The 5R Trading Strategy (Replace Your 9-5)

Summary

In this video, the speaker shares their TTTM strategy for intraday trading, which has been instrumental in producing successful traders. They discuss four key components: Point of Interest (POI), liquidity run, entry, and target. The speaker illustrates a bearish and bullish scenario on EUR/USD, detailing how to identify POI, the importance of liquidity runs, and the significance of entry and target points. They emphasize the strategy's effectiveness in achieving high risk-to-reward trades, exemplified by a £2,000 profit from a £400 risk trade.

Takeaways

• 📈 The presenter offers a free 'tttm' PDF guide to enhance trading strategies, emphasizing its effectiveness in producing successful traders.
• 📊 The video outlines a four-part intraday trading strategy: Point of Interest (POI), liquidity run, entry, and target.
• 🔍 For a bearish stance, the presenter prefers to see the price rise before dropping, indicating a potential entry point.
• 📉 The 'fair value gap' is identified as a critical element for price movement, representing uneven trading that needs to be balanced.
• 💧 The liquidity run is highlighted as a significant step, where price taps into areas that trigger buy stops and potential entries.
• 🔑 The entry strategy involves waiting for a retracement or displacement in price, aiming for a smaller stop loss and better risk-reward ratio.
• 🎯 The target is set based on areas of liquidity, such as previous day's lows, where sell stops and breakout selling are anticipated.
• 💹 The strategy aims for a 1 to 5 risk-to-reward ratio, with the presenter sharing a personal trade example that resulted in a significant profit.
• 📅 The video provides a detailed walk-through of two trading days, demonstrating how to apply the strategy in both bullish and bearish market conditions.
• ⏰ Patience is emphasized in waiting for the best entry points and not rushing into trades, which is crucial for the strategy's success.

Q & A

What is the purpose of the free PDF guide mentioned in the video?

The free PDF guide is designed to detail the presenter's 'tttm' trading strategy, which is claimed to be life-changing and capable of producing five and six-figure traders.

What are the four core parts of the intraday trading strategy discussed in the video?

The four core parts of the intraday trading strategy are the Point of Interest (POI), the liquidity run, the entry, and the target.

Why does the presenter prefer to see the price move higher before a drop when they are bearish on a currency pair?

The presenter likes to see the price move higher first because it provides a better entry point for a potential drop, aligning with a bearish stance on the currency pair.

What is a 'fair value gap' in the context of the trading strategy?

A 'fair value gap' refers to a period of uneven trading where there is a significant amount of selling without corresponding buying, indicating that the price may need to rise to provide even trading before it can drop.

How does the presenter identify a potential entry point after a liquidity run?

The presenter identifies a potential entry point by looking for a displacement to the downside followed by a retracement, which indicates a possible reversal and a good entry opportunity.

What is the significance of the 'institutional down close candle' in the trading strategy?

The 'institutional down close candle' is significant as it represents a point of interest where the presenter expects price sensitivity, often marking a potential area for the price to reverse or consolidate.

Why is it important to wait for a retracement before entering a trade according to the video?

Waiting for a retracement before entering a trade is important because it allows for a more favorable entry point with a potentially smaller stop loss, thus improving the risk-to-reward ratio.

What does the presenter mean by 'taking profit' and how does it relate to the trading strategy?

In the context of the trading strategy, 'taking profit' refers to the act of closing a trade to secure gains. The presenter identifies areas of liquidity or previous day's highs as potential targets for taking profit.

How does the presenter use the previous day's low or high as a target in their trading strategy?

The presenter uses the previous day's low or high as a target because these levels are expected to have liquidity and act as areas of interest where the price is likely to encounter resistance or support.

What is the average risk-to-reward ratio that the presenter claims their strategy can achieve?

The presenter claims that their strategy can achieve an average risk-to-reward ratio of about 1 to 5, with the potential for trades to go much further.