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......