STEAL this ICT Gold Trading Strategy & Pass Your Challenges (XAUUSD)

Summary

In this video, a high-probability gold trading strategy is shared, designed for traders seeking consistent profits without the need for daily market bias or constant chart monitoring. The strategy operates within a set trading window from 8:00 p.m. to 10:00 p.m. EST, focusing on marking swing highs and lows and waiting for market structure shifts. The key is to enter trades based on these shifts with well-defined stop-loss and take-profit targets, aiming for a 1:2 risk-to-reward ratio. Tips for better risk management and insights into backtesting the strategy are also provided, offering an easy-to-understand method for both beginners and experienced traders.

Takeaways

• 😀 The strategy is focused on trading gold with a high win rate and minimal time commitment, requiring only one trade per day.
• 😀 No daily bias is needed for this strategy, and you can trade at a specific time window from 8:00 p.m. to 10:00 p.m. New York time.
• 😀 The strategy involves marking the recent swing high and low on a 15-minute chart before the trading window starts.
• 😀 Once the 8:00 p.m. trading window opens, wait for the swing high or low to be taken out and then shift to a 1-minute chart.
• 😀 A market structure shift with energetic displacement must be confirmed before entering the trade. A candle must close beyond the recent swing point.
• 😀 To improve risk-to-reward, consider entering from a fair value gap or a breaker block after the market structure shift.
• 😀 Stop-loss placement is above the recent swing point or above the breaker block, with some room for spreads.
• 😀 The profit target is typically a 1:2 risk-to-reward ratio, and once the trade reaches a 1:1 ratio, 80% of the position is closed, with the remaining 20% left to run.
• 😀 After 10:00 p.m., stop trading if no setup is found and return the next day to analyze further opportunities.
• 😀 The strategy is primarily for gold but can also be applied to other correlated metals like silver.
• 😀 If a trade setup reaches the take-profit level before entry is triggered, it’s best to cancel the limit order and wait for the next day’s opportunity.

Q & A

What is the main benefit of the trading strategy discussed in the video?

The main benefit of the strategy is that it allows traders to make consistent profits without needing to monitor charts all day. It requires only one trade per day at a specific time, making it a low-maintenance strategy.

What time frame should traders use to mark the recent swing high and swing low?

Traders should use a 15-minute time frame to mark the recent swing high and swing low before 8:00 p.m.

What is the trading window, and why is timing important in this strategy?

The trading window is from 8:00 p.m. to 10:00 p.m. New York time (Eastern Standard Time). Timing is crucial because the market experiences a shift in volatility at this time, particularly with the start of the Asian session.

How should traders identify a market structure shift on the 1-minute time frame?

Traders should look for a candle to close beyond the recent swing point (either the swing high or low). This confirms that the market structure has shifted, indicating a potential trade entry.

What is the significance of the Fair Value Gap and Breaker Block in this strategy?

The Fair Value Gap and Breaker Block provide entry points with a more favorable risk-to-reward ratio. The Fair Value Gap represents an imbalance in the market, while the Breaker Block is formed by consecutive up or down candles, which can act as a support or resistance level.

What is the suggested risk-to-reward ratio for trades in this strategy?

The suggested risk-to-reward ratio is 1:2, meaning that for every dollar risked, traders aim to make two dollars in profit.

How should traders manage their position once the trade reaches a 1:1 risk-to-reward ratio?

Once the trade reaches a 1:1 risk-to-reward ratio, traders should take 80% of the position off the table and move the stop loss to break-even. The remaining 20% of the position can be left to run toward the profit target.

What should traders do if no trade setup occurs before the end of the trading window?

If no trade setup occurs by 10:00 p.m., traders should close their charts and stop trading for the day. They will return the next day to look for new opportunities.

Can this strategy be used for metals other than gold?

Yes, while the strategy is primarily designed for gold, it can also be applied to other correlative metals, such as silver.

What is a key consideration when placing a stop loss in this strategy?

The stop loss should be placed above the recent swing high or low, with a little extra room to account for market spreads and volatility.