Summary
Highlights
This video introduces a simple yet highly effective trading strategy that can consistently generate €7,900 per month without initial capital. The speaker emphasizes the importance of following a clear set of rules and provides a detailed walkthrough of the strategy, including entry signals, stop-loss, and take-profit placements. The strategy works well for Bitcoin, Oil, and Nasdaq, but not as effectively for S&P.
The strategy involves using two timeframes: a 5-minute chart for the initial signal and a 1-minute chart for confirmation. On the 5-minute chart, look for a 'sweep' of liquidity, meaning a candle wick extends beyond the previous candle's high or low, then the price closes back within or beyond the previous candle's body in the opposite direction. For a long trade, there should be a 'sell-side' liquidity sweep below the previous candle, with the closing price at or above the previous candle's body. For a short trade, look for a 'buy-side' liquidity sweep above, with the closing price at or below the previous candle's body. This indicates that liquidity positions (stop-losses) have been 'swept' before a reversal.
After identifying the liquidity sweep on the 5-minute chart, switch to the 1-minute chart. Here, confirm the signal with a 'break of structure' (Order Block) and a 'liquidity gap' (Fair Value Gap). For a short trade, a bearish order block is confirmed when a series of bullish candles is broken downwards by a closing candle. Then, identify the first liquidity gap. Set a limit order at the lower end of this gap, place the stop-loss above the high of the first candle forming the gap, and target a 2:1 risk-to-reward ratio. The same principles apply for a long trade, but in the opposite direction (bullish order block and gap).
The video demonstrates several live trading examples, both short and long, illustrating how to execute the strategy. It emphasizes that while the basic rules are essential, additional factors can improve profitability, such as trading during volatile sessions (New York, London) and aligning with the overall market trend. The speaker also highlights the importance of an 'Order Block' nearby when multiple 'liquidity gaps' appear, as it acts as support or resistance, preventing deeper pullbacks.
The speaker explains how to leverage this strategy to earn €7,900 per month without personal capital, using proprietary trading firms (prop firms). By passing a 'challenge' with this strategy, traders can get access to funded accounts. With a €200,000 funded account, aiming for a modest 5% monthly profit (€10,000) and considering the prop firm's 20% cut, a trader can earn approximately €7,900 monthly. The speaker recommends IQ Capital, offering a discount code ('DC') for challenges. A 1% risk per trade (€1,000 for a €200,000 account) allows for a significant buffer of losing trades.