Core Month 02 01 Growing Small Accounts - newsqlguru/ict-index GitHub Wiki

ICT Mentorship Core Content - Month 02 Growing Small Accounts

Key Terms

Content

  • What you need to avoid

    • Don't rush to make massive in pips or % gains.
    • Don't open yourself to large risk, in hopes of equally large returns or profit.
    • Don't assume taking small risk defined trades will not grow your account.
    • Don't sacrifice trading equity for poor planning or lack thereof.

  • What you need to aim for

    • Determine how to realistically anticipate a favorable Reward to Risk model.
    • Learn to respect the risk side over the reward of trade setups.
    • Identify 3(+):1 Reward to Risk setups.
    • Frame good reward to risk setups that have little impact if unprofitable.

  • Reality of Reward to Risk Ratios

    Win Rate Minimum Ratio
    75% 0.3:1
    60% 0.7:1
    50% 1:1
    40% 1.5:1
    33% 2:1
    25% 3:1

  • We need to focus on 3:1 reward to risk trades so that we have a better probability for profits.

  • 3:1 is bread and butter scenario.

    • 50% a month is possible, but not probable.

    • We are focused on avoiding large drawdown.

  • 10 Trades a month example

    • Focus on 6% of equity compounding per month.

    • 20 pips / week

    • 1.5% risk

    • Only 1:1 ratio required.

      • e.g.

        • Account $1000.00

        • Risk per trade 1.5% or 15.00 USD

        • Risk 20 pips from entry price

        • Profit taken at 20 pips for a 1.5% return

    • 6% setups form on a daily basis.

      • Daily Chart

      • Orderblock

      • PA has created an orderblock an moved away from the OB.

      • FVG is created during the move.

      • When Price hits FVG/OB level move to lower time frame

      • Look for old high/low

      • Price touches old h/l

      • Soon after Price raids liquidity moving past old h/l.

      • Turtle soup setup

    • Wait to see if price moves away from raid level.

      • PA trades back through the OB

      • PA trades back into the OB

      • (21:00) We find the body and end of wick of OB this is where we would look to enter the trade.

      • We add 5 pips to this level for our limit order.

      • Stop is set -20 pips, which is 50% of OB.

      • We can take profit at 1.5% gain and continue the trade to old h/l

      • TP1 target at first Old h/l

      • TP1 target at second Old h/l

      • When PA goes to TP1 we can take off risk by taking profits and moving our stops up to break even.

      • When PA moves away from TP1 move stops up to TP1 or higher.

      • Graduated TPs with runners.

      • The trade can result in 5R, taken from daily OB, because it has institutional (bank) sponsorship.

Notes

  • Find 10 occurrences in past price action and log them in your trade journal.

  • Extra credit if found on multiple time frames.