0:00 My new strategy allows me to get wins like this, this, and this. And something I've noticed across the trading space is that strategies are overly complicated with way too many moving parts. Multiple tools indicators confirmations and look, they're all great. I use multiple tools myself, but some traders have a hard time putting it all together. So, in this video, I'm going to give you a three-step strategy that is one, easy to understand, and two, easy to execute. But before we get into that, we need to understand why most traders fail. Because if you skip this part, the strategy isn't going to save you. It's just going to become the 10th one you abandon. So, before we get into the model, almost every trader that I've talked to that is having a hard time in the markets has one of two things going on. The first one is you're just collecting information, and you're not actually executing. You've got a folder of PDFs, you're in multiple Discords,
0:47 you have a list of YouTube videos that you constantly are watching, and you never learn how to actually put in the reps and the execution to learn what you've been studying. Now, I was stuck in this phase for years, not months. Years. And it wasn't because I was lazy, it was because I kept adding something new that felt like progress. I would trade a concept or a strategy for a little bit, maybe a month, 2 months, and then I would go into a losing period, and then I would abandon it and try and learn something new. And this is just a never-ending cycle, and it becomes a point in the road where a lot of traders end up quitting. So, what you need to do is understand that the markets are probabilistic in nature, and you're not going to win on every trade. You just need to find an edge that works 50% of the time, maybe a little less, maybe a little bit more, but you need to find an edge that you can consistently come back
1:33 to and execute on a week-to-week basis. That means you need to trade through the slow periods, you can't get overconfident using it, and you just have to show up and repeat the same processes over and over again. Now, the second one is that your strategy doesn't refuse any trade, meaning you have so many different things that you're looking at, and you're finding all these confluences, but the problem is when it comes to developing a high-probability trade idea, now you have so many things going on on your chart that you're always going to find a trade. Now this is a really bad thing because instead of just trading one concept that you've mastered, you're taking all these different trades with things that you don't really have a 100% understanding of. So let's say if you're just typically used to fair value gaps, but then a breaker appears, all of a sudden you're going to be trading breakers but you don't really understand them. Now
2:19 yes, it all leads to a trade idea, but you don't understand the nuances behind breakers because you haven't traded them enough. So instead of having this wide funnel of ideas that you're trying to trade with, what we're going to do is narrow them down to just a few. So what does my new simplified strategy actually look like? First of all, we just have one idea, one trade setup that we're looking for, and we're going to repeat that on a daily basis. So the premise of this trading strategy is we're looking for levels to be ran out, failing to hold those levels and reverse. So the most reliable liquidity on a chart rests at previous highs and lows. Now that can either be a previous weekly high and low, a previous daily high and low, or a previous session high and low. Now the daily sweep model, or my specific model, waits for price to run one of those
3:04 levels, you have a failure to hold beyond it, and then we're going to trade the reversal back through the range targeting a point of liquidity. Our bias is going to come from the higher time frames and execution is going to happen on the lower time frame. Now a question that I get a lot is what time frames do these work on? Does it work on a weekly or a four-hour? Does it work on a daily or a one-hour? Does it work on a 15-minute or a five-minute? The answer comes down to the type of trader that you are. So if you're going to be a swing trader, obviously our higher time frame focus, where we're going to get our trade direction from, is going to be the weekly chart, and we're going to execute on the four-hour time frame. Now if you're a short-term trader, meaning you might hold overnight, now you don't have to hold overnight, but you're going to fall into this category. We're going to use our daily time frame for our direction and our bias, and then we're going to use our one-hour time frame for
3:50 execution. Now if you're a day trader or scalper, we're going to use our 4-hour or 1-hour as our bias or direction and our 15-minute and our 5-minute as our execution time frame. So, yes, this model does work on every time frame. The only thing that really changes is the time horizon of the trade and how fast you have to make decisions. And it's also going to affect the frequency of trades that you're taking. So, step one, we're going to start with identification, meaning we're trying to determine if the market is trending or ranging. So, in a trending bullish market, the market is going to be creating higher lows and higher highs as it's moving higher. And in a bearish market, it's going to be creating lower lows and lower highs as it's moving lower. And finally, if we're stuck in consolidation, meaning that there's no clear range or direction that we're
4:35 trading in, we might not have a trade. So, again, reiterating on this, before any pattern or any confirmation, we are trying to identify the market condition. Is the market trending up or is it trending down? Or if it's ranging or unclear, then we're just going to watch the edges of the range and tread carefully, meaning we might not have any trades. Now, when it comes to reading the higher time frame, we're going to start wide first and then narrow. We're going to do two passes. So, pass number one is going to be the bigger picture. If you zoom out on the higher time frame, you should be able to read a sequence. So, in a bullish market, we're going to see those higher highs and higher lows as the market's moving higher. Vice versa, if the market is bearish and we zoom out, we should be able to see the market stair-stepping lower. And obviously, if it's doing neither, we're in a range. Now, pass
5:21 number two, and this is where we really dial in, is just narrow down to the last few candles and compare them against the one before. So, as an example, if we're looking at our daily chart as our higher time frame, what did yesterday do compared to the previous day? Did that daily candle create a higher low and higher high compared to the previous day? Or did it create a lower high and lower low compared to the previous day? We're also going to be looking at outside bars for strong confirmation, meaning the daily candle took out the previous day's high, but also took out the previous day's low and closed a specific way. And finally, we have an inside bar, meaning the daily candle didn't take out the previous day's high or low, showing us that we have indecision in the market. So, based on our analysis, this is going to confirm our bias, and you need to clearly write
6:08 down your bias prior to looking for these entries. So, if the market is creating higher lows and higher highs, we have a bullish bias, meaning we're looking for a sweep of a low. And if we have a bearish bias, we're looking for a sweep of a high. Again, no bias, that means we don't have a trade. Coming into step two, we're looking for the confirmation of a trade. So, what we're going to do is mark out our previous levels, and we're going to mark to the scale of our trade, meaning our time frames. So, if we are swing trading, we are going to mark out the previous weekly high and low, plus all the intraweek highs and lows from the prior week. If we're day trading, we're going to mark out the previous daily high and low, plus all the intraday highs and lows. So, that might mean session highs and lows. And if we're scalping, we might mark out those daily levels along
6:54 with previous session highs and lows. The outer extremes of our ranges are going to be our primary targets. The internal levels is really where we're going to be seeking these sweeps. So, what is a sweep or a swing failure pattern? If our high time frame is bearish, we're going to mark out all of our previous day's swing highs. Now, this doesn't only have to be the previous day's highs. There might be intraday swing highs inside of yesterday's range where we're also going to mark out and look for a reaction. Now, what makes a swing high? We have a three-candle pattern where the highs on either side of candle number two are lower than this high. So, we have a high, a higher high, and then a lower high. And just reverse that if you're looking for a bullish swing point. So, you'll have a low, a lower low, and then a higher low. So, we have our swing
7:39 point. Now, what creates the swing failure pattern? What we're looking for is a run above that swing high and then a closure back below it. This indicates that the buyers were absorbed above this specific level and failed to push the market higher. The closure back into the range is telling us two things. People that were short got stopped out with their stops above this high and also people that were trying to go long on a breakout are now trapped in their long position, meaning they're underwater. This very simple pattern is giving us context around the market. It's giving you a deeper understanding of the players that are operating in the market and the reactions to liquidity levels being hit. Now that we have our bias or direction identified and a confirmation of a trade idea, the next step is the execution. And this is why this model is
8:24 so simple is that you don't need an entry model. The swing failure confirmation is enough to enter a trade. We have no additional indicators and no extra confluence. We just enter on the close with our stop above or below the wick that made the swing failure pattern. And if price reclaims the wick, it's invalidating our trade. So, we're going to enter on the closure of the candle that gives us the SFP and then we're going to put our stop above the wick that created it. Now that we have our entry and our stop loss, where do we exit? So, we have two different methods of taking profits. We either have a time-based exit or a liquidity-based exit. With time-based exits, this is really all around session overlaps. So, if you enter during London session, you might want to manage that trade ahead of New York open. Or if you enter at New York open or the AM session, you might
9:10 want to manage that trade or exit around or before lunchtime. Now, if this is something that you've been struggling with, I want you to study how the volume drops and trends stall around these session overlaps. Exit number two is going to be liquidity-based, meaning we're going to just target a previous daily high or low, which is our next pool of resting orders. So, now that we've gone over the three steps, let me show you what it actually looks like on a chart. So, step one is going to be identification of our high time frame bias. And in this example, we're going to use the daily chart as our higher time frame. Now, if it's unclear and you zoom out and you can't tell if the market's creating higher lows and higher highs and it's kind of just pushing higher, then we're going to do is just take a look at what the day did compared to the previous day or last few days. So, in this example, we can see that the market is creating a low, a lower low,
9:57 and then a higher low. So, this becomes our last bullish swing point. So, let's mark that out. We have a bullish swing point right here. Now, we also have a bearish swing point, but this market created a higher high. Now, if the market were overall bearish, it should not be creating a higher high up here. In fact, it should be be creating a lower high, and then the market would then possibly trade lower. So, because this daily chart created this higher high, we are in a bullish market environment. Now, to make things even more simple, just compare the day's close with the previous day. So, in this example, we can see that we have a low, and then a higher low, and then we have a high and a higher high. So, just within these two candles, we can tell that the market is creating higher lows and higher highs. So, coming into the next trading day, we've identified that the market is bullish. So, for our
10:43 identification, our market condition is bullish. And when I sit down in front of my charts right before the open, I'm going to mark out any intraday swing highs and lows that I see. Because it's not every day that you're going to get a raid on a previous daily level. And if we're bullish, we're only looking for a swing low to be raided. So, I don't need to mark out any of my intraday swing highs. What I'm going to do is mark out this intraday swing low because it's the last swing low that I see when I look at this chart. All right, so if I look at the previous day's low and the previous day's high, there's no other swing lows in here that are really drawing my attention. So, let's go step by step and see if we get that confirmation, which is going to be a swing failure. Here we have the market open, and we are approaching this swing low. Now, again, what we're looking for is a raid on one
11:28 of these swing lows with a closure back above that level. Here we get a raid on the swing low and then we get the closure back above that level. So that gives us our confirmation of a swing failure pattern. And now we can move to step three, which is the execution. So what we're going to do is enter a long position on the close of this candle with our stop loss below the low. What we're going to do is maybe just target this previous daily high. So again, we're going to go long one contract. Our stop is going to go at 27455.25 with our take profit at 27 918.50. Now this is about a 1.3 to 1 reward to risk. We're going to go long here and play this forward. So we can see there our take profit was hit right at the previous daily high. Now I want to show you guys a bearish example again using the 1-hour time frame. So as we can see
12:14 here, if we just zoom out and look at what the market is actually doing. We have this low here, we have a high, we have a lower high, a lower low, a lower high, lower low, lower high. So what we're anticipating is a run down to this old low to continue bearishness in the market. So again, what I'm going to do when I sit down on my charts before the AM session is mark out all of our previous intraday highs. So here we have a high and we have another swing high all the way up here. And our target is going to be all the way down here at this low. Now we don't have any other swing highs in here that's notable other than this one, but obviously we didn't get a swing failure there. So I don't need to mark that until we actually get a strong rejection. So again, one identification, bearish. Two is going to be confirmation. So we're looking for that swing failure pattern. So let's play through some of this price action. So here we have a very long wick, but
13:00 obviously we didn't run out this high yet. Here we get the run on the high, but we're looking for a closure back below that high for a swing failure pattern. Another hour goes by, we don't have that closure yet, so we're not going to just jump in a short right away. Now here we have a closure back below the swing high and that's our confirmation. So now we come to execute. So we're going to go short on the closure of this candle. We're going to put our stop above the wick of the candle that gave us the swing failure pattern and we're going to target one of these lows. We can either target this swing low here, we can target this intraday low here, or we can target this low all the way down here. So, what I'm going to do is target this low all the way down here, and maybe we're going to take some partials when we get to this low. So, we're going to go short, our stop's going to go at 30096, and our take profit's going to go at 29330.75.
13:47 Let's short two contracts. So, this is going to allow us to take partials if we rate out some of these intraday levels. We're going to go short, and let's see what price does. So, I want to point out that the market doesn't just move in a straight line, and you have to be comfortable seeing that market turn around on you, and maybe you have to sit in drawdown for a little bit before the trade actually pans out. So, there you go, we get a little bit of follow-through. So, now that we've taken out that old intraday low, what we're going to do is take off one of our positions. So, we're going to buy back one of our contracts, and we're going to leave one contract remaining, and maybe we'll trail our stop loss down to break even. And then we'll see if we get the run on this previous daily low, right? The higher time frame is still bearish, so we are anticipating maybe running to that old previous daily low. And there we go. Now, we've gone through a couple of replay examples, but let me show you guys that this actually works in a live trade. So, going through the same exact
14:33 process that we were just doing, this is exactly how I intraday trade using this specific model. Now, in this example, I have my higher time frame hourly candles here on the right-hand side of my screen, and as you guys can see, each one of these hours is creating a lower low and lower high compared to the previous hour. So, leading up into the afternoon, I could see that this market created a lower low and lower high compared to the previous hour. So, what I'm looking for inside of that next hourly candle is some type of swing failure pattern on the lower time frame. In this case, this was a 5-minute time frame. So, we have this swing high here. We can see that the market has traded above that level, then we closed below it, and this is where I entered. I entered on a retracement on this 5-minute candle because we had that closure. My stop is going to go above
15:19 one of these swing points up here, this 5-minute swing point. Yes, I probably should have used this wick, but because I was confident in the market going lower, I wasn't anticipating price to retrade above this old swing high again. So, as we play this market forward, we can see that we have further continuation to the downside. So, as we approach here, I adjusted my stop loss aggressively at about 3R. Now, we eventually didn't make it down to that take profit, but I was able to adjust my stop loss one more time down to about here, and then I was taken fully out of the trade for about 3R on the day. So, that's the model. Three steps, one idea, no indicators. Bias, sweep, failure. Go mark your levels and watch a repeat for at least a month before you decide to trade with it. Now, some of you are going to run this strategy on your own, and you'll be completely fine. You'll do the reps, you'll figure out the parts
16:04 that I didn't cover. But, some of you have been trying to do this on your own already for 2 years, and you're standing in the exact same spot you were when you first started, and you know which ones you are. If that's you, and you're looking for more personalized help, I'm opening just five spots to my mentorship program, where I trade with my students live each and every week. They've gotten results like this, this, and this, all from following the systems we've created that any trader, no matter the skill level, can follow. So, if you're interested and think you might be a good fit, I'll leave a link to apply in the description. As always, thanks for watching. Don't forget to subscribe, and I'll see you in the next one.
