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This 5 Minute Strategy Is The EASIEST Way To Become Profitable Fast

JadeCap

18m 42s3,208 words~17 min read
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[0:00]This five-minute trading strategy is by far the easiest way to become profitable fast.
[0:00]If someone had told me this 14 years ago when I started trading, I would have been able to get wins like this, this, and this much sooner.
[0:00]Today, you'll learn how this simple approach will help you avoid the phantom mistakes that plague most traders.
[0:00]That way we can cut out the wasted time and effort and become consistently profitable much sooner.
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[0:00]This five-minute trading strategy is by far the easiest way to become profitable fast. And it works so well that it almost feels like cheating. If someone had told me this 14 years ago when I started trading, I would have been able to get wins like this, this, and this much sooner. Today, you'll learn how this simple approach will help you avoid the phantom mistakes that plague most traders. That way we can cut out the wasted time and effort and become consistently profitable much sooner. Let's hop right into the first step you need to take. So, before we get into the actual strategy, I'm going to talk to you guys about three problems that so many traders fall into. And I like to categorize these into three different buckets. So, most traders never become profitable, not because the market's impossible, it's because they're stuck in one of these three loops. And I have three different buckets for the struggling trader. So, the first bucket is the overthinker. So, anybody that's an overthinker just suffers from analysis paralysis, meaning you have way too many indicators, you're studying way too many different time frames. You're looking at conflicting signals, meaning you don't know whether to be bullish or bearish, you know, one minute you're bullish, next minute you're bearish, just based on how the candles are printing. Maybe you never pull the trigger, or maybe you're pulling the trigger way too many times and you don't have a system, and maybe you're overthinking what it is that you're actually trying to do. So, this might be somebody that has tons of indicators on their charts but actually doesn't know how to apply one of them. They just keep adding indicators to the chart thinking that it's going to improve their edge. Maybe you're watching five plus time frames at once and not really dialing in on what signal is being provided at one specific time. So, if you're the type of trader that sits down in front of the charts and let's say if you don't see a setup on the hourly time frame, which is your typical time frame, you might be dropping down to lower, lower time frames to try and find a setup. And this is where analysis paralysis comes into play is because you don't see a setup on that higher time frame which you typically trade. And now all of a sudden you're trying to analyze every little thing about the market to try and find a setup and to try and force a setup. So, the fix here, as an overthinker, isn't to learn more, it's about learning to apply what you already know. Now, the best traders that I know, they use less information than you'd think. They're watching one thing on the chart, looking for one pattern, waiting for one specific event to happen, and when it does, they just execute. There's no debating, there's no hesitating, there's no thinking about what might happen. They're not really concerned about the outcome of a specific trade, they just have a plan, they execute that plan to the best of their ability and accept the outcome, whatever it is, winner or loss. Now, as an overthinker, you're probably one that is trying to find every little reason why a trade failed or why it worked. Which is kind of the opposite of how a professional trader thinks. They don't think about all the different reasons why they'd lose a trade. You have to understand that trading is a game of probability. You are going to lose on trades and you're going to lose on a lot of them if you want to do this for a long period. So, instead of trying to over analyze why something did or didn't go in your favor, instead, just accept the outcome and try and be better next time. And maybe there is no room for improvement. Maybe you followed everything to a T, and in that case, you probably just want to journal the outcome and move on. Because a lot of times we try and sit there and analyze what went wrong on the trade, maybe nothing went wrong, which causes you to try and over refine your system. Now, there is a specific sequence of price action, call it a pattern, that once you recognize it, it eliminates every ounce of hesitation. And this happens nearly every single day in the same windows of time. So, once I show you guys what it looks like, you're going to be furious at how long you spent over complicating your trading. Alright, bucket number two, the gambler. That's somebody that trades on impulse with no defined rules, no edge, and no respect for risk management. So, you have no consistent entry criteria, or exit criteria, your position sizes are changing based on your emotions, so maybe you're chasing your losses. Maybe you're getting frustrated and you're revenge trading after you take losses. Now, you don't need more discipline, you need a system that makes this discipline irrelevant. So, when your rules are specific, there's nothing left to decide emotionally. Your entry's defined, your stop loss is defined, your target is defined, and your frequency is defined. Meaning how many attempts am I going to give this one specific trade example before I abandon it and step away? And think about this like an actual gambler at a casino. Sometimes the tables are hot, and sometimes they're cold. The professional players know when to step away from a cold table, whereas the gambler doesn't. They chase their losses and they sit there and wait for the next hand to come out, hoping that the table's going to turn hot all of a sudden. So, you have to understand again, that this is a game of probability. You're going to have days that are low probability. And if you give it one or two attempts and it doesn't work out, you have to know how to get off the desk and do something else productive with your time. Maybe that's backtesting, maybe it's journaling, maybe it's trying to refine your systems a little bit more. But overall, you need to have some type of mechanism that gets you off of the desk so that you don't become a gambler. Now, what I'm going to show you with the strategy is how to know your exact risk reward before you even touch the buy or sell button. And why the structure behind the setup makes revenge trading almost impossible. Because the next valid entry is not going to appear until the market gives you this very specific signal. And when the signal shows up, you might give one or two cracks at it, if it doesn't work, it's time to get off the desk. Number three is the strategy hopper. So, this is somebody that jumps from system to system chasing the "holy grail" without ever mastering one approach. That means you have a new strategy every week, you blame the method and never the execution, then you have no data or no journal, and no reps. So, the biggest problem with strategy hoppers is that they don't trade the system long enough to understand if it has an edge or not long term. So, let's say if you find a system that works 50% of the time and you're somewhat profitable with it. So, instead of trying to just refine that system that's already somewhat profitable, instead, they're trying to find a strategy that has a better win rate, has a better risk to reward, right? They don't go through those slumps of trading, and they just aren't accepting the fact that there is no holy grail. A strategy that works 40 to 50% of the time is enough to make you rich. So, I want you guys to stop searching for new strategies. Find something that works, even just 40 to 50% of the time and learn how to execute it better. So, what you actually need is an approach that's rooted in how the market is actually engineered to move. And that strategy needs to be built on structure instead of signals. So, that way when you go through a rough market condition, you just try and trade through that and stick to the same strategy. So, what I'm going to show you guys is based on logic, and once you see where the real moves originate from, you'll understand why this works in any market, in any time frame, and in any session. So again, the three problems that most traders fall into are one of these three. And a lot of traders kind of are on repeat. They kind of just stay in this loop of testing and over analyzing, gambling, strategy hopping, and they just keep cycling between these three and never move to the next phase of profitable trading. Which is having a solidified strategy that you can follow in any market condition, and you're going to accept any outcome that comes from the market. Because again, you only need a 40 to 50% win rate to be profitable in the market. So, let's talk about the actual strategy. And this is the Daily Sweep strategy.

[8:38]There's five steps, no indicators, no guessing. You just let the market show you where the liquidity is and what it does with it. So, what we're going to do is wait for a sweep and then strike. So, now markets are designed to hunt liquidity. The Daily Sweep strategy uses this to your advantage, letting the market show its hand first. Now, I cannot emphasize this enough. So many traders are trying to anticipate what the next move in the market is, rather than waiting for the market to show its hand. So, have you ever been in a trade where you think it's going to go in one specific direction, you're impatient, you enter the market, and then all of a sudden, the easier hand to read shows up after you've been stopped out. That's exactly what we're waiting for. We want to see something in the market that gives us an indication that it's showing its hand to us, and then we can position ourselves properly. So, the core principle here is that we're not trying to predict where price is going to go. We're waiting for the market to actually show us by sweeping liquidity, closing back above or below a level, and then we want to participate. So, step one here is we're going to mark out our previous day's swing points. So, we're going to identify all of the previous day's swing highs and lows. That might include Asian session, the previous 24-hour trading session, and all of the price action leading up to the New York open. Now, these are all the liquidity pools where stop losses are resting and where institutions will look to transact, maybe institutions or big traders. Then what we're going to wait for is the liquidity sweep. So, price is going to push beyond that swing point, triggering those stop losses or trapping the breakout traders. This is the market hunting liquidity, don't react just observe. Step number three is we're going to wait for a closure back above or below the swing point. So, if we're bullish and we sweep a swing low, we want to close your back above the swing low. So again, after the sweep, we wait for price to close back above the swing low or below the swing high, if we're bearish, and this closure confirms the sweep was a trap, and that's your signal to get involved. Step number four, we're going to try and find a fair value gap on the five-minute time frame, so we're going to set our entry at the fair value gap left behind by the displacement move. And we're going to use a tight stop above or below the sweep, you know, maybe you want to use candle two of a fair value gap. What we're going to do is target opposing liquidity or a fixed risk to reward. Alright, so now that you understand how to find these trades, let's go through a couple of actual examples. So, example number one is going to be a bullish sweep, meaning a fair value gap long. We're looking for a sweep of an intraday low into a long entry. So, the trap springs, displacement confirms, and price delivers to the buy side. So, let's go through all of the steps of this specific setup. We have a sweep of intraday low into a fair value gap. Now, in both of these examples, I'm using the hourly time frame as our higher time frame. So, here we have one hour structure and an SFP. So, leading up to the New York session, we have this previous low here. And then you can see during New York session, we get a nice run of that low with a closure back above. And because we're bullish, we're trading at the low end of this trading range, so you can see here, these lows down in here, as well as these highs. We're anticipating us trading back to the highs, right? This is a bullish setup. Step number one, price sweeps below previous intraday low during NY session, grabbing sell side liquidity. Again, we have this previous low here. We've run out that liquidity and we've closed back above it. Showing us that anybody that tried to get short down here is now trapped. Or anybody that got long a little too early is now stopped out of the market. Step number two, aggressive displacement candle back above the intraday low creating the swing failure pattern. Again, we have that nice aggressive displacement back above, right? You can see where the hourly open, we've ran out the liquidity, and we have a nice strong aggressive move back up to close above that low, which creates the swing failure pattern. Step three, we're looking for a fair value gap to form on the five minute chart, so our entry goes at the midpoint of the fair value gap. Here's our five-minute fair value gap, so again, we have this nice hourly raid of the swing low, a nice closure and displacement above. Then we get a retest back into the fair value gap. What we're going to do is enter long somewhere in this fair value gap, putting our stop loss below candle two of the fair value gap. So, step four, stop placed at candle two of the fair value gap, and all we're doing is targeting a fixed one to three RR or the buy side liquidity that's here. Now, again, the key here is that the sweep below the intraday low was the trap, and you're trying to analyze this in real time. Now, once we get that SFP, on the closure of this hourly candle, it's showing you that smart money is trying to accumulate longs below that low. So, this trade example ended in a three R, and this is a bullish trade example. So, let's go over a bearish trade example. So, let's say coming into the day, I have a bearish bias. What we're looking for again is a sweep of the intraday high into a short entry. Showing us that the liquidity was grabbed, meaning buy side liquidity was grabbed. We have displacement, showing us that all the traders that were trying to get long are now trapped in the trade, or anybody that was short a little too early then got stopped out of the trade. So, if we go over to our hourly structure, and if we zoom in here a little bit, we have this Asian range high, which is our swing high. And based on yesterday's price action on Wednesday, we have a nice raid above that high, but we're waiting for the closure back below the swing high. Okay, we're not trying to get short on any one of these candles up here, we're waiting for the closure back below the swing high. So, steps one and two, price sweeps above the previous intraday high before the New York open, grabbing that buy side liquidity. Step two, aggressive displacement candle back below the intraday high creating the swing failure pattern. Step number three and four, we're waiting for a fair value gap to form on the five-minute chart, maybe your entry is set at a fair value gap low, and your stop goes above candle two of the fair value gap. Your target is a fixed one to two or one to three, or you can target the Asian range lows or the weekly open. So, in this scenario, we have our Asian range high, on an hourly time frame, we get a nice closure here at 9:00 a.m. And what we're looking for is this five-minute fair value gap. So, we have nice five-minute fair value gap, we enter as the market's trading into that fair value gap. The stop goes above candle two of that fair value gap, and then we target the Asian range low. So, this trade example gave us a five R. So, quick summary of the Daily Sweep strategy. This strategy occurs almost every single day. But the key here is that you're only taking one or two trades a day. Okay, if we miss out on a setup or if we get stopped out, there's going to be another trade the next day. You have to learn how to step away from the markets when they're not operating how you think they will. So, key point here is you wait for the sweep and then you strike. You want to see the market showing you its hand. So, what we're going to do again is mark out all of our previous day swing points. We're going to wait for the liquidity sweep. Wait for a closure back above or below, showing us that the market actually wants to turn around. And then we're going to try and find a fair value gap on the lower time frame. We have a structured way of finding our entries, placing our stop losses, and our targets, and we're just going to rinse and repeat this forever. You now have a simple and proven approach to liquidity. But chances are, this isn't the only reason you still aren't profitable. I know this because I struggled for 10 years before I became profitable, which is why I created the trading apprentice. This is not your average trading Discord. It's direct access to me, a verified seven-figure trader and world record holder to teach you everything I've learned in the last 14 years.

[18:23]I'll leave a link to apply down in the description. But I want to be clear, I don't work with just anyone. If the link still works, there are slots left. Otherwise, you can join the wait list. And as always, don't forget to like and subscribe, and I'll see you guys in the next video.

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