STOP Using ICT & Trade With This Strategy Instead.. (Stupid Simple)

Summary

This strategy focuses on trading GBPUSD using a simple, two-step process without any complex ICT concepts. By marking the high and low of the 3:00 AM 15-minute candle during the London session, traders look for breakouts in either direction. The strategy emphasizes minimal analysis, relying on price action and a 1:2 risk-to-reward ratio. The approach is ideal for those looking to simplify their trading, especially for FTMO challenges. The key to success lies in backtesting and applying the strategy mechanically with discipline and patience.

Takeaways

• 😀 Only trade GBPUSD on the 15-minute timeframe for this strategy.
• 😀 Focus on the 3:00 AM candle during the London session; mark its high and low as key levels.
• 😀 Wait for price to break above or below the 3:00 AM candle’s high or low to initiate a trade.
• 😀 If price closes far from the high/low of the 3:00 AM candle, enter the trade without a retest.
• 😀 Use a 1:2 risk-to-reward ratio for each trade, with stop-loss placed above/below the 3:00 AM candle.
• 😀 Break even at a 1:1 risk-to-reward ratio once the trade moves in your favor.
• 😀 If price reverses and closes in the opposite direction, take a second trade in that direction.
• 😀 Pay attention to the Asia session: if it consolidates, expect the London session to expand.
• 😀 Backtest the strategy thoroughly before applying it; at least 50 trades for valid results.
• 😀 Avoid overcomplicating the strategy—stick to the mechanical setup for consistency and profitability.

Q & A

What is the main concept of the strategy being taught in the video?

The strategy focuses on trading GBPUSD using a simple two-step process. It involves marking the high and low of the 3:00 a.m. candle in the London session on the 15-minute chart and entering a trade based on the breakout of that range.

Why is the strategy limited to only GBPUSD and not other currency pairs?

The strategy is specifically designed to work with GBPUSD, as the creator has found it to be effective for this pair. The video emphasizes that the strategy only applies to GBPUSD for best results.

What is the significance of the 3:00 a.m. candle in this strategy?

The 3:00 a.m. candle marks the beginning of the London session. Its high and low are used as key reference points for the strategy. Traders mark the high and low of this candle and use them to determine their trade entries based on price breakouts.

How should traders handle a breakout that occurs far away from the 3:00 a.m. candle's low?

If a breakout occurs far from the low, the strategy suggests entering the trade aggressively without waiting for a retest. The stop loss is placed above the high of the 3:00 a.m. candle, and a 1:2 risk-to-reward ratio is targeted.

What happens if a trader is stopped out but the price closes back in the opposite direction?

If a trader is stopped out and the price reverses, closing back in the opposite direction, they can take a second trade in the new direction. This is especially applicable when the price breaks and closes above or below the 3:00 a.m. candle again.

What does the term 'break even' mean in this strategy?

In this strategy, 'break even' refers to moving the stop loss to the entry point once the trade hits a 1:1 risk-to-reward ratio. This protects the position from further losses in case the price reverses.

How does the Asia session's price action affect the strategy?

If the Asia session is consolidating, it suggests that the London session will likely experience a breakout. Conversely, if the Asia session is trending or expanding, it may lead to price consolidation during the London session, which is a condition to avoid trading the strategy.

What is the importance of not overcomplicating the strategy?

The strategy is designed to be simple and mechanical, requiring just the 3:00 a.m. candle and the 15-minute chart. The creator emphasizes that overcomplicating the process with additional analysis or concepts, like ICT, is unnecessary for success with this strategy.

What is the recommended approach to testing the strategy before using it live?

The creator advises testing the strategy for at least a month and taking at least 50 trades to evaluate its effectiveness. The strategy should be backtested to understand its performance before using it in real trading scenarios like FTMO challenges.

What should a trader do if the strategy results in a loss on the first trade?

If the first trade results in a loss, the trader can take a second trade in the opposite direction if the price closes back within the opposite range of the 3:00 a.m. candle. This provides an opportunity to recover from the loss and potentially reach the profit target.