ICT Mentorship 2023 - September 22, 2023 - High Frequency Trading Algorithmic Entries

ICT Mentorship 2023 - September 22, 2023 - High Frequency Trading Algorithmic Entries

Algorithmic High Frequency Trading Entry Strategy

Market Analysis and Initial Setup

  • The speaker discusses an algorithmic high-frequency trading entry strategy, focusing on a specific order block where they anticipate market movement.
  • A stop-loss is set below a mean threshold, with the aim of targeting a profit of $170. The speaker mentions their son being present during this analysis.

Chart Observations and Adjustments

  • Transitioning to a 15-second chart, the speaker notes the importance of not taking out previous highs too quickly and identifies gaps in price action.
  • As the market rises, momentum builds outside of identified breaker levels, indicating potential for further upward movement.

Position Management and Risk Assessment

  • The speaker adds more contracts to their position as the market touches an order block again, emphasizing low risk at this stage.
  • With increased investment ($1,100), they plan to adjust stop-loss orders once certain price structures are cleared.

Execution Strategy and Partial Exits

  • Discusses strategies for partial exits at key price levels without needing to trade above recent highs; emphasizes flexibility in trading decisions.
  • Highlights that successful trading does not require every prediction to be accurate; instead, movement is prioritized.

Breaker Levels and Order Placement

  • Enters trades within a breaker zone defined by prior swing highs before lower lows occur; avoids focusing on relative equal lows due to market conditions.
  • Suggestion for placing limit orders at strategic points for partial exits while managing overall contract numbers effectively.

Final Thoughts on Market Behavior

  • Describes how current market behavior aligns with bullish expectations based on established thresholds; emphasizes minimal risk associated with multiple contracts.

Understanding Stop Placement in Trading

The Importance of Stop Placement

  • The speaker emphasizes the significance of stop placement, indicating that it is strategically set just below a specific low point to allow for minor fluctuations.
  • Acknowledges the potential for price action to briefly dip below this level, referring to this occurrence as a "mohawk," which suggests an allowance for slight deviations.
  • Expresses a desire for clarity and understanding regarding stop placements, highlighting its critical role in trading strategies.
  • The speaker reflects on their emotional state during trading decisions, questioning whether they exhibit excitement or nervousness about potential mistakes.
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.