EASIEST ICT FX Strategy for Prop Firms (GET FUNDED WITH THIS)

Summary

This video script offers a detailed trading strategy for ICT students, focusing on Euro USD or GBP USD trades. It emphasizes understanding the weekly candle direction and using the 'power of three' concept to time entries. The presenter, a funded day trader, shares a step-by-step guide to identify high-probability setups, including analyzing liquidity pools and market structure shifts. The strategy aims to help traders escape the cycle of failing challenges and achieve success in the prop trading environment.

Takeaways

• 📈 The video is aimed at struggling ICT (Infinite Channel Theory) students, offering a strategy to help them succeed in trading challenges and get funded.
• 🤑 The speaker is a funded day trader who manages a significant amount of capital and shares a simple yet effective ICT strategy.
• 🌐 The strategy focuses on trading Euro USD or GBP USD pairs and requires a clear understanding of the daily or weekly chart direction, known as the daily bias.
• 🔍 The importance of observing recent market movements, such as price reactions to buy or sell stops and liquidity pools, is emphasized for making trading decisions.
• 📊 The 'power of three' concept is central to the strategy, which involves trading above the weekly open in a bearish market or below in a bullish market.
• ⏱ The strategy is time-based, aiming to catch the manipulation phase of the weekly cycle, which includes accumulation, manipulation, and distribution.
• 📉 For entry, the strategy waits for the market to move beyond the opening price of the week and then looks for bearish price action during the New York or London trading sessions.
• 📍 The entry point is determined using the 62% Fibonacci retracement level after a swing low has formed, with a stop loss set above the high.
• 🎯 The target for the trade is the draw on liquidity, which may be a significant distance from the entry, potentially offering a high risk-to-reward ratio.
• 🔄 The speaker encourages patience and trust in the analysis, as trades may not move directly to the take-profit level and may experience retracements.
• 🛠 The strategy is described as more advanced and is the speaker's 'bread and butter' setup, designed to catch significant weekly moves in the market.

Q & A

What is the first step in identifying a high probability trade setup?

The first step is to understand where the weekly candle is likely to expand.

Why is understanding the weekly candle's direction important for day traders?

Understanding the weekly candle's direction helps traders anticipate market movements and make informed trading decisions.

What pairs should be traded according to the strategy?

The strategy recommends trading Euro USD or GBP USD.

What is the 'power of three' concept in ICT trading?

The 'power of three' is a time-based concept involving accumulation, manipulation, and distribution phases in the market.

How should traders mark their charts for the 'power of three' strategy?

Traders should mark their weekly open on their chart to identify the manipulation cycle for trading opportunities.

What timeframes should be used to confirm market structure in this strategy?

Traders should use the four-hour chart to confirm the market structure and align it with the daily bias.

What should traders look for on the 15-minute chart?

On the 15-minute chart, traders should look for liquidity pools, market structure shifts, and price displacements.

What is OTE and how is it used in this strategy?

OTE (Optimal Trade Entry) involves using the 62% Fibonacci retracement level to set entry orders, typically after identifying a swing low.

Why is patience important when using this strategy?

Patience is crucial because the strategy aims to capture larger moves based on higher timeframes, which can take more time to develop.

What should traders do if the market moves against their initial position?

Traders should trust their analysis and be patient, as the market may move back in their favor according to the strategy.

Why is backtesting important for learning ICT strategies?

Backtesting is important because it allows traders to verify the effectiveness of strategies and build confidence before applying them to live trading.

What sessions are recommended for looking for trades in this strategy?

Trades should be looked for during the New York or London sessions.

How does one confirm a bearish market structure?

A bearish market structure is confirmed when the market makes lower lows and lower highs, indicating a downward trend.

What is the significance of marking the weekly open?

Marking the weekly open helps traders identify the manipulation phase, allowing them to position their trades accordingly.

What should traders do if they are struggling to understand ICT concepts?

Traders should focus on simplified concepts and easy-to-learn strategies, and consider backtesting to ensure understanding and effectiveness.