Trading Transformation Day 23: Strategy Creation pt.1

Summary

In this video, the speaker reflects on the freedom they feel, including the freedom of speech, while tying it to their recent experiences, like shooting firearms and connecting with military instructors. They express gratitude toward the troops and the freedoms the country offers. The main focus then shifts to a step-by-step guide to a trading strategy, emphasizing understanding trends on multiple timeframes, using liquidity sweeps, and scaling down to smaller timeframes for precise executions. The speaker stresses the importance of discipline and patience for success in trading, with future lessons expected.

Takeaways

• 😀 Expressing gratitude to military personnel for ensuring freedom of speech and the ability to pursue financial freedom.
• 😀 The speaker emphasizes the importance of the freedom of speech and the right to say whatever one wants, even when expressing controversial ideas.
• 😀 Acknowledgement of the sacrifices made by the military, highlighting that some individuals give their lives for others to freely express themselves.
• 😀 The speaker shares their excitement about shooting different types of firearms as part of a military-related training experience, underscoring the significance of living in a country that allows such activities.
• 😀 Introduction to a trading strategy that will be explained in parts, starting with a beginner-level approach and building up to more advanced techniques.
• 😀 The strategy involves using the 4-hour and 1-hour timeframes to determine the overall market bias, treating them as the daily bias for trading decisions.
• 😀 The 4-hour trend is considered more important, and the strategy focuses on staying within the trend rather than predicting reversals.
• 😀 When the 4-hour trend is bullish, traders should look for opportunities to buy, and if the 1-hour trend is in line, they can scale down to a lower timeframe (like the 5-minute) for execution.
• 😀 If the 1-hour trend is contrary to the 4-hour trend, traders are advised to scale down to a higher timeframe (such as the 15-minute) for execution points.
• 😀 The strategy stresses the importance of identifying liquidity sweeps and break of structure on the higher timeframes (1-hour and 4-hour) before executing trades on the lower timeframes, such as the 5-minute or 15-minute.

Q & A

Why does the speaker start the video by singing the national anthem?

The speaker starts by singing the national anthem to express their patriotic feelings, stemming from a recent experience at a gun range with military instructors. They want to show gratitude for the freedom they have, including the ability to speak freely and pursue financial independence.

What personal experience does the speaker mention that influenced their mood?

The speaker mentions shooting guns at a gun range, including using a light machine gun, M4, and Galil. This experience, combined with the presence of military instructors, made them reflect on the freedom they have in the country.

What is the primary goal the speaker has for the viewers in this video?

The primary goal of the speaker is to teach viewers a strategy for achieving financial freedom, with a focus on trading. The speaker emphasizes gratitude for the freedom to learn and succeed, and aims to guide viewers in their journey toward financial independence.

What kind of trading strategy does the speaker introduce?

The speaker introduces a basic trading strategy that emphasizes analyzing trends in the 4-hour (4H) and 1-hour (1H) time frames. The strategy involves identifying the overall bias based on these time frames, looking for liquidity sweeps, and executing trades on lower time frames, such as the 5-minute or 15-minute charts.

What is meant by 'bias' in the context of the trading strategy?

'Bias' refers to the overall direction or trend the trader expects the market to move in. In this case, the speaker uses the 4H and 1H time frames to determine whether the market is bullish or bearish, setting the foundation for the trader's decision-making.

How does the speaker recommend handling a market where the 4H trend is bullish, but the 1H trend is bearish?

In this case, the speaker advises scaling down to a 15-minute time frame for execution. Despite the 1H trend being bearish, the overall bias is still bullish, and the trader should look for liquidity sweeps on the higher time frames before executing trades.

What are the key steps to executing a trade in the strategy?

The key steps include identifying the overall market bias based on the 4H and 1H trends, looking for liquidity sweeps on higher time frames, scaling down to lower time frames for execution (5-minute or 15-minute), and waiting for a break of structure. The final step is waiting for confirmation from one of the four confluences: order block, fair value gap, breaker block, or equilibrium.

What are the four confluences the speaker mentions for confirming trade execution?

The four confluences mentioned are: order block, fair value gap, breaker block, and equilibrium. These are key areas where price may react, and the trader waits for confirmation of buying or selling pressure before executing a trade.

Why does the speaker emphasize patience in executing trades?

The speaker emphasizes patience to avoid impulsive trades. They suggest waiting for the right conditions to be met, such as liquidity sweeps and the confirmation of confluences. The idea is to focus on quality trades rather than quantity, which can improve the trader’s success rate.

What does the speaker mean by 'liquidity sweep'?

A liquidity sweep refers to the process of price moving through a specific area to trigger stop orders or take out market liquidity, typically around key price levels such as lows or highs. The speaker advises identifying these liquidity sweeps on higher time frames, like the 4H or 1H, before making a trade.