The Trade That Passed Phase 1 of 400k Funded Account In 2 Days - #forex

Summary

In this trading video, the speaker discusses their successful AUDUSD trade, which passed the first phase of their 400k account challenge. They detail their strategy of waiting for a bearish move, identifying liquidity collection, and correlating with other currency pairs for higher probability trades. The speaker shares their risk management approach, risking 1.5% on a trade with a 12 pip stop loss, and their use of indicators like Market Cipher, RSI, and volume analysis to identify high confluence for potential price movements. The video captures a significant profit made in a short span, highlighting the importance of trading setups and risk management.

Takeaways

• 📈 The trader successfully passed phase one of their 400k account with a significant trade on AUDUSD.
• 🧭 They were anticipating a bearish move in the pair and identified a large upward move as a liquidity collection opportunity.
• ⏰ The trade was executed pre-NFP (Non-Farm Payrolls report), indicating the trader's strategy was based on economic data anticipation.
• 📊 They correlated AUDUSD with other currency pairs moving inversely, increasing their confidence in the trade direction.
• 💼 The trader uses a combination of fair value gaps, areas of interest, and liquidity to identify trading opportunities.
• 🛑 They risked 1.5% on the trade with a 12 pip stop loss, emphasizing a disciplined risk management approach.
• 💹 Despite an initial loss, they adjusted their stop loss and ultimately made a profit of 47.8k using 43 lots.
• 📉 The trader expected the price to reach the weekly EMA or even the 50% Fibonacci level, showing a clear understanding of technical analysis.
• 📊 They used Market Cipher, a trading tool, to identify high confluence bearish signals, contributing to their decision to enter the trade.
• 📊 The trader also considered the Relative Strength Index (RSI) and trading volume to confirm their trade setup.
• 🔄 They traded with the expectation of holding for about two weeks, highlighting their swing trading strategy.

Q & A

What currency pair is the speaker trading?

The speaker is trading the AUD/USD currency pair.

What was the speaker waiting for before entering the trade?

The speaker was waiting for AUD/USD to make a bearish move and for liquidity to be collected at a higher level before entering the trade.

What event does the speaker mention that had an impact on the trade?

The speaker mentions the NFP (Non-Farm Payroll) report as a key event that caused a significant move in the market, which impacted their trade.

What was the speaker’s risk management strategy for this trade?

The speaker risked 1.5% of their account with a 12-pip stop loss on this trade. They stated they do not risk more than 1.5% per trade.

How much profit did the speaker make on this trade?

The speaker made $47,800 on the trade by using 43 lots.

What technical tools and indicators does the speaker use for analysis?

The speaker uses fair value gaps, areas of interest, market correlations with other pairs, Market Cipher (a technical analysis tool), RSI, volume analysis, and Fibonacci levels.

Why did the speaker decide to use a large lot size for this trade?

The speaker decided to use a large lot size (43 lots) because the stop loss was very small at only 12 pips, which allowed for a larger position size while still managing risk.

What is the significance of the speaker’s $400k account?

The $400k account represents the funded account the speaker is trading on, and this trade passed phase one of the account challenge in less than two days.

How does the speaker typically trade in terms of time frames and holding positions?

The speaker typically holds trades for two weeks or until the trade completes, depending on market conditions.

How does the speaker use volume in their analysis?

The speaker uses volume to confirm the strength of moves, noting high volume in certain areas as a confluence for entering trades.