Transcription
I've been trading for 14 years and have tested hundreds of complicated strategies, but none of them work as well as the daily sweep. And ironically, this is the easiest one of them all. I use this strategy to break the world record for the highest proper payout of $2.5 million. And today, I'm going to break down the strategy into three simple steps.
Let's hop on a chart for step one. While this is simple, if you guys mess this up, then nothing else is going to work. So, you have to do exactly as I say. So, what that look usually looks like for a morning routine is I'm waking up around 6:45, 7:00 a.m. I usually get a morning walk in. I have my coffee. I meditate. I read for a little bit. And then I'm usually sitting there around my charts around 8:00 a.m. to 8:30 a.m.
So, when I sit down in front of my charts, what I actually do is I plot out all of the hourly swing points from the previous day. Now, that's including leading up to 8 a.m. So, it doesn't have to be previous day. It could be all of the hours leading up to 8 a.m. That includes London session, Asian session. So, when I sit down in front of my charts, I'm going to mark out this high here, right? This swing point here, right? So, this candle here that we're looking at right now, this candle opened at 7 and it closes at 8. So, if you hover over this, you guys can see at the bottom of the screen, it says 7:00 a.m. and that's closing at 8. So, if this candle closed, that means we have this swing point here. We have this swing point up here.
Now, we are only marking swing points that haven't yet been traded to. So, any swing points that you see, like this one in here, we are not going to mark that because it's already been traded through. So, what we're going to do is just mark out all of the previous day swing points. Now, if we're trading beyond the previous day's swing highs, then we're just going to use the next most recent high. So, let's say, for example, you look at this specific day and you have see these swing points in here and you know, market's trading past that. Well, what we're going to do is go back to the next day because that's the next most recent data. And you're going to plot this swing point and then this swing point up here. So, as you guys can see, we've marked out this specific prior day. You know, we can mark out this one all the way down here. Although, I doubt that it's going to trade down there because it's so far away. And that's just one chart. Okay, this really only takes me about 5 to 10 minutes to go through all of my markets, to go through all of the assets that I'm trying to trade for the following day. And it doesn't take me that long. Okay. All right.
Let's go through one more example here. So again, this candle 7 8 a.m. I'm going to sit down and plot out all of the previous swing points that haven't yet been traded to. You can even plot out the ones that have been traded to just so you have an idea. But I've marked out, you know, all of these swing points in here, including the Asian session from all the way back here. So, we have these previous daily swing points on the hourly chart that we could pay attention to. All right, this process is very quick. It's very simple. You have to understand what a swing point is. And then when you sit down, you only take 5 to 10 minutes to plot out these swing points. Now, again, this should only take you about 5 to 10 minutes to sit down in front of your charts and plot out these swing points. That way, you at least know going into the session, these are the levels that I'm interested in.
Now, here's where things really get interesting. You have these levels marked, but if you just blindly trade every sweep of these levels, you're going to get destroyed. Now, there's a specific confirmation we need to wait for that I learned after losing tens of thousands of dollars doing this wrong. And I'm going to show you exactly what that looks like in step two. But before we get to that confirmation process, remember this is the strategy I used to break the world record at Apex. I have a link that gets you an 80% discount or if you use code Jada at checkout, I'll leave that link in the description.
All right, so now that you understand swing points, let's tie it together with some type of confirmation because without this step, you won't get anywhere. And here's what most people do wrong. You see concepts like turtle soup or ICT's liquidity raid and you think, "Okay, price sweeps to higher low. Let me just enter immediately and ride it back." And that's what I did for years. I would see an old high like this be rated and I would immediately enter short and the market would just continue trading higher, hit my stop loss, and then eventually turn around. And I probably spent thousands of dollars and way too many years trying to figure out what I'm about to show you right now.
Instead of entering a trade as soon as we raid that liquidity level, what we're actually looking for is a raid above a level and then a closure back below the range. Now, if the candle just trades up and then it trades back down, but it hasn't yet closed, that is not confirmation yet. What we're looking for is a candle closure. And this is what's going to help you out to avoid getting into trades too early. So, if you're watching this and you're constantly stuck on the lower time frame, what you should be doing is waiting for a higher time frame closure of these levels. So, if I'm looking at an hourly chart, essentially, I'm treating this hourly chart as my high time frame. And what I'm looking for on a higher time frame is for us to raid one of these levels out. So, we're going to sweep out one of these levels and then I'm going to wait for a closure back into the range until I get this closure. I do not look at any of these lower time frames.
Now, I know where most of you struggle because this is where I struggled for many years. I would go into the charts and if I didn't see something on the hourly, I would just drop down to the 30 minute, the 15-minut, the 5m minute, the 1 minute, and just constantly scroll through these time frames until I found something. And that is not proper trading. You're trading without a plan, and you're gambling. So, what did I have to do to fix these issues of getting into trades too early? I had to wait for confirmation. Now, this filter of waiting for a closure back into the range changed my trading tremendously. So, it allowed me to stop front running markets, meaning I didn't enter as soon as we raided the high or the low. I would wait for a confirmation first to show me the market was willing to turn around. And when you wait for a closure, that's when you know you have an extremely high probability setup cuz the market is telling you that it's rejecting these highs or lows.
So, you now know how to find your levels and wait for confirmation, but you're still missing the one crucial piece which took me from being break even for many, many years to making consistent six-figure months, which is the execution. So, let's go back to our first example here, and we'll fast forward through price action and wait and see if we get some type of reaction around the equity open. So, right now, it's 8:00 a.m. in the morning, and we're going to fast forward a couple candles. So, there's one. Now, this candle closed at 9:00 and this candle closed at 10. Now, at the 9:00 a.m. candle, we actually got a swing failure because we raided the swing high and closed back in the range. But maybe you're a little nervous because it closed bullish. So, we're going to wait for one more candle. Now, we actually have a very strong rejection of this level. So, now we have two candles that have failed to continue trading higher.
So, what we're going to do now is drop down into the lower time frame. And this is right around 10:00 a.m. So, at 9:55, we're looking for a low time frame execution. Again, we are only using the 5minut time frame when we have the higher time frame telling us which direction the market wants to go. So at the equity open, right, it pumped a little bit higher and then rejected that old swing high again and then we get a closure down here. Now what do we have here? This is our entry model. So we have a bearish order block being formed. So we have this series of upclose candles and we've broken below the low. So this gives us what? We have a bearish order block and a breaker that it's aligned with each other. Okay, what we're going to do here because we have this confirmation of this bearish order block and the breaker that overlaps with it is we're going to go short here and we're going to put our stop above the breaker. Okay? And then we're just going to aim for 2 R.
Now, this is the part of execution that is going to change for every one of you. Where you put your stop loss and where you put your target is going to vary, but the process of getting to this decision that we're going to short the market should be the same for all of you. All right? So, based on the higher time frame, we're looking for swing points and then we're looking for the confirmation. If we have both of those, every single trader that's watching this video is going to have a different stop-loss and a different target and a different entry. So once we have all of these things in place, the execution part is what you need to practice. Okay, this is what requires reps, requires experience, and you can't just blindly trade a strategy because you might have a trade where you might have had too tight of a stop-loss, but it eventually worked out. So over time, you'll learn that, okay, maybe maybe I need to work on my stop-loss placement or maybe I need to work on my targets or maybe I need to work on my entries. Those are things that have an infinite ceiling. Those specific aspects of your trading have a high ceiling for your skill level.
So now that we have our entry and a logical stop-loss placement above this breaker here, let's fast forward and see if this trade actually pans out. All right, so running through this trade again, we had everything aligned. So step one, plotting all of our swing points. Step two, waiting for some type of confirmation. Okay, the confirmation on the hourly then allows us to drop down to the lower time frame to find an entry with a stop and a target. Now, you can and you should have two different types of exits. You either have a fixed target or you should have a time exit. So, when I talk about time exits, that means leading up to lunch, you should be taking some risk off of the table. Whether that's taking a partial or adjusting your stop-loss so you don't have full risk on. Either one of those is a mechanical decision that you should make leading up to 11:00 a.m. and 12 pm.
All right, so let's jump to example number two here. Again, at 8 a.m., I'll sit down and plot out all the previous day swing points. Let's say we avoided this day because we didn't get a swing failure on this specific day. So, if you were to plot out all the swing highs and you had a bearish bias, trading up into this fair value gap at the open, right? We didn't actually get a swing high being rated. So, let's say we just didn't take this specific trade. Now, we're going to do is again fast forward to equity open and see what we get. So, this candle closed at 9 and this candle closes at 10. So again, we're looking for one of these swing highs to be rated and then we get a closure. So here we have a closure here, right? That confirms that this market is rejecting these highs. So then and only then do I drop down into a 5minute time frame to see if we could find a setup in here. So it's about 10:00 a.m. and let's just fast forward to see if we get any type of setup. So there's really nothing in here that I would honestly trade. Everything is very choppy off of the open. You know, we do have a bit of a sellside imbalance here. So we do have a bit of a bearish pair value gap here. So, fast forwarding through a bit of the equity open leading up to 10:30. Uh, we do have this bearish fair value gap here, but I do not like the way that it's trading through it and then closing. So, uh, let's just say that this is a trade that we're going to avoid for the time being. Okay, we do have another fair value gap that's appearing up here. Now that we've traded into that fair value gap, let's say we tried and attempted to short here and put our stop loss here and maybe just target at 2 R again. Now, let's see how this trade plays out. So, obviously, this trade did not pan out.
Let's just go back to our hourly time frame and see if we get a rejection from this high again. Okay, we have one more rejection from this high. Now, what I tend to do on a day-to-day basis, let's say if this market is very choppy in the morning and I took a loss, I'll only give myself one more attempt on the day to get this right. So, what I'm going to do here is we do have some lower time frame levels in here. We have this fair value gap here and we have this fair value gap up here. Now, if we flip back to our hourly time frame, what we're going to see is that this market is trading a little bit higher into this bearish order block that we have. So, it's okay to see this market on the hourly time frame trade a bit higher into this level. Right? The morning session was a bit choppy. What I'm going to do is give myself one more attempt at this. Now, what I typically do on a day-to-day basis is I give myself two attempts. So, let's say the AM session, we had our strategy that panned out. We had step one, which is plotting out all of our swing points, and then we waited for confirmation, which we got, and then we took a short attempt and ended up being a loser. Now, I'll give myself one more attempt in the PM session. Okay, if I lose during the PM session again, I will stop for the day.
Now, if we come to the charts during the PM session, which for me is about 1:00 p.m. till about 400 p.m. If I come to the charts and I see that the market has been choppy leading up to that point, what I'll typically do is not rely so much on a lower time frame. And what I'll tend to do is use a higher time frame level like a 1 hour high or low as my stop loss, but still use a lower time frame for my entry. So here I can tell that the market does have some bearish fair value gaps in the PM session. What I'm going to do is actually use this hourly high as my stop-loss placement. So let's say I'm going to attempt to short here and I'm going to put my stop above this hourly high because the market has been choppy and I just don't trust that a 5minut stop loss is going to allow me enough flexibility for this trade to pan out. So, let's just assume that we are going to use this hourly high that's all the way back here because it's conservative and it's safe and we don't have to worry about intraday noise, which is essentially what we're seeing so far today. So, let's just assume that we went short here and again used an hourly level as our stop loss and still target a 2R. Okay, it traded up into a 5minute fair value gap. Now, let's see if it expands lower and takes out some of these lows down in here. Now, as you guys can see, this PM session trade did pan out.
But I want to walk you guys through the lower time frame price action and why you can't always trust these low time frame levels to provide stop-loss placements. You guys see this 5minute fair value gap here? It traded up through that level and never even makes it to this next 5m minute fair value gap and then it rolls over. But if you're just relying on hourly stop-loss levels, right, your higher time frame level as a stop-loss, and you're still going to use that lower time frame for some type of specific entry, then it actually does pan out in your favor. Now, let's just assume I didn't enter on this candle and I entered on one of these candles around 1 p.m. You guys can see that it does trade through that fair value gap against where I want the market to go and against where a logical stop-loss using a lower time frame would work. But using a higher time frame stop-loss placement like the previous hourly high, it gives me enough room where this market is going to be able to wiggle around a bit and chop around as we've seen all day before it makes its run to the target.
Now, I can't emphasize this enough. Steps one and two should be very, very simple and they shouldn't take you a long time. Now, step three, putting it all together, is where the majority of your work when testing the system and trading it live is going to be. So, where do I enter the market? Where do I put my stop loss? Where do I put my target? Now, let's say if you're just a low time frame trader and you entered short on this fair value gap and you put your stop loss above candle one of that fair value gap. If you go back and study your trade idea, was your trade idea wrong or was your stop-loss placement wrong? Cuz eventually the trade idea panned out, but your stop-loss placement was too tight inside of the market condition that is sideways. So, if you determine that the market condition is kind of choppy and it's kind of sideways, you're always better off using a higher timeframe stop-loss. So maybe you don't want to just rely on one specific fair value gap. Maybe you put your stop loss above the next fair value gap to give yourself that bit of wiggle room. Now when you're testing the system and trying to trade it live again remember your trading is not going to be perfect. You're going to have to learn through repetition where do I put my stop losses that are in a logical area. Where do I put my targets and how do I manage that trade effectively?
You now have the same strategy that I used to make millions of dollars and change my life forever. Well, chances are you've probably had profitable strategies before, but still didn't become profitable. And I get it because I failed for 10 years before I was able to make it work. But once I did, my life changed forever. Please guys, whatever you do, just stay consistent with this because trading really can change your life if you have the right system. I recently open up spots to my inner circle where I trade with my students, give them my full system, and coach them to become successful traders and overcome the hurdles that are keeping them stuck. Due to this being a direct mentorship, I only work with a limited number of traders. If the link in the top of the description works, then slots are open. If not, feel free to apply for the next enrollment. Thank you guys for watching.