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ICT Mentorship Core Content - Month 06 - Elements To Successful Swing Trading
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ICT Mentorship Core Content - Month 06 - Elements To Successful Swing Trading

Elements to Successful Swing Trading

In this video, the speaker discusses the hallmarks of successful swing trading. He emphasizes that a clear understanding of these hallmarks can enhance the probability of profitable trades.

Hallmarks of Successful Swing Trading

  • Obvious trend in higher time frame charts
  • Clear institutional order flow on higher time frame charts
  • Interest rate markets support the trade
  • Confirmation from Commitment of Traders report (COT data)
  • Obvious premium to discount arrays on monthly, weekly and daily charts
  • Seasonal tendencies
  • Supporting inter-market analysis confirms idea in trade

Institutional Sponsorship

  • Signs in relative strength analysis to support the trade when buying or shorting
  • Measuring institutional sponsorship through bank accumulation and distribution seen by studying price action

Homework Assignment

The speaker assigns homework at the end of the video, which involves thinking about these hallmarks and how they relate to swing trading. The goal is to stimulate thought processes and enhance understanding.

Swing Trading Strategies

In this section, the speaker discusses swing trading strategies and how to identify favorable markets for trading.

Identifying Favorable Markets

  • Buy at lower prices during bear markets.
  • Look for clear price action and discernible levels.
  • Identify obvious PDAs (price distribution areas) above or below current market price.
  • Cleanest price action is most favorable for trading.

Measuring Bank Distribution

In this section, the speaker explains how to measure bank distribution in swing trading.

Measuring Bank Distribution

  • Measure accumulation from banks by buying at Down Candles.
  • Measure bank distribution at Up Candles as resistance.

Identifying Clear Price Action

In this section, the speaker emphasizes the importance of identifying clear price action when swing trading.

Identifying Clear Price Action

  • Look for markets with clear price action and discernible levels.
  • Obvious PDAs are easy to identify and more favorable for trading.
  • Demand cleanest price action in charts to avoid erroneous trades.

Rule-Based Conceptual Methods

In this section, the speaker discusses rule-based conceptual methods in swing trading.

Rule-Based Conceptual Methods

  • Every trade must pass through a rule-based filtering process.
  • Rules are standardized and static; they cannot change on each trade setup.
  • If a trade setup fails the filtering process, it is passed on without exception.

Weighing Trades

In this section, the speaker discusses how to weigh trades and determine whether a new trade is more valid or has better potential than existing ones.

Factors to Consider When Taking a Trade

  • To take a trade, one must weigh whether the new trade is more valid than existing ones or if it has better potential payout.
  • One should consider which market offers a better payout. For example, if gold is long at 1240 and soybeans are expected to go up by a full dollar, soybeans may offer a better payout due to its faster velocity.
  • When considering taking on a new setup, one must evaluate which trade has the most probable outcome that would be profitable based on risk and equity management.

Probabilities and Reward Diligence

In this section, the speaker discusses probabilities and reward diligence in trading.

Probability of Profitability

  • A three-to-one reward-to-risk ratio permits as low as 34% accuracy to be net profitable.
  • Setting up trades with rewards of five times our risk increases the odds of being profitable and makes it easier to endure losses.

Homework: Mock Trading Plan

In this section, the speaker assigns homework for creating a mock trading plan.

Creating a Mock Trading Plan

  • Students will create their own mock trading plan from start to finish.
  • The plan should outline what constitutes an initial opportunity and what frames that opportunity as well as identify valid swing trades.
  • Students should also determine profit objectives and goals for taking profits.

Trading Plan and Filter Process

In this section, the speaker emphasizes the importance of having a trading plan and filter process. He encourages listeners to write down their plans and share them with him or on the forum. He also asks listeners to consider their filter process for trade ideas.

Creating a Trading Plan

  • The speaker stresses the importance of having a trading plan.
  • Listeners are encouraged to write down their trading plans and share them on the forum or via email.
  • Listeners are asked to consider how much they will risk per trade, total account exposure, when they will move their stop, and if they will take partial profits.
  • Listeners are given homework to create a swing trading model as an illustrative point of reference using what they know about swing trading and ICT concepts.

Filter Process for Trade Ideas

  • The speaker asks listeners to consider their filter process for trade ideas.
  • Listeners are encouraged to put their filter process in writing and share it on the forum or via email.
  • Listeners are given a deadline of Wednesday to have their filter process up on the forum.

Building a Swing Trading Model

In this section, the speaker discusses building a swing trading model. He emphasizes that listeners should not skip this lesson as it is important for filling in gaps in knowledge.

Importance of Building a Swing Trading Model

  • The speaker emphasizes that building a swing trading model is important for filling in gaps in knowledge.
  • Listeners are encouraged to find an opportunity in hindsight as an illustrative point of reference using what they know about swing trading and ICT concepts.
  • Listeners are given a deadline of Wednesday to have their swing trading model up on the forum.

Benefits of Building a Swing Trading Model

  • The speaker emphasizes that building a swing trading model helps solidify and retain information, as well as build process-oriented thinking.

Importance of Trading with a Plan

In this section, the speaker emphasizes the importance of having a trading plan and executing trades based on information received from price rather than emotions or external factors.

Benefits of Having a Trading Plan

  • A trading plan helps traders make informed decisions.
  • It prevents traders from reacting emotionally to market movements.
  • Traders can execute trades based on information received from price.
  • Immediate feedback is available to determine if traders are on the right side of the market.

Homework Assignment

The speaker assigns homework to his students and encourages them to complete it before watching lesson three.

Homework Assignment Details

  • Students must complete an exercise related to ICT Concepts by Wednesday.
  • Completing the exercise will help students understand what they should be looking for in their trading.
  • The speaker asks students to complete the exercise before Friday at 8 PM.
  • If students do not complete the exercise by Friday, they should take time to do it before watching lesson three.

Importance of Completing Homework Assignment

  • Completing the assignment will help students jump leaps and bounds ahead in their understanding of trading.
  • It is for their benefit and enrichment through study.
Playlists: 2017 ICT Private Mentorship Core Content Month 06
Video description

2017 Premium ICT Mentorship Core Content Video Lectures Audio and visuals are exactly as they were distributed in February 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.