ICT W.E.N.T. Series - Part 2 of 5

Summary

本视频讨论了如何通过每月6%的复合增长率实现账户翻倍，并以5000美元的账户为例，展示了在不同风险控制下，如何通过设定合理的止损点和目标盈利点来实现稳定的收益。视频中还强调了交易计划的重要性，通过实际案例分析，教授如何在不同的市场情况下寻找合适的交易机会，并坚持执行计划，即使在某些情况下可能会遭遇亏损。

Takeaways

• 📈 投资回报目标：假设每月6%的复合增长率，一年后5000美元的投资将翻倍至10000美元。
• 🚫 风险管理：使用30点止损策略，即使在追求6%的月回报率时，也只承担2%的资本风险。
• 📊 投资心态：投资不是赛跑，而是一个长期旅程，享受过程比急于求成更重要。
• 🔍 目标设定：如果目标是每月3500美元的收入，需要在账户中有足够的资金来支持这一目标。
• 📌 交易策略：通过减少止损点数（如从30点降至20点或15点），可以在不增加风险的情况下提高交易灵活性。
• 📈 增长潜力：通过提高交易的精确度和减少止损点数，可以在保持2%风险不变的情况下，实现更高的月回报率。
• 📊 风险与回报：在保持2%风险不变的情况下，通过调整止损点数，可以实现从6%到30%不等的月回报率。
• 📈 长期视角：长期来看，即使是小幅度的月回报（如6%）也能在三年内显著增长投资额。
• 📝 交易计划：通过专注于每周的交易计划，即使不是每天都交易，也能实现稳定的收益。
• 🔍 市场分析：利用每日和每周的高点和低点作为交易决策的依据，可以帮助交易者在市场中找到有利的交易机会。
• 📈 财富积累：通过寻找并执行具有高风险回报比（如4:1）的交易，可以有效地积累财富。

Q & A

视频中提到的6%的月复合增长率是如何计算的？

如果从$5,000开始，每月持续获得6%的回报，一年后（即2015年1月）的资金将翻倍，达到$10,000。这是通过复利计算得出的，即初始金额乘以(1 + 月增长率)的12次方。

视频中提到的30 pip止损是什么意思？

30 pip止损是指在交易中设置的一个风险管理参数，如果交易亏损达到30个价格点（pip），系统会自动关闭交易以避免进一步的损失。

为什么视频中建议新交易者使用30 pip止损？

视频中提到，新交易者使用30 pip止损可以提供一定的灵活性，因为新交易者在开始时可能会急于交易或者犹豫不决，这可能导致他们错过最佳交易时机。

视频中提到的6%的月回报率在投资世界中是如何定位的？

视频中强调，6%的月回报率在投资世界中是一个显著的回报，对于不熟悉投资世界的人来说，这可能听起来难以置信，但实际上这是一个非常了不起的回报。

视频中提到的10%的月回报率需要多少pip？

为了实现10%的月回报率，需要净赚38个pip，同时保持2%的风险比例不变。

视频中提到的减少止损到20 pip意味着什么？

减少止损到20 pip意味着交易者在每笔交易中愿意承担更小的风险，这通常需要更精确的入场点和更好的风险管理策略。

视频中提到的4到1的风险回报比是什么意思？

4到1的风险回报比意味着交易者愿意承担1个单位的风险（如20 pip），以期望获得4个单位的回报（如80 pip）。这有助于提高交易的整体盈利潜力。

视频中提到的30%的月回报率需要多少pip？

为了实现30%的月回报率，需要在一周内赚取113个pip，或者一个月内赚取450个pip。

视频中提到的15 pip止损如何影响交易策略？

使用15 pip止损意味着交易者在每笔交易中承担更小的风险，这通常需要更精确的交易策略和更好的市场分析能力。

视频中提到的交易练习的目的是什么？

交易练习的目的是帮助交易者发展一致性，学习如何遵循交易计划，无论交易是否每次都盈利，都能保持一致的交易行为。

Outlines

00:00

📈 投资回报与风险管理

本段落讨论了如何通过每月6%的复合增长实现投资账户的翻倍。以5000美元起始资金为例，展示了一年后的预期收益，并强调了使用30个点止损的重要性。同时，提出了对于新手交易者来说，可以通过调整止损来减少风险，从而在保持2%风险的同时，实现更高的回报。

05:04

💰 月收入目标与账户资金

这一段解释了为了达到每月3500美元的生活费用，交易者需要在账户中拥有多少资金。建议交易者在达到一定资金水平前，不要依赖交易账户的资金生活。强调了通过储蓄账户或银行账户来维持生活，同时让交易资金在一年内增长的重要性。

10:09

📊 提高交易效率

本段落讨论了如何通过提高交易的精确度来减少初始止损，从而在保持相同风险水平的情况下，实现更高的月回报。通过减少止损到20个点，交易者可以在每周只需赚取75个点，而不是之前的150个点，来达到10%的月回报。

15:10

🚀 实现更高回报

这一段提出了如何通过调整交易策略来实现更高的月回报，例如20%或30%。通过使用更小的止损和更高的回报目标，交易者可以在不增加每笔交易风险的情况下，实现更高的收益。同时，强调了一致性和风险管理在交易成功中的重要性。

20:11

📉 交易策略与心理

本段落讨论了交易者在追求每日或每周固定点数收益时可能遇到的问题，如过度交易。提供了不同交易风格的示例，包括日内交易、摇摆交易和头寸交易，并强调了选择适合自己的交易风格的重要性。

25:12

📝 交易计划与执行

这一段详细介绍了如何通过使用每日和每周的高点和低点来制定交易计划。通过在特定价格水平买入或卖出，并设置适当的止损和止盈，交易者可以控制风险并寻找有利可图的交易机会。同时，强调了坚持交易计划和纪律的重要性。

30:13

📈 交易实践与学习

最后一段通过实际的交易例子，展示了如何应用前述的交易策略。通过在特定价格水平进行买卖，并设置止损和止盈，交易者可以在一周内实现目标收益。同时，强调了在交易过程中遇到亏损是正常的，重要的是从亏损中恢复并保持整体盈利。

Keywords

💡复利

复利是指投资收益在一定周期内再次产生收益的现象。在视频中，提到了6%的月复利可以在一年内使账户翻倍，这是投资领域中一个重要的概念，因为它展示了资金增长的潜力。

💡止损

止损是交易中的一个风险管理策略，用于限制潜在的损失。视频中提到使用30个点的止损，这是为了给新手交易者提供一定的灵活性，允许他们在价格波动时有一定的容错空间。

💡点差

点差在交易中指的是买入价和卖出价之间的差价，通常由交易平台或经纪商设定。视频中提到了考虑点差和滑点，这是交易成本的一部分，对交易者的盈亏有直接影响。

💡风险回报比

风险回报比是交易中衡量潜在收益与潜在风险的比例。视频中强调了寻找至少1:1的风险回报比，这是为了确保即使交易失败，也不会对账户造成太大影响。

💡交易策略

交易策略是交易者为了实现盈利目标而遵循的一系列规则和方法。视频中提到了不同的交易策略，如每日交易、摇摆交易和剥头皮交易，每种策略都有其特定的风险和回报特性。

💡支持和阻力水平

支持和阻力水平是技术分析中用来预测价格走势的关键水平。视频中提到了如何利用这些水平来确定买入和卖出的时机，这是基于历史价格行为的假设。

💡交易心理

交易心理涉及到交易者在面对市场波动时的情绪和决策过程。视频中强调了遵循交易计划的重要性，即使在面对亏损时也要保持一致性，这是为了培养良好的交易习惯。

💡市场波动性

市场波动性是指市场价格变动的速度和幅度。视频中提到了在低波动性市场中寻找交易机会的策略，这要求交易者有更高的精确度和耐心。

💡交易日志

交易日志是交易者记录交易决策、结果和反思的文档。视频中虽然没有直接提到，但通过回顾和分析交易日志，交易者可以改进策略，这是提高交易技能的重要工具。

💡资金管理

资金管理是交易中控制风险和最大化收益的关键。视频中提到了如何通过调整止损和目标盈利点来管理每笔交易的风险，这是为了确保账户的长期稳定增长。

Highlights

6%的复合年增长率可以使投资账户翻倍。

使用30个点的止损可以为新手交易者提供灵活性。

假设每月6%的回报率，每周需要净赚423个点。

为了实现每月3500美元的收入，需要在账户中有足够的资金。

10%的月回报率需要每周净赚38个点。

通过提高交易精度，可以减少初始止损点数。

20%的月回报率在减少止损到20个点后，每周需要净赚50个点。

30%的月回报率在减少止损到15个点后，每周需要净赚56个点。

通过控制风险和提高回报率，可以在不增加总风险的情况下提高月回报。

在交易中，重要的是遵循一致的计划，而不是每天都交易。

使用日图和周图的高点和低点来确定交易水平。

在交易中，要学会接受亏损并从中恢复。

通过专注于每周和每日的高点和低点，可以提高交易的一致性和执行能力。

在交易中，目标是寻找4:1的回报风险比。

通过练习和经验，可以提高在图表中识别交易机会的能力。

交易不仅仅是关于盈利，而是关于遵循一致的交易计划。

Transcripts

okay in the previous video we discussed

how 6% compounded over a year would more

than double your account and you can see

that depicted here if one hypothetically

started with $5,000 and you were in fact

consistently returning 6% per month

after one full year January of the

following year 2015 you would have just

a little bit over doubling your money at

five thousand would be ten thousand

again you can see just a little bit

$60.00 a ninety-eight cents and again as

I promised it's less than 25 pips per

week now I know it sounds a little too

good to be true being able to make just

a little bit of pips like because for

over a period of a week and still doing

such a dramatic increase in your equity

and again if you guys aren't excited

about 6% per month and you don't think

that is dramatic return stand you know

you obviously aren't really aware of

what goes on in the investment world

because this is a phenomenal return okay

but that's assuming you're using a 30

pip stop which is essentially what I

like to see new traders do because it

gives you a little bit of a flexibility

for you know allowing in their price

actually because most of us when we

first start doing things we're in a rush

to do things or we are a little

lethargic or apprehensive so we may get

in at most of opportune time we'll

probably end up missing that as we

develop as new traders so I allow a 30

pip stop and I actually encouraged

traders to use the 30 pip stop as an

initial if you're really really green to

trading you could use a 40 pip stop and

then we'll give you a lot more cushion

as well now don't be discouraged because

it will be considered a large stop in

some people's eyes it's it's all

relative really but we're going to

assume that 6% is understood here as a

relatively achievable goal okay and

we're going to give you a case study to

think about I'm going to assume

that the average person out there would

require about $3,500 per month it's US

currency okay and let me give you a

hypothetical scenario if one would have

to require a income of $3,500 per month

my question to you is if you're trading

with just this goal in mind 6% per month

in aiming 423 pips for the week as a net

it's less than a hundred pips per month

allowing you a 30 pip stop you're only

risking 2% of your equity okay looking

at that as it relates to trading with a

$5,000 account even after three years

you still haven't reached that goal okay

now I'm doing this to show you

realistically how you may encounter

now you may encounter some lag time in

your goals that's fine as long as you're

moving ahead in the direction of your

larger longer-term goal every small

incremental movement towards that goal

it's a positive okay again it's not a

race it's not a sprint this is a journey

you need to be enjoying it as you go

through it otherwise you're gonna make

it an argue Astacio trying to escape now

that J OB so now let's look at what I

promised you know going forward that we

would look at ways to make exponentially

larger returns on our equity and let's

assume for a moment that you wanted to

make a very respectable ten percent per

month and we're not changing the amount

of risk percentage-wise we're going to

keep it at 2% suddenly just by expecting

a larger 10% return we would need to net

38 pips now again this is rather

reasonable there's nothing significantly

you know you're shocking about the level

of pips that would be required to earn

that okay you're only risking 3 dollars

and 33 cents

PIPP okay that's the that's the gearing

using the 30 pip stop over the course of

one year okay your $5,000 would return a

net balance of fifteen thousand six

hundred and ninety two dollars now

looking at that same model that we would

assume that thirty five hundred hours

would be ones expected you return per

month to live okay you'd have to have

about thirty seven thousand dollars in

your account to draw that out okay or at

least to make that over the over the

course of a year not my advice is not to

think that once you get to these levels

you can start living off the account and

start drawing out funds in the the

amount that's shown here what I'm

suggesting to you really is that is if

that's what you're aiming for for a

monthly income you have to have some

money in your account

okay I'm gonna refer to your savings

account or your bank account to survive

for the year and allow your money to

build over the course of the twelve

months and then as long as you a virgin

this same amount obviously you know you

would be able to meet that annual salary

requirement to live as a as a full-time

trader that's the way I teach it that's

the way I tried to groom traders to

leave the retail world of trading and

just speculating for extra money then

moving into full-time trading the 10%

return is it's a pretty solid return

there's nothing you know I could say bad

about it it does get you rich over a

period of time it doesn't do it quickly

but it does significantly you know

increase over a period of time if you

look at what transpires over the course

of three years your $5,000 obviously

would grow to about a hundred and

seventy thousand dollars now again this

is assuming that you're not paying any

taxes on it and you are in fact hitting

10% return consistently every single

month now as you start obviously you may

not hit 10% and there may be other

well you do better than 10% okay but

overall you should average out if you're

doing things consistently it should do

staying around that 10% if you're

looking at these returns here less than

40 pips per week and again we haven't

done anything to the 30 pips top now a

question is this assume for a moment

that you can fine tune your entries a

little bit more precise and over the

course of this presentation in series

with every new and/or aspiring for our

share wants to know we're going to teach

specific applications concepts and skill

sets that will enable you to reduce the

amount of initial stop loss that's

required we're going to assume for a

moment that we can now reduce our stop

loss initially to 20 pips okay if we can

take these same trades 2% per risk per

trade rather now we're trading with $5

per pip notice it's still 2% 100 hours

of our 5,000 equity we're aiming to make

500 hours worth 10% for the month notice

the contrast here we had moved from

needing to require making 150 pips now

only down to a hundred pips remember it

was 90 pips before trying to make 6%

return with 2% risk on 30 pips stops now

watch what happens when we change it to

15 pips now no many are thinking whoa 15

pips that's a really small stop well

there's ways to do that and we're going

to teach you that in this course but now

look what happens we're under 20 pips

for the week under 20 pips only needing

to make 75 pips for the entirety of the

month notice we didn't increase our risk

it's still 2% the risk would be a loss

of $100 still 2% of our Nick equity a

$5,000 bidding the beginning balance

again aiming for 10% return

now this is where it gets interesting

notice that these numbers and figures

are not changing over here the only

thing I'm changing is the amount of

initial stop-loss that's required okay

we cut the total monthly pip expectancy

from 150 in half down to 75 only by

adjusting and spending more time on

accuracy and reducing our amount of pip

on the stop so in other words we cut our

30 pip stop-loss in half to 15 pips now

you're probably wondering is it really

possible to do that yes it absolutely is

and we're going to give examples of that

in this video but for now understand

that it's going to take you a little bit

of time to get there so again it's all

about not rushing initially you need to

go to this model

first if you can't do this model 23:23

pips per week 90 pips for the month

using a 30 pip stop don't think for a

moment you're going to be able to do 15

pip stop-loss treats okay you got to be

able to grow into it and it doesn't take

long to do that it only takes a couple

months we're talking about six months

this is the amount of time that he would

require this whole six month bracket up

here if you can do six percent

consistently over six months the only

thing you're changing is the initial

stop-loss amount because if you can

prove to yourself and be consistent

about the way you apply the concepts

that we're sharing the only thing you're

changing is the math okay you're

reducing the initial risk in half from

30 to 15 pips nothing changes in your

percent risk nothing changes in the

dollar amounts over here okay but your

work that's required to do the trades

and returns drop rather exponentially

but you actually build a lot more

flexibility over here on this end okay

in terms of monthly returns and still

never changing the total risk per trade

now let's go back and assume for a

moment that you want to make a 20

percent return now we're entering levels

that are very very phenomenal again with

a 30 pips top loss you would need to

make 75 pips now if you've been a

follower of mine for any number of years

in 2010 I came out with you know the

idea that if we're aiming for 50 to 75

pips this was the model I was teaching

okay but now we're going through the

entire ICT library again now we're going

to give you the amplified view to make

20 percent return okay we're going to

use the same model here assume for a

moment we could go down to reducing our

initial stop loss to 20 pips we moved

from needing to make 75 pips a week to

50 pips per week notice we have not

it increased our risk per trade at all

20% is still the expected goal and using

$5,000 as an equity base example after

one year it's forty four thousand five

hundred and eighty dollars in two years

it's three hundred ninety seven thousand

dollars now at month seven you're

already at the level where you're making

that hypothetical thirty five hundred

hours to sustain yourself on a monthly

basis and again I'm not arguing the fact

that everyone can live on thirty five

hundred hours I'm just using as a case

study so please don't send me emails

saying well I really can't afford to

live on thirty five hundred hours I'm

just using an example guys so don't no

don't make more of it than it really is

now for a moment let's assume that we

are able to again trim our stop loss

order initial entries and reducing the

overall risk to 15 pips now again we're

gonna be using a day traders model for

entry okay but still using a thirty pip

stop it was still respectable when you

can do 70 five pips but for now assuming

that we can get very very close to the

market place and allow a fifteen pip

stop-loss what will happen is you reduce

your total monthly pip expectancy to

half again so now we need to only make

150 pips and we only need to make

thirty-eight pips for the week 38 pips

for the week with an initial stop loss

of 15 pips that's less than three to one

think about it's less than three to one

one trade with a setup of less than

three to one would accomplish more than

this okay so now let's assume for a

moment going back to our original

settings we want to make thirty percent

return now we're absolutely in our areas

where it's just unheard of folks to make

this again looking at this we would need

to make a hundred and thirteen pips for

the week or four hundred and fifty pips

per month

now I know most of you are saying well I

can't make 450 pips per month well

you're probably right right now as a new

trading or developing trip you probably

can't do that but using 2% risk and a 30

pips top you would need to make a

hundred and thirteen pips per week now

looking at our example of trimming 20

pips stop-loss we would need to only

make 75 pips for the week or 300 pips

for the month now this is doable you can

still do 75 pips over we even with the

low volatility we have right now

currently in 2014 at the time of this

recording this is still doable it's

going to require some work but still yet

it can be done if you go back over to

our example again assume for a moment

that we could reduce our risk to again

15 pips we only need to make 56 pips for

the week or 225 pips for the month

notice that we're not increasing the 2%

risk per trade it still stays at locked

to 2% but it's allowing us a larger

dollar per pip risk and still maintain

the 2% total risk per trade on the

$5,000 again these numbers are not

changing as we adjust the pip amount in

terms of the initial stop-loss it just

changes the expectancy on what you need

to make to acquire 30% per month now

it's 30% in fir'aun's your $5000 will

grow to one hundred and sixteen thousand

dollars now again going back to our

$3500 example of you know case study

needing to make $35 to sustain oneself

you get into that region around the

fourth month if you're able to do 30

percent return now again this is a

assuming that one can consistently month

over month over month

do 30% returns my question to you is

this if you can make fifty

six pips for the entire week okay you'll

hit this number every single month

you'll do it

the only things gonna change is your

dollar for risk you know initially owns

on your your trades now let's go and

look at assuming that we had a 20 pips

top okay 20 pips top and you run this

across the entire 36 month example okay

you would need five dollars per pip

which is two percent one hundred hours

of the total equity used for that month

returning with 30 percent it's $1,500

you only need to make 75 pips

here's a question we have a 20 pip stop

loss again don't be confused but this is

a notation if you look at what we have

here this is did denoting the stop-loss

will be requiring 20 pips okay so now 20

pip stop loss if one were to make a

trade with one to one reward risk ratio

that means you would expect to make what

you're risking 20 you're hoping to make

what 20 pip gain okay so now what if you

were looking for a two to one trade

that's too rewarded for one risk you

would need to make a 40 pip net gain on

that trade you're risking 20 pips you're

hoping to make 40 now watch this if you

were doing a three to one trade risking

20 pips you would expect to make what 60

pips risking 20 a me for 60

it's a 301 trade now here's another

example if you're trying to make a

four-to-one trade you're risking 20 pips

to make ad pips 80 pips made on a trade

that's only risking 20 pips is

absolutely doable it's gonna take some

time and study to find them okay but

they're there they're there every single

month there every single week and

sometimes okay you can catch them simply

in a day trading scenario many times

you'll have to require your your trade

to hold on to it for a few days to do

that but you can still do it okay but my

question is this if you're focused on

doing these types of trades here where

I'm trying to make my 20 pips per day or

I'm trying to make my 15 pips per day

okay this right here gets most people in

trouble because they're trying to get in

there every single day and try to make

those trades to make these pips okay I

give these examples here as models to

choose from because there's several

scenarios that specific traders will

find themselves comfortable in position

trading swing trading or day trading or

scalping and that's what this is

designed for this is the scalpers

mentality here or day traders column

this is what you would need to make as a

short-term trader okay or a swing trader

here twice a week and then for the

weekly is like a position trigger you

hold for the weekly range and an

obviously a long-term trader would be

looking for the monthly moves okay so

this is all broken down with that

mindset you choose where you're going to

be most appropriate in terms of what

you're allowing your your your psyche to

absorb most traders can't do day trading

most traders you can't get in front of

that the charts because of jobs because

of other things that you are an obstacle

for them but there's other ways to do

this okay and let's use the example that

you know if you're looking for the

scenario right here okay we have a the

gearing is a 20 pip stop that's what

we're gonna use

and we're only risking 2% and we're

aiming for 30% return for the month that

means we have to do essentially what we

have to find a trade that's four to one

reward the risk good that will give us

better than this

okay I'm just gonna move this a little

bit just to show you something cuz right

now it's saying we need to make 75 pips

per week to get 30% return if my uh yeah

would be a wonderful return women to get

32 percent return you got 80 pips and

that would be that four to one scenario

where you're risking 20 pips okay let me

just change this right nice we're

talking about to make you know a 20 pip

stop-loss you're risking five dollars

for a point or pip

2% risk total is 100 dollars you're

aiming for 32% that would equate to that

for one scenario okay so if you do four

to one reward the risk setups every

single time you do a trade you will be

in the realm that's required okay to do

one shot one kill setups per week and he

would hit 32 percent return okay so now

let's look at a chart and see what that

looks like and how those types of trades

set up and how we can find for two one

three two one reward risk scenarios and

keep our our stop loss is really in

relatively tight but before we do let me

go let me do this let's go back and do

our gearing for a 15 pip stop and we'll

use the same scenario of breaking it

down what it's what's required

okay so we're using a 15 pip stop you

would need to make 56 tips for the week

okay so 15 pips reward the risk of 1 to

1 you would need to make 15 pips net and

2 to 1 reward the risk would be 30 pips

for 15 pips risk 3-1 would be a 45 pip

to 15 pip ratio in other words you're

looking to make forty five pips gain for

45 I'm sorry for 15 pips risk you're

trying to aim and make 45 pips for two

one would give you 60 pips okay you

would need to make 60 pips for the 15

pips risk to make four to one and again

that will be better than this so that's

probably very close to this and s that

we have here so yeah you would need to

make 60 pips per week risking 15

initially with a four to one ratio

reward the risk and you would hit 32%

now again this is all we're dealing with

just ma this is just math okay and this

is how easy it is it's not hard to come

up with a strategy to get these

ridiculous amounts of return what makes

it difficult is you got to be able to

see how to do that in the charts so

let's go over to the market and take a

look at how that's done all right we're

looking at the British Pound USD pair

okay and I have some lines on here that

we're gonna utilize and I want to show

you what we have we're gonna assume for

a moment that you thought that this

17060 level down here would be an

important support level now I know

you're probably thinking all right

Michael you're already starting off with

cherry-picking scenario trust me I am

NOT let's go out to a daily chart and

I'll show you where that 17060 comes

from okay we are looking at the levels

on a daily chart and you see this old

high back here the high on this day

comes in at 170 63 my concepts

each that we like to round our numbers

to whole numbers or if it's very very

very tight volatility you know it's the

rains are very tight that you're looking

at in current price action

we'll use the five numbers in other

words we'll go between twenty and thirty

we may use twenty-five okay between

thirty and forty with me use thirty five

so we like to round to round numbers or

round to fives

okay so if you're looking at a a high on

this day if I can get that the areas the

high of one seventy sixty three that's

essentially one seventy sixty or one

seventy sixty five I elected to go with

160 simply because that's one of the go

what I wanted to go with if you wanted

to use one sixty seventy five is a

support level it would be nothing wrong

with that at all okay but that's where

the 17060 comes from and simple support

resistance teaches us that once this

resistance level is broken to the upside

once price comes back down to it we

would reasonably expect a bounce or

reaction at that price point and it just

so happens that we happen to get that

today on Tuesday and let's go back down

to a fifteen minute time frame

okay and what we're looking at is the

start of a new day here this is where

Tuesday began okay we had some some

consolidation and the market drifted

lower and traded right into that level

right there bang right into it the low

one just this candle here if I can get

things to work with me okay we got the

low of 17060 beautiful okay

you may notice this little blue line

here okay and you may know this is this

green line and this red line we're going

to talk later on in the series about

this red line and this line here and

this height line here basically are the

times that I asked you in the previous

video

to mark out on your charts and study

what takes place around those times of

the day okay price trades down into this

level here okay we're going to assume

that you believed that this was a

bullish area to expect a bounce right

increase this so we can see it okay so

the level is 17060 you always have to

factor in the spread okay and we're just

gonna add five pips this for slippage

and traditional retail spreads on the

British Pound USD pair okay and that

means it your limit order would come in

around 170 sixty five so your entry

would be around here okay we're gonna

look at a scenario where you're buying

on a limit once price drops down on this

candle here you're gonna be buying that

level okay and what I just do it I just

put a little tiny little rectangle here

now watch what happens it'll it'll show

up over here little numbers will pop up

see that see the eight now it's a nine

there's ten okay the range of the

rectangles height is now 10 pips

there's 11 12 13 and I lost it cuz we

went into a little indicator box here

you see if I can there you go I'll gain

some more ground not doing that okay

there's 15 pips so your entry will be at

170 65 and your and your your stop-loss

would rest

15 pips below your entry and s right

here okay

at 17050 price has to trade down to that

170 50 level just stop you out okay so

that would be your the selling price

because we're looking at data that's the

sell price so if as long as price stays

above that 170 50 level you would be in

the trade now this is where it gets

interesting

we're going to zoom in okay and now

we're gonna say just take this range

okay and what I'm going to do is I'm

going to just move it over a little bit

like that

just to differentiate and I'm gonna show

you

this would be from your entry if you got

out right up here at the top of the

rectangle that is a risk to reward of

one to one okay we're going to take a

step out farther okay

and that would be an exit point here

if you got out there that will be a two

to one okay you're gaining two for every

$1 you risked okay we're going to move

that out farther now this is a three to

one see you're using that same amount of

pips okay 15 pips now three times for

one risk this is a three to one reward

risk ratio we're going to go out one

more step one two three four game to one

risk okay so it's a four to one risk to

reward ratio

we have one two three four five ranges

of 15 pips each okay so that's five

reward to risk of one so Phi the one

reward risk okay and to get five the one

you would have to get out at around 170

140 okay now we could go all the way up

to the absolute high

like that and that would be one two

three four five six seven eight to one

reward the risk ratio and I know you

probably are thinking minutes

that's incredible well you'd be

surprised if you'd learned the concepts

that we're going to be teaching in this

series and for those of you that watch

the initial presentation over the last

four years or so from 2010 on you're

going to get the amplification of that

which is what we're getting here this is

this is really where I want you to focus

right here you want this type of setup

right there you want that okay you want

four to one and that's a wealth building

okay forty one builds millionaires

notice also that inside inside of this

day just in Tuesday okay this is not a

week this is not a course of several

days this is just one day price came off

that 17060 level and trades Alleluia was

a range of a hundred and thirty two pips

now that's a nice that's a nice range

that's this is what you've probably been

used to if you've been looking at Forex

for a number of years this that's about

the standard a little bit more than

standard daily range for the cable

recently we've entered into a small

little volatility squeeze where

nothing's really going on in the markets

unless you know one or two moves a week

creates a significant move and they

haven't really been this significant

many times but this is an area where you

could use that mindset of looking for

four to one reward the risk

okay now I'm gonna give you another

drill we talked about looking at the

swing points and the each candle is high

and low and the opening closing of those

three candles on each swing point and

drawing

in time and looking at how the future

reactions would occur around these

particular price points the levels I

have on this chart here okay are rather

important we're gonna go out to a weekly

okay and a weekly chart let's do this

okay what I've shown here is just in the

recent times the recent days I deleted

the red line is a weekly high which is

here okay this is swing high and all the

green levels with the exception of this

one here this one's really should be red

let's change that

that is a weekly level okay and the

green aren't simply going to be based on

daily highs okay and what you're looking

at is daily highs and weekly highs and

lows on both okay and by doing that this

is the exercise and you guys may

remember this from the initial

installment of excellence of execution

by inner circle traitor when I was

giving that those initial videos back in

2010 I did them silent now this is the

amplification of it the things that you

were missing

by having the this low here this is a

high here it lines up we have a high

here we have a high here okay we have a

high here the exercise I gave was that

you want to buy support levels or daily

lows or weekly lows and use a 20 pips

top with a 20 pip profit objective so

you're you're trying to find reward the

risk of one to one okay and you want to

sell weekly highs and daily highs with a

20 pips top and looking to make 20 pips

game okay and we're gonna look at just

simply the month of June

to the present time of this recording

which is the 15th of July 2014

okay and we're going to highlight that

just so we know where we're at in

deference to what's typically shown in

data I just want to focus on just this

little area and I'm gonna go off-white

with it or change the background a

little bit now I'm gonna go down to a

15-minute time frame okay and I want you

to notice when we trade down to these

levels here okay when we trade down into

that level okay we're looking for a

reaction and you would be trading this

reaction with the expectation of looking

for a move of 20 pips okay so when price

trades down into that level you would

use that specific price point and that

would be 167 30 and the low and it's

zoom in a little bit right in here

price trades down into that level which

is identified by the exercise we just

did I'm showing you how to how to arrive

at them the low is 160 720 so you're

buying it 167 30 the the lowest of the

low it went was just 10 pips below it so

your stop was never hit using a 25th

stop and looking at 20 pips gain

you would be buying here and getting out

right there okay that's the exercise

that's all there is to it now again the

reason why is you're not trying to find

profits that's not what you're trying to

do what you're doing is you're trying to

follow a consistent plan of action and

it's to show you how your your mind is

going to be trying to resist following

the rules of being in a trading plan

okay but it's also going to teach you

that you can find a lot of opportunities

where things will line up for you but

you're also gonna encounter days and

opportunities where it doesn't work out

for you you will get stopped out for 20

pips and you be you would do this in a

demo account okay it's also going to

teach you that you're not going to trade

every single day but it will give you

one trading setup for a week notice the

dot the double lines here see that

that's a Sunday so this whole day here

is one day or Monday this is Tuesday's

action between the vertical lines here

in here between this vertical line here

and here is Wednesday's trading this is

Thursdays trading this is Mondays

trading okay using this example here

this is a resistance level

okay delineate from the weekly chart you

would sell at this price level at 168 25

168 25 right there and your stop-loss

would be up here so if you're selling at

160 a 25 price traded with a high if I

can get my little doohickey here to work

with me let's get a little bit tighter

the range high on that is 168 44 so in

here 168 44 it's close you may depend

upon what data feed you were using and

what broker you could have got tagged

down it could have very well taken you

out so that would have been an

opportunity even though it did pan out

and move from that level 20 pips and

would have paid on that one they you

could have you could have very easily

been stopped out okay and that's it

that's sitting that's an exercise for

you to see what it's like to go through

that adversity okay and still see it

still moving you're right in the right

direction here we have another example

just doing the same thing you would be

selling at once to see 825 as price

trades right up to it your stop-loss

again you never touched okay so up

here's where your stop-loss would be 20

pip take profit right down here on this

candle you'd be filled that's it you'd

be out okay and you would simply move to

the sidelines again the other part of

the trading exercise is you are taking

specific surgical strikes and taking out

pips controlled risk controlled

execution you know where you're getting

in now you know when you're getting out

at you know exactly what you're doing

when you're doing it why you're doing it

based on a specific price level that was

delineating from a daily and weekly

chart which are the two highest

important you know in institutional

levels to be paying attention to again

that being the weekly and daily so we

had an example of a buy during that week

and we had an example of a cell here for

that week that would have panned out as

a losing opportunity we have a new week

here starting on Sunday

right on Monday we have that first

opportunity trade boom sell under that

resistance and then get your 20 pips

done okay now you can now also fine-tune

this a little bit

we discussed how to make 6% right you

can test the theory of making 6% with

one trade per week by saying okay well

I'm not gonna use a twenty pip stop loss

and take profit at 20 pips I'm gonna use

a 30 pip stop loss and aim to make 25

pips for the weekly goal yes you're

making less than your risk but you're

also aiming with the mindset that just

slowly develop into where you could

potentially look to make that 30 pips

for the 30 pips risk okay and then you

take this exercise one step further by

saying okay well if I can see these

levels like this why can't I take my

stop-loss and reduce it to a 15 pip stop

so now if you're selling on that level

here your stop-loss is now

see that so that's how we will use these

exercises going forward okay to groom

you into doing the things that you need

to be doing again this is one week

starting here again you're gonna let

other trades pass by you don't care

about what the other you know market

setups are doing you don't care about

that where we got here we did one trade

for yeah that was the Monday so you

would be done for the week if you're

doing once one shot one kill mentality

and developing that here we have another

an area here where we're looking for 20

pips top you'd sell that level at the

figure at 170 even 25th stop never hit

you does it pay you to 20 pips sure does

boom there's your one shot one kill

setup drill for that week and it does

give you another one right here that

would have paid you again to 20 pips but

once you get it you move to the

sidelines and you don't worry about it

again here's two scenarios right here

where it does it again

your stop is obviously never hit selling

it at 160 I'm sorry 170 60 and looking

at your 2050 taken right there you would

have got filled same scenario here for

another opportunity obviously stop never

hit selling at the big figure I'm sorry

at 170 60 paying you your 20 pips right

there wonderful opportunity going into a

new week we have this Sunday here all

right we have price trading down to this

level here buying the level okay or at a

resistance and support level based on

daily and weekly the red lines a weekly

you would be buying here with a

stop-loss 25th below this is where you

would absolutely be taken out of the

trade rather quickly if you took it at

all okay said I'd be a losing trade for

you to actually feel and feel what it's

like to go through that here's an area

where you'd be selling that same level

because we traded right back up to it

your staff lost 20 pips away so you'd

sell rate at that 170 figure stop also

be up here never hit does it pay you to

20 pips boom yes it does okay so you

would be you would recoup the loss you

took here you'd immediately right now be

back to even for the week okay and if

you were looking to sell again that

level here you would take a loss with

this exercise if you were taking again

it's assuming you take multiple entries

so you would if you sold this level here

you'd be stopped out for your 25th all

okay and price comes back back down this

is a same level again you would be

buying it now again for the exercise

price comes down to that level you buy

it at 170 big figure staff losses 20

pips below it never trades there does it

pay your 20 pips yes so now you took a

loss here recouped it here

you took a loss here recoup to here your

net even on the week and you go out the

week not even that's a good exercise

that's a good learning experience for

you that week we go into a new week here

move up to a level okay you have a stop

loss above that level selling short

blows you out 20 pips off loss done okay

you're out over the loss so you start

the week again as a net loser we go up

to another level notice it doesn't get

to it right here it's all sort of a

little bit you sell short on that level

soft loss is above 170-180 you sell it

at that price level and does it pay your

20 pips yes pays you okay so you recoup

the loss you took here now you're even

for this week there's two weeks you had

no gains but you're able to recoup the

losses very very important lesson

price comes down to this example we

showed earlier in the video explaining

how to get the 4 to 1 scenarios so this

is where we're at right now presently

when you trade it up for that same level

here intraday selling this level at 170

180 using 20 pips top it never got

tagged did it pay your 20 pips yes

indeed okay so you're able to capture

this one here and capture this one here

using the trading exercises and it's

again it's meant to develop your

consistency of following a plan

regardless of whatever it makes money

every single time or not you don't care

whether or not if you know you get a

trade every single day you're looking

for weekly and daily highs and lows once

they trade their boom you just go back

over your chart of recent price action

you know two three months at tops and go

through those levels have them on your

charts okay delineate them and I think

color you know fashion you like I use

the red for the weekly and green for the

daily it could be whatever whatever you

like

it doesn't have to be exactly how I'm

showing it to you in terms of colors and

thicknesses and all that it's a matter

of preference what you want to

differentiate those levels based on

whether it's a weekly or daily and don't

think too much about setting precedence

over weekly being better than a daily

for now just use the swing points and

highs and lows that we discussed earlier

in the video to build you know the basis

for the the initial steps and finding

your excellence in execution and until

the next edition I wish you good luck

and good trading

[Music]