EASIEST ICT Strategy | No Daily Bias (Previous Day High and Low)

Summary

This video script offers a trading strategy that doesn't require mastery of daily bias, often a complex and subjective aspect of trading. The presenter shares a simplified approach that's back-tested for profitability, suitable for traders of all levels. The strategy involves marking out previous highs and lows, observing fair value gaps, and using price action to enter trades with a 3:1 risk-reward ratio. Emphasis is placed on process over profit, with a focus on building momentum and consistency in trading. The presenter also discusses the importance of journaling and the power of mastering one strategy to develop willpower and trading discipline.

Takeaways

• 📈 Understanding daily bias is subjective and often comes with experience, but it's not a necessity for profitable trading.
• 🚫 The common misconception is that mastering daily bias is required for success in trading, which can lead to unnecessary stress and overtrading.
• 🛠 The speaker introduces a strategy that does not require an understanding of daily bias, emphasizing simplicity and back-tested effectiveness.
• 📚 The importance of having a trading edge and a proven strategy is highlighted, as it forms the foundation for successful trading psychology.
• 🔄 The concept of 'decision fatigue' is discussed, suggesting that simplifying trading decisions can prevent poor choices and improve readiness.
• 📊 The strategy involves marking out the previous day's high and low, waiting for a sweep, and then using a 5-minute displacement chart for entry signals.
• 💹 The use of 'fair value gaps' is explained as a key component of the strategy, indicating aggressive market movement away from previous highs or lows.
• 🎯 Price waiting is a technique for taking profits, where the stop loss is trailed one candle back from the point of liquidity.
• 📝 Journaling every trade is emphasized as a critical step for learning and improving as a trader.
• 🔑 The speaker stresses the importance of focusing on one strategy, one time frame, and one chart to build consistency and mastery.
• 🏆 Building 'willpower capital' through the process of trading is presented as a gradual exercise, akin to physical training, to develop the discipline required for trading success.

Q & A

What is the main argument presented in the video script regarding the importance of understanding daily bias in trading?

The video script argues that while many believe understanding daily bias is crucial for profitable trading, it is not actually necessary for success. Instead, the speaker suggests that focusing on a simplified strategy and process can lead to profitability without needing to master daily bias.

What is the 'edge strategy' mentioned in the video script, and how does it aim to help traders?

The 'edge strategy' is a trading approach introduced in the video that does not require an understanding of daily bias. It is designed to provide traders, especially beginners, with a simple and back-tested method to make money in the market by following a structured process and focusing on executing trades consistently without overthinking.

Why does the speaker emphasize the importance of keeping trading simple?

The speaker emphasizes simplicity in trading to reduce the decision fatigue and emotional stress that comes with overcomplicating strategies. Simplicity allows traders to make quick, informed decisions and to build momentum and consistency in their trading, which are crucial for long-term success.

What role does 'inertia' or 'momentum' play in becoming a successful trader according to the video script?

In the video script, 'inertia' or 'momentum' refers to the importance of building and maintaining a consistent level of performance in trading. It suggests that once a trader gains initial success and momentum, it becomes easier to continue that success, which is why it's crucial to start gaining that momentum early in one's trading career.

What is the significance of 'price waiting' in the context of the strategy discussed in the video script?

Price waiting is a technique within the strategy that involves taking profits in a unique way. After the market hits a target, traders are advised to trail their stop loss one candle back, adjusting it with each new low to maximize profits on winning trades.

How does the speaker define 'decision fatigue' in the context of trading?

In the video script, 'decision fatigue' refers to the exhaustion that comes from making too many decisions, which can impair a trader's ability to make quick and effective choices. This can lead to bad decisions and is something that even experienced traders need to manage to maintain their performance.

What is the recommended time frame for trading the strategy outlined in the video script?

The recommended time frame for trading the strategy is from 8:00 to 11:00 a.m. Eastern Standard Time, focusing on specific financial instruments such as the NASDAQ e-mini futures, EUR/USD, or GBP/USD.

Why is journaling every trade considered an essential part of the strategy presented in the video script?

Journaling every trade is considered essential because it allows traders to reflect on their actions, identify areas for improvement, and track their progress. This practice is crucial for learning from the market and oneself, and it helps to build the discipline and awareness needed for successful trading.

What is the significance of focusing on 'one strategy, one time frame, one chart, one time of day' as mentioned in the video script?

Focusing on a single strategy, time frame, chart, and trading time allows traders to master that particular approach without being overwhelmed by trying to manage multiple strategies simultaneously. This focus helps in building expertise and consistency, which are key to becoming a successful trader.

What does the speaker mean by 'willpower capital' in the context of trading?

'Willpower capital' refers to the mental strength and discipline required to be a successful trader. The speaker suggests that, like physical strength, willpower can be built up over time through consistent practice and adherence to a trading strategy, which eventually leads to the ability to handle larger trades and capital.