Mark so you can catch the trade

as soon as Market hits it take profit at

20

Pips and stop loss above the swing high

right here now this is her 1 to

one which is not bad just means you have

a way higher win rate which is not a bad

thing and as you guys can see we do

smash full take profit again just like

that this strategy works so well now on

to the third and final example now we

are on GBP JPY again on the 5 minute

time frame as usual I'm going to go a

bit quickly over this one as I hope you

guys are aware of the strategy by now as

it is pretty simple so we do hit into

our Kill Zone now where do we sweep

liquidity we have liquidity to the

upside and liquidity to the downside we

do take liquidity to the downside in the

form of these lows right here so we do

take out this swing glow right here so

we are going to be looking for buyers

now let me play out market for you guys

as you guys can see see we do get a

market structure shift so let me just

replay Market a little bit we do get a

market structure shift a Chang in Trend

now you guys can see we were bearish

bearish bearish change in momentum we

get this displacement Above This high

right here you see Market shifts in

structure right here that's why it's

called a market structure shift

now we can use our Fibonacci

tool from the high to the low from the

low to the High I mean and as you guys

can see there's also a fair value up

conveniently here however we are going

to enter Off the 0.62 Mark so this is in

fact the high right here no going to

place my long position as so now I'm

going to place my stop loss at the fill

of the fair value Gap right here which

well which I basically mean this fair

value Gap right here I'm going to place

it right at the bottom of this fair

value Gap so as for take profit simply

going to Target about 20 Pips let trade

play out let's see Market does tag Us in

right here

as you guys can see hop down to the one

minute time

frame you guys can see we do smash full

take Profit just like that this strategy

is so simple I showed you guys how

amazing it works I recommend you guys go

on your own charts to back test this and

see how good it really works now thank

you guys so much for watching make sure

you guys join the free Telegram in the

description so you guys can get involved

in all the cool things that I'm doing

thank you guys so much for watching and

I'll see you guys next time