The Cash Farm

The Cash Farm

Who am I? - I'm a person who found out about trading around 4 years ago. I and a very good friend of mine decided to pay for the signals of a trader and put all of our money together in 1 account and grow that account using the signals. Yes but no... We ended up blowing the account on the first day with our own bullish bias on NAS100 buying the "dip" while it didn't stop dipping until we were margin called at the NY opening. 10 minutes after we blew the account - the first signal came through which ended up going into TP3 of 100 pts on NAS. We couldn't even take the first signal we had already fucked up.

We both got frustrated but not at the markets - we got frustrated at ourselves. We weren't disciplined. We wanted quick cash. Easy cash. We didn't even put in the effort to learn yet. We were slapped by the markets right there and then. And I am thankful to this day that it happened the way it happened. I fell in love with the concept of this industry. Someone on the other side of our trade had made half of our account in just 1 trade. Within 1 day. That thing ignited the fire in me which has been ever since burning.

I started learning through youtube videos at first. The most retail bullshit I could find I would shove it down video after video. Course after course. Signal provider after signal provider.

I spent the whole 2022 trying to pass FTMO challenges. Miserably failed every single time. Sometimes twice a month. I decided to stop trading CFDs and found out about trading options. - why not. I learned the basics of options and decided to try out with 500 euroes. They went away faster than I could imagine. I realised options are even more dangerous for me. So I made a good break of trading and started reading books like:
Trading in the zone - Mark Douglas;
Principles - Ray Dalio;
Can't Hurt Me - David Goggins;
Be water, my friend - Shannon Lee;
12 rules for life - Jordan B. Peterson;
Meditations - Marcus Aurelius;

SO basically I went from a intense scalper who didn't have the patience, couldn't take a red day, overtraded, oversized, no strategy, zero risk management to a more stoic than ever before person who daily learns how to be patient with everything especially with himself. I found out about ICT on youtube and started studying his content. Which is ALOT. Then I found out that some of his students show their strategies around only one or two of ICT's models. I liked that idea. I didn't need to know everything, I just needed 1 thing which worked every day, every week, every month and returned profits greater than losses.

That 1 thing is Fair Value Gap. I'm in no way going to try and teach anyone how to trade it, how to spot it nor anything that comes close to teaching.

I am not a teacher.

I am a speculator.

I started this thread because I realised I need a trading journal but the type of journal which other people can see. In a way it helps me stay disciplined because I know I have started this thingy here and I can't just go savage like the old times and not follow my rules while trading.
It's also so I can come back to any trade I have taken with this strategy and see the reasons I have taken that trade and the results it has given me.

If at any time you have any questions please do not hesitate to shoot me a PM - About anything. I'm always happy to help with anything I can.

The Strategy

In no way am I saying this is MY OWN strategy that I came up with! No no no. I wish but no!
Everything is thanks to the legend the one and only Michael the ICT. (https://www.youtube.com/c/InnerCircleTrader)
His model is the foundation of this strategy's existence. Right after him I give all the credit to:
The Money Engineer. (https://www.youtube.com/@MoneyEngineer)
I give my utmost respect and gratitude to both these people. May peace be onto them for life.

Rules
1.Never trade before 9:55 am NY time
That way I can skip the 9:30 opening volatility which you never know what to expect of. Also gives me a way better entry point, exit point and SL point. Which leads to better RRR and who doesn't love that?

2.Displacement of 600+ points
This is a rule that TME has found returning the most out of other variables. And I believe him more than I believe myself. Sometimes I don't listen to this rule and enter the trade with less points but I'm still learning discipline.

3.Break of High/Low
Or also a liquidity grab which leaves behind a Fair Value Gap is always what I'm looking for before my entry.

4.Fair Value Gap
This is the entry point. If there are 2 of those. I make sure to enter both with half a position each. That way I'm not oversizing but I'm also making sure I get something out of it if it only fills one of the gaps.

5.SL above Fair Value Gap
Always put the stoploss to 250 points above the FVG. If I'm watching the trade I might give it some more room to breathe but not anything more than 300 points.

6. Take Profit
Always aim for 2,5+ RRR. I never put my SL to BE and I never change my TP. What I might start doing is move my SL to my TP level and if it keeps on running maybe I can offset some future losses. If not, I have locked in TP anyway.

Levels
1. Today's High and Low
2. Yesterday's High and Low
3. Midnight Open Price
4. 08:30 am NY Open Price

This is a work in progress......

Monday 24/04/2023

I didn't respect the displacement rule of 600+points.

Put my SL to 150 points because of ^^

Went for a higher RRR than 2.5 because I didn't risk the usual.

Result: +1.08%

Overall good trade but I didn't respect a rule.

Wednesday 26/04/2023

The first trade I took had every rule followed.I don't know why I thought the Fair Value Gap would change the direction suddenly.

I decided to believe that we are changing directions after touching the market FVG so I set my TP to the entry point of my Sell order.
The first trade turned out to be a 1:3,33 RRR but I took the second trade instead.
My mistake was I changed direction when the discplacement of the second trade was 400+ pts. I should've remained with the first which was 600+pts.

Overall good first trade I need to learn to trust myself more. And change directions less.
Result: -0,13%

Thursday 27/04/2023

No liquidity grab was made.
The displacement was 400+pts.

Wrong direction.
Overall shouldn't have taken this trade. Didn't meet my rules.
Result: -0.20%

Friday 28/04/2023

Liquidity was taken out from Today's High.
Displacement was 400+pts.
I think there were some news which resulted in faster execution of the trade.
Overall good trade. I didn't respect the displacement rule.
Result: +0.45%

Tuesday 02/05/2023

The party had started at 9:33
I was there at 10:22 - already late to it...
Shouldn't have traded today.
Result: -0.23%

Wednesday 03/05/2023

Liquidity was taken from Today's High.

Displacement was of 400+ points.

ADP NFP at 10AM.

I tried entering on further Fair Value Gaps while holding the trade. Still kept it conservative.

My guess is that markets are not moving much because of pre-FOMC.

Overall good trades.

Result: +0.44%

EDIT: Scalped through FOMC speaking. Powell said: We are not cutting rates - I sold.

Result: +1,24%

Tuesday 09/05/2023

Nothing interesting. Slow day.
Decided to enter a FVG that was formed after the NY Open volatility kicked in.
Been holding the trade until now.
Not a bad trade but very slow one.
Result: +0,84%

Thursday 11/05/2023

Liquidity was taken from Today's and Yesteday's high.
Displacement was only 300+ points.
FVG was respected on the first entry. Almost filled second entry's FVG.
There was PPI so I didn't follow most of my rules.
Overall good trade.
Result: +0.38%

Monday 15/05/2023

After making today's high market made a displacement of 300 points leaving behind 2 FVGs.
I was at work for the second half of the day so I set a limit order on the first FVG.
No news through the day which made me confident enough to hold it.
Overall good trade.
Result: 4%

Monday 22/05/2023

Liquidity was taken from Friday's high.
A fair value gap was left after market structure shift.
Amazing setup. Amazing trade.
Result: +3%