This Exact MMXM Trading Plan Made Me Profitable!

Summary

In this video, Cam walks viewers through his comprehensive trading plan, focusing on the use of Market Maker Models (MMX) for consistent and successful trading. He discusses key components such as red folder news for volatility, identifying higher time frame liquidity, and applying specific entry models across different time frames for day trading and swing trading. Cam emphasizes the importance of consistency and how to align trades with market structure and volatility, making the approach adaptable for various trading styles. With a detailed example using AUD/JPY, he shows how these principles can be practically applied.

Takeaways

• 😀 Consistency in your market approach is crucial for consistent results. Establishing a reliable routine is key to success in trading.
• 😀 MMX (Market Maker Models) forms the foundation of the trading strategy, allowing traders to understand and predict price movement.
• 😀 Red folder news on a trading day guarantees volatility, which is essential for day trading. Volatility helps to push price movements in your favor.
• 😀 Time zones play a significant role in day trading. Trading within the 'Kill Zones' (Asia, New York, London) maximizes the chances of volatility injection.
• 😀 Analyzing external and internal liquidity from monthly, weekly, or daily time frames ensures that you have a clear bias in the market.
• 😀 For swing trading, volatility is less critical, as trades span over longer periods. The focus is more on aligning with the higher time frame's order flow.
• 😀 When swing trading, ensure that monthly, weekly, or daily order flow is aligned with your trade direction, looking for bullish or bearish signals.
• 😀 Market structure shifts and fair value gaps are used to confirm changes in the order flow. Traders can use tools like Aro's ST model for simplified analysis.
• 😀 Day trading involves trading within lower time frames (15-minute, 5-minute) and requires a strong focus on news events and volatility injections to guarantee success.
• 😀 Trading is based on fractal price movements, meaning strategies are the same whether you're day trading or swing trading; you're just applying them at different time frames.
• 😀 For both swing and day trading, risk management is essential. Targeting a 2R (risk-to-reward ratio) is commonly used as a safe and achievable goal for each trade.

Q & A

What is the core trading framework mentioned in the script?

The core trading framework discussed in the script is MMX (Market Maker Models), which the speaker uses as the foundation for their trading plan. It helps structure their approach and trade execution across various timeframes.

How does the speaker approach trading in terms of timeframes?

The speaker emphasizes the fractal nature of price, meaning that trading can be approached on any timeframe. Whether day trading, intraday trading, or swing trading, the same principles apply, but the execution timeframes change (e.g., 15-minute for day trading, 1-hour or 4-hour for swing trading).

Why is volatility important in day trading?

Volatility is critical in day trading because it ensures price moves within the trading day. The speaker mentions that volatility is crucial for entering and exiting positions within the same day. Red folder news events guarantee this volatility.

What is meant by 'Kill Zones' in the trading plan?

Kill Zones refer to specific times of the day, such as the Asia, London, or New York trading sessions. These are important for day trading because they are known to bring increased volatility, providing better opportunities for trades.

What is the role of 'red folder news' in the trading strategy?

Red folder news events are used as a filter to ensure volatility on the day of trading. By only trading when red folder news is expected, the speaker ensures that there is a higher likelihood of significant price movement, which is crucial for both day trading and swing trading.

How does the speaker ensure alignment with higher time frame liquidity?

The speaker checks liquidity from higher time frames (monthly, weekly, or daily) to ensure that their trade direction aligns with the drawn liquidity. This helps in identifying clear areas of interest for entering trades, either based on internal or external liquidity.

What is the significance of the 'change in state of delivery' concept?

The change in state of delivery refers to the shift in market structure, from bearish to bullish or vice versa. The speaker looks for this shift as confirmation for entering trades. They can identify this shift either by market structure changes or by using fair value gaps (as explained through Ario's ST model).

How do higher time frame and lower time frame strategies integrate?

The strategy integrates by focusing on higher time frame price delivery (like monthly or weekly order flow) and then zooming into lower time frames (like the 1-hour or 15-minute charts) for precise entry. This multi-timeframe approach ensures that the trade is aligned with the broader market direction.

How does the speaker handle risk management in trading?

The speaker employs a relatively simple risk management approach by targeting a 2:1 risk-to-reward ratio. They use the most recent low (or high) as the stop level, ensuring that their risk is manageable while targeting a reasonable reward within the drawn liquidity range.

What is the main difference between day trading and swing trading in the speaker’s plan?

The main difference is in the time frames and the importance of volatility. In day trading, the focus is on short-term moves within a single day, requiring volatility. In swing trading, volatility is less critical, as the trader holds positions over several days, looking for alignment with longer-term market trends.