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ICT Mentorship Core Content - Month 10 - Bond Trading - Split Session Rules
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ICT Mentorship Core Content - Month 10 - Bond Trading - Split Session Rules

Introduction

This video is a discussion on commodities, specifically as a paper trade only. The mentorship focuses on teaching how to trade with ICT Concepts Forex and commodities.

ICT Bond Trading Lesson 2 Split Session Rules

This section discusses the split session rules for trading bonds.

Time of Day Element for Commodities

  • Commodities have a unique time of day element that differs slightly from Forex.
  • Overnight sessions will have an impact, traditionally seen as the London session.
  • New York AM session is defined by 8 A.M New York time to noon New York time.
  • New York PM session is defined by noon New York time to 3 P.M New York time.

Focus on Trading the New York Session Hours

  • Analysis concepts should be focused primarily on the New York session hours.
  • Overnight or London sessions can also be traded but use information seen during overnight trading during the London session to look for stops liquidity voids fair value gaps those types of things.
  • The largest volume for bond futures is seen between 8 AM and 9:30 AM NY time.

AM and PM Sessions

  • The AM session generally forms the higher low of the NY session or total range of true day for treasury bonds.
  • The PM session generally has a continuation or reversal and consolidation.
  • Focusing primarily on 8:20 in the morning to 11 o'clock in the morning was like my Killzone when I was doing Commodities only as an asset class.

Trading Days

  • Trending days can see the complete trading day be one-sided in both the AM and PM sessions.
  • Training days can start with one of the sessions being for instance the PM session.

Conclusion

This video provides an overview of split session rules for bond trading, focusing primarily on New York session hours. It also discusses time of day elements for commodities and how to trade during overnight or London sessions. The AM and PM sessions are explained, as well as trading days that can be one-sided in both sessions.

Understanding Split Session Rules for Bond Trading

In this section, the speaker explains how to use split session rules for bond trading. The speaker defines the morning and afternoon sessions and provides insights on how to use this information to make informed trading decisions.

Morning Session (8 AM - Noon)

  • The morning trend is defined by 8 AM to noon.
  • European and UK traders close up shop around 11 AM, leading to a reduction in volume.
  • New York lunch occurs around 11 o'clock to one o'clock in the afternoon.
  • If the lines portion of the day has been fulfilled by the am session, it's best to avoid trading during the PM session.

Afternoon Session (Noon - 3 PM)

  • The New York PM session is from 12 noon New York time to 3 P.M New York time.
  • Generally, if there's a large degree of the average daily range seen in the AM session, then the PM session will be rather abbreviated.
  • If you have made profits during the morning session, it's best not to trade during the PM session.

Examples of Split Session Rules for Bond Trading

In this section, we look at two examples of split session rules for bond trading.

Example One

  • Between two o'clock and five o'clock in the morning is known as traditional London open trade.
  • Price rallies up into the 11 o'clock hour London and European Traders go home they Square positions retracement takes place right down into noon so that begins the PM session.
  • Price makes the high today ahead of two o'clock in the afternoon and then goes into retracement and consolidation at 3 pm.

Example Two

  • No bullet points with timestamps available.

Bond Market Trading Strategies

In this transcript, the speaker discusses bond market trading strategies and how to apply them in Forex trading. The speaker covers topics such as opening range concepts, fair value gaps, bullish order blocks, and turtle soup.

AM Session Trading

  • Trades down below London session lows creating a failure swing.
  • Split session rules see the AM session going higher than the PM session going lower.
  • During the AM session, price has a large opening range. Look for retracement ideas or fair value gaps to be a buyer or seller.

PM Session Trading

  • A bullish order block is created at 15402 level during the AM session.
  • Price trades down into fills the fair value gap at 15403 into 15402 ahead of the 10 o'clock hour during equities open.
  • Take profits in position when fair value gap closes between highs at 15410 during AM session and last up close candle during eight o'clock hour.

Applying Concepts to Price Action

  • By applying these concepts and thinking about how it dovetails nicely with foreign exchange, you'll start to see there's a synergy that takes place between asset classes.
  • Keep a journal of bond market trading day by day basis to appreciate how bonds influence other markets.

Conclusion

In this section, the speaker concludes the video and wishes good luck to the viewers.

  • The speaker mentions that there is a large range available for trading.
  • The speaker wishes good luck and good trading to the viewers.
Playlists: 2017 ICT Private Mentorship Core Content Month 10
Video description

2017 Premium ICT Mentorship Core Content Video Lectures Audio and visuals are exactly as they were distributed in June 2017. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person’s investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a “limit move.” The placement of contingent orders by you, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.