I Simplified ICT's Turtle Soup Strategy
Summary
TLDRIn 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
📈 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.
📉 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.
Mindmap
Keywords
💡Turtle Soup
💡Internal Range Liquidity
💡External Range Liquidity
💡Accumulation Area
💡Resting Buy Side
💡Resting Sell Side
💡Fair Value Gap
💡SMT (Supply and Demand Zones)
💡Key Levels
💡Risk-Reward
💡Backtesting
💡Mentorship
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
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