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ICT Charter Price Action Model 5 \ Trade Plan
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ICT Charter Price Action Model 5 \ Trade Plan

Price Action Model Number Five Day Trading Trade Plan

This section introduces the price action model number five day trading trade plan, which focuses on 40 to 50 pips per trade. It emphasizes the importance of watching the model 5 content and supplementary lessons before proceeding with this trade plan.

Preparation

  • Note all medium and high impact events for the markets being followed.
  • Study the events for the upcoming week and consider how they may affect market structure and suggest a specific weekly profile.

Range Determination

  • Determine the IPA (Initial Price Action) data range of the last 20 days, excluding Sundays.
  • Note the highest high and lowest low within this range as your current dealing range.

Opportunity Discovery

  • Look for potential drawdown areas where price is likely to trade next, either above a previous day's high or below a previous day's low.
  • Minimum target for these trades is 40 pips, with an average of 50 pips per trade.

Trade Planning

  • Identify previous day's low or intra-week low when bias is bearish.
  • Identify previous day's high or intra-week high when bias is bullish.
  • Expect daily range expansion in the direction of bias.

Trade Execution

Bearish Bias:

  • Short premium fair value gap setups when price moves up into a 15-minute premium fair value gap PD array during London open or New York open.

Bullish Bias:

  • Long discount fair value gap setups when price moves down into a 15-minute discount fair value gap PD array during London open or New York open.

Trade Management

  • Target sell-side liquidity below previous day's low or intra-week low inside the 20-day IPA data range. Initial objective is at least a 40-pip move.
  • Target buy-side liquidity above previous day's high or intra-week high inside the 20-day IPA data range. Initial objective is at least a 40-pip move.

Trade Execution Details

  • Note the European open price on Tuesday and filter all longs at or below this price level, overlapping with the 15-minute discount fair value gap.
  • Anticipate a 5-minute chart institutional order flow entry drill trade entry to form inside a retracement lower during London open or New York open kill zones, or a sell stop raid.
  • Similar approach can be applied for Wednesday and Thursday, excluding Mondays and Fridays.

Thursday is considered a wild card if there have been large range days on Tuesday and Wednesday.

Trading Plan for Bearish Market

This section discusses the trading plan for a bearish market.

European Opening Price and Filter Shorts

  • Note the European opening price on Tuesday.
  • Filter all shorts at or above this price level.
  • Look for shorts that overlap in the 15-minute premium fair value gap.
  • Anticipate a 5-minute chart institutional order flow entry fre drill trade entry to form inside of a retracement higher during London open.

Short Trade Management

  • Place a sell limit order on all positions when entering a short trade.
  • Use standard deviations and PD array convergence minus 5 pips as the entry price.
  • If multiple orders are used, they should have the same entry price in the sell limit orders.
  • Place a limit order to take 40 pips as the initial objective on one position.
  • Place a second limit order to take 50 pips as the second objective.
  • Close 80% of the trade if you capture a 50 pip objective and see if it has more room to run.

Entering Long Trades

  • Place a buy limit order on all positions when entering a long trade.
  • Use standard deviation and PD array conversion plus 5 pips as the entry price in buy limit orders.
  • Place a limit order to take 40 pips as the initial objective on one position.
  • Place a second limit order to take 50 pips as the second objective.

Stop-Loss Management

  • Note the premium array and standard deviation convergence when entering short trades.
  • Place stop-loss above this high plus 15 pips.
  • Re-enter if the trade stops out and monitor for secondary entry opportunities.

Solid Entry and Day Trades

  • Day trades may require multiple attempts to secure solid entries.

Stop-Loss Management and Money Management

This section covers stop-loss management and money management in trading.

Stop-Loss Adjustment

  • When in profit 25% of the expected objective, reduce stop-loss by 25%.
  • When in profit 50% of the expected objective, reduce stop-loss by 50%.
  • At 75% of the expected profit objective, stop must be at break even.

Money Management

  • If a demo account takes a loss on a trade equal to the full risk percentage assumed, reduce the risk percentage by 50%.
  • Once the loss is recovered by 50%, return back to the maximum risk percentage per trade.
  • Smooth equity curve that slopes or stair steps higher is desired.
  • Backtest and collect multiple sample sets with this trade plan for better understanding.

Summary and Conclusion

This section provides a summary and conclusion of the trading plan discussed.

  • Review and study the provided content for better understanding.
  • Use sample sets provided but also dig into your own charts for analysis.
  • Discipline and understanding of the core content are crucial for successful implementation of these models.
Playlists: ICT Charter Content
Video description

Government Required Risk Disclaimer and Disclosure Statement 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.