SECRET Trading Blueprint Makes Me My FIRST $10,000 Profit (2025)

Summary

In this video, the creator shares a simplified trading strategy that has helped them achieve impressive results in 2024. By focusing on four key concepts—identifying the Asian session range, liquidity sweeps, change of character, and fair value gaps—traders can replicate profitable trades with a clear, step-by-step approach. The strategy emphasizes high-probability setups, using multiple time frames to spot ideal entries and risk management techniques to secure consistent profits. Backtesting results are provided to demonstrate the effectiveness of this approach, showcasing substantial gains and the importance of patience and discipline in trading.

Takeaways

• 😀 Identify the Asian session range (8 PM to 12 AM EST) as the foundation for setting market trends and liquidity levels for the London and New York sessions.
• 😀 Liquidity sweeps occur when price moves above or below the Asian range high/low, causing quick reversals and setting up profitable trade opportunities.
• 😀 A change of character (CHoC) signals a market reversal, and traders should look for higher highs or lower lows to identify trend changes.
• 😀 Fair value gaps (FVG) are unfilled orders between candlesticks, which price often returns to fill before continuing in the same direction.
• 😀 Use the 1-hour and 15-minute time frames for higher time frame analysis to mark unmitigated fair value gaps and the Asian range high/low.
• 😀 Execute trades on the 5-minute time frame after the Asian range high/low is swept and look for a change of character to enter with a 1:2 risk-to-reward ratio.
• 😀 Avoid trading after 4 AM EST and on days with major news events or when the Asian range exceeds 20 pips to protect from unpredictable market behavior.
• 😀 Aim for a minimum of a 2:1 risk-to-reward ratio per trade, meaning you risk $100 to potentially gain $200, ensuring low-risk, high-reward setups.
• 😀 The strategy should remain simple and mechanical to avoid analysis paralysis, where too many conflicting indicators prevent decision-making.
• 😀 Backtesting hundreds or thousands of trades is necessary to validate the strategy's effectiveness and account for market variations.
• 😀 The backtest results show a net profit of $5,650 with one loss, reinforcing the importance of sticking to a single strategy and consistent execution.

Q & A

What is the main strategy being discussed in the video?

The strategy discussed in the video is a simplified trading method based on analyzing the Asian session range, liquidity sweeps, change of character, and fair value gaps. The goal is to replicate the trader's profitable results by following these key concepts.

Why is the Asian session range important in this strategy?

The Asian session range, occurring between 8 p.m. and 12 midnight Eastern time, is crucial because it sets the tone for price action in subsequent London and New York sessions. Price action during this time can influence market behavior and help predict moves in later sessions.

What does a liquidity sweep refer to in this strategy?

A liquidity sweep occurs when price breaks above or below the Asian session range high or low, triggering buy or sell orders. This causes a quick reversal, leaving a long wick behind, and is targeted in the strategy for potential price movements.

How does the concept of 'change of character' fit into this strategy?

A 'change of character' occurs when market structure shows signs of reversal. In an uptrend, a lower low suggests a potential reversal, while in a downtrend, a higher high signals a shift towards an uptrend. This concept helps identify trends and potential entry points for trades.

What is a fair value gap, and why is it important in this strategy?

A fair value gap is a three-candlestick pattern where the space between the wick of the first candle and the wick of the third creates an unfilled order zone. This gap is significant because when price returns to it, unfilled orders are triggered, which often leads to price continuation in the same direction.

What is the 4-step checklist for executing this strategy?

The 4-step checklist includes: 1) Marking out unmitigated fair value gaps on the 1-hour and 15-minute time frames. 2) Using the 5-minute time frame for entry after the Asian range high or low is broken. 3) Avoiding entries after 4 a.m. Eastern or on days with major news events. 4) Targeting a 1:2 risk-to-reward ratio for low-risk, high-reward trades.

What is the significance of the risk-to-reward ratio in this strategy?

The risk-to-reward ratio is a key factor in determining the profitability of trades. In this strategy, a minimum of 1:2 is targeted, meaning for every $100 risked, the goal is to profit at least $200. This helps ensure a favorable risk-reward balance for consistent profitability.

How does the trader manage risk and ensure profitability?

The trader manages risk by setting stop losses based on market structure, ensuring that each trade has a clear entry point and a defined risk-to-reward ratio. The strategy also filters out low-probability setups, particularly avoiding major news events and trades with inadequate risk-to-reward profiles.

Why does the trader prefer to keep the strategy simple and mechanical?

The trader emphasizes simplicity to avoid analysis paralysis, where too many conflicting signals can prevent action. By sticking to a mechanical, rules-based approach, the trader is able to execute trades confidently and consistently, minimizing overthinking and decision fatigue.

What does the backtesting process reveal about the effectiveness of this strategy?

The backtesting process shows that the strategy is profitable, with a net profit of $5,650 from five trades, even considering the potential risks. It highlights the importance of consistency and following a mechanical strategy to achieve long-term success in trading.