Why The LEPPYRD Model is So Successful

Summary

The video script is a trading tutorial focusing on the 'Leopard Model' for day trading. The speaker addresses concerns about the model's effectiveness and provides a detailed breakdown of its rules, emphasizing the importance of trading during specific hours and identifying valid entry points. They demonstrate how to spot trades by looking for 'Peaks and Valleys' and discuss the significance of Fair Value Gaps (FVGs) and False Breakouts (FBs) in making trades. The speaker also shares their personal trading preferences and experiences, concluding with a count of the day's trades, which resulted in a positive outcome.

Takeaways

• 🕒 The video discusses a trading strategy that is backtested from 9:30 until 4:00 PM Eastern New York Central Time.
• ⏰ The presenter emphasizes the importance of consistency, suggesting weekly updates on the strategy's performance.
• 📉 The strategy focuses on identifying valid trades based on specific price movements, such as lows and highs being 'swept'.
• 🔍 'F' and 'FG' formations are critical for entry points, with the presenter detailing how to identify and act on these formations.
• 🚫 A rule is highlighted where if a formation delivers 10 points before entry, it's considered invalid and should not be traded.
• ↗️ The video explains the concept of 'Peaks and valleys' in trading, which are significant for determining entry points.
• 📍 Personal preference plays a role in trade decisions, especially when there's ambiguity in the market patterns.
• 📉 The presenter demonstrates how to handle losses, emphasizing the importance of sticking to the model's rules even in a losing streak.
• 📈 The video also covers how to identify and act on 'long' setups, which are trades that anticipate an increase in price.
• 📊 The presenter discusses the importance of higher time frame analysis to complement the 30-second model being discussed.
• 💬 The video concludes with an invitation for viewers to reach out with questions, indicating a community aspect to the trading strategy.

Q & A

What is the main topic of the video?

The main topic of the video is a breakdown of a trading model, specifically focusing on its performance in a 30-second timeframe using fair value gaps (FVGs) and false breakouts.

What is the purpose of the video update?

The purpose of the video update is to address concerns from viewers about the trading model's performance and to provide a weekly breakdown of its trades and outcomes.

What are the trading rules mentioned in the script?

The trading rules mentioned include only trading from 9:30 until 4:00 PM Eastern New York Central Time, looking for the first FVG that forms after sweeping a high or low, and not taking trades that have delivered 10 points prior to entry.

What does the term 'FEG' refer to in the context of the video?

In the context of the video, 'FEG' refers to a 'False Exhaustion Gap', which is a type of price action pattern used in the trading model to identify potential trades.

Why are some trades considered invalid according to the model?

Some trades are considered invalid if they have delivered 10 points prior to entry, or if they do not follow the model's criteria for a valid trade, such as not sweeping a significant high or low.

What is the significance of 'sweeping a high or low' in the model?

In the model, 'sweeping a high or low' refers to the price action surpassing a previous peak or valley, which is considered a trigger for a potential trade setup.

How does the speaker determine whether a low is significant enough to trade?

The speaker determines a low is significant if it represents a valley or a swing low, and not just a random low in the price action.

What is the 'leopard model' mentioned in the script?

The 'leopard model' is the trading model being discussed in the video, which focuses on specific criteria for entries and exits based on price action and FVGs.

Why does the speaker emphasize taking every trade as per the model?

The speaker emphasizes taking every trade as per the model to maintain consistency and to avoid cherry-picking trades, which could lead to a skewed view of the model's performance.

What is the speaker's approach towards the end of the trading day?

Towards the end of the trading day, the speaker avoids taking new 30-second trades due to the risk of extended hold times that can turn into 45-minute holds.