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2022 ICT Mentorship - Ends Series Part 3 of 4
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2022 ICT Mentorship - Ends Series Part 3 of 4

Part Three: The Plan

In this part of the series, the speaker discusses how to create a plan to tackle financial ends. The focus is on reducing monthly expenses and increasing income streams.

Targeting Monthly Expenses

  • Most people struggle with meeting their living expenses, which makes it difficult to make ends meet.
  • To reduce monthly expenses, list out all bills and try to trim away non-essential items like streaming services.
  • For this example, the target expense is food or grocery bills.
  • The budgeted cost per month for groceries is $1000 USD.

Creating a Plan of Action

  • The plan is to harvest monthly ends in the cost of groceries by focusing on an approach and plan of action.
  • The initial objective is to grow from $1000 USD per month towards multiple streams of income.
  • This channel focuses on a "where the rubber meets the road" approach that teaches traders how to look for repeating phenomena in price action using a specific model (the ICT model).
  • Caleb uses the $1000 USD as a car expense each month and plans to build up his model by adding utility bills, car insurance, gas consumption, and rental/mortgage payments associated with monthly payments.

Conclusion

The focus of this part of the series was creating a plan to tackle financial ends. By reducing monthly expenses and increasing income streams through trading using specific models like ICT's model, individuals can work towards making ends meet.

Trading Strategy for Making Ends Meet

In this section, the speaker discusses a trading strategy that can help individuals make ends meet. The focus is on stock index features and assuming clearing is done with a discount broker with four dollar commission cost per trade.

Opportunities Per Month

  • The speaker recommends focusing on four opportunities per month.
  • This approach helps avoid being enticed or pressured into trying to trade more frequently.
  • It also gives traders a means of eventually creating their own YouTube channel where they can share their results and experiences.

Account Size

  • The speaker assumes an account size of $25,000 USD to begin with.
  • He acknowledges that not everyone may have this amount of money to start with and suggests looking into funded accounts or prop firm accounts as an alternative.
  • Traders can also adjust the approach based on their starting capital and use micros instead of full contracts.

Brokerage Fees

  • The speaker assumes clearing is done with a discount broker with four dollar commission cost per trade.
  • He does not disclose the name of the broker but mentions having mentioned them in passing before.

Personalization

  • The speaker emphasizes the importance of personalizing the approach based on individual circumstances.
  • Traders should consider how they got their capital, whether it's entirely through a funded account or after withdrawals from funded accounts resulting in profits, and adjust accordingly.

Conclusion

The trading strategy discussed in this section focuses on stock index features and assumes clearing is done with a discount broker with four dollar commission cost per trade. Traders are encouraged to personalize the approach based on their starting capital and other individual circumstances.

Overview

In this video, the speaker outlines a trading model that focuses on buying when weekly candles are expected to expand higher and using medium or high impact news drivers on the econo day calendar to narrow focus. The model involves trading one ES mini contract per trade with an objective of 5.25 points or 21 ticks per trade and a hard stop loss of four points.

Trading Model

  • Monthly goal is $1,000 USD by trading one ES mini contract per trade.
  • Objective is 5.25 points or 21 ticks per trade with a hard stop loss of four points.
  • Full position will be closed at 5.25 points or 21 ticks per trade without taking partial profits.
  • Trades will be made during the AM and PM sessions in index futures trading regular hours.
  • AM session is limited to 9:30 am - 11:30 am New York local time while PM session is from 1:30 pm -3 :30 pm New York local time.

The Model

  • Focuses on buys only when weekly candle will draw to a premium array indicating potential for volatility and range expansion to the upside.
  • Medium or high impact news drivers on the econo day calendar are used to narrow focus.
  • Stock setups for longs on calendar days after news hits market.
  • Wait for sell side liquidity on five-minute timeframe before displacement higher in price.

Trading Strategy Overview

In this section, the speaker provides an overview of a simple trading strategy that involves hunting for fair value gaps and using a four-point stop loss.

Key Points

  • The strategy involves hunting for a fair value gap on the displacement price leg for entry point and using a limit order on the fair value gap's high.
  • A time frame that permits the four-point stop loss is used, or else the trade is let pass with no exceptions.
  • The focus is reduced to one time frame that allows for a four-point stop loss.
  • A sell limit order at five and quarter points will be placed to exit trades.

Trade Engagement Rules

In this section, the speaker explains rules related to engaging in trades.

Key Points

  • Price should not be chased after it runs from a fair value gap. If it does not enter as expected based on the rules, let it pass with no exceptions.
  • Panic or fear of missing out should not make you act impulsively and prevent you from sticking to the rules.
  • These setups repeat enough times that only one per week needs to be found.

Profit Goals and Reversing Rules

In this section, profit goals are discussed along with reversing rules during bearish conditions.

Key Points

  • Harvesting one five-point setup per week can net $1000 per month theoretically.
  • All rules are reversed during bearish conditions when the weekly candle is likely to draw to a discount array or expand lower.
  • Aiming for 1% per week, which is four percent per month, is not an Olympic-level feat.

Trading Model for Live Trading

In this section, the speaker discusses a trading model that is meant to be used in live trading. He emphasizes the importance of taking things slow and not rushing into live trading.

Importance of Patience

  • The speaker advises against rushing into live trading.
  • The model is not meant to beat other traders or courses but rather to help traders formulate a plan for their own accounts.
  • The model is designed to help traders enter the marketplace and make it work for them.

Account Management

  • Traders should have one account that meets their monthly goals and other accounts that are used for growth or competition.
  • Each account should have unique rules and expectations based on its primary focus.

Focus on One Specific Endeavor

  • Traders should limit each account's focus to one specific endeavor.
  • Accounts should be treated like storefronts with a primary focus, not trying to do everything at once.

Gradual Growth

  • Traders can gradually increase their profits by taking more setups per day as they gain experience.
  • Eventually, traders can aim for larger moves but should always start with an easy low threshold.
  • Over time, the goal is to never need more than five and a quarter points.

Trading Frequency and Objectives

In this section, the speaker advises against frequent trading as it can eat up on one's bottom line. Instead, they suggest aiming for a low threshold objective of five and a quarter points in the E-mini S&P per setup.

Trading Frequency

  • Costs add up over time, so it is advisable to avoid doing too many things that eat up on your bottom line.
  • The speaker suggests keeping trading frequency not as frequent as one may think it should be right now.

Objectives

  • Aim for a very low threshold objective of five and a quarter points in the E-mini S&P per setup.

Incorporating ICT Mentorship Model

In this section, the speaker talks about incorporating everything taught in the ICT mentorship model for 2022 on their YouTube channel to facilitate ideas. They also mention showing examples of what this would look like in chart form execution format.

Incorporating ICT Mentorship Model

  • The speaker recommends incorporating everything taught in the ICT mentorship model for 2022 on their YouTube channel to facilitate ideas.
  • Examples of what this would look like in chart form execution format will be shown.

Conclusion

In this section, the speaker concludes by mentioning that they will show examples of how to execute these ideas in chart form.

Conclusion

  • The last part will be showing examples of what executing these ideas would look like in chart form.
  • This will complete the series until next time.
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.