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2022 ICT Mentorship - Ends Series Part 4 of 4
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2022 ICT Mentorship - Ends Series Part 4 of 4

Final Episode: Making Ends Meet

In this final episode of a four-part series, the focus is on making ends meet. The goal is to target one major bill or expense each month and generate $1000 in income by trading one e-mini S&P contract per trade.

Private Mentorship Warning

  • Private mentorship students were warned that price action models would be useless without proper training, study, and backtesting.
  • This series is aimed at individuals who have learned how to find the 2022 ICT mentorship model and refine it into a plan of action.

Trading Plan

  • The budget for this case study is $1000 per month with a focus on the cost of groceries.
  • One e-mini S&P contract will be traded per trade with an objective of 5.25 points or 21 ticks after commissions, generating approximately $250 per contract.
  • A hard stop loss of four points will be used for all trades, and no partials will be taken - one and done.

Trading Sessions

  • The AM session runs from 9:30 am to 11:30 am New York local time, while the PM session runs from 1:30 pm to 3:30 pm New York local time. Only one setup needs to be found each day, either in the AM or PM session.

Setup Criteria

  • Stock setups will be at previous week's and previous day's highs and lows as well as previous session highs and lows.
  • All setups must fall within the expected range expansion on a weekly candle for the present week of trading.

Trading Strategy for S&P 500

In this section, the speaker discusses a trading strategy for the S&P 500 based on previous week's highs and lows.

Bearish Bias

  • The focus is on previous week's highs to hunt shorting opportunities in the S&P 500.
  • Waiting for the market to reprice above the previous week's high and move down to a five-minute chart for setup formation.
  • Using the ICT mentorship 2022 model for entry.

Short-term Swing Low

  • Looking for displacement lower in price, which means if it breaks lower, there will be a short-term little swing low on the lower time frames that it breaks.
  • Hunting in that displacement swing a fair value Gap at or just above the equilibrium of that displacement swing.
  • Dropping down from five minutes to four three two or one minute charts to refine and select a fair value Gap that permits a four-point stop loss.

Long Opportunities

  • When weekly candle expands higher, hunting long opportunities in the S&P 500.
  • Waiting for the market to reprice below the previous week's low and move to a five-minute chart for setup formation.
  • Using ICT mentorship 2022 model for entry.

Fair Value Gap

  • If there is a displacement higher in price, looking for a fair value Gap in the displacement swing.
  • Dropping down into four three two one minute charts to refine and select a fair Vegas that permits a four-point stop loss.

If no fair value gap allows either on five four three two or one minute chart if it requires larger stop loss than four points we're not doing anything we let trade pass.

Introduction to ICT Mentorship 2022 Model

In this section, the speaker introduces the ICT Mentorship 2022 model for entry.

Key Points:

  • The ICT mentorship 2022 model is used for entry.
  • The repricing of S&P 500 above the previous day's high is expected to see a raid on buy-side liquidity.
  • If there's a displacement leg lower in price, look for a fair value gap in a displacement leg and drop down from five into four three two or one minute charts that refine and select a fair value gap.
  • Permits a four-point stop loss if no fair value gap allows a four-point stop loss.

Hunting Long Opportunities in S&P 500

In this section, the speaker explains how to hunt long opportunities in S&P 500.

Key Points:

  • When the weekly candle for the present week or the week to come is likely to expand higher, hunt long opportunities in S&P 500.
  • Wait for the market to reprice below the previous day's low and move to a five-minute chart for setup formation using the ICT mentorship 2022 model for entry.
  • The repricing of S&P 500 below the previous day's low is expected to see a rate on South Side liquidity.
  • If there's a displacement higher in price, look for a fair value gap in displacement swing and drop down from five into four three two or one minute charts that refine and select fair value gap.

Hunting Short Opportunities in S&P 500

In this section, the speaker explains how to hunt short opportunities in S&P 500.

Key Points:

  • When weekly candle for the present week of trading is likely to expand lower, hunt short opportunities in S&P 500.
  • Wait for the market to reprice above the previous session high. The previous session high could be the high that's formed between 8:30 in the morning and 9:30 in the morning New York local time.
  • If there's a displacement lower back below it, start hunting for a fair value gap.
  • If you're bearish between 8:30 and 9:30, look back further into London session and see if we are sweeping London's session High.

Hunting Previous Session Lows

In this section, the speaker explains how to hunt previous session lows.

Key Points:

  • When weekly candle for present week of trading is likely to expand higher, hunt long opportunities in S&P 500.
  • Wait for market to reprice below previous session low and move to five-minute chart for setup formation using ICT mentorship 2022 model for entry.
  • The repricing of S&P 500 below previous session low is expected to see a rate on South Side liquidity.
  • If there's a displacement higher in price, look for a fair value gap in displacement swing and drop down from five into four three two or one minute charts that refine and select fair value gap.

Keeping Liquidity in Focus

In this section, the speaker discusses how to keep liquidity in focus when trading and how to engage price after a raid on buy/sell side liquidity.

Engaging Price After a Raid on Buy Side Liquidity

  • When stocking shorts, engage price after a raid on buy side liquidity.
  • Look for setups and formations that occur when the market trades above an old high.
  • Take out or engage at least by-side liquidity to increase the likelihood of being correct if you take a short in that fair value gap.
  • Precursors include seeing an important high taken out or probed.

Engaging Price After a Raid on Sell Side Liquidity

  • When stalking longs, engage price after a raid on sell side liquidity.
  • Everything mentioned for going short is reversed here for the same logic; just invert it.

Understanding Setups

  • The logic behind taking trades is based on the things discussed in this section.
  • The speaker frames all examples around one method in this list of potential setups.
  • There are more 5-point setups than 20-point setups in a day, so framing them around these ideas can help find more setups.

Market Truism

  • Smart money concepts will not die out because they are based on how markets book prices using existing liquidity.
  • As long as there are markets, there will be liquidity and smart money entities that use it.

Understanding Liquidity

In this section, the speaker discusses how he engages with the market and purposely engages with the losing crowd. He explains that liquidity is what drives buying and selling in these markets and has an impact on how algorithms book price.

Engaging with the Market

  • The speaker engages with the market by buying when others think it's going lower and selling short when they think it's going higher.
  • This logic will always exist in the marketplace because there's always someone who doesn't know what they're doing.
  • The interest of buying and selling in these marketplaces is going to have an impact on how algorithms book price.

Liquidity

  • Liquidity is what drives buying and selling in these markets.
  • These fluctuations on the smallest scale can be done with a one-contract transaction between one party and another or a larger block of orders broken up over a series of transactions.
  • The idea of booking price only needs one transaction at one price, regardless of whether it's one contract or a thousand lot.

Limit Up/Down Days

In this section, the speaker talks about limit up/down days in commodities trading. He explains that even though there may be an enormous rush of buying and selling, it's just a one-tick transaction that books price.

Limit Up/Down Days

  • On limit up/down days, there may not be as much volume as people might expect.
  • Even though there may be an enormous rush of buying and selling, it's just a one-tick transaction that books price.
  • The phenomenon of limit up/down days is controlled all around; otherwise, markets would collapse due to sheer brute force from participants.

Controlled Demolition & Explosion

In this section, the speaker talks about how any crash is always a controlled demolition and any meteoric rise is always a controlled explosion. He emphasizes that understanding liquidity is crucial to successful trading.

Controlled Demolition & Explosion

  • Any crash is always a controlled demolition, and any meteoric rise is always a controlled explosion.
  • Understanding liquidity is crucial to successful trading.
  • The focal point of liquidity cannot be argued; if you don't have an understanding of it, your trading will suffer.

Profitable Consistent Students

In this section, the speaker discusses areas of opportunity that repeat all the time in trading. He explains that having an understanding of why markets would go lower after going above an important high can lead to profitable consistent students.

Areas of Opportunity

  • There are areas of opportunity that repeat all the time in trading.
  • Having an understanding of why markets would go lower after going above an important high can lead to profitable consistent students.
  • These ideas and scenarios can be easily defined and written on the back of a business card.
  • Weekly highs exist over the course of a year, and some are easier to translate into profitable consistent students than others.

Trading Strategies

In this section, the speaker discusses his trading strategies and how he uses fair value gaps to make trades.

Fair Value Gaps

  • Fair value gaps that are five points or less on a one-minute chart can be utilized for a long trade if the draw on liquidity has yet to be reached.
  • The speaker pyramids positions up using this logic.
  • Fair value gaps that are five points or less on a one-minute chart can be utilized for a short trade if the draw on liquidity has yet to be reached.

Losing Trades

  • If you take a losing trade, wait and see if the trade idea is still viable before making another trade.
  • Keep everything light in terms of frequency and intensity. You get one opportunity to redeem yourself per week.

I apologize, but I cannot see any transcript or video to summarize. Please provide me with the transcript or video so that I can create a comprehensive and informative markdown file for you.

Trading Strategy Overview

In this section, the speaker discusses how to approach trading and what to do if you don't find a setup.

Low Risk Setup

  • Focus on a single 5.25 point trade for the week to make $250 one time per week.
  • Don't fear missing the week's yield; you may find two trades the following week.
  • If it's in a medium or high impact news driver and all things being equal, you could take two trades that week but once you get the second trade, stop.

Rules-Based Approach

  • Understand what you're looking for by backtesting and tape reading.
  • This is a very sober approach; it's not expecting you to do superhuman things. It's rule-based, principle-oriented, and not expecting to do a lot of acrobatics each week.
  • All rules are here folks; there's nothing missing.

Discipline

  • This is low frequency trading. You're looking for one easy little setup five and a quarter points four-point stop loss.
  • You have to have rules when should I do something when should I expect a set up the form how do I know it's going to keep repeating that's all in this lecture it's simple as that but it's going to be impossible for most of you because of discipline until next time be safe
Playlists: "Ends..." Series
Video description

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.