The ICT Mentorship Core Content Month 2 Summarized:
Growing Small Accounts Without High Risk
You need to avoid:
1. Trying to rush to make massive gains
2. Opening yourself up to large risk
3. Assuming small trades will not grow your account
4. Poor planning
You need to avoid:
1. Trying to rush to make massive gains
2. Opening yourself up to large risk
3. Assuming small trades will not grow your account
4. Poor planning
You need to aim for:
1. Favorable Risk to Reward
2. Respect the risk side over the reward
3. Find trades with 3 R:R or higher
The Reality Of Reward To Risk Ratios
The table below shows what win rate you need to see profitability with each risk-to-reward ratio.
1. Favorable Risk to Reward
2. Respect the risk side over the reward
3. Find trades with 3 R:R or higher
The Reality Of Reward To Risk Ratios
The table below shows what win rate you need to see profitability with each risk-to-reward ratio.
What Should You Focus On Initially?
1. 20 pips per week
2. 1.5% risk
3. 1:1 RR ratio
Compounding 6% per month.
So where do these setups occur?
1. 20 pips per week
2. 1.5% risk
3. 1:1 RR ratio
Compounding 6% per month.
So where do these setups occur?
Focus on the daily chart.
Locate an orderblock like the one highlighted in the chart.
Locate an orderblock like the one highlighted in the chart.
How To Frame Low-Risk Trade Setups
Setups worth taking are:
1. Ideally on the higher time frame
2. Banks analyze Daily - Weekly - Monthly charts
3. Price levels aligned with Institutional Order Flow
Setups worth taking are:
1. Ideally on the higher time frame
2. Banks analyze Daily - Weekly - Monthly charts
3. Price levels aligned with Institutional Order Flow
What can you do to lower risk on trades?
1. The higher time frame has more influence so we focus there
2. Refine the trade on the lower time frame
3. Transpose the higher time frame levels to the lower time frame
4. Refining the levels allows smaller stop placement
1. The higher time frame has more influence so we focus there
2. Refine the trade on the lower time frame
3. Transpose the higher time frame levels to the lower time frame
4. Refining the levels allows smaller stop placement
Why Losing On Trades Wonβt Affect Your Profitability
Trading with fear:
1. Promotes fear based decision making
2. Traders who canβt take a loss canβt profit long term
3. Focuses on the adverse
4. Fosters trader paralysis or inability to execute
Trading with fear:
1. Promotes fear based decision making
2. Traders who canβt take a loss canβt profit long term
3. Focuses on the adverse
4. Fosters trader paralysis or inability to execute
You can still profit and take losses:
1. Losses are a cost of doing business
2. Risk management and high probability setups give big % returns
3. 3:1 RR trades give your account a foundation
4. 5:1 RR trades efficiently cover losses
1. Losses are a cost of doing business
2. Risk management and high probability setups give big % returns
3. 3:1 RR trades give your account a foundation
4. 5:1 RR trades efficiently cover losses
If you initially take a loss, you can take a trade with half of the position size used on the initial loss.
Letβs say 1% for example.
After 2 R is achieved on that trade the initial loss is mitigated.
After 3 R is achieved you are in profit.
The importance of 1:3 RR trades!
Letβs say 1% for example.
After 2 R is achieved on that trade the initial loss is mitigated.
After 3 R is achieved you are in profit.
The importance of 1:3 RR trades!
The Optimal Trading Goal
1. Accuracy Rate: 50%
2. Risk Per Trade: 1%
3. Reward To Risk: 5:1 Ratio
Over 10 trades that is a 20% return on equity.
1. Accuracy Rate: 50%
2. Risk Per Trade: 1%
3. Reward To Risk: 5:1 Ratio
Over 10 trades that is a 20% return on equity.
The Secrets To High Reward Trading Setups:
1. Patience
2. Define trade environment
3. Determine trade parameters
4. Executable criteria
5. Understand why it should pan out
6. Experience for future reference
1. Patience
2. Define trade environment
3. Determine trade parameters
4. Executable criteria
5. Understand why it should pan out
6. Experience for future reference
You must understand that good trading comes by way of process-oriented thinking - not by reactionary or impulsive thinking or rushing to prematurely take trades.
The Secrets To High Reward Trading Setups:
Big Picture Perspective:
1. Macro Market Analysis
2. Interest Rate Analysis
3. Intermarket Analysis
4. Seasonal Influences
Intermediate Perspective:
1. Top Down Analysis
2. COT Data
3. Market Sentiment
Big Picture Perspective:
1. Macro Market Analysis
2. Interest Rate Analysis
3. Intermarket Analysis
4. Seasonal Influences
Intermediate Perspective:
1. Top Down Analysis
2. COT Data
3. Market Sentiment
Short-Term Perspective:
1. Correlation Analysis
2. Time & Price Theory
3. IPDA - Interbank Price Delivery Algorithm
1. Correlation Analysis
2. Time & Price Theory
3. IPDA - Interbank Price Delivery Algorithm
Market Maker Trap: False Flags
1. Not all big price moves that move into short-term consolidations are Bull/Bear Flags
2. In mature trends or HTF distribution levels - price will post false flags
3. Retail trades will see classic continuation pattern but will result in reversal
1. Not all big price moves that move into short-term consolidations are Bull/Bear Flags
2. In mature trends or HTF distribution levels - price will post false flags
3. Retail trades will see classic continuation pattern but will result in reversal
Market Maker Trap: False Breakouts
False Breakouts In Consolidations:
1. The market will move into a trading range
2. Noobs or breakout traders will bracket the trading range with orders
3. Market makers will send price, tripping these traders into orders then reversing
False Breakouts In Consolidations:
1. The market will move into a trading range
2. Noobs or breakout traders will bracket the trading range with orders
3. Market makers will send price, tripping these traders into orders then reversing
Credit:
Here you can watch this month's module for free on ICTs YouTube youtube.com
Original creator @I_Am_The_ICT
Here you can watch this month's module for free on ICTs YouTube youtube.com
Original creator @I_Am_The_ICT
Want to learn to trade and manage your risk like a professional trader?
My personal risk management strategy is available for 100% free!
Get your copy here π
tradertheory.gumroad.com
My personal risk management strategy is available for 100% free!
Get your copy here π
tradertheory.gumroad.com
I hope you enjoyed this thread.
If you did be sure to follow me @Trader_Theory for:
- Educational content
- Trading psychology tips
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- And much more
If you did be sure to follow me @Trader_Theory for:
- Educational content
- Trading psychology tips
- Trading quotes
- And much more
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