ICT Silver Bullet Strategy Simplified For Beginners (FULL TRADING PLAN)

Summary

In this video, a six-figure funded trader simplifies the Silver Bullet strategy, emphasizing its potential for success with just one asset, one time frame, and no daily bias. The strategy revolves around key steps like identifying market setups, recognizing liquidity buildups, and executing trades using fair value gaps. The trader breaks down rules for both AM and PM sessions, highlighting how to enter trades with a safe stop loss and consistent risk-to-reward targets. Through real chart examples, the trader shows how this strategy, if followed carefully, can offer consistent profits and the possibility of passing funded challenges.

Takeaways

• 😀 The Silver Bullet strategy simplifies trading by focusing on one time frame, one asset, and one specific time of day.
• 😀 ICT claims you can quit your job in 90 days using this strategy, but backtesting shows it's one of his best yet often misunderstood strategies.
• 😀 The strategy removes stress and guesswork, making it easier for beginners to follow with a clear checklist for each trade.
• 😀 The setup begins at 9:30 a.m. EST, preparing for market analysis and observing if the previous session high or low has been taken.
• 😀 Price action and liquidity are key to identifying setups, such as double bottoms or equal lows, before entering a trade.
• 😀 A 5-minute fair value gap (FVG) should form between 10 to 11 a.m. (AM session) or 2 to 3 p.m. (PM session) to confirm a trade.
• 😀 For long trades, wait for the previous low to be swept, and for short trades, wait for the previous high to be swept.
• 😀 Entry occurs at the top of the fair value gap, with a stop loss placed safely below the low of the previous candle for long trades, and above for short trades.
• 😀 A consistent risk-to-reward ratio of 1:2 is recommended to maximize profitability without being overly greedy.
• 😀 The strategy encourages discipline by sticking to the set rules and only entering trades that align with the checklist, ensuring consistency in results.

Q & A

What is the Silver Bullet strategy?

The Silver Bullet strategy is a trading approach that focuses on using a single time frame, trading one asset at a time, and only at one specific time of the day. It eliminates the need for a daily bias and simplifies trading by following a set of clear steps for setup and execution.

Why does the Silver Bullet strategy remove stress from trading?

The Silver Bullet strategy reduces stress by eliminating the guesswork involved in trading. It provides a structured approach with a clear set of rules, focusing only on specific setups and minimizing the complexity of decision-making.

What are the key steps in the Silver Bullet strategy?

The key steps are: 1) Prepare at 9:30 a.m. EST, 2) Check if the previous session's high or low has been taken, 3) Look for a 5-minute fair value gap between 10-11 a.m. or 2-3 p.m., 4) Identify whether it's a long or short setup based on price action, and 5) Enter the market based on the fair value gap with a set risk-to-reward ratio.

What does 'fair value gap' mean in the Silver Bullet strategy?

A fair value gap occurs when there is a space or imbalance between price levels, typically between candles. In a bullish setup, the gap forms when there is a buying imbalance, and in a bearish setup, it occurs due to a selling imbalance. This gap acts as a potential entry point for trades.

Why is it important to enter a trade based on a fair value gap?

Entering a trade based on a fair value gap ensures that you are trading when there is a clear imbalance or inefficiency in the market. This increases the probability of price moving in the desired direction and helps set a safe stop loss, making the trade more reliable.

How does the Silver Bullet strategy define the timing for trades?

Trades are considered during two specific time windows: 10-11 a.m. and 2-3 p.m. EST, with the best opportunities occurring when a fair value gap forms within these windows. This time-based approach helps focus on the most optimal market conditions.

What is the significance of the 'previous session high or low' in the strategy?

The previous session high or low acts as a key reference point for identifying liquidity areas. If these levels are taken out by price, it signals a potential reversal or continuation, forming the basis for identifying either a long or short setup in the Silver Bullet strategy.

How do you calculate your stop loss and target in this strategy?

In the Silver Bullet strategy, the stop loss is placed below the low of candle 1 (for a long setup) or above the high of candle 1 (for a short setup), ensuring the stop is in a safe position if the trade goes against you. The target is typically set at a 1:2 risk-to-reward ratio, aiming for consistent profits without being overly greedy.

What should traders do if a fair value gap forms outside of the expected time window?

If a fair value gap forms outside of the expected time window (10-11 a.m. or 2-3 p.m.), the trade can still be valid, but it is important to exercise caution. Traders should assess the gap's strength and the overall market context before entering a trade, ensuring it aligns with the strategy's principles.

How can the Silver Bullet strategy improve a trader's consistency?

By following a clear and simple set of rules, such as entering after a fair value gap forms and using a defined risk-to-reward ratio, traders can build consistency. The strategy reduces the chances of impulsive or emotional decisions, leading to more disciplined and repeatable results.