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

MHU FX
8 Aug 202409:24

Summary

TLDRIn 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.

Outlines

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Mindmap

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Keywords

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Highlights

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Transcripts

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Related Tags
Intraday TradingTrading StrategyEUR USDLiquidity RunFair Value GapPOI AnalysisEntry TechniquesRisk RewardTrading TipsFinancial Markets