Trade

Checklist

Ongoing Risk
Education Management

Trading Plan

Refinement Psychology
Price is always moving to a high, low, or fvg
External Range Liquidity (ERL) = High/Low
Internal Range Liquidity (IRL) = FVG
LTF tells you when the move begins
Market Maker Models are always present
 HTF IRL/ERL

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Alignment

Monthly > Daily

Weekly > H4

Daily > H1

H4 > M15

H1 > M5

M15 > M1
Weekly H4 M15
 Market Conditions

Trending Consolidating

Easier to trade Harder to trade

Higher probability Lower probability
Targets can be extended Targets should be shorter
Use model A or B Use model C
 Identifying Trending Conditions

Trending
Clear FVGs
FVGs follows through
Price is displacing
Likely to happen during volatile market sessions
(London/NY)
Likely to happen after price leaves a consolidation
Identifying Consolidating Conditions

Consolidation
Lack of order flow
Order flow fails
Price is ranging
Likely to happen leading up to major news events
FOMC, CPI, NFP, Bank Holiday
Likely to happen after major liquidity pools
Likely to happen during Asia session, NY Lunch
In NY, likely to happen when London has taken out
both sides of Asia's range
Likely to happen at 0.5 of ranges that take old highs
or lows
Don't expect big moves
Market Conditions Price Study
 Market Conditions Notes

Can be done on any timeframe, but best to do on your high and medium (not entry)

You must be clear on what market conditions are present, and have a plan for both (even if that plan is not trading)

Time and price can both be used

The most important skill you must learn to keep the money you make, is learning to identify market conditions.

When order flow isn't present, or fails, and liquidity has recently been taken - expect consolidation

Models that work well in trending markets will fail in consolidation, and vice versa
Time Based Levels
Highs & Lows of Asia & London

Highs & Lows of 0600-0730

Highs & Lows of 0730-0900

Midnight Open

730am Open

*All times are in EST or NY time

Time Awareness
Mark out the following time levels

1800 or 6pm previous day

Midnight
0600
0730
0900

Asia Session 1800 - 0000

London Session 0000-0600

Ny AM Session 0600-1200

*All times are in EST or NY time

 HTF IRL/ERL

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Alignment

Monthly > Daily

Weekly > H4

Daily > H1

H4 > M15

H1 > M5

M15 > M1
 How to Use Time

Time based liquidity = highs and lows of weeks, days, sessions, quarters
Reversals are likely to happen at time based liquidity
MMXM phases occur at time based liquidity
730am & Midnight Open can be used as a time based level of
premium/discount
 Framing Entry Model C
Identify consolidation on HTF

Draw a fib tool with the

following settings
(1, 0, .25, .5, .75)

Wait for the upper or lower

quadrant

Confirm MTF Liquidity taken

Scale into LTF for entry

 Entry Model A

1. Sweep of time based

liquidity in any phase of
MMXM
2. LTF iFVG, Market Structure
Shift, Silver Bullet, or
change in state of delivery
3. Partial and breakeven stop
at first opposing phase of
MTF MMXM
4. TP all but smallest runner
Alignment

Monthly > Daily > H1

possible at Original
consolidation
PML/PMH
PWL/PWH

Weekly > H4 > M15

PWL/PWH
PDL/PDH

Daily > H1 > M5

PDL/PDH
PSL/PSH

H4 > M15 > M1

PDL/PDH
PSL/PSH
PQL/PQH
 Framing Entry Model A

D > H1 > M5 or H4 > M15 > M1

Trending Higher Time Frame
MTF Clear Market Maker Model at HTF
FVG
Sweep of Time Based Liquidity
Judas/Manipulation beyond opening
prices
If London Consolidates, look for the
reversal in NY
If Asia consolidates, and London swept,
look to play the continuation in NY
 Entry Model B

1. HTF Trending conditions

2. Higher time-​frame IRL to
ERL move
3. Clear MMXM on Middle
time-​frame
4. Sweep of time based
liquidity in any phase of
MMXM
5. LTF iFVG, Market Structure
Shift, Silver Bullet, or
change in state of delivery
6. Partial and breakeven stop
at first opposing phase of
LTF MMXM
7. TP all but smallest runner
Alignment
possible at Original
Monthly > Daily > H1
PML/PMH
consolidation of LTF
MMXM
PWL/PWH

Weekly > H4 > M15

PWL/PWH
PDL/PDH

Daily > H1 > M5

PDL/PDH
PSL/PSH

H4 > M15 > M1

PDL/PDH
PSL/PSH
PQL/PQH
 Entry Model C

1. Complete all steps of framing

process
2. Wait for LTF market structure
shift or inversion
3. Enter on FVG or iFVG
4. Target 0.5 of the range
Risk Management

1. Position Size
2. When to Stop trading
3. Max # of positions
4. Max # of markets you trade
5. How you handle news
6. How long you stay on charts
 Position Size
Beginner Profitable

For prop firms - allow yourself 20 losses in a row For prop firms - allow yourself 10 losses in a row

Take your trailing drawdown or max drawdown Take your trailing drawdown or max drawdown
and divide by 20 to find this number and divide by 10 to find this number

For personal accounts, risk 0.5% For personal accounts, start at 1%

Risk this amount and this amount only If at normal balance, risk 1R
If 2R+ in profits, risk 2R
The goal here is to learn the skill more than If -1R in drawdown, risk 0.5R
making money
The goal here is to scale and make money
 When to Stop
Daily Weekly Monthly

Your average risk to reward is the amount of If you are 3 x your average RR in one week, stop If you are 2 x your weekly goal, stop for the
trades you're allowed to lose in a single day month.
If you have 3 losing days, stop
If your average risk to reward is 3, then you are If you have 2 losing weeks, stop. It's time to
allowed 3 losses per day This ensures your good weeks heavily outweigh review
your bad ones
This ensures that your losing days don't This helps you keep the money you make and
outweigh your winning days limit downside

*When you stop trading, you are still to perform refinement and education tasks
 Max Positions/Markets
Positions Markets

Never have more than one trades worth of risk If entering on M5 or M1, focus on one market at
on the same idea. This includes correlating a time to ensure focus and high quality
markets such as NQ/ES and EU/GU. performance.

If you scale into a position, your old position Less is more.

should be risk free, meaning your new position
adds no new or extra risk. This can be done by If entering on M15 or above, may watch multiple
trimming or moving stops up. markets at once.

If swing trading or entering trades on above the

M15 timeframe, you can have multiple different
ideas going as long as your number of trades
doesn't exceed your average RR.
 News
You must decide what your plan is for news.

Do you trade those days?

Do you trade before news?
Do you hold trades through news?

I recommend trading on red folder news days,

but not attempting to capitalize from the news
itself.

Always note how news and price interact. If

bullish news, and bullish price, that is high
probability bullish. If news conflicts with price,
expect reversal. Ultimately trust price.
How Long

Day trading ≠ Trading every day

More screen time = lower performance

Mental equity is important

1-2 Hours is all you need

 Psychology

1. Rational Confidence
2. Probabilities
3. Reflection
4. Discipline
5. Setbacks
 Rational Confidence
Trading psychology means nothing without a proven
edge

Rational confidence is only built through putting in the

reps

Skin in the game is the holy grail

Action steps:

Trading with small funds

Journaling and reviewing your trades
 Probabilities
You can do everything right and still lose multiple
times in a row

"Why did this single trade lose"

Most traders treat every trade like their career

depends on it, rather than thinking of how little one
trade means to their career

Think of the next 1000 trades

 Reflection
Reflect on your past trades. How do those losses affect
you now?

The more candles you review, the more confidence

you gain

The more questions you ask yourself, the more aware

you are

The more aware you are, the less your emotions

control you
 Discipline
Discipline is an identity, not something one practices in one area of life

You're operating in one of the hardest industries in the world, act like it

Treat yourself as if you were an athlete

Action steps:

Start a simple diet

Start a gym routine
Journal, read, and do things you naturally resist
 Setbacks
How you perceive and handle failure will determine how big you're able
to win

Plan that it will take you ten years, and it just might take you one

Understand that you will make many mistakes, and think

opportunistically - do not avoid risk

Detach from "a lot of money" and understand that if you master this skill,
what you think is a lot of money will one day be pennies to you
 Ongoing Education
Once you're profitable, spend your time refining and educating yourself on mindset improvements
rather than analysis.

Only listen to those who are proven to be profitable and consistent. Many teachers you find online
will only teach in hindsight and never call the markets live. Beware of these as they will distract you
with shiny objects that will derail your success.

Never set $ based goals as they will cause you to trade outside of your plan in an attempt to reach
them.

Understand that hard work alone will not make you a high level trader. If you are sitting here 10
hours per day, I guarantee someone else in the world is too. Spend no more or no less than 1 hour
per day studying. The efficiency will compound over time.

YOU are your edge, not the strategy, not a mechanical entry model, nothing but you can guarantee
you stay consistent. Spend time working on yourself and the rest will come.

Book list Video list

1. The Best Loser Wins - Tom Houggard 1. How to Simplify Your Trading
2. Trading in the Zone - Mark Douglas 2. Full Free Trading Course
3. Disciplined Trader - Mark Douglas 3. Trading Psychology
4. Market Wizards - Jack Schwager 4. Tom Dante YouTube
5. Mental Game of Trading - Jared Tendler 5. Umar Ashraf YouTube
 One - Sided Two - Sided
Consistent candles Indecisive candles
All in same direction Not all in same direction
Displacement Lack of displacement
High probability to Continue Low probability to continue
FVG = 3 candle formation with expansive middle
candle causing a gap between the wicks of candles 1
and 3
FVGs show displacement in the market and a desire to
move towards a further target
FVGs can be used for everything from higher time
frame levels, directional bias, trade entries, and stop
losses
Some FVGs have a higher probability of continuing
than others
 Displacement IRL > ERL

Displacement = Continuation Price is always moving to a high, low, or fvg

Manipulation = Reversal External Range Liquidity (ERL) = High/Low
Displacement is confirmed with FVGs Internal Range Liquidity (IRL) = FVG
How the market reacts to highs and lows tells you LTF tells you when the move begins
everything Market Maker Models are always present
 BSG Failed BSG Inflection Points

BSG = Break Structure Gap If a BSG fails, look for the opposing swing point as a Inflection points are found by extending out the level
BSG are the most important FVGs as they are the target of structure that was broken
life blood of a trend Failure = opposing candle closes through, or inverts Inflection point + BSG = key level
BSG must follow consistency rule Can be used as an opposing level after inversion Should see displacement away from IP if price is going
to continue
iFVG = inverted fair value gap
High probability iFVGs occur:

At two-​sided gaps
At BSGs,
After sweeps of liquidity

When iFVG is confirmed, look for

opposing liquidity
Can be used for entry or bias
 HTF IRL/ERL

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Alignment

Monthly > Daily

Weekly > H4

Daily > H1

H4 > M15

H1 > M5

M15 > M1
What is a Market Maker Model? Why use Market Maker Models?

A market maker model (mmxm) is a strategy to MMXM help you identify what side of the curve we're
visualize retracements and expansions on a lower on, and confirm your higher time frame bias. They
timeframe. also provide you with trade entries and stop loss
placement.
 What is Daily Bias? Why is it important??

Daily bias is the direction that you're anticipating the When bias is clear, all you have to do is wait for an
current daily candle to close. In simple terms, are entry model during the trading session.
buyers or sellers in control.
Price is always moving to a high, low, or fvg
External Range Liquidity (ERL) = High/Low
Internal Range Liquidity (IRL) = FVG
LTF tells you when the move begins
Market Maker Models are always present
Weekly H4 M15
 Key Level to Key level Use Premium/Discount of Candle Range
Sweep + Engulfing
Which side of the market is failing?
FVGs
OBs
Structure (Manipulation vs Displacement)

This Made Trading "Click" For Me (Displacement Theory)

YouTube
 What is Market Structure? Why is it important?

Market structure is simply highs and lows. The key is Market structure is the foundation of your analysis,
knowing which highs and lows to use, and having a and is involved in almost every price action trading
practical method of finding them concept, yet most people do it completely wrong.
Manipulation legs fail to "displace" or push
rapidly BEYOND structure

Displacement legs DISPLACE or push rapidly

through structure

Manipulation = reversal

Displacement = continuation

Pair with other concepts for higher probability

than when used alone
Impulse structure is structure that forms with
displacement and fair value gaps (FVG)

HTF impulses = many LTF impulses

Impulses can be used to confirm HTF zones

Don't pay attention to structure that isn't an

impulse (MvD)

All trends come to an end, and there is a way to

gauge when impulses are likely to return
If trading is a business, candles are your product

Do you want to sell your product for a premium,

or a discount?

Do you want to buy your product for a premium,

or a discount?

0.5 of impulse = fair market value

Above fair market value = premium

Below fair market value = discount

Reversals are likely to happen in premium or

discount in context of the previous price leg
 What is Liquidity? Why is it important?

Liquidity is the ease at which an asset can be bought In a bullish market, you buy from sellers, under lows,
or sold. We look for liquidity beyond highs or lows, as at sell-​side liquidity.
there are stop losses placed using these levels. On a
chart we view this using tools such as highs and lows In a bearish market, you sell to buyers, above highs,
or fair value gaps. at buy-​side liquidity.

This is how the large market participants operate, and

so should you.
Price is always moving to a high, low, or fvg
External Range Liquidity (ERL) = High/Low
Internal Range Liquidity (IRL) = FVG
LTF tells you when the move begins
Market Maker Models are always present
 What are Order Blocks? Why is it important?

Order blocks are candles formed just before Order blocks can be used for many purposes, such as
expansive moves in price that can later be used as entering trades, trailing stop losses, determining
support or resistance. In a bullish market, price directional bias, and more.
should find support on down close candles. In a
bearish market, price should find resistance on up
close candles
 What are Breaker Blocks? Why are they important?

Breaker blocks are powerful levels in price that occur Breaker blocks often occur at key times of the day
before raids on liquidity, which is the backbone of the when we're expecting liquidity sweeps, and can be
trading methodology I'm teaching you used to enter high probability trades. They're
especially powerful when linked with fair value gaps.
 What is Time and Price? Why is it important?

Time and price refers to the analysis that traders can Time and price is important for refining when to look
do using time. for certain behaviors in price, which levels to trade
from, and when to expect expansion vs consolidation.
Time based liquidity = highs or lows made
during certain time periods

Previous weekly highs/lows

Previous day's highs/lows

Previous Asia Session (1800-0000) highs/lows

Previous London Session (0000-0600) highs/low

0600-0730 highs/lows
SMT Divergence
1. Weekly IRL/ERL
2. Weekly Candle Bias
1. Daily IRL/ERL
2. Daily Candle Bias
1. H4/H1 Market Maker Model
 M15 IRL/ERL
Reaction to TBL and 730 open
 Entry Checklist

2 + LTF Confirmation Required

1. HTF = LTF
2. HTF IRL/ERL = LTF MMXM
3. Manipulation beyond session open/TBL swept
4. HTF Key Level
5. LTF Confirmation (required)
 Risk Management

R = Total Drawdown / Number of Consecutive Losses

Likely
1R risk from breakeven
2R risk when 2R in profit
0.5R risk when in drawdown
2 losses OR 1 win = STOP TRADING
Trimming is better than breakeven stops
True Week Open 1800 Monday Midnight Open

Monday = Accumulation (expansion if previous Asia Session 1800 - 0000

Friday accumulated
London Session 0000-0600 (focus on 0130 -
Tuesday= Manipulation (Accumulation if 0430)
Monday expanded)
Ny AM Session 0600-1200 (focus on 0900-1030)
Wednesday = Manipulation/Distribution
NY PM Session 1200-1800
Thursday = Distribution/Continuation/Reversal
Each can be broken into 1/4s
Expect either AMDX or XAMD in any defined
range of time based on the previous cycle Expect either AMDX or XAMD in any defined
range of time based on the previous cycle