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ICT 2023 Mentorship \ ES Live Execution & Mean Threshold Risk Management
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ICT 2023 Mentorship \ ES Live Execution & Mean Threshold Risk Management

Review of Trading Strategies

Overview of the Review Process

  • The speaker introduces a review session, typically condensing trading executions into shorter clips for social media, emphasizing personal enjoyment in music choice.

Key Levels and Focus Points

  • The speaker outlines the 40 30 level as a significant focus point for the week, previously mentioned on Twitter. Followers can find updates through the official ICT Twitter account linked on their YouTube channel.

Trade Execution Insights

  • A long position was initiated within a fair value gap, with a limit order set at the 40 30 level based on prior analysis of daily charts and closing prices from December 14, 2022.

Market Dynamics and Liquidity

  • Attention is drawn to specific candles indicating market behavior; particularly noting a bullish green candle that signals potential volume imbalance due to non-overlapping bodies between two candles.

Position Management Strategy

Trading Strategy Insights and Market Analysis

Market Entry and Risk Management

  • I'm entering long positions on down closed candles, taking profits on longs during up candles, which reflects the market efficiency paradigm I teach. The current risk is set at 1.3%, considered minimal.
  • I plan to raise my stop loss but will consider another opportunity for a long entry if it presents itself. My focus is on the high formed around 9:30 AM, assessing its speed and distance through that level.

Price Levels and Fair Value Gaps

  • The morning session high is at the 40.23 level; I’m monitoring how quickly price can surpass this mark as an indicator of strength.
  • Initially entered within a fair value gap marked in blue, with potential revisit levels noted, though unlikely due to trading through swing highs recently established. My stop loss will be below the low of a significant down closed candle retracement.

Volume Imbalance and Order Blocks

  • The volume balance should maintain price stability due to an order block where I initially entered during the fair value gap phase; excessive time spent below certain lows could trigger caution in my strategy.
  • Observing aggressive movement through key highs is crucial; otherwise, there’s a risk of retesting volume imbalances which could lead to being stopped out despite confidence in my current position setup.

Position Management and Target Levels

  • Considering taking off half of my position if it reaches 40.30 while focusing on specific down closed candles rather than general fair value gaps for potential accumulation of long positions. Stops have been cleared at previous lows around 9:20 AM and 9:40 AM, reinforcing trust in target levels discussed prior to market opening this week.
  • My bullish order block focus remains on specific down closed candles for upside participation; I've entered long near the midpoint of one such candle while relying heavily on volume imbalance dynamics for support against downward movements.

Algorithmic Behavior and Trade Execution

  • In contrast with Forex trading where precision can be compromised by broker manipulation, futures offer cleaner execution opportunities; thus far, my stop loss remains strategically placed below critical levels from recent price action above the 930 high mark.

Market Dynamics and Trading Strategies

Understanding Price Movement and Algorithm Behavior

  • The algorithm is expected to "rip through" a certain level, leading to aggressive repricing higher, regardless of the number of buyers or sellers in the market.
  • Focus shifts to the 40-30 level as contracts are managed; taking off nine contracts indicates a strategy based on anticipated price movement rather than continuation.

Analyzing Highs and Price Accumulation

  • Observations on how often price moved five handles in the desired direction, with potential accumulations contributing to an overall target of 15 handles for the day.
  • A mitigation block is identified that should accumulate new longs and accelerate through; this reflects a macro price behavior typically observed between 9:50 and 10:10.

Execution Strategy and Market Narrative

Playlists: 2023 ICT Mentorship, 2023 ICT Mentorship
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.