EASIEST ICT Strategy | No Daily Bias (Previous Day High and Low)
Summary
TLDRThis video script offers a trading strategy that doesn't require mastery of daily bias, often a complex and subjective aspect of trading. The presenter shares a simplified approach that's back-tested for profitability, suitable for traders of all levels. The strategy involves marking out previous highs and lows, observing fair value gaps, and using price action to enter trades with a 3:1 risk-reward ratio. Emphasis is placed on process over profit, with a focus on building momentum and consistency in trading. The presenter also discusses the importance of journaling and the power of mastering one strategy to develop willpower and trading discipline.
Takeaways
- π Understanding daily bias is subjective and often comes with experience, but it's not a necessity for profitable trading.
- π« The common misconception is that mastering daily bias is required for success in trading, which can lead to unnecessary stress and overtrading.
- π The speaker introduces a strategy that does not require an understanding of daily bias, emphasizing simplicity and back-tested effectiveness.
- π The importance of having a trading edge and a proven strategy is highlighted, as it forms the foundation for successful trading psychology.
- π The concept of 'decision fatigue' is discussed, suggesting that simplifying trading decisions can prevent poor choices and improve readiness.
- π The strategy involves marking out the previous day's high and low, waiting for a sweep, and then using a 5-minute displacement chart for entry signals.
- πΉ The use of 'fair value gaps' is explained as a key component of the strategy, indicating aggressive market movement away from previous highs or lows.
- π― Price waiting is a technique for taking profits, where the stop loss is trailed one candle back from the point of liquidity.
- π Journaling every trade is emphasized as a critical step for learning and improving as a trader.
- π The speaker stresses the importance of focusing on one strategy, one time frame, and one chart to build consistency and mastery.
- π Building 'willpower capital' through the process of trading is presented as a gradual exercise, akin to physical training, to develop the discipline required for trading success.
Q & A
What is the main argument presented in the video script regarding the importance of understanding daily bias in trading?
-The video script argues that while many believe understanding daily bias is crucial for profitable trading, it is not actually necessary for success. Instead, the speaker suggests that focusing on a simplified strategy and process can lead to profitability without needing to master daily bias.
What is the 'edge strategy' mentioned in the video script, and how does it aim to help traders?
-The 'edge strategy' is a trading approach introduced in the video that does not require an understanding of daily bias. It is designed to provide traders, especially beginners, with a simple and back-tested method to make money in the market by following a structured process and focusing on executing trades consistently without overthinking.
Why does the speaker emphasize the importance of keeping trading simple?
-The speaker emphasizes simplicity in trading to reduce the decision fatigue and emotional stress that comes with overcomplicating strategies. Simplicity allows traders to make quick, informed decisions and to build momentum and consistency in their trading, which are crucial for long-term success.
What role does 'inertia' or 'momentum' play in becoming a successful trader according to the video script?
-In the video script, 'inertia' or 'momentum' refers to the importance of building and maintaining a consistent level of performance in trading. It suggests that once a trader gains initial success and momentum, it becomes easier to continue that success, which is why it's crucial to start gaining that momentum early in one's trading career.
What is the significance of 'price waiting' in the context of the strategy discussed in the video script?
-Price waiting is a technique within the strategy that involves taking profits in a unique way. After the market hits a target, traders are advised to trail their stop loss one candle back, adjusting it with each new low to maximize profits on winning trades.
How does the speaker define 'decision fatigue' in the context of trading?
-In the video script, 'decision fatigue' refers to the exhaustion that comes from making too many decisions, which can impair a trader's ability to make quick and effective choices. This can lead to bad decisions and is something that even experienced traders need to manage to maintain their performance.
What is the recommended time frame for trading the strategy outlined in the video script?
-The recommended time frame for trading the strategy is from 8:00 to 11:00 a.m. Eastern Standard Time, focusing on specific financial instruments such as the NASDAQ e-mini futures, EUR/USD, or GBP/USD.
Why is journaling every trade considered an essential part of the strategy presented in the video script?
-Journaling every trade is considered essential because it allows traders to reflect on their actions, identify areas for improvement, and track their progress. This practice is crucial for learning from the market and oneself, and it helps to build the discipline and awareness needed for successful trading.
What is the significance of focusing on 'one strategy, one time frame, one chart, one time of day' as mentioned in the video script?
-Focusing on a single strategy, time frame, chart, and trading time allows traders to master that particular approach without being overwhelmed by trying to manage multiple strategies simultaneously. This focus helps in building expertise and consistency, which are key to becoming a successful trader.
What does the speaker mean by 'willpower capital' in the context of trading?
-'Willpower capital' refers to the mental strength and discipline required to be a successful trader. The speaker suggests that, like physical strength, willpower can be built up over time through consistent practice and adherence to a trading strategy, which eventually leads to the ability to handle larger trades and capital.
Outlines
π Overcoming Trading Challenges Without Daily Bias
The speaker suggests that understanding daily bias in ICT (Intermarket Commodity Channel Index) is often considered crucial for trading success, but it's subjective and not the only path to profitability. They share their personal journey, emphasizing the importance of simplifying trading strategies and finding consistency rather than getting lost in complex analysis. The video promises to reveal a back-tested strategy that doesn't require understanding daily bias, suitable for traders of all levels, focusing on the importance of process over outcome and the psychological aspects of trading.
π Simplifying Trading Strategies for Newer Traders
This paragraph discusses the complexity of trading strategies and the common mistake of overtrading due to the pursuit of mastering daily bias. The speaker introduces a 'no daily bias' strategy, emphasizing its simplicity and back-tested effectiveness. They explain the importance of readiness and avoiding decision fatigue, which can lead to poor trading choices. The strategy is designed to eliminate the need for complex analysis, allowing traders to focus on execution and consistency.
π Implementing the 'Edge Strategy' for Profitable Trading
The speaker outlines a specific trading strategy called the 'Edge Strategy,' which involves marking the previous day's high and low, waiting for a price sweep, and then looking for fair value gaps for entry points. They explain the use of price action waiting for taking profits and emphasize the importance of journaling every trade to reflect on performance and improve. The strategy is applicable to specific trading pairs and time frames, with additional tips on adjusting risk based on market conditions.
π Building Momentum and Willpower for Successful Trading
The final paragraph focuses on the importance of building momentum and willpower in trading. The speaker advises viewers to focus on mastering one strategy at a time to make substantial progress and emphasizes the value of being lightly profitable with a consistent strategy. They discuss the concept of 'willpower capital' and liken it to physical exercise, suggesting that traders should progressively increase their capacity for discipline and focus. The speaker concludes by encouraging viewers to learn from the market, measure their actions, and manage their trading journey effectively.
Mindmap
Keywords
π‘ICT (Inner Circle Trader)
π‘Daily Bias
π‘Profitable Trader
π‘Strategy
π‘Order Blocks
π‘Price Action
π‘Confluence
π‘Risk-Reward
π‘Journaling
π‘Inertia
π‘Edge
Highlights
Mastering ICT daily bias is suggested as a key to becoming a profitable trader.
Daily bias is subjective and lacks a systematic way to find it, often acquired over time.
The speaker proposes a strategy that does not require understanding of daily bias and is back-tested for profitability.
The importance of simplicity in trading strategies is emphasized to avoid overthinking and emotional trading.
The speaker shares personal experiences with complex trading algorithms and the transition to a simpler approach.
Order blocks and price action are introduced as fundamental elements for simplifying trading strategies.
The concept of 'edge' in trading is explained as an advantage that proves a strategy works over time.
Trading psychology is tied to having a proven strategy, emphasizing the importance of probabilities over individual trades.
The speaker introduces a strategy called 'The Edge Strategy' designed to provide an initial advantage in trading.
A flowchart of the strategy is provided, emphasizing the importance of a structured approach.
Specific trading rules are outlined, including the use of NASDAQ, EURUSD, or GBPUSD, and trading hours.
The importance of journaling every trade for reflection and improvement is highlighted.
Bonus confluences are introduced to modify risk in trading under certain market conditions.
The concept of 'decision fatigue' is discussed, emphasizing the need for streamlined decision-making in trading.
The strategy involves marking out previous day's high/low, waiting for a sweep, and using a 5-minute displacement chart.
Fair value gaps are identified as key indicators for entry points in the market.
Price waiting technique is explained for taking profits, involving trailing stops based on market liquidity.
The speaker encourages focusing on one strategy and building momentum in trading for long-term success.
Building willpower capital in trading is compared to physical exercise, emphasizing gradual progress.
The speaker offers a program for becoming a funded trader in 12 weeks, with a guarantee for those who qualify.
A call to action is made for viewers to subscribe for free educational content and consider the offered trading program.
Transcripts
if you mastered ICT daily bias would you
become a profitable Trader my guess is
yes because if you're feeling stuck or
overwhelmed with ICT and your trades are
just continuously losing even though you
feel like you're doing everything you're
supposed to well then the reason is
probably because you don't understand
daily bias and the reason that people
don't understand daily bias is because
it's subjective now what I mean by that
is there is no systematic way to find it
and it's something that does just come
with time in the game and a lot of you
guys don't have that but the good news
is is you don't need daily bias
everybody thinks you need daily bias in
order to make money and this is because
people are kind of stuck in this ICT
bubble but in today's video I'm going to
show you a strategy that requires no
daily bias that is back tested and that
you can make money with starting today
this doesn't matter your experience
level this doesn't matter if you even
know what ICT is as long as you pay
attention to what I'm about to share
with you and follow each step exactly as
I tell you to do it then I promise you
this will change your trading forever
most of you guys are in the same exact
boat that I was in before I became
profitable I I remember I would sit
there and I would study everything I
could I had trading books I watched
every single course you can think of I
did everything I was even trading with
this algo and and not the algo that you
guys trade with or we try to trade
Beyond with ICT but it was called Omni I
remember the feeling of my eyes
literally burning because I was sitting
there looking at my chart it was like a
laser show there were dozens of
different color lines on here and you
know I kind of was telling myself like
this is the way and you see all these
movies about you know stock Traders or
you see all their comp complicated
charts and it's so far from how it
actually works but anyways that was me
and every time this indicator would
print a signal or give me some reason to
trade my my heart would just start
beating and I was sitting there just
tense literally leaned over tense into
my screen and this caused me to operate
in a way that's obviously not very
productive for trading but then I found
order blocks this is how I originally
found ICT and I loved how simple it was
I said oh all I need is price action and
it was it was almost like a miracle
whenever I started to simplify what was
doing into just a couple core Parts
immediately I started making money and I
was able to find consistency now of
course there was a rocky climb I'm
skipping a lot I mean I went up and down
but that was the turning point and the
reason I'm telling you this is because
you guys are just like I was you're
tense looking over the screen maybe not
because you're trying to track some
complicated algorithm but because you
don't understand daily bias but you're
equipped with all these entry models
because let's be honest an entry model
or a market structure shift or the ICT
2020 too these are all very easy to
learn I can teach someone that that
doesn't even trade in a matter of 10
minutes but if they go out into the
market and try to trade it they're going
to lose and the reason for that is
because once you are equipped with this
knowledge you get in front of your
screen you're watching the market open
and you're just tense your heart's
pounding is this a setup oh we have this
is this and this is because you don't
understand daily bias which is why this
video is going to change your trading
forever because it's going to show you
you don't need to understand daily bias
in order for this strategy or any
strategy or you're trading to work at
all or for for you to grow you need to
understand the difference between
surface and root
problems and this is the difference
between very successful people or
successful Traders and people who aren't
most people always think in terms of the
first order of business or the surface
problem so the surface problem that you
thought about that made you click on
this video is I don't understand daily
bias I'm losing my trades if I if I
learn daily bias I'm going to be
successful and this is partially true
but the root problem that this is
actually causing is what happen whenever
you don't understand daily bias what
happens whenever you're sitting in front
of your screen tense over trading what
happens to you as a Trader because
that's what's important not what happens
to you in that moment so what happens is
you become discouraged you lose
confidence you're not able to be
consistent trading becomes stressful and
you go on till and these are where you
make the biggest mistakes in trading
because not understanding daily bias
can't destroy you as a Trader but you
can destroy you and the way that you do
that is by going on tilt by go getting
on this emotional roller coaster that is
caused by forcing yourself to try to
understand something that you don't
understand and trying to use tons of
different strategies on how to master it
so that is a good example of surface
versus the root problem and you have to
identify these true root problems that
are being caused by your behavior and
fix them or you're never going to be
able to be a successful Trader and that
is what the difference is between those
of you who will be successful and those
of you who won't and that's just the
truth another thing that you need to
understand is that Readiness is key
so there's something I like to call
decision fatigue and this is something
that all highlevel Executives hire an
assistant for recently I even hired an
assistant to just help me with my to-do
list because I'm not only trading I'm
running multiple businesses and simply
making decisions can fatigue you and
this goes the same for trading if you're
sitting in front of your screen and
you're having to map out 25 different
things and you need all these different
levels and confluences to enter a trade
then you're not going to be able to make
quick decisions and you're not ready and
if you're not ready you act from a
reactive standpoint and when you're
acting from a reactive standpoint you
make bad decisions it's similar to let's
say if you have a business and you grow
pretty quickly and you have to hire
people or your business fails well
you're not going to have the time to
hire the right people and instead you're
just going to hire whoever will take the
job and this is how you make bad
decisions and this goes the same for
trading and this is why no daily bias
strategies are so powerful for newer
Traders because they take away all of
that decision of trying to look at 10
different time frames to see whether or
not we're bullish or bearish and then by
the time you've done that by the time
you've psyched yourself out of Every
Which idea you're scared to execute on
one side and then the other side you
know you you second guess yourself and
and then the market moves and the day is
over and after the big move you start
overtrading and this is the death cycle
a lot of ICT Traders go on because
they're so infatuated with mastering
daily bias and all of this complicated
stuff that is pushed on your throat by a
bunch of gurus but you don't need any of
that to make money so what this video is
going to do is it's going to remove
those emotional barriers and allow you
to make consistent executions without
having to overthink things without
things being so complicated they always
say that making your first 100,000 is
the easiest and after that it gets
easier and the same with Millions the
same with getting funded and the same
with getting a payout it's so hard to
first get to that funded account and
then you'll probably you might blow that
account that's fine but then it's really
hard to get to that first payout but
once you get it it becomes much easier
and there is one word that explains this
concept and this one word is what
separates people who you know stay at
the level they're at in life to the
people who Excel and this is why they
say the poor get poor this is why they
say the rich get richer this is why once
you get your foot on the gas you cannot
let up because the hardest thing to
build the hardest and most important
thing that you can build as a successful
person Trader whatever it is is inertia
so inertia or momentum is something that
you have to be able to build and if you
don't build inertia if you don't build
momentum and you don't keep that
momentum then you will never become
successful and that's why it's so hard
to go from zero to hero because when
you're going from Zero to Hero you're
starting from nothing you're starting
from 0 miles hour so to get to 100 miles
hour is really hard but once you're
cruising at 100 going up higher isn't as
hard but you have to build that momentum
and if you're stuck paralyzed trying to
master daily bias then you're not going
to get that momentum now am I saying you
never will learn it no I'm not saying
that a as time goes on you get better at
Daily bias it's one of those things that
you can learn all the strategies and you
can have the strategy to find it but
it's it's going to take time for you to
master and if you spend that time
overtrading and being paralyzed because
you don't know how to spot it you're
going to form a lot of bad habits that
by the time you do understand it they're
going to hurt you that's why it's
important to find out how easy it is to
follow an approach when it's simplified
and that's why I made this video because
so many of you guys need to just focus
on what it feels like to win what it
feels like to be a profitable Trader or
a professional Trader and what it feels
like to have an edge and that's why I
named this strategy the edge strategy
because it's going to be the first Edge
that most of you guys have in your
trading career a lot of you guys are
already profit watching this so I'm not
saying everybody isn't but a lot of the
people are watching are still trying to
learn an edge for those of you who don't
know is just your advantage in the
market your proof that your strategy
works over time and this ties into
trading psychology because a lot of
people want to focus on trading
psychology oh well I'm not profitable
because my mindset is not right but if
you don't have an edge and you don't
have a strategy that's proven there's no
such thing as trading psychology because
all Trading psychology is is focusing
and trusting on the probabilities and
not getting caught in the weeds and not
caring if you take a loss or two so once
you understand that a strategy is
profitable over the long term you're
able to stick with it and the losses
don't really matter as much make sense
cool let's go ahead and hop right into
the strategy so this is the flowchart of
the strategy you can take a screenshot
of this but you should always think in
this you know if we Mark out the
previous daily high if we sweep right
then we look for this if it doesn't
swept we sit on our hands okay so very
important that you focus on operating in
a process so you can take a look at this
and just screenshot it I'll also put a
picture of this uh in on my Twitter or
in the free telegram I'll leave links
down that in the description but anyways
the rules here are we're only going to
be using the NASDAQ es eurusd or gbpusd
you're only going to be trading from 8:
to 11:00 a.m. eastern standard time
you're going to be using 3 to one risk
reward and then price waiting for the TP
I have a video that teaches you how to
use that I'll leave it down in the
description and you're going to journal
every single trade now this is extremely
important because most of you guys are
going to be trading the strategy haven't
yet found profitability and if you don't
journal every trade if you don't spend
the same amount of time that you spend
trading on reflecting then it's you're
not going to become successful if you
spend an hour trading I want you to
spend an hour looking at the market
identifying how you could have done
better where you could improve where you
did good your trades everything you need
to be aware of everything and this
forces you to be hyper aware which is
something that most Traders aren't and
what do most Traders do they lose money
see how that makes sense now there are
some bonus confluences here if there is
a silver bullet in play I have a video
on this but if there is a silver bullet
in play you add risk if this
confirmation occurs after after red
folder news release you increase risk if
price Taps into a 1H hour fair value Gap
when this is happening you increase risk
now am I saying you risk 5% of your
account no you would just risk about 50%
more than you usually do okay so don't
go crazy with this a lot of gurus will
tell you to risk the same amount all the
time that's not how you make money and
we're here to make money let's go ahead
and hop right into how we're going to do
this so the first thing is we're going
to Mark out the previous day's high and
low now this is don't ever think this is
literally just the highest price of the
previous daily candle and the lowest
price so you're going to Mark out those
levels and those are the levels we're
going to look for reversals at so you
see here in this example we've marked
out the previous daily high and coming
into the market we've got consolidation
so you would wait for either the
previous daily high or the previous
daily low to be swept and if it is not
swept you know what to do okay so if it
is swept the next step is going to go to
a 5 minute displacement so step two is
we've waited for the sweep it got swept
there's not much to explain here so
after we have swept this previous daily
high as soon as the market comes above
it and we move right back down now you
don't want the market to displace
through it so if the market makes a high
and then it just keeps displacing and
running past it you don't want to enter
on these you want to make sure that the
market is reacting to this previous
daily high or the previous daily low now
if the market comes above it as soon as
it forms a fair value Gap now a fair
value Gap is just a expansion candle and
then the candle before it that Wick
doesn't touch the candle after its Wick
and then there's this Gap hence the fair
value Gap so you want to watch as the
market forms these fair value gaps
because they tell you the market is
aggressively moving away from that
previous daily high and if people are
selling above that high the Market's
likely to move down in this example you
would Mark out every fair value Gap and
the first one you're able to trade into
okay like notice how we created this one
that's fair value Gap one and the fir
the second one is the one we traded into
so it's just the one that's closest to
you so if price is creating gaps moving
down you're just going to wait for it to
tap the first one and that is where you
would enter and then you put the stop
loss above the highest high or the
lowest low now notice how much more risk
reward we got and I'll do a brief
summary of price waiting you would
Target the most obvious point of
liquidity so if you're in a Range you're
going to Target the opposite side of the
range you can use the 15 minute to find
this Target or the 1 hour now remember
you're entering only on the 5 minute
time frame the entry has to be only on
the 5 minute time frame five minutes
people will ask in the comments what
time frame 5 minutes M5 enter in the 5
minute time frame after that you're
looking for the most obvious opposing
pool of liquidity at a minimum 3 to 1 R
now notice how we are able to get much
more than 3 to 1 R the way that this
works the way that price waiting works
is we're going to take profit in a much
different way so simply put once you
have a Target once the market hits that
Target the candle that hits it you go
one candle back and you would Trail your
stop right there now every time you make
a new lower low you do the same thing so
we hit that I'll zoom in for you guys I
know some of you guys are on mobile so
once we hit this low right here we make
a new lower low we go one candle back
Trail your stop right there
right here we hit this low then we go
back Trail your stop right
here after we go down here you hit this
low you Trail your stop right there and
this is where you were stopped out
notice how you were able to catch much
more of a move that's around looks like
700 down to you're able to catch almost
280 points more on NASDAQ that's a
insane amount this is super super
important if you want to watch a whole
video on price weighting and how to
maximize your winning trades all leing
I'll leave a link down in the
description tongue twister yeah but this
is this is crucial okay this can change
your trading forever if you just follow
this simple strategy you just need to
make sure that you follow the rules that
I gave you at the beginning of the video
and that's it okay don't overthink it
but I want to give you a game plan on
how to implement this because while it
is simple there is still a structure
that you need to follow but if you
enjoyed this video and you want to get
more free education where I teach you
strategies and all sorts of everything
that you need to become profitable I
mean I even have a full free course go
ahead and subscribe to my Channel I post
two to three videos every single week
here on YouTube all for free so a couple
steps that I want you guys to follow we
kind of hit on this you need to journal
every single day if you spend one hour
trading you have to spend one hour
reviewing the market reviewing your
Journal because that's how you actually
learn and there are some things that
nobody can teach you including myself
except the market so learn from the best
teacher that there is always remember
that what isn't measured isn't managed
and if you do measure it you can manage
it okay so if you're measuring your
actions you can manage them now
something else I want to talk about is
the power of one one strategy one time
frame one chart one time of day focus on
mastering one thing and sharpening the
axe rather than trying to hit a tree
with a dull axe that's what you guys
effectively do trying to trade 25
different strategies at once so after
this video and and this may be not
beneficial to me because I want you to
watch my videos but stop watching videos
for just a couple weeks just focus on
this alone and maybe it's maybe this
strategy isn't your favorite whatever
but just focus on one thing you have to
focus on one thing for an extended
amount of time to make any substantial
progress something else that this is
going to help you build is your
willpower Capital what I mean by that is
let's just say I told you to go run 20
miles right now maybe there are some of
you watching this that could but for the
most part you can't what would you start
if I said you have to run 20 miles
within the next oh I dropped my pen um
what would I say if I or what would you
say if I said in the last in the next 6
months you have to run 20 miles we'd
probably start by running a mile at a
time and the same goes for finding
willpower and trading so if you want to
have the willpower that it takes to
scale as a Trader to be able to trade
with large capital and make large money
then you have to build willpower by
going through the exercises just like at
the gym if you want to go lift weights
and scale up you progressively increase
the amount of weight you're lifting so
you're going to progressively increase
the amount of willpower that it takes
for you to trade and by simplifying
everything and just having something
that takes the guest work out is this
going to make you a multi-million dollar
Trader no but what it will teach you is
the value of being lightly profitable
with a consistent strategy and adhering
to that strategy because if you're
trying to be a successful Trader your
goal should be to become a successful
Trader and not to just make a ton of
money at first now that may sound kind
of counterintuitive but if you focus on
the process the outcome will always come
so don't Focus so much on making money
at first but focus on building the
identity of a good Trader and learning
what it takes to become successful which
is following one simple strategy and
look I know this journey isn't easy I
was where you were at at one point I was
struggling it took me years to become
profitable and the reason that I make
videos is so that people that are
watching them can become profitable
without having to go through all the
pain losing all the money and taking all
the time that I did that's why I'll
always post free education here on
YouTube I'll never stop I'll post two to
three videos every single week and try
to do my best to help as many Traders as
possible but if you're serious about
your trading and you want to work
directly with me Trading live with me
having me review your trades um and a
lot of other cool stuff then click the
link down in the description to become a
funded Trader in 12 weeks guaranteed now
guaranteed is only if you qualify this
isn't for everybody okay I want to be
clear if you're not serious if you're
not going to give this your all then
this is not for you but if you are going
to give this your all then I will give
you my all and I will guarantee that you
become a funded Trader in 12 weeks again
make sure to subscribe to the channel
I'll post videos here whether or not we
work together I'll be talking to you
every single week and I'll see you guys
in the next video video
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