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Jamess Scalp Model

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James’s model

Base timeframes- 1,2,3,4,5 (minutes)

Entries- 5,15,30 (s)

Sessions- London, New York

Pairs- AUDUSD, EURUSD, NZDUSD, GBPUSD

Risk per trade- 1%

So, what are we doing?

This model is entirely based around following order ow! Following the open of
London and NY sessions, we are looking to identify an order- ow transition or
continuation, using that as our footprint. This will be found on the
1m,2m,3m,4m,5m. This is regarded as our base timeframe - or the timeframe we
are observing the rules from.

Structure
We have 3 di erent situations of structure. Let’s refer to these as situation 1, 2 and
3. I personally only use 1 and 2 myself as these hold the best probability and win
rate. You can use 3 at your choice if you nd it works well for you personally. This
structure will not always present itself at the start of the session, we will cover
following timeframes later.

This is THE most important aspect to understand before you follow my model. If
you don’t already 100% understand the vertex rules for highs/lows then you need
to revisit that rst. Structure is the foundation of this model as in any. We can
follow major structure and minor structure here so also note you need to
understand the di erence there too.

We are NOT trading base timeframe intent, 2 rules only.

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Situation 1- Major structure following session open.

Firstly, let's note that the colours show previous and new session.

Here, we have a basic example of situation 1. So what can we see? We can see
we are following major structure, forming *inside* the new session. This identi es
as situation 1. Again, major structure inside new session.

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Situation 2- Minor structure inside new session

Here, we have a basic example of situation 2. We can see we are following the
same rules in the 2 rules with order ow, but this time following minor structure.
Again, note that all our structure points form INSIDE the new session. Our rules
remain the same with minor and major, our minor just forms inside the major range.
See the FAQ section for minor structure video. This type of structure takes some
getting used to, but is entirely rule based so it is just a case of getting an eye for it.
Situation 1 and 2, are both the highest probability structures to follow.

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Situation 3- Major structure from previous session

Here we have a basic example of situation 3. Here, while very similar to situation 1,
has one major di erence. We can see the the low that forms rule 1 (Highlighted
green) is from the previous session. We have the same 2 rules with order ow but
structure used is OUTSIDE the new session. This situation will give you more
trades, but a lower probability. Situation 3 is where any structure is from the
previous session, even by a few pips.

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Mitigation (order ow)

Mitigation is also a massively important part of this model, as already explained we


are following order ow. The mitigation is what creates that! Alongside the
structure, this is our footprint. Again, you already need to understand the vertex
rules around mitigation so please refer back to the course if you are not already
100% in touch with it.

The mitigation we are looking for, needs to happen on the IM OB from the SR leg.
This mitigation can NOT be in the middle of nowhere, it needs to be the rst IMP/
SR within the session structure on each/any timeframe. See examples below.

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Structure complexity- 3rd break
Sometimes what you’ll get is the rules, but before price returns to your POI you will
get another break. The rule here is simple! You allow that 3rd break, but NO more.
You ignore the most recent break, see that low as liquidity and your POI stays
where it was, following the mitigation.

Real chart;

So now we understand how and where we are looking for the rules and mitigation
to happen, let’s look at what I mean by ’making sense of the mitigation’ I have
found from my time, that when we have a clean, clear mitigation the win rate is far,
far better. So what do I count as a not clear mitigation? Firstly, I do NOT trade LG’s
as mitigation. It needs to react to the OB, not wick it in any way, Secondly,
mitigations that happen in and around the open/50% of the IMP ob, create the
highest probability. In a situation where a mitigation isn’t massively clear or goes
far past the 50% of your IMP, we have options. Firstly, the trade would still be
valid, what we are about to talk about is simply for probability purpose.

Re ning the reaction down. If not clear, we can mark the mitigation point on and
make sense of it on a lower, clearer timeframe just like we would when re ning a
OB, it’s no di erent. Let’s have a look at examples.

A clean, clear mitigation of the IMP ob.


Nothing to do here, textbook set up.

Here, we have
a situation
where it isn’t
so clear. The
reaction point
wasn’t
unmitigated,
wasn’t a wick
trick so why
did it react
there?

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This is the kind of situation where applying the re nement and making sense of
that reaction on the lower timeframe, will let you decide if to follow through with
looking for an entry. This step is simply increasing probability! I saw a big increase
in win rate when applying this logic. It lets you follow an initial unclear set up, with
perfect logic. NOTE! You can only re ne a candle down in an area of an actual OB.
You cannot see some random reaction and go down to the 5s to try make sense of
it, it still needs to follow OB rules.

SO let’s have a look on a lower TF, did it react to a clearer point?

Moving down to the 5s, we suddenly see a much clearer picture. We can now see
the reaction point was to an unmitigated OB inside that base timeframe candle.
This mitigation has now been made sense of and we can follow the trade with
100% con dence.

This is not a NEEDED step, but it will for sure increase your probability.

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Following timeframes

This is what is going to take you the longest to be able to do quickly during live
price action, but is a game changer. Not only will this stop you from taking
unnecessary losses, but will allow you to catch every move and not miss certain
timeframes. This is much easier to explain on video, so be sure the video series
will go deeper into this. But for now…

We need to understand that for every timeframe, we are going to have situations
where our timeframes up have a con icting story. We all know that higher
timeframes hold more value right? So we need to make sure we are primarily
giving our trust in those. The main situation you’ll nd yourself in, is when you have
the rules on one timeframe, let’s say the 1m. You think great, I’m going to take this!
However at the same time, your 3m is showing you intent and your 3m OB is
above/below your initial 1m POI. What does this mean?

Simply put, we have a con icting area for price to come to. Sure , it makes sense
for price to go o the 1m, and it can! But we need to understand we have every
reason to break through that poi to reach the 3m intent. When I was rst starting
this method, testing etc I saw most of my losses came when I had a con icting
POI and not being aware of other timeframes. This is where my 1,2,3,4,5 minute
timeframe base came from, it’s the perfect balance. Let’s have a look at a drawing;

Here, we have the rules on a 1m chart. Great! However, we move up to the 2/3m
and we see we have intent and the POI is sat above the 1m POI….

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If we look here, we see a situation where at the same time, we have di erent OB’s
on di erent timeframes. This con icting OB now means that our 1m holds lower
probability. If you note the green highlight identifying the 3m intent and look at that
on the 1m chart we can identify what I mean about con icting.

This doesn’t straight up invalidate the 1m set up, just be aware the win rate
decreases in these situations. Following the highest timeframe given to you at any
point will stop this from happening as you’ll always be focused on the highest
timeframe rules possible!

Now, if your POI’s don’t con ict that’s great! You can continue to follow the lower
timeframe. It’s only when they do, you need to ask yourself if you are happy to risk
your capital with price having reason to go elsewhere.

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Using pullbacks to your advantage

Another situation you will run into is when price runs away from you on all base
timeframes. Let’s say you are following the 5m in London, and you don’t get that
order ow with the 2 rules and price runs away. Because we don’t move up any
more timeframes over the 5m you may think no trades can be taken but this isn’t
right! What we can do, is drop back to the lower timeframes and look again for
order ow back TOWARD our higher timeframe POI’s. Let’s take a look at a
diagram. This can be used when we have a valid POI above, or just 2 rules etc.

So! Here we have a representation of what we are talking about. 5m has given
POI’s and we have started to retrace back toward them. Noting the green highlight
(the pullback) We can trade this. We have our reason to go higher, then we use the
same order ow rules to follow it. Whats’s crazy about this, is commonly price will
follow through with the pullback order ow and push through the higher timeframe
POI’s. This means we have caught the bottom of the move without even realising
it.

The main thing to note here, is we can only use this to trade back TOWARD our
higher TF POI

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Real example

Here we have an example of a 4m chart.


We have intent right? So we have our OB.
Price has a lot of room to retrace back
there so we can use what we have spoken
about above, to follow that retracement on
a lower TF.

Let’s drop back to the lower timeframes


and look for opportunities.

Down on the 2m, we get our rules! We can trade this, with directional bias of the
4m POI at a minimum. Same rules apply, only thing to note here is you ONLY want
to follow major structure when trading these counter trend retracements.

Re nement and entries

As far as the actual nal process of entering goes, this is the easy part! The hard
work goes into ensuring our base timeframe POI is high probability, the entry
con rmation is the nal piece. It doesn’t matter how much con rmation you use on
the entry, if your POI isn’t high probability in the rst place then it makes no
di erence.

Re nement of POI’s is already explained in the course so I don’t need to explain


that, all you need to know is I re ne the OB down to the lowest minute timeframe
clearly possible. Ideally we want imbalance and nice momentum. If our OB doesn’t
have that, then we can re ne further to the 30s. For example, a base timeframe
POI from the 5m, will be re ned down to the lowest minute chart possible.
Remember, our re nement still needs to be a valid OB! It HAS to cause a BOS on
it’s own timeframe. If you can’t nd a clear POI, leave the set up and wait for the
next. Go through the breakdown section and look at my trades, I only risk capital
in clear situation. DO NOT ‘guess’ your POI.

Simple re nement. 3m POI into the 1m, we can see how this reduces the POI size
and reduces our chances of a ‘fake out’. As a general rule of thumb, if in doubt
imbalance it out.

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My entry itself is simply seconds timeframe intent using limit orders. 5s,15,30s.
Which one?

Very much like our base timeframe following rule, we are going to do the same
here on the seconds. If we have 5s intent, just make sure your 15s hasn’t given the
same with a con icting OB. You don’t want to get stopped out on the 5s because
your 15s was below/above. See below for diagram

We can see here for price to reach the 15s intent OB, it would stop you out on the
5s position. We have options here;

Enter o the 5s and ‘hope’ it reacts there with another order at the 15s.

Enter o the 5s and cover the 15s with your stop loss.

Enter o the 15s alone.

My rule is simple.

My minimum stop loss is 1 pip and my maximum is 2 pips. If I can enter o the
lower TF ob and cover the higher with my stop loss without going over 2 pip SL, I
will do that. If it would require over 2 pips SL, I enter o the higher TF alone. Don’t
try to be perfect either, always allow room below/above the Sl for spread and
broker di erences to TradingView. We are here to make money, not be perfect.

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When entering as already mentioned we do not need to be perfect. You will see
many situations where I use the last buy candle instead of the extreme, the whole
buy to sell or simply enter manually if I don’t have enough time to enter the limit
order. Why? Firstly, I used to trade with 50 pip stop losses!!! Now, at a maximum of
2 pips I am happy to just get in the trade once con rmation is given. On the
seconds timeframes , I personally see price won’t always go to the exact extreme
candle. We also have discrepancies in trading view feeds and broker feeds.
ICmarkets for example, always runs .1/.2 o of FXCM. We don’t want to miss a
1:50 trade for the sake of 1 pip do we? See an example below.

Here I enter o the last buy candle in the range before the BOS, and not the
extreme at the top. This allows me to get in with my maximum 2 pip stop loss and
increase chance of triggering. If I was ‘greedy’ and entered at the extreme, I would
have missed the whole trade.

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Trade management

This is personal and you will have to test what works for you. For me;

Going breakeven-

I go breakeven on the very next BOS on my entry timeframe using major structure.
I do not account for commission with my breakeven. I used to, but as soon as I
returned my initial deposit I stopped. There were many times my SL in pro t would
get hit, not the BE, then price would y.

Partials-

My rst partial is at 1:10rr. Here, I close half of my lot size to secure 5r return. The
remaining .5% risk then continues on depending on di erent factors. If we enter
and then see we are pro trend on the higher timeframes, we can target higher
timeframe structure like normal. 4h, daily ect. If we are counter trend, partial more
aggressively. 1:20rr is your next logical point to again close half remaining volume.
The thing is, we only need one of our trades to run on to a new daily low/high with
a small volume running and we gain substantial returns. We can take most our
pro t up to 1:50 for example and then leave 10% of the original lot size running. I
call this my swing volume. We relatively frequently see moves run on to 1:500+
running swing partial and at 1% original risk, this small 10% volume sits at a 50r
pro t.

If you are trading a funded account, don’t feel silly for closing everything at 1:10.
That is ne and a good compounding rule.

Re entries o POI’s

Sometimes your rst entry will hit SL, for price then to push further into the POI
and give another entry. I would suggest using this as a guideline- If price hits the
open of your poi and hits SL, wait for price to reach the 50% for re entry. Honestly
it is rare price will give you multiple opportunities if you have re ned it well.
Additionally you can move up to the next entry timeframe and follow that for intent.

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Summary

I hope this has given you more clarity into my model, until the video series is
completed. Take your time to learn, test, make mistakes and progress in
con dence and precision.

Like any model you need to practise until it is second nature. It took me months to
create the model around tanz’s rules and then time to adjust to seeing the rules in
live situations.

You don’t have to follow this to the T and you can of course create your own rules
and adjustments around it. This model is very pro table, but requires patience.
Small errors can lead to low probability and losing streaks. It doesn’t produce
multiple trades every day, and you will have busy and quiet periods. When done
properly, the win rate is fantastic and returns compound nicely. I have retuned my
initial deposit multiple times over following these rules and I have nothing but
con dence you can do the same with time and practise.

One trade at a time.

See you all in the discord.


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