EASIEST ICT FX Strategy for Prop Firms (GET FUNDED WITH THIS)

Summary

This video script offers a detailed trading strategy for ICT students, focusing on Euro USD or GBP USD trades. It emphasizes understanding the weekly candle direction and using the 'power of three' concept to time entries. The presenter, a funded day trader, shares a step-by-step guide to identify high-probability setups, including analyzing liquidity pools and market structure shifts. The strategy aims to help traders escape the cycle of failing challenges and achieve success in the prop trading environment.

Takeaways

• 📈 The video is aimed at struggling ICT (Infinite Channel Theory) students, offering a strategy to help them succeed in trading challenges and get funded.
• 🤑 The speaker is a funded day trader who manages a significant amount of capital and shares a simple yet effective ICT strategy.
• 🌐 The strategy focuses on trading Euro USD or GBP USD pairs and requires a clear understanding of the daily or weekly chart direction, known as the daily bias.
• 🔍 The importance of observing recent market movements, such as price reactions to buy or sell stops and liquidity pools, is emphasized for making trading decisions.
• 📊 The 'power of three' concept is central to the strategy, which involves trading above the weekly open in a bearish market or below in a bullish market.
• ⏱ The strategy is time-based, aiming to catch the manipulation phase of the weekly cycle, which includes accumulation, manipulation, and distribution.
• 📉 For entry, the strategy waits for the market to move beyond the opening price of the week and then looks for bearish price action during the New York or London trading sessions.
• 📍 The entry point is determined using the 62% Fibonacci retracement level after a swing low has formed, with a stop loss set above the high.
• 🎯 The target for the trade is the draw on liquidity, which may be a significant distance from the entry, potentially offering a high risk-to-reward ratio.
• 🔄 The speaker encourages patience and trust in the analysis, as trades may not move directly to the take-profit level and may experience retracements.
• 🛠 The strategy is described as more advanced and is the speaker's 'bread and butter' setup, designed to catch significant weekly moves in the market.

Q & A

What is the first step in identifying a high probability trade setup?

The first step is to understand where the weekly candle is likely to expand.

Why is understanding the weekly candle's direction important for day traders?

Understanding the weekly candle's direction helps traders anticipate market movements and make informed trading decisions.

What pairs should be traded according to the strategy?

The strategy recommends trading Euro USD or GBP USD.

What is the 'power of three' concept in ICT trading?

The 'power of three' is a time-based concept involving accumulation, manipulation, and distribution phases in the market.

How should traders mark their charts for the 'power of three' strategy?

Traders should mark their weekly open on their chart to identify the manipulation cycle for trading opportunities.

What timeframes should be used to confirm market structure in this strategy?

Traders should use the four-hour chart to confirm the market structure and align it with the daily bias.

What should traders look for on the 15-minute chart?

On the 15-minute chart, traders should look for liquidity pools, market structure shifts, and price displacements.

What is OTE and how is it used in this strategy?

OTE (Optimal Trade Entry) involves using the 62% Fibonacci retracement level to set entry orders, typically after identifying a swing low.

Why is patience important when using this strategy?

Patience is crucial because the strategy aims to capture larger moves based on higher timeframes, which can take more time to develop.

What should traders do if the market moves against their initial position?

Traders should trust their analysis and be patient, as the market may move back in their favor according to the strategy.

Why is backtesting important for learning ICT strategies?

Backtesting is important because it allows traders to verify the effectiveness of strategies and build confidence before applying them to live trading.

What sessions are recommended for looking for trades in this strategy?

Trades should be looked for during the New York or London sessions.

How does one confirm a bearish market structure?

A bearish market structure is confirmed when the market makes lower lows and lower highs, indicating a downward trend.

What is the significance of marking the weekly open?

Marking the weekly open helps traders identify the manipulation phase, allowing them to position their trades accordingly.

What should traders do if they are struggling to understand ICT concepts?

Traders should focus on simplified concepts and easy-to-learn strategies, and consider backtesting to ensure understanding and effectiveness.

Outlines

00:00

📊 Introduction to High Probability ICT Trading Strategy

The speaker introduces a trading strategy designed to help struggling ICT (In The Charts) students understand and capitalize on high probability trade setups. The strategy is based on a fundamental ICT teaching and aims to provide confidence and patience when trading. The speaker, a funded day trader, promises to share a simple yet effective approach to pass prop firm challenges, focusing on trading Euro USD or GBP USD with a clear daily or weekly chart direction. The importance of understanding the weekly candle's expansion is emphasized, and the speaker guides viewers through identifying recent stop runs and liquidity pools to gauge market reactions.

05:02

🔍 Detailed Breakdown of the Trading Strategy and Entry Points

This paragraph delves deeper into the specifics of the trading strategy, including the importance of trading during the New York or London sessions and waiting for price action beyond the opening price of the week. The speaker discusses the concept of 'bearish price action' and the significance of market structure shifts as indicators for potential trades. The strategy involves looking for buy side raids, which are price movements above a high followed by a strong downward shift, indicating a desire for the market to go lower. The entry strategy is based on the 62% Fibonacci retracement level, with a stop loss set above the high and a take profit target at the draw on liquidity. The speaker emphasizes the importance of patience and trusting the analysis, even when the market moves against the trade initially.

10:04

💻 Emphasizing the Importance of Backtesting and Risk Management

In the final paragraph, the speaker highlights the necessity of backtesting strategies using Forex replay software, which is endorsed as the best available tool for this purpose. A discount code is provided for those interested in using the software. The speaker encourages viewers to test the strategies thoroughly before applying them to live trading accounts. The importance of managing risk and being patient with trades that may take more than one day to play out is reiterated. The speaker also invites viewers to join a Discord community for further education and trading opportunities, hinting at an exciting upcoming release. The paragraph concludes with a reminder to manage risk and to engage with the community for support and feedback on trading strategies.

Keywords

💡ICT

ICT in the context of the video refers to 'In the Charts', a trading education platform that focuses on price action trading strategies. The video's theme revolves around using ICT strategies to identify high-probability trade setups, which is central to the video's educational purpose.

💡High Probability Trade Setup

A high probability trade setup refers to a trading opportunity that has a higher likelihood of resulting in a profitable outcome based on certain criteria or patterns. In the video, the speaker aims to share a strategy that meets these criteria, emphasizing the importance of understanding market direction and price action.

💡Weekly Candle

The weekly candle is a term used in technical analysis to describe the price movement of a security over a week, represented on a candlestick chart. It is important in the video's strategy as it helps traders understand the broader market trend and make decisions based on the direction in which the price is expanding.

💡Daily Bias

Daily bias refers to the overall direction or trend of a security's price on a daily chart. In the video, the speaker mentions ensuring the daily or weekly chart direction is clear, which is crucial for determining the market's sentiment and aligning trades with the prevailing trend.

💡Liquidity Pool

A liquidity pool in trading represents a price level where there is a significant amount of buying or selling interest. In the video, the concept is used to identify areas of potential price reaction, such as running into an imbalance or observing how the market reacts to these levels.

💡Displacement

Displacement in the context of the video refers to the movement of the market price beyond a certain level, indicating a strong directional move. The speaker discusses looking for price running into a liquidity pool and then displacing, which can signal a continuation of the trend.

💡Four Hour Structure

The four hour structure mentioned in the video is a time frame on a price chart that traders use to analyze shorter-term price movements. It is used to confirm the daily bias and ensure that the shorter-term market action is in line with the longer-term trend.

💡Power of Three

The power of three is a concept in trading that refers to the idea of cycles consisting of three parts: accumulation, manipulation, and distribution. In the video, the speaker emphasizes the importance of this concept, particularly in relation to selling above the weekly open in a bearish market.

💡Market Structure Shift

A market structure shift indicates a change in the market's direction or trend, often marked by a significant price movement. In the video, the speaker waits for a bearish price action, such as a price digging above a high followed by a forceful move down, to confirm a market structure shift.

💡OTE (Optimal Trade Entry)

Optimal Trade Entry (OTE) refers to the ideal entry point for a trade based on technical analysis. In the video, the speaker uses the 62% Fibonacci retracement level as the OTE, which is a common level where traders look to enter trades after a significant price move.

💡Risk-Reward Ratio

The risk-reward ratio is a measure used in trading to evaluate the potential risk of a trade against its potential reward. In the video, the speaker mentions varying risk-reward ratios, emphasizing that the strategy shared is designed to catch larger weekly moves, which may involve higher risk-reward ratios.

Highlights

The importance of understanding the direction of the weekly candle in trading.

The struggle of an ICT student with chart analysis despite extensive video learning.

The presenter's introduction as a funded day trader sharing a simple ICT strategy.

The strategy is based on the most important teaching of ICT, emphasizing confidence and patience in chart reading.

Focusing on trading Euro USD or GBP USD for the strategy.

Clarifying the daily or weekly chart direction, referred to as the daily bias.

The concept of looking for price reactions to imbalances or liquidity pools.

The significance of the 'power of three' in the context of weekly trading cycles.

Marking the weekly open on the chart for trading decisions based on the power of three.

The requirement for the four-hour chart structure to align with the daily bias.

Waiting for the price to go beyond the opening price of the week for trade entry.

The importance of trading during the New York or London session for higher liquidity.

Using the 62% Fibonacci retracement as an entry point for trades.

The strategy's focus on catching the manipulation part of the weekly cycle for higher profits.

The presenter's offer of a discount code for Forex replay, a backtesting software.

Emphasizing the need for patience and trust in analysis when trading the strategy.

The presenter's invitation for viewers to join their Discord for further education and trading signals.

The teaser for an upcoming release related to trading education and strategies.

Transcripts

I tweeted this morning rather early

asking what the criteria was list the

criteria that

would constitute a

high probability trade setup number one

number one you have to have

some measure of understanding where that

Weekly candle is going to expand to you

are a struggling ICT student who finds

himself helplessly staring at the chart

even after watching dozens and dozens of

videos only to end up failing challenges

and then see others on social media

succeeding and getting funded this

sounds like you then you need to pay

very close attention to what I'm about

to share with you because I'm about to

save you from the Perpetual hamster

wheel of failing challenges and blowing

accounts that most Traders never Escape

I Am A funded day trader managing

hundreds of thousands of dollars in prop

form capital and in this video I'm going

to give you an easy and simple ICT

strategy that I use to pass prop firm

challenges this strategy is based on the

single most important teaching that ICT

has ever shared and I can guarantee you

that you will look at charts with

confidence and patience when trading the

strategy putting up with the Chit Chat

let's go ahead and hop on the charts and

go step by step and look at some live

examples so you can be one step closer

to becoming a funded Trader what's up

everybody I'm super excited for this

video not only because it is the

hands-down best strategy that I've ever

shared with you guys but it involves the

most important teaching that ICT has

ever shared with us so pay very close

attention make sure you watch all the

way to the end and pay attention to all

the details because as with any strategy

if you want to get the same results you

have to follow every single step so step

number one is we're going to be only

trading Euro USD or GBP USD step number

two is that we have to make sure that

the daily or weekly chart direction is

clear AKA The Daily bias so the most

important thing ICT has ever said that

stuck with me all the way from not being

successful to becoming a funded Trader

getting payouts is that our job as day

Traders is to understand which way the

weekly candle is expanding so what we're

going to do that is by this very simple

strategy I'm going to share with you

guys it's not over complicated like most

daily bias stuff the things that I look

for notice the recent run on stops and

the draw on liquidity so what we're

going to do is we're just going to look

for either price running into an

imbalance or a liquidity pool and see

how it reacted so most recently we have

ran into buy stop so the most recent

stop run is to the upside or to the buy

side so after that we're going to look

for liquidity down below if we didn't

displace you know if we run the stops

and we ran out the buy side and price is

moving down then we're going to be

looking for what we're going to be

looking for sell side liquidity is it

going to be under this first low or this

low no it's going to be under the lowest

low here in this little consolidation

because that is where the highest amount

of cell stops reside now another way to

look at this is if we have this

displacement notice how the market

displaced right here so we have this

range and the market failed to displace

up here so we're going to go down to the

internal range liquidity because this is

our most recent displacement look for a

low or imbalance that falls in between

these levels so what we're going to do

next is we're going to hop down to our

four hour chart and we want to make sure

that our four hour structure is in line

so what does that mean well if we have

ran above a daily liquidity pool what we

want to see if we're confirmed bearish

is price making lower lows and lower

highs so we see the market came down put

in a low lower low came up put in a high

lower low we just ran out the highway

didn't close above it then we made

another lower low so the market is

confirmed bearish at this point if you

want to understand the Precision of ICT

you want to understand why ICT works so

well and maybe understand why it's not

working so well for you you need to pay

very very close attention to what I'm

about to share with you remember how I

said that this strategy uses the most

important ICT concept that he's ever

shared with us and that concept is the

power of three so what we're going to be

talking about is the weekly power of

three now what I want you guys to do is

Mark your weekly open on your chart if

we are bearish and we're looking to sell

we want to get in on the manipulation

part of the cycle of the power of three

which is accumulation manipulation and

distribution now the reason that I Mark

the weekly open is because power of

three is a Time based concept sure you

have accumulation of ranges and then

manipulation and distribution where we

just are getting a liquidity run but

that is not the power of three the power

of three is all about selling above the

weekly open if we're bearish or buying

below the weekly open if we're bullish

you can do this with the midnight open

as well you can do this with session

opens there look there's a lot more

about the power of three we're barely

scratching the surface but that is not

within the scope of this video but for

this strategy we're going to be focusing

on after we have gone down the checklist

we have made sure that we understand the

daily bias we've confirmed that with our

four hour structure now at that point we

have our framework so once we have our

framework our game plan is to get in on

the manipulation cycle of this weekly

candle so we're going to be looking for

cells above the weekly open so that is

our next step is to wait for price to be

Beyond opening price so for bearish

we're going to need to wait until the

market dips above this opening price so

now that it's above the opening price

the next step is we're going to wait for

the New York or the London session to

even look for a trade so next we're

going to scale into our 15-minute chart

now something else I want to put out

there is that if you are learning ICT

and you're struggling I have had a lot

of success with people and myself

trading ICT and I've helped a lot of

people so if you want to have very

simplified Concepts and easy to learn

strategies go ahead and subscribe to my

page I really appreciate you guys who've

been with me from the start we've seen a

lot of massive growth recently a lot of

videos recently with a ton of people

that are back testing the strategies

seeing great success getting funded with

the strategy so I mean it's really

awesome to see that and I really

appreciate you guys but yeah go ahead

and subscribe to my channel if you are

learning ICT so let's go ahead and go

down our checklist again just to refresh

your memory remember we're looking at

Euro USD or pound dollar we have our

daily bias the four hour structure is in

line and we've waited until price is

beyond the opening price of the week and

we are waiting to either New York or

London session to look for our next part

of the strategy and this is a 15 minute

liquidity pool or higher taken and then

a market structure shift so we're gonna

be waiting for now that we are above the

weekly open is we're just going to look

for bearish Price action so what is

bearish price action well we're looking

for buy side raids meaning price digging

above a high and then shifting to the

downside showing us that the market is

Desiring to go lower so we're going to

be waiting for the London session or the

New York session so we're in the New

York session right here but we haven't

really gotten any rates to the upside

followed by a displacement Market

structure shift so just because we're

making a lower low that doesn't mean

it's a market structure shift if we're

not displacing then the market is likely

to do what go higher right so if we're

not getting that displacement down we

want to see you know the market push up

above a high and then forcefully move

down that tells us that this indeed was

manipulation we don't want to just play

every single lower low or playoff Wicks

we want that displacement to really

solidify our bias Okay so now we have

came up and taken out some highs we're

almost all the way back Above This high

up here so at this point we're looking

for the market to start giving us those

signals yes we dug under these lows but

it did not display so this is very very

important it has to displace okay so

it's London session notice how the

market came up above that high yes it

came up above it just barely and then we

shift to the downside with Force so we

went Above This 15 minute liquidity pool

we are above the weekly open and we've

gotten our Market structure shift and it

happened during the London session so

we've checked everything off we it's

okay we've checked everything off we're

trading Euro USD the daily bias is

bearish that four hour structure went

bearish after that daily run on stop so

we know that the market is drawing down

it is New York or London session if we

look right here it is actually still

London session at this time and price is

beyond that opening price which is right

here that is our weekly the open so we

are in the manipulation cycle of this

power of three and we have 15 minute or

higher liquidity taken right there's a

15 minute high it was taken and we have

a massive Market structure shift so that

brings us to our entry and our entry

strategy is going to be

OTE so those who don't know OTE is

either the 62 percent the 705 or the 79

Fibonacci retracements I just use these

62 percent here come the people in the

comments coming to correct me I'm sure

what we're going to wait for is a swing

low to form we want to see the market

push back up into this OTE so now if

we're looking at this it's very clear

the market has shown the displacement to

go lower or above that Weekly open we

know the draw in liquidity is lower why

because our daily bias the market came

up failed to displace and then after it

failed to displace the market went

bearish so even if we travel to the

upside during this we know that this is

likely manipulation because we're

trading in the context of the power of

three we're trading above the weekly

open we have a daily bias that is

bearish do not let big pushes against

your buyers scare you because these are

the very opportunities that you look to

enter the market on so what we're going

to do at this point is we are just going

to look for that 62 FIB after we've

formed a swing low we're going to set an

order on that with a stop above the high

and we are going to Target the draw on

liquidity now yes this is a much further

TP than most the strategies that I give

you guys sometimes it's going to be 2R

sometimes it's going to be 7R or 10r

it's not always going to be the same

risk to reward yes this strategy is a

little bit more advanced than some of

the ones I've shared with you guys but

I've been asked a ton to share the

strategies that I myself trade with and

this is my bread and butter setup is

looking to catch that Weekly move so

we've placed our limit I'm using Forex

replay to show you guys this because it

is hands down the best back testing

software there is ICT has said it

numerous times if you're not back

testing then you are not truly learning

and the whole idea here for my videos

and ict's videos is not just to watch

them and then go blast your Live account

on this it's to watch this and then test

it to make sure that it works and if you

want to do that and you use Forex replay

I have a discount code it's in the

description you also see at the bottom

of the screen it's code Casper but you

have to click the link in the

description so so let's go ahead and let

this play out notice the market came up

into our area yes it went a little bit

deeper that's okay it went all the way

up into this fair value Gap this

strategy we're just going to be using

that 62 percent entry trust me you're

going to get high enough risk reward

using that and it just keeps things

mechanical rather than you know fumbling

around trying to figure out whatever

fair value Gap you want to look for now

with this strategy you do not have to

set any TPS you do not have to set your

stops to break even now as you guys

learned this you guys are going to be

able to go out and find things that work

better for you guys I'm not saying that

you can't edit this yourself and take

profits along the way if you do a very

good area to take profits it's going to

be that Weekly open or any one hour

liquidity pools along the way but when I

trade this I am looking to hold this for

the majority of the move and this is

going to usually take more than one day

so we'll just go ahead and let this play

out now don't get scared if the market

comes back against you that's okay you

have to trust your analysis and you have

to let the market play out and do its

thing it's not going to just be a

straight shot to the take profit every

single time we're not trading the five

minute or the one minute chart here this

is going to take some time so you have

to be patient but notice this one trade

got seven and a half R now I'm not

preaching you guys to go for high risk

award all the time but this strategy

which is catching the move of the week

or catching big moves based on the

higher time frames is going to take some

patience and I can tell you with

confidence that myself and some of the

best Traders I know make the most money

on trades that we are able to withstand

the storm on I want you to really

understand how value able it is to

understand the power of three now you

can do this on a daily level as well

just know that if you are bearish on the

day you want to be buying or selling

above that daily open above that Weekly

open above that 8 30 open and if you're

bullish you want to be doing it below

the weekly open below the daily open

below the 8 30 open trust me time and

price is going to give you the Precision

that you look for when it comes to

trading ICT as always if you guys have

any questions please put them down in

the comments if you guys have any

suggestions on videos you want me to

make put those down in the comments as

well if you want to start a free trial

to the Discord code Casper at play a bit

dot info memberships that's where I give

my trades and I do all of my private

education and I have something extremely

extremely exciting that is going to be

releasing very soon so I want you guys

to be hyped about it I'm not going to

say too much about it but just know

there is some really cool stuff coming

on the pipeline but as always guys make

sure you manage your risk make sure that

you're actually testing these strategies

if you want to back test this and at me

on Twitter I want to see your guys test

I want to see how you guys are utilizing

this and if you take any live trades

make sure to add me too because I love

seeing you guys make money and always

remember if you can't see the liquidity

then you are the local