Worlds BEST Prop Firm Trader Reveals SIMPLE Trading Strategy - Jadecap (Full Breakdown)

0:00 welcome everyone back to Chart Fanatics the go-to channel for the very best trading strategies in the world with the very best traders in the world talking of which today we have a very very special guest he has just come off the back of a record payout at Apex beating our friend Trader Kane so now Trader Kane doesn't match with us anymore no I'm joking but absolutely incredible over 2.1 2.5 million in a single payout closing in on 4.5 million in total payouts from his career i've always said it a future market wizard and we're going to break down his strategy that allowed him to do that today and it's the one and only Jadecap i was about to say FX Jade aka Kyle it's great to be here with you man first of all huge congratulations on all the continued success

0:47 absolutely incredible milestone um you know the pleasure I got to have of one obviously getting to know you a couple years back now seeing the journey as we've gone along but most of all seeing you doing this incredible record kind of in real time like you're sharing trades in the group chat that we have and you know the the I guess highs and lows if you will along that journey but just being seeing it observing it was just incredible thank you man I appreciate it yeah I'm definitely uh I'm trying to take some time off because I was so locked in for so long i think uh I'm definitely feeling a little burnt out and I think now is probably a good time for me to take a little bit of a break 100% well I dragged you out of that break straight away yeah straight away but no I really appreciate you being here and I definitely think you deserve it and uh it'll be interesting obviously we have a podcast that we're going to film tomorrow so we'll get into those sort of things tomorrow uh but today we're all in strategy where do you think we should begin today so I'm

1:36 going to talk mostly about intraday liquidity and volatility so let's write that out and I'm only going to talk about intraday because I feel like that's where most people want to start at uh and usually they they don't like hearing when people say you should start on the higher time frames um and I don't blame them because you're going to get more uh reps on the lower time frames let me see if I spelled that right volatility don't worry don't worry hopefully everybody can see that the comments will tell us if it's wrong dope um before I get into like the actual concept of intraday liquidity and volatility I kind of have to bring it back to like how markets actually operate and I just learned this over time from reading a lot of books like uh reminiscence of

2:26 a stock operator how people used to operate on the floor right before electronic markets were around there was traders transacting on the floor and a lot of times you could see where the order flow was you could see where people's stops were you could see where their limits were um you know somebody's coming in and bidding a market they have you know they might set their limits like right away and the easiest way that people knew where stops were were just intraday highs and lows so we might look at yesterday's high and low we might look at the previous day's high or low uh so maybe just like in the last 3 days you're just looking for intraday the highs and lows so you have you know yesterday's high and low um you know it's just really

3:13 just the most recent ones that haven't been taken yet so maybe the previous uh or previous three days we can just say because typically when we have when we're looking at a 3-day look back there's possibly going to be highs and lows that haven't been taken yet and um the way that some of these traders used to trade was you know when they would take out a previous day's high or low they might anticipate a reversal at that specific point or they might anticipate that buyers and sellers going to continue pushing price in that direction so typically what I'm looking for is I'm waiting for one of those highs or lows to be rated and then I'm looking to either you know continue the trend lower if we don't reverse initially or if we get you know zero followthrough then I'm looking to go the other way and possibly target the

3:59 previous day's higher low so if we take out the if we taken out the high and failed to go higher now I'm going to start targeting the previous day's low right because we're just anticipating that all those stops that were above the high get triggered okay so anybody that's short or anybody that's trying to get long is placing their you know their order above that high we can mark out like this so we have a candle so this is the previous day the orders for any shorts will be you know in terms of stops will be in this section any longs would be in this section well even people that aren't yet in the market might not be a short that might be a buy stop exactly so you might have a short order or a buy stop so you'll have just a layer of orders in there right and that's what we're really looking for we're looking to see the market trade higher to engage those orders and then see

4:46 the reaction we don't want to try and anticipate what's going to happen after those orders get triggered yes so having patience knowing that okay we've we've engaged those orders but now if I'm expecting it to turn around and then maybe we're going to target the the stops that are below that previous day's low I need to be able to see some information in here that aligns with that and uh where I used to trip myself up a lot was as soon as it would take out that high if I was bearish I would just try and go short and then what would happen was um the market would just keep going higher and higher and higher okay and then maybe at some point during that day then it'll make the run and by then I'm I've already wasted all my bullets i don't have any more dry powder and my mental capital is completely destroyed uh so I've talked about

5:33 this recently a lot i don't typically trade on the low time frames uh I just don't think the you know you have to be very dialed in on the low time frames you have to be able to make decisions very quickly and I think with the higher time frames at least let's say if we get an hourly run on the high and then it closes back in at least you know there's a lot of information in this inside that one hour there's not a whole lot of information inside a fiveminute candle okay that's very true so that's what's the lowest you would aim to go um typically down to like 15 minutes i'll trade the lower time frames but it's very rare mhm uh and if I do I'm trading smaller size and I'm I'm trying to be in and out as quick as possible and for a lot of people it works against them because they're possibly not making the right decision because they're lacking that experience um but that's typically what I'm looking for when it comes to liquidity okay so this is pretty much

6:21 how the markets operate now this could be and I'm only talking about intraday but obviously if we hit higher time frames that are uh you know monthly weekly or daily highs and lows hey guys just a very very quick one if you're enjoying this playbook and you want to get it sent directly to you make sure to go on chart fanatics.com put your email in and every episode we drop we will send you a direct PDF breaking down this exact playbook or alternatively also the playbooks will be put all together with the rules over on trade zella that is an incredible collaboration so if you want to actually add the playbook to your Tradzella make sure you go check that out as well but let's get back into this episode these are more important than intraday

7:08 highs and lows i mean daily obviously uh maybe it's multiple days back in the past because as the market moves away from specific levels right now there's more and more time that allows orders to be built up so the longer price spends away from those specific levels the more liquidity is possibly being built up at those specific levels all right so that's typically what I'm looking for uh from an intraday standpoint and really I'm just trying to position myself on the right side of the market so obviously the bias comes into play as well but it's really just about this is my starting point and it's about understanding liquidity and how to visualize that in the market so you have to be able to see who's getting trapped who's getting stopped out uh there's a you

7:54 can the the thing with uh floor trading and I've been talking with a lot more senior traders now a lot more veterans that traded on the floor and they said when there was a floor almost everybody that they started to train became profitable because it was easier to to read emotions in the room you could easily see the emo the orders in the room you could see people panicking you could see uh people you know I guess loading up on shorts as a high gets taken out so it was easier to see the order flow but now plus you could see their patterns cuz you'll get to know these people exactly exactly if you know somebody that is uh consistently profitable and he's always shorting yesterday's highs you're mostly likely going to just hop on board right and yeah when when everything switched to electronic trading it became much harder cuz you can't you can't really

8:44 see the order flow you can kind of anticipate it and try and feel it as much as you can but you don't know if there's a guy that's sitting on the sidelines waiting to place his thousand contract order that's going to shake the market so that's the thing right so like the concept is the same the concept is the exact same regardless of flaw to to electronic the execution and the observation of it has changed it's become more vague because you can't see everybody you don't have all the information in front of you well what you're saying though is this is essentially taking that concept and how you start to identify where those orders are resting so then the reason why it's your foundation if I'm not mistaken is because from this point it then dictates the next move it dictates how you then where you're looking to react from and then what you're looking to see

9:29 there and where you're targeting from there yeah I'm basically uh you know when it comes to like strong versus weak hands I'm looking for the weak hands i want to see where they're going to puke their trade or fold their cards and I want to be able to buy that from them or short into that so if we have a bunch of people loading up on longs and all of a sudden I see this run lower you know I want to be able to buy up the people that have weak hands so I'm going to buy their position from them they're going to assume the loss on the trade and I'm going to get a really great fill price so uh I I typically have homework lessons uh for my students that you know you basically wait for a a rate of the previous day's high or low and then when you get a closure back above that low so let's say we have the daily low here and then we get a run below that previous day's low you're

10:16 not going to do anything until we get a closure back above the low okay okay so that's our swing failure and then you're going to place a long position right your stop loss is going to go below the newly created low and then you might just target the previous day's high now these setups don't happen all the time in trending markets you typically are not going to take out the previous day's low so we can go a little bit deeper than that and think about session liquidity okay so we have Asian range liquidity and then we have London range liquidity so with index markets those become more sensitive intraday because in an uptrending market we're typically not going to take out the previous day's low so again you know if I had to like draw out like a box this might be Asia or we

11:03 might have London session let's say London session actually ranged in ranged both of them ranged you know if we don't get a raid on either of them then typically what I'm looking for in New York is a raid one or the other way and usually when I come to New York if both sides of the range have been taken out interesting then it's almost I'm anticipating consolidation so on a classic buy day what I want to see is usually the Asian range low or the London low be taken out before it goes higher and uh today is what day is today the 23rd so if everybody checks their charts right now they can see during uh Asian session going into New York session with NASDAQ we didn't take out the

11:48 Asian range low yet so anybody that's going long there's elevated risk there because there's you know there's open liquidity that's below those Asian range lows and I'm pretty sure if you check right now those Asian range lows have been taken okay so usually if I have a bias and I was bullish today if we don't take out the Asian range lows like my probabilities of success go way down so is that how you then the thought process when you're coming to the day or even doing your sort of pre-market analysis that's where then you can know okay so you need to sit on my hands for now until this gets taken and what are you doing though are you still watching the markets or you setting a limit not a limit sorry an alert at those levels yeah you can I set Yeah you can set an alert at the lows so once that lows get gets taken out then you can go into the into the charts

12:34 and see if your setup appears but until then you don't know when it's going to take out the Asian range lows sometimes it'll move away from this level for days you know and then it'll go back and take it out yeah so so how let's take that as an example right gets left you're then on the next day or maybe the next two days how are you then sort of not ignoring that but let's saying parking this idea so that you can continue to trade or are you not and you're waiting for this no so like I I will typically continue to trade as long as my bias in that specific direction is going to continue and then what I'm looking for that next day is at least to see the Asian range of that next day be taken out right okay still need some form of liquidity essentially to be able to target or at least because they might not ever take this level it's just intraday I

13:21 don't have a play yeah i interesting where do we go from here then after we've identified the liquidity and where the volatility sits where do we transition from so we can get into a bunch of different concepts right um so everybody everybody by now should know that I'm an ICT trader right really yes uh and you know to me markets are either going to inefficiency or liquidity right which we just talked about and massive shout out to uh Real Weird Jean because I learned a lot of this from him uh and he he definitely is a good mentor and he's definitely u put things into perspective that

14:07 I didn't see previously um so you know when it comes to these two things that's really all you need to determine the draw and liquidity and that's what I'm looking for i'm looking for an idea that makes sense that I have confidence in that I can hold my trade and continue trading in that direction because sometimes I'll take one to two positions the first couple might not pan out but I don't want to be able to just bend in that idea i want to be able to continue with that idea until something really jumps out at me and says that this idea is incorrect okay so when it comes to inefficiency or liquidity typ typically what I'm looking for are you know fair value gaps or double tops or double bottoms so we might have um and I I guess I'll just draw out like a fair value

14:53 gap let's just say we got a big fair value gap here my illustration skills are probably not great looks good to me let's say we're coming down into a you know a high time frame level so this is a major level of support that we've just taken out this could be you know I would just say a previous monthly low this just to make things very simple yeah so we have a previous monthly low being taken out and just pretend that this is a daily candle so usually what I'm looking for is the draw what is going to be the draw liquidity right so if we've already taken out a major level of liquidity where

15:39 else it might it go to we have a an inefficiency here okay so actually let me use the red one so we have this inefficiency here right so usually what I'm looking for on this next daily candle and everything that I'm doing is is just trying to predict the next daily candle i'm not trying to uh go so far out in the future because most people that are traders they don't know what's going to happen even in the next four hours yeah right that could be completely random so I'm just trying to shorten that window and just try and predict what's going to happen in that next daily candle i might give myself one to two attempts in that specific day if it doesn't pan out I'll just come back the next day and reassess the situation right so after we've taken out that liquidity right where else is might it go we've just taken out liquidity we

16:26 all we have left is inefficiency maybe there's no more levels that's below the market that the market's going to go to so typically on this next daily candle what I'm looking for is the open let's say this is our Asian range right we have a very small Asian range here that's what the candle looks like currently right like just say let let's just say it has a very very small uh body but what I'm looking for is you know that candle to as it's developing to to take out that Asian range and then trade up higher just just to take out the previous day high yeah that's really all I'm looking for as an intraday setup and then this candle right even though it looks bearish at the time and this is where it took me so long to try and figure out was that the best time to buy that candle is actually when it's down but by the end of the

17:15 day maybe it's going to close like this maybe it's going to be a massive green candle like that but who who is going to get the best price right inside of that green candle right if you're buying it up here versus somebody that's buying it down here who's getting the best price and who's reaping the most reward it's the person that's willing to step in front of the market and buy it at the lows okay so this is where you can incorporate these lower time frames into your trading so when I dive down to like a let's just say either a 1 hour or a 15 minute I'm looking for specific things right i'm looking for a rate on the Asian range lows or I'm looking for you know a market structure

18:02 shift you know a fair value gap mhm a liquidity raid or turtle soup as the traders like to call [Laughter] it or a breaker you know there's a bunch of different setups or entry models that you can use but everything needs to come from this so everything is coming from this idea first okay this is just extra first and that's where this is the execution right so everything in here is execution so daily wise in this example daily wise is setting our bias setting our trade thesis

18:51 and what we're looking for and then the execution comes in 1 hour 15 and we're looking at these four key aspects yeah maybe even down to the five minute you could even do it on the one minute it's just um a lot of people they have too tight of a stop loss so what happens is on the daily time frame as that let's say you have the candle forming as this thing is going lower and lower and lower uh you know people are taking losses by the time it turns around on and it closes green on the day they've taken too many losses so I like using wider stops like in this scenario if I went long here I would probably use the previous day's low because I know that there's a lot of orders down there what's your mindset in terms of let's take this example right mhm you said cleared the liquidity to the left right taken out a very significant level we then managed to get in you

19:40 know well priced into a trade but then we targeted the inefficiency for example in this case but like what's the mindset here let's say this bigger picture wise we've taken out a previous monthly low um you know would would you then be inclined to hold longer or is that just not within the the style of trading that you're doing no so it it all depends um if I have a really strong opinion of if it's going to go higher I will hold longer um it depends the type of model that I'm trading in and it depends on the market conditions like right now I possibly would not be holding anything longterm i wouldn't be trying to swing positions right now so depending on the market environment I'm either trying to do an intraday model or I'm going to try and hold for longer positions because if I can get a really good entry here now let's just say we get a daily close like that this all of a sudden

20:26 becomes a a swing point okay okay cuz you have uh a low a lower low and then a higher low yes okay so that next day again you're anticipating the same thing that following day so even if I get out and this is the benefit of intraday trading as well typically the rollover session overnight there's usually going to be a retracement in a in a normal market condition there's usually a retracement so you're actually as an intraday trader you're um you're extracting more money out of the market you're attracting more points out of the market because instead of uh you know just holding through it you're closing at a specific position and then you're re-entering with more capital right you're compounding that capital faster rather than keeping that unrealized profit open the entire time and you're still trading an intraday model inside of a higher time frame

21:15 narrative yeah plus if you're doing it that way as you just mentioned you then are essentially collecting more risk yeah potential risk along the way in terms of being able to risk more um you know if you're you know very high conviction A+ setup and maybe have an overall target just an example just to make it more visual you know say for example we close like this you then have a potential swing point and a potential bigger trade let's just say to here for example the next day then are you just looking for in this particular case potentially you're opening here you got your Asia range right I'm just going to draw the candle to begin with so Let's say it was something like this and it ends up like going I don't know to there for example right and then on a lower time frame if I just take this from you sorry are we then looking at say here we Asia ranged maybe

22:05 popped up a slightly going into London there we sweep the low which then is that wick and then that expands going into New York exactly and you might it might just be as simple as retesting this previous day's high right I say if it retests that but if it leaves it as an example this is where I was going to over it sorry if we leave it and it then creates a fair value gap there would it be within the same thought process of price coming down sweeping that daily low and having that model to then go up is that too much possibly yeah and that's that's where uh having multiple attempts at a specific trade idea is going to come into play and which is why I'm now I'm so comfortable not putting you know the house behind one specific trade because I know that there's times where the market makers or whoever's out there is going to be chopping price up and down trying to stop

22:54 people out try and get them to flip sides and I've seen it too many times in my own trading where you know I've been stopped out multiple times the third time when I decide to reverse positions that's the one that really goes of course you know so you you have to be somewhat stubborn in your analysis but you have to make sure that you're not going too overboard or you're too stubborn you're too married to the bias right it's got to make sense and it from a technical standpoint I'll always have invalidation levels so after we created that swing point that would become my invalidation so unless we lose you know it even could be as simple as this daily low unless we actually get a closure below one of those daily lows I'm going to remain bullish if everything aligns with that what are your thoughts here we can we can wipe this out and then draw this again but in terms of here you can imagine you know at this point we've been let's say selling off for a

23:42 period of time don't you think there'll be a lot of people probably looking to sell from this fair value gap um even though it's taken the liquidity what was your mindset what would your advice be to those people out there who in this scenario really should be looking at longs uh into this fair value gap but instead they're actually focusing on trying to short from this F value gap well it really depends on like the overall range so if if this if this is a previous monthly low you can imagine like it's probably been running lower and lower and lower for a very long time so if this is the previous low this is our range right here so if we go lower right that fair value gap now that's that bearish fair value gap is appearing at the low end of the range whereas you know let's say you know we took out a previous monthly low yeah that's great but in the overall range maybe

24:30 the range is much bigger like maybe there's more previous monthly lows that is creating a much larger range okay and if we're expecting maybe that previous monthly low to just get taken out trade higher into that bearish fair value gap and then trade lower it has to make sense from a context perspective so where that fair value gap forms is very important but then also the liquidity that sits below this point because let's say as an example let's take EU when we hit those previous monthly lows a couple months ago there was nothing left yeah there's nothing left exactly so the only place really for it to go even if it wanted to go low was higher first exactly so when when you're looking at something like this when it's inefficiency or liquidity it's just how much liquidity is left yes below or above usually when it's hitting those massive extremes there's

25:18 not much left and all the liquidity has already been taken out of the market let's take a break for a minute there guys cuz I want to tell you about our preferred crop firm Apex Trader Funding now Apex is no stranger to the podcast or even chart fanatics because we've done two incredible episode with two record holders in terms of trader Kane who got a record payout at $2.3 million at Apex and then beating that record in the end was Jadecap aka Kyle who also then has a record payout now of over $2.5 million in a single payout with Apex and that really just shows the infinite possibilities you can achieve at Apex Trader Funding now what traders love about Apex is that you can get up to 20 accounts so whether you get the 25K account ranging all the way up to the

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26:53 can actually request your payouts every 8 days and there's actually no cap to your max payout which really shows the infinite possibilities you can have at Apex thanks to Chart Fanatics you can get the best offer available at Apex they are always running sales so make sure to use the code CF that will automatically give you the best offer available at Apex the link for Apex Trader funding is in the description below so click that link use the code CF and you will get the best offer available become an Apex trader today now let's get back to the episode yeah so on the lower time frame you know that's really where all more of the technical analysis comes into play and it's really just reps so when I wrote all those things out market structure shift turtle soup share value

27:39 gap breakers all of those things require reps yes so each one of them requires reps so in in my journal most of my trades are all fair value gaps because I've been trading them for so long that I'm just so used to them i've traded the other setups and I am profitable with them but it's the most the one I'm most comfortable with so where do we go from there then so we've marked out you know the liquidity the volatility we've talked about the execution side you know what would be next next is honestly just the time windows the time aspect of each specific day and uh you know I see it a lot with traders they're operating at weird times and I I totally get it you you might have a job out there that requires you to operate at weird times but if you just go back through data you're just trying to anticipate like when is that daily low or high being made and if you

28:24 go back through your charts a lot of times all of these intraday setups like the intraday lows are being printed at the same time the intraday highs are being printed around the same time so going through your data understanding like the the low in an index market is probably going to be printed around like 9:30 to 10:30 a.m almost every single day so like 70% of Yeah this is sorry this is EST by the way um so most of the time the intraday higher low is being printed around these times and everybody that's operating in here in these odd windows like from I don't know 6:30 to 8:30 and then from like lunchtime you have to really look at your data and understand that uh you know when the time that you're operating makes a really big deal of importance on your

29:16 profitability because you're trying to position yourself inside of a quick move that might happen intraday yeah and when you're operating inside of this window compared to this one you know so like let's just say if this is the 6:30 8:30 window you're going to get caught out because you're let's say you're buying here now all of a sudden ahead of the New York open is coming down here taking all the liquidity and now this is the real trade so you have to have patience and knowing when when should I be operating in the markets that's to me was probably the biggest transition between FX and futures is because I was so used to operating at 8:30 to 9 that I was getting into my trade and even in FX you can get in a trade at 7:30 Eastern and be okay because that volatility is going to come in at 8:30 but if you try and do it too early in the futures market you're going to get caught in a situation where this is you

30:05 and then you're going to get stopped out and then you have to re-enter the trade yeah so you've realized the loss now you might go on tilt you might size up he might do something dumb and then actual training patience in terms of uh talking about timing so we talked this is like the more specific time window that you'll focus on but then we talked about sessions for example like do you focus on like the midnight open or anything like that yeah so everything that I do comes from the midnight open i don't know i've studied both but for some reason the midnight open just it works very well yeah it just works very well for me now when you're looking at a daily candle it's always like a 6 pm or 5:00 pm open so even if you're going to anticipate that next daily open it doesn't really matter so much and like when it comes to kill zones I don't necessarily always abide by this either you know if if we've already taken out let's just say and

30:56 I have a couple examples that we can go through in a little bit if you're anticipating a large move on the week and let's say you know during this time window we take out previous session highs and then it rolls over and I'm expecting that next day to continue lower i'll just enter during Asia because I know that we've seen a a a very large move away on the daily time on that specific day so let's just say that this is Wednesday and then we're going into Thursday right so I'm not expecting any of these major high intraday highs on Wednesday to be taken so I don't care if I I'll go short here put my stop a little bit higher here and then just anticipate that I'm going to have to sit through a bit of draw down if it takes out the Asian range high and then close

31:42 lower on the day interesting right yeah because sometimes the market will make that run during Asian session over during the overnight session and I'd rather be in the trade than waiting for the perfect price exactly yeah that's what I was going to say like rather than being perfect it's like you understand that price is going well or according to the analysis is going to move lower and uh rather than say one having to stay awake necessarily um two the move not pulling back and just selling off which happens or three it's it pushing up and then you trying to maybe wait for there you know that's the worst and I've seen it so many times i've seen people miss trades because they're waiting for this specific price and they're ignoring everything else that's happened already because we've already taken out a major level of liquidity on Wednesday right and I have a

32:29 higher time frame bias that's leading me lower so I'd rather be in the trade i don't really care if I get in here here here here or here i just know that the next day is going to close down here so if it does anybody that sells it up here right anywhere anybody that sells it up here on the day is gonna be in profit it doesn't matter and I'd rather make money than miss the trade that's very true in terms of the midnight open what is it about that that that allows it to be a focus or be used i don't know i mean to me just it's very simple to see and my Asian the Asian range that I have drawn out goes from 8:00 p.m to midnight so I'll take a multiple of that i know people were arguing with me about the standard deviations but I'll take a multiple of the Asian range and plot it maybe two times higher and I've just seen so many times where the market will kind of stall

33:18 at one or two standard deviations higher above the Asian range yeah and it all comes from the midnight open because otherwise it's so important to test so you can build this conf because whilst you recognize that I'm sure other people would recognize too but someone you know perception wise might actually be noticing hey free isn't the answer right and it you know it's important I feel like for people to collect that data and those reps because otherwise you never really are going to have your own confidence in the edge yeah and people have seen me you know kind of just sell blindly as the market's trading higher above the midnight open so I'll I'll just I'll go short without an entry model sometimes because I'm so confident that that next day is just going to close lower i mean that's crazy some people may have seen it during um when Trump announced the terrorists like officially on April 2nd that market just kept going higher and higher and

34:06 higher and higher throughout the day to me that didn't make any sense because everybody should be at least the smart money should be waiting for the market you know for that speech to come out before their actual hand is being in play so but why does it make any sense that the market is going to rip 3% and then continue and higher another 3% to me it was like a huge manipulation thing so like as the market is going higher and higher and higher you have to have confidence to be able to continue shorting it right because by the end of that day it closed like that right so anybody that went short here even if they had to hold through water they're still making money by the time the day closes down here it's just how do you position yourself in here without taking on too much risk without taking on losses right how do you focus target-wise are you looking at specific R multiples are you focused on like you know liquidity yeah so a lot of people probably

34:56 notice that I don't wait till full targets a lot of the time because I'm more of a short-term intraday intrae trader a lot of times I'm just exiting based off of time and that comes down to experience and repetition as well because I can't tell you how many times where I've been in a long position so let's say I've I've positioned myself below the open i buy it here and as it's trading higher I'm deep in a profit but now the time is like 11 11:00 a.m maybe 11:30 maybe it's noon i'll just exit my position i there's no rhyme or reason for me doing it because my target might be here which is like a 1 to three interesting and the one to three might line up with a bunch of equal highs but I've seen too many times uh and I'll just put EQ just as an example maybe this

35:46 is my target right and I've seen way too many times where I get close but there's not enough juice in the candle on that specific day and then it just collapses on me and I give back a lot of the profits so a lot of times without rhyme or reason I'll exit just based on how far I think a daily candle could possibly go and that's very discretionary some for some people is not going to help them a whole lot but I I've realized it's helped me more than hurt me because I've been able to to take something off the p take something off the table as you mentioned about timing though it's like as you're getting towards the end of the sort of more volatile and liquid markets that's what everybody else is doing right all the smart money they're trying to just book their profits for the day that's what I'm saying yeah go to their Hampton Beach House exactly yeah um that's

36:32 what I'm saying though so what you're judging is based on where we are at the at the time for the day what's already happened you're sort of taking these things into consideration saying it's not a likely chance that we're going to go to target today and you know therefore I can always you know if the target remains and we range now or pull back now tomorrow I can then do the exact same trade exactly exactly still valid exactly because if this let's say we close here it's still a bullish day based on where we open yeah so open here close here right it still closed up on the day that next day those equal highs are still there right and now if anything this pullback probably induced shorts so now you have liquidity above that high target as well exactly so that could be your first partial so this could be TP1 you know so the market is very dynamic it's moving

37:23 yeah exactly do you find that you know you'll have you know let's say a string of trades where you've taken it off early if you will or like you've closed because you're happy with the day and and you think that's enough but then eventually it will come through to the target yeah and because you've kind of at that point you probably one two or three different trades uh where you profited but still haven't hit the target yet that last trade not that you size up but that last trade you end up getting as well yeah exactly and you just feel more confident because now all of a sudden you know that stacks stacking more and more and more and you're like all right well I know it's going to go here and people that have followed me on Twitter I I've posted about dollar CAD for so long and um you know if if you guys want to double check this is ex actually went um oil went negative so when oil went negative we got this massive double top and that's basically

38:14 where like I I bought in here during COVID when oil went negative it approached three-month highs and I basically like tripled my account but then I was expecting that we're going to take that high out and I just gave it all back inside of here but years later I'm talking about years later I was anticipating those highs to be ran out so as we were approaching higher and higher and higher I'm like there's no way that they're not just trending this higher to go take those equal highs out so inside of that move I was able to you know build a bunch of positions and it I didn't get the actual position that took out those highs but I at least had a road map of where we were going right so it really you know you can't get married to the bias because again this thing traded lower and it was sideways for you know years but when it does go to those specific levels it becomes like

39:03 you know very a high conviction trade exactly it's the same with Europe same with Euro you had those for the last few years you had those significant highs and significant lows and they've just been ran now and uh it's interesting though because they were there anyway for the last few years but then it takes an event like uh you know well Trump coming back in providing that liquidity and volatility should I say and yet those highs and lows were going to get ran yeah no matter what you just don't know when yeah you just don't know when and then certain catalysts come along same thing with NQ uh before the election um we printed like some equal lows down at 19K and it was just they were just sitting there when it came back down one time like I tried shorting it to take that target out it never hit it so I I took some losses and then eventually when it was all the

39:50 way up here you know then I was able to get short again with that target in mind yeah so you again you can't get married to the bias but you have to understand that you have to follow the order flow too like if they're not ready to go take those lows out they're possibly just going to leave it for another time exactly it's not a guarantee that it's going to go take those lows out either or these highs but at least you have a road map and that's why typically I'm not holding to full target i'm just using it as a draw so even if it goes up there I'm gonna take something off before it gets to that level because I've been in way too many situations where it's gotten so close to my takerit and this is where greed comes into play i've seen people post like "My trade was five ticks or five pips from my target i didn't take anything off and it came all the way back on me." And you know when you think about it are you really greedy over the five points you know

40:39 how much of how much money are you making off of the last five points of the five ticks that you're waiting to to get take that out to me I'd rather just close it and give up the 50 bucks at that point it's like a huge negative riskreward scenario right like you're giving up 95 points for five tom Dancy talks about the dynamic risk you know people think that they have a risk-free trade on but you are you're risking unrealist profits is what you have to really determine let's take a break for a minute there guys because I want to tell you about our incredible sponsor Tradezeller tradzella is the number one trading tool in the entire trading industry tradezella allows you to become a more profitable trader allows you to make immense progress as a trader no matter if you're a beginner or an advanced level trader because it makes journaling easy

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42:14 monthly subscription using CF10 on Tradella right now but more importantly I would say CF20 for 20% off your yearly subscription with Tradezella the links for Tradzella are in the description below so make sure you go check them out use CF20 get 20% off your yearly subscription become a better trader today now let's get back to the episode you know in terms of double tops for example double bottoms I feel like a lot of people they get so attached to it having to get taken out you know due to liquidity SMC etc you know those concepts and they work but it's as you say I think if you get attached to it that's where you end up say in this scenario selling selling selling selling and then you probably you know all your bullets gone accounts gone whatever it may be then it sells right what do they say the markets can remain irrational longer than you can remain solvent

43:02 and it's so true you have to make sure that you're protecting the downside and the thing is if you go and look at so many different charts the amount of times that double tops and double bottoms get left for a very long time is insane yeah this is crazy um and the thing is They do always get taken out eventually you could say that with anything um but it's like the right time it's the right time and really it's creating the position as well and the narrative needs to make sense too because let's say if Trump never did the tariffs those equal lows at 19K may have never been taken out exactly yeah until someone came along to do it for us okay cool um should we move on to pros and cons then should we talk about pros and cons so we'll just rub this all out um if you want to do the pros yeah I'll do the cons on this side again just uh for the audience cons isn't necessarily saying it's bad it's more so just like what things should you be aware of um you know when trading

43:51 in this manner or you know looking to trade like this I would say in terms of a con I say con again something to be aware of or something that could be a struggle one I think spending the time it's not really a con though something to be aware of i'd say again um spending the time to collect data to understand that data as well yeah because again it's not a con of the strategy and it's probably this is one of the biggest challenges with trading though exactly exactly universally a problem um because you I've said this so many times now ever since I started you know really talking to you guys and interviewing these professional traders it's like data or at least having your edge which is derived from data is necessary you cannot be profitable without it and it's just shocking to

44:38 me I think and I think you probably seen the same the amount of traders again that if you're new it makes sense right you you probably aren't aware if you've been in for a few years then it doesn't make sense yeah because that is what everything right if you don't have that you will never be profitable yeah so like for me for example and we just talked about this before we started recording i don't I go through spurts of journaling because my data is not going to change the probability of the next trade i already understand my data i know it you know up and down i already know the edge that I'm trying to uh implement on the market but most people they don't have enough data to start with so they don't even have a baseline so they can't trust their system if they go into a draw down um they don't have enough reps with their specific entry models i mean it's a lot it's a big ask right it's a big ask to try and learn all these things because we didn't even talk

45:26 about risk management which I'm pretty big on yeah well wait we're going to go we'll go into that when we get the charts out as I say timing because as you mentioned earlier well one you have a specific window that's more optimum and if you have a job but that then that would be something that would be a bit of a con uh if trying to trade this exact style I'm sure no doubt it's fractal though so it could probably be applied in different manners um it is hard though because I did I tried the intraday thing while I was working my job for a very long time it never worked out um the only way I was able to leave my job was when I started swing trading and I started putting more money behind those swing trades interesting so I was able to focus on a job so not only did my income at my career go up because I was more focused at work my income with trading went up as well that's an important distinction I think as well because I remember same thing i

46:12 was trying to trade and and do my job and then both suffered yeah because you don't have full focus on either one exactly and plus the worst bit but same with this that's why I took such a break from trading well one of the reasons not the only one but one of the big reasons was I was worried that because I wasn't focused on the charts and therefore probably have a negative experience i would then come into a podcast with this negative energy you know yeah and like you're there talking about this these wins and I'm there like must be great you know must be amazing to have these wins right so that's why I took a large break because I knew hey I'm really want to focus on this pod i'm not probably going to be able to do both and the last thing I want to do is have negative energy on both of them and um you know that's that's why I think swing trading I mean it's not for everybody right because I sleep better at night when I don't have open positions on so when your P&L is just fluctuating that's something it's a skill set that's entirely

47:02 different to what's intraday but you have to get used to it if you are working a full-time job in my opinion i mean I think yeah if you can focus your efforts to the most income generating uh you know stream that's very important yeah and then trading will eventually catch up i will just put top down analysis in meaning there's layers basically yeah there's layers to um It's not just you know show up and follow mechanical strategy exactly there's layers there's a little bit of discretion in there as well i'd say like with the R E yeah is that right i thank you very much this is why you're the master um but yeah that's cool in terms of cons though so again not necessarily bad things more just to be aware of so you need to have your data that's universal timing that is

47:48 something like if you are working a job then of course the timing wise might be an issue but it is fractal so you know there are ways around that top down analysis not really a bad thing more so just understanding that there are layers and then of course discretion which some people is a big no no but in reality discretion is a huge part of trading um and you know where we talked about that most was in terms of the take-profit uh scenario that's more discretionary based terms of pros though um I think it has a great understanding of the market itself so going back to the original point liquidity volatility uh it's fantastic yeah so I think to me a lot of my trading is just about the story that's being told like the charts have to tell me a story otherwise I can't build a picture around it or a narrative right now I can't tell where the the index markets are

48:37 going we're gapping up we're gapping down we've already taken out major levels to the downside i don't know where it's going to go so the context for me is just not there right so I need to be able to read the markets and get a story what is it telling me where does the market want to go and when I can't clearly determine that that's usually a sign that I should be sitting still interesting and it's usually when I avoid that and I go into the markets anyway that's typically when I compile losses that's when I usually have the most losses because I'm basically just trading in chop i don't know what which direction the market's going i don't have confidence in what I'm doing and you know it's part of the data as well i say like fractal and then also um multiassets like it's universal the concept exactly so uh multi I'll just put multiasset I guess yeah that's fine and

49:27 um you know this was the multi-asset thing was something that I guess comes towards the end of your growth curve more advanced stage it's more advanced but once you once you start working with multiasset now you start really understanding money flows right where is the money actually going is it leaving the US is it going to foreign currencies is it going to gold I mean gold has been pumping extremely hard you know you probably take a look at yen yen's probably been going up too and in those scenarios those are safe haven assets typically so when they're safe haven assets usually everything else is not really a good investment because investors are chasing yield what's going to provide the most yield So when gold is pumping like that um you're typically not trying to invest in like the NASDAQ or something you know um so multiasset fractal market context

50:17 um I think the simplicity of it but again I would say so when when it comes to simplicity is really all building into what is my bet is it going to go up or is it going to go down and that's really all trading is like trading is just a vehicle that either goes up or goes down times that by times that by your position size equals profit that's really all it is right and it's just breaking it all down to get the best fill prices and I think that's probably a pro too is getting a proper fill price because you don't want to buy and just today is a perfect example you don't want to buy the market when it's already up 3% overnight right because you're you're putting yourself at

51:06 more of a risk the people that already bought it are already in profit three three and a half% on the day so understanding that you're looking for specific scenarios yeah right but these don't occur all the time they don't yeah right so that might be a con as well is it doesn't occur all the time you have to wait and you have to wait and be patient with it patience is on every con list alongside it is because it's like every strategy even if you're a scalper or a swing trader has you need to be patient for yourself right yeah um so that is always there because it's it's good though this is what I love about you know doing this style of of video because we're really seeing like patience is is universal it doesn't matter what you I think Tom Danty posted that thing it was like uh your idea and then trade signal mhm

51:58 and then anything in here is where you f up it's very true right so waiting for your idea you have an idea waiting for the trade signal though is where you No it's so true because you see it so often like if we just you the classic case I always say is people do analysis on Sunday right or on the weekend market's closed okay this is what happened last week this is where we're looking to go and then I'll just draw it out a little bit here and we'll get on to the charts so like let's say you know the week's done something like this you know right and you've you know this is where you're starting your analysis and your mindset is okay we've had a bearish week so I'm looking at okay fair value gap here I'm looking at you know maybe a daily low uh daily high sorry that's just below it so for my bias for the week is for price to come

52:43 up here and then sell but then market opens here right and then suddenly by Tuesday mark market's here and you're trying to sell Yeah yeah you know or you're trying to buy and that's exactly what you're talking about here what Tom Dante's talking about there yeah you know and it happens there's nothing wrong with it just know that you're making let's say if you have like three things on your checklist right and these are the boxes for them just know that maybe two of them are getting checked off but this one's not and you just have to understand that you have a high probability of taking a loss and if you take the loss just be comfortable with it that's what it comes down to i take losses all the time like you just have to be comfortable with it and not let it put you off track where you're going to start risking more or trading more and I see it too many times where traders they just sit at the desk and I totally get what it's like to

53:32 go on autopilot you take a loss can't get off the screen you want to make it back you're taking the same trade again yeah and it's just you know it never works out like that you have to be patient you have to just understand I'm going to give X amount of attempts on this one idea for the day if it doesn't work I'm I'm gone i'm done yeah that's it i think it's the acceptance of of the reality of trading you know accepting to like you say I'm going to be I'm willing to give this many attempts so accepting that if those attempts get used and they don't work out for you that's fine you know you move on to the next yeah it's a hard thing to do though it really is because you have to be comfortable losing all the time that's it we will talk on Well I think by the time actually this comes out the podcast will be out so we will have talked about if you haven't seen that already more processes mindset especially the journey over the last year and especially over the last

54:19 few months with what you've done um so I'm sure obviously that will be really really enjoyable for most people but let's go head on to the charts let's take a break for a minute though guys cuz I want to tell you about our incredible partnership with propfirmtrader.com majority of you out there are prop firm traders you're using prop firms to leverage your trading skills to be able to get more capital and to be able to absolutely change your life so what's important to be able to find the right challenge for you with the best firms and most of all the best prices and that is exactly what propertrader.com does propformtrader.com's allows you to compare prop firms be able to find the best challenge suited to your trading style and get you the exclusive best discounts in the entire industry so that you're paying the cheapest price possible for your prop

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57:30 what the Asian range hasn't been taken out yet and we're taking out that previous day's high now

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