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$30K in 2 Months With This Simple 3-Layer Strategy — Transcript

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0:02This is Jonas Bearthrop. He's earned
0:04over $50,000
0:06in payouts, and 30,000 of that in only 2
0:10months. Jonas isn't your average prop
0:13trader. While 99% of traders are chasing
0:16the same setups sold by the same
0:18influencers, Jonas trades a system
0:21almost nobody else even knows exists.
0:26I think chart patterns. I don't really
0:28see the point in trading them because I
0:29don't really feel like you have an edge
0:31when everybody knows what what you're
0:33trying to do. Like the head and
0:34shoulders, double top, double bottom. I
0:36know these things might work, but to me
0:38it makes no sense trading them because
0:40everybody knows them. It's the same with
0:42ICT.
0:43I don't know how to trade it, but I know
0:45everybody else I know knows how to trade
0:47it. And I feel like that destroys edge
0:49for me. You know, if you break down my
0:51edge, it's like three parts. And if you
0:53know the only the first part,
0:57Three components, one system. A system
1:00most traders could never figure out on
1:03their own. Market structure, order flow,
1:06liquidity. The framework that took Jonas
1:08from just $300 to over $50,000
1:12in payouts. Right here, right now. He's
1:15about to rip it apart on screen. Every
1:18component, every entry, every exit.
1:20[music]
1:21The exact blueprint that others would
1:23spend thousands of dollars on for free.
1:26Um I genuinely believe that anyone, no
1:29matter if they're profitable or not, can
1:31get a payout on the prop firm. It's just
1:33the structure of prop firms itself that
1:36allow you to make money even though you
1:38don't know how to make money in the long
1:39term. Like you can be a break even
1:41trader across 6 months and still make
1:44money on the good period. If you enjoy
1:45trader stories like this and want to see
1:48more of it, drop a like and subscribe.
1:50It genuinely helps us bring you more of
1:52these. Now, let's see what Jonas is made
1:55of. Jonas, you've earned over $50,000
1:59in payouts prop trading.
2:02That is obviously not typical.
2:05So, what we all want to know,
2:08if we watched you trade for a full day,
2:11what would show us that you don't think
2:13like the average trader? Um I feel like
2:16you can see the profitability of a
2:19trader in his systems that he's building
2:22because I'm really good in building a
2:24comfort system for myself, which is very
2:26important for me because building a
2:28trading routine is basically half of the
2:30game for me. So, in your trading
2:32routine, uh what how do you know what a
2:35good trading routine actually is? Ooh,
2:38that's a very good question. I think
2:40that everybody has to figure things out
2:43for himself. For me, two-hour blocks
2:45work pretty well. I trade one-hour block
2:48on the start of the London session only
2:50to see where the market is trying to go,
2:53and then I trade another one in
2:56late London session like 13:00, 14:00, 1
2:59or 2 hours before New York opens, and
3:02then the second session is just fully
3:04New York. That's what I am became
3:06comfortable with because when I had no
3:09system, I was basically trading like the
3:12whole day.
3:13Every time I was able to be on the
3:15markets, I was in the markets.
3:17So, before you take a trade,
3:21what exactly are you trying to
3:22understand about the markets, the
3:24participants?
3:25What do you need to figure out before
3:27you ever get in a position? Yeah, okay.
3:29First things first,
3:31I want to see where the market is going
3:34right now.
3:35Is it trending? Is it moving up? Is it
3:37moving down? Are we ranging?
3:40What are we doing right now? That's the
3:41first thing. Then the second one is
3:44where is liquidity based? We're going to
3:46showcase that later when we're analyzing
3:49the markets together, but I'm using the
3:51heat map for that, and
3:53I want to see where big participants are
3:56trying get into market.
3:58With figuring out, are we trending or
4:00ranging? Do you use a specific style or
4:04analysis in order to determine this?
4:07Yeah, I use basic market structure, like
4:09higher highs, higher lows, lower lows,
4:11higher highs.
4:13So, you just want to see consistently
4:14higher highs, and this would be an
4:16uptrend. Consistently lower lows is a
4:19downtrend.
4:20>> Exactly. And if you're something in
4:22between that, we're ranging. So, with
4:24liquidity then, why is this important in
4:27the strategy? Does it affect entries,
4:30exits? Your How does this affect your
4:32decision-making? It most likely affects
4:36my exits because I'm trying to get out
4:39on a big position, like where a big
4:42participant is trying to get into the
4:44market, I'm trying to get out.
4:45>> And why is that important to your exits?
4:47Is that going to stop price movement
4:51from being profitable for you? Why is
4:53that important?
4:54>> No, I just found out that this is a good
4:56profit target for me. When I target a
4:59large liquidity, the market is very
5:01likely to fill it, and either way, if we
5:03fill a big liquidity, like four, five,
5:06600 lots on New York session, we're most
5:09likely pull back a little after filling
5:11that because the market cannot handle so
5:13many lots at once. And I don't want to
5:15be in a pullback because
5:17I hate losing money that I'd already
5:19made. I'd rather lose a trade directly
5:22than just being up a thousand dollars
5:24and end up with two or three hundred.
5:27So, the main concern then with these
5:29liquidity levels is that when price
5:31trades into them, the move might halt,
5:34might pull back, might exhaust. All
5:35these orders need to get filled. They're
5:37kind of like a wall of defense, right?
5:40So, this is what you would use to treat
5:42as a profit target, for instance.
5:44Exactly.
5:45>> Okay. Now, think of a recent trade that
5:47you're proud of. What exactly did you
5:49see in that trade that made it worth
5:51taking? Um
5:53last Friday, I was trading on all-time
5:56high breakout. We've been already
5:58setting a new all-time high on Asia
6:00session, and then we pulled up
6:02massively. We pulled back like 250
6:05points in one Asia session, which was
6:08absolutely insane. So, the market has
6:10basically been falling out of the sky,
6:12and that's really where I get
6:15interested, because I really love
6:17overextended
6:19moves. And that was basically one.
6:21Everyone on X was already being pretty
6:24pessimistic and saying, "Okay, now
6:27rally's over. Now we got a dump." And
6:29yeah, I was basically still bullish
6:31because there were new fundamental
6:34indicators that were saying, "Okay, now
6:36we need to dump."
6:38Everything was still the same, and I was
6:40believing there was massive
6:41manipulation. So,
6:43And I ended up being right.
6:44>> high on what? On the Nasdaq? And you had
6:47mentioned fundamental indicators. So,
6:49are these part of your strategy at all?
6:51Do you only look at them sometimes? Um I
6:54basically check them every day, but it's
6:57more like a okay, now I I don't want to
7:00trade today. What are the three top
7:02fundamental indicators that are
7:04important to you or your strategy?
7:06Basically, I don't really think that the
7:08fundamentals itself are that important.
7:12It's more important to me what Donald
7:14Trump is saying about the fundamentals,
7:16because like every time really important
7:18news come out, Donald Trump is very
7:20likely to react on them. And I really
7:23prefer his reaction over the real event,
7:26because
7:28he's the president. He's basically
7:29controlling the markets since he's in in
7:32his place, and I prefer looking at them.
7:34>> So, if Trump is bullish, are you
7:35bullish? Yeah. But he's always bullish.
7:38Yeah, and he was always right.
7:41>> [laughter]
7:43>> Honestly, that's probably a perfectly
7:45fine strategy if I'm going to be fair.
7:48Now, Jonas, you'd use market structure,
7:50you look at liquidity, you're looking
7:52for breakouts on the NASDAQ, and you
7:54also look at Donald Trump. What's the
7:56difference between someone who can trade
7:58well and someone that can actually get
8:00paid in a prop firm?
8:03Um I genuinely believe that anyone, no
8:06matter if they're profitable or not, can
8:08get a payout on a prop firm. It's just
8:11the structure of prop firms itself that
8:14allow you to make money even though you
8:17don't know how to make money in the long
8:18term.
8:19Like, you can be a break-even trader
8:21across 6 months and still make money on
8:24the good periods.
8:25What would be the number one mistake
8:28that tells you someone isn't ready
8:30to earn payouts on a prop firm?
8:33Lack of risk management. The what? I'm
8:35sorry. People get ex-
8:37Lack of risk management. People get
8:39exposed by the pressure on the short
8:42drawdown, and you know, I feel like
8:44everybody has made that experience when
8:46you start trading. You're like entering
8:48on
8:49any position, you the markets starts to
8:52pull against you, and
8:54what you're going to do? You're going to
8:56move your stop loss, and that is most
8:58traders' weakness because I feel like
9:01there are a lot of good traders out
9:03there with really good edge, but the
9:05problem is if you cannot handle your
9:08edge by taking two to three losses in a
9:11row, your edge is basically worthless.
9:13So, you can have a good strategy, and if
9:15you cannot properly manage the risk
9:17around that strategy, then you're
9:19probably not ready for a prop firm.
9:21Exactly.
9:22>> Now, what does good risk management
9:23actually look like? Is this something
9:25you kind of figure out on the fly? Is it
9:28known beforehand? Um for me, I learned
9:32my own way to risk manage. So, back when
9:35I started, everyone told me you need a
9:38fixed stop loss, 25 points, 50 points,
9:41100 points, whatever. And I never got
9:44really warm with it because I feel like
9:46every day I wake up and the market looks
9:48different. So, why would I use a static
9:50stop loss? So, what I did is
9:54find my own way through market structure
9:56to take my stop loss on levels where I
9:59think the market should not go.
10:01Now, with the market structure-based
10:04stop loss, let's say you're in a long
10:06trade.
10:07You're looking at your stop loss at a
10:08previous low. This is where you want to
10:10put it, right? Now, at that previous
10:12low, why exactly is that the point where
10:15you say, "Okay, my trade is wrong. My
10:18idea is wrong."
10:19>> Because if we form a lower low, then I'm
10:22basically wrong. For me, that's either a
10:24manipulation,
10:26then I was just unlucky. That's part of
10:28the game.
10:29Or we're building uh new direction. And
10:33if we're building a new direction, I
10:35don't want to be in that move if I'm
10:36long. Now, is there a difference between
10:39someone who can get the occasional
10:41payout and someone who can actually make
10:43a living prop trading?
10:46You've practically been making a living
10:48prop trading with $50,000 in payouts.
10:51So, what is the difference between
10:53someone who's kind of good at this and
10:55someone who can actually make a career
10:57out of it?
10:59I think capital plays actually a big
11:01role. Because, you know, when I started,
11:04I always tried to like one to maximum
11:07three funded accounts. And now I'm
11:09trading 10, 15, sometimes sometimes uh
11:1410 challenges at once. You know,
11:17you basically, when you want to make a
11:19living out of trading, you have to have
11:22enough opportunities for failure.
11:24Because, you know,
11:25everyone has bad days. I do.
11:29You do. Everyone else has bad days. And
11:32when you're all in on trading,
11:35those bad days will become even worse.
11:38You will up everything. And
11:41what you want to do when you have those
11:43bad days, you're going to try to limit
11:45your losses. And that is where many
11:48funded come into the role because if I
11:51trade one, two, three fundeds and I lose
11:53them all, I'm basically out of the game.
11:55I have to do the whole work again.
11:58If I'm trading with 15 and I'm copying
12:00like four to five on each firm,
12:03and I lose one firm, I'm going to be
12:04honest with you, I don't care. I can
12:06still get payouts.
12:08And that is the next thing, the payout
12:10cycles. Because there are some firms
12:13that have pretty long runs to get to a
12:16payout where you have built large
12:17buffers, 20 trading days, whatever. And
12:20if you have to combine those with firms
12:23like IQ Capital where you can get a pay
12:25payout really quick, that really makes
12:27the cycle a lot. So, one of How do I say
12:30this?
12:32>> to your success here, Jonas,
12:34is using more than one
12:37prop firm account. Yeah.
12:39This allows you to effectively manage
12:41more capital.
12:43Now, are you deploying the same strategy
12:46on each prop firm account or are you
12:48using different strategies across all of
12:50them? Um when I'm funded, I always use
12:53the same. But um eval, I am forced to do
12:58different strategies because not every
13:00firm has the same rules on funding.
13:02Because, you know, IQ Capital, they got
13:05a really large drawdown
13:07on evaluation. And you also can't pass
13:10the account in one day. If you can
13:12compare it to something like
13:14the Trading Pit or something, they have
13:15a 40% consistency rule
13:18on evaluation. So, that means you
13:20already have to trade at least at least
13:23three days to fund the account. You
13:25cannot put both the same strategy into
13:27those. Now, Jonas, what did prop firm
13:30trading expose about your style that you
13:34might not have noticed on a personal
13:37account?
13:37>> That I'm greedy. That I'm very greedy.
13:40Because, you know, when I'm trading on a
13:41personal account, I take
13:44My personal account is worth $3,000.
13:47You will not make life-changing money in
13:50the first place on those small accounts.
13:51But, when you're trading with 500K
13:54accounts, you know, you can possibly
13:56make 20, 30, 40 grand a day with one
13:59good day. And when I was experiencing
14:01that for the first time, I really
14:03thought like, "Oh my god, I'm the best.
14:05I want to make so much money." And after
14:07that, I really fell in the long hole
14:09where I where I was not getting out of.
14:12And that really exposed that when I get
14:14the chance to print, I get really,
14:16really greedy. So, you've had to make a
14:18lot of Did you have to make any changes?
14:21You said you're greedy. And obviously,
14:23you cannot be greedy on a prop firm,
14:26especially if there's a consistency
14:28rule. So, would Did this require a big
14:30change in how you exit trades going from
14:35a personal account to a prop firm
14:37account?
14:37>> It's actually not just in trading. You
14:40have to change as a person. You know, I
14:43was not just greedy on the markets when
14:46I when I started reflecting, I realized
14:48I was also greedy in life. So, if you
14:50want to not be greedy on the markets,
14:53you have to learn how to not be greedy
14:54in real life. And that is something you
14:56don't learn overnight. I don't think I'd
14:58ever learn that. So,
15:00>> [laughter]
15:01>> Jonas,
15:02so
15:03how did you stop being greedy in real
15:04life?
15:05I want to know personally.
15:07>> Honestly, through meditation. In the
15:09first place, meditation. And in the
15:11second place, um I don't even know how
15:13to say it, but like being aware of you
15:17being you, existing, and living, and
15:21you know,
15:22developing that kind of gratitude for
15:26being here. That is what killed my
15:27greed. And this carries over to prop
15:29firm trading.
15:31>> [laughter]
15:32>> Yes. No, it's I believe it. I believe
15:34it. You know, because every time I am on
15:37a big position and I want to size up so
15:40bad. I always remember like you know,
15:43this thing can still turn around and it
15:45can it can blow up your whole account.
15:48So, what do you want? Do you want to
15:50take like six $700 in profit or do you
15:54want to end up starting new accounts?
15:57Right.
15:58So,
15:59Jonas, walk me through a full trade. The
16:02moment you see an opportunity
16:04to the moment you exit. Step 1 2 3.
16:08>> Okay. So,
16:10basically what I want to see is either a
16:13trend
16:14or a range that looks like to me it's
16:17going to break out soon. I use order
16:19flow combined with market structure and
16:22liquidity to define where my levels are.
16:26Let's say we are in a London session,
16:27okay? Market builds a new daily high. I
16:30want to see the market pull back, fill
16:32in some orders, maybe fill in some
16:34imbalances on the volume profile or on
16:36the fair value gap indicator. I don't
16:39basically make much big of a difference
16:41of it. And after we start to build a
16:44bottom, like a new higher low, I want to
16:46see some kind of confirmation like in a
16:49delta or in the heat map when a big
16:52trader big trader enters. And that tells
16:55me, "Okay, this setup's valid. You can
16:57go into it."
16:57>> So, why is the London session important?
17:00I just love the London session because
17:03to me it's like the perfect mix of
17:06volatility and clear structure. Because
17:09you know, we all know those days where
17:11New York is opening and you just wait
17:14two to three hours before you can enter
17:16in some kind of setup because the market
17:19is so choppy and you usually don't have
17:22it as much in London. Now, you had
17:24mentioned market structure and order
17:26flow, right?
17:28Yeah. Whether we're trending or ranging,
17:30you're looking for a breakout. This is
17:32the core philosophy of your entire
17:34strategy is a breakout move. Yeah.
17:36Right? Now, if you take a breakout to
17:39the upside, is it always at the previous
17:41swing high? I wouldn't say that because,
17:43you know, there are many cases where the
17:46market is attacking the previous high,
17:49like Asia high, and we're getting
17:52declined one or two times, and then we
17:54suddenly break out of nothing in the
17:56middle of the range. Like it was
17:57happening today, we were not near the
18:01the Asia high, and we suddenly broke out
18:03of the range. And luckily, I was able to
18:06capitalize on that trade because I saw
18:08it on the heat map because um
18:09participants were pulling limit orders
18:12closer and closer and closer, and that
18:14told me
18:15>> Okay, we're about to break out.
18:16>> So, you saw this breakout potentially
18:19forming on the heat map. I don't know
18:21how to do that.
18:22So, if you had to explain to me how I
18:25could find a breakout with the heat map.
18:28And just to be clear, your heat map is
18:30basically showing limit orders stacked
18:32across price levels, right? And we'll
18:35look at that later, but that's correct?
18:37>> Yeah. So, if you were going to explain
18:38to me, here's how you use the heat map.
18:40>> Yeah, sure. Right? Here's how you could
18:41know or have an idea that a breakout
18:43might happen. All right. So,
18:45let's imagine a range, okay? We've been
18:48ranging in London for 2 to 3 hours,
18:50nothing is happening.
18:52When you look at the heat map, you want
18:54to see a breakout when
18:56there's a huge imbalance in between
18:59buyers, buy limits, and sellers sell
19:03limits. An imbalance is basically
19:06when there are
19:07a lot more
19:10passive participants in the market than
19:12others. Like if we got a thousand buyers
19:15and only 200 sellers, we have an
19:16imbalance and then we're most likely
19:19going to break out long because if there
19:20are more people interested interested in
19:23longs. And that is exactly what I'm
19:24looking for. I'm looking for imbalance
19:27in the heat map where there are a lot of
19:29more limit orders to one specific side.
19:32And you can see that visualized by
19:35really really red dark lines that pull
19:38through the whole
19:40order book and that's basically all I'm
19:43looking for.
19:43>> So this gives you this gives you a sense
19:45of what direction traders are interested
19:48in. Exactly.
19:49>> Awesome. Then [clears throat] we look
19:50for
19:51a swing high to get broken or are we
19:54just kind of waiting for a big move
19:55here? To enter the trade, I want to see
19:58the market slowly like building up uh
20:02way to the target of the liquidity. Like
20:05let's say we got five big trades sitting
20:09two two five points upon us.
20:12I want to see the market try to fill
20:14those orders aggressively. Like we need
20:16some sort of aggression
20:18to be able to figure out that the move
20:21is going to happen because you don't
20:23make a profitable trade when you look at
20:25the heat map and there the whole upside
20:27is stacked with limits but there's no
20:29drive. We still need active market
20:32participants and that is what I use
20:34volume and delta for.
20:36>> Are you looking at CVD? Are you looking
20:38at delta on the bar?
20:39>> Um no, actually I use the normal
20:42mirrored delta because I find it easier
20:45to to spot imbalances at not imbalances
20:47absorptions, sorry.
20:48>> So then you want to see an imbalance of
20:50delta as well basically. Exactly.
20:53Exactly. So not always but it's that is
20:56like the best entry criteria I can get
20:59with we are rising up, the market is
21:01starting to range a bit, someone throws
21:03200 lots short market. He will get a lot
21:05of slippage and the market is not moving
21:08at all. That's like the best entry you
21:10can get on those ranges because you know
21:13someone was trying to pull the markets
21:14down, but the market didn't carry it all
21:16because the buyers are just too strong.
21:18So, is there an exact number that you
21:21want to see in this imbalance? No,
21:23never. Because every day the market is
21:26different. I was trying to like build a
21:28plan when I started to say, "Okay, if we
21:31have at least 400 lots that are getting
21:33absorbed, I will go on a long position."
21:35But, that makes absolutely no sense
21:37because, you know, on today's Asia we
21:40had like bubbles with 600-700 lots and
21:43normally we don't even have that on the
21:45Europe. So, you know, every day is
21:47different and you cannot really define
21:49it. That's why you always have to
21:52refine your own heat map every day
21:54because there is like a setting where
21:56you can cut things out like small
21:58limits, you don't see them. And this is
22:01always on a percentage base. This is
22:02never on a number base. So, most of the
22:05time I don't even care how many lots
22:07there are. I just care about the color.
22:09Because the color tells me the dominance
22:11of the participant that is in there. If
22:14If the order book is deep red, I know
22:16this guy is a big one. Is there anything
22:18that makes this setup invalid? Are you
22:20ever
22:21thinking you have a good trade coming
22:23and something immediately invalidates
22:25it?
22:26>> Yeah, if we break the previous low or
22:28the previous high. Like against my
22:30direction. If I Let's say I'm long again
22:32on Nasdaq and we're constantly building
22:34up
22:36higher highs, higher lows and then we
22:38then we suddenly do not build a higher
22:41high. Or even worse, we build a lower
22:43low. Then I'm basically always like,
22:44"Okay, get me out of here." Because even
22:46if it's a liquidity sweep, the chance of
22:49the liquidity sweep being a liquidity
22:52sweep is so low. Because 90% of the
22:54times when market shifts, it shifts. And
22:58I don't want to be in that trade for
23:00those 10 or 20% where the liquidity just
23:03gets taken out.
23:04>> So, liquidity sweep would invalidate
23:06your setup?
23:07>> No, this would be like the only way my
23:09setup could still be right that we're
23:11actually not breaking the low, we're
23:14just sweeping it. And my stops always
23:16below the last low. So, if I get swept,
23:19I don't care.
23:20>> Now, you say get swept. What does this
23:22mean? What does a liquidity sweep
23:24actually mean in the markets? Okay.
23:26Yeah. Yeah, sure. Um let's say again
23:29we're on a long trend on New York of
23:32like the last two two hours we've been
23:34constantly putting higher highs.
23:36Suddenly, we pull back massively 20, 40
23:39points and we break the last higher low.
23:43So, what a liquidity sweep is, if we
23:45don't manage to close on the the level
23:49we are targeting. So, we are not able to
23:52close on the lower high. No, sorry, on
23:55the lower low. That means market
23:57participants were trying to pull down
23:59the market, were able to manage it and
24:01but they weren't able to hold it. So,
24:04that means new liquidity is set free
24:06when those participants are trying to
24:08pull down the market, but it's not
24:10actually sustainable. They will get
24:12caught up immediately and the market
24:13starts pulling back again. That is a
24:15liquidity So, if a low gets swept, this
24:17is bullish. Exactly.
24:18>> And if a high gets swept, it's bearish.
24:21Yeah, because the new liquidity that is
24:23set free can actually be fuel to push
24:25the market even higher than it was
24:27before. I always imagined when I when I
24:29started trading, I always looked at
24:31liquidity as fuel for the market. Now,
24:34you already told us how you place your
24:36stop loss. Generally, it's going to be
24:38market structure based. How do you
24:40decide where a profit target is? On
24:41liquidity. For on liquidity. I look at
24:43the heat map and I look at the really
24:46high um liquid areas. Like, most likely
24:49it's going to be the day high or the day
24:51low. And on the way up there, there are
24:54most likely going to be a lot of big
24:56trades, too, because they want to get
24:58filled before breaking the daily high.
25:00What I want to do is I want to target
25:02the biggest one and take a partial on
25:04the way to it.
25:05>> So, you want if you take a long
25:07position, you want to find a liquidity
25:10concentration that's above your entry
25:14price, correct? Where there's a high
25:16sell-side liquidity concentration, that
25:18is where you will take a partial. No,
25:20no, no. On the biggest one I can see or
25:23that makes sense to me in my area. Of
25:25course, I'm not always targeting the
25:27biggest one I can see on the whole heat
25:28map, that would be nonsense. Um
25:30I'm taking the biggest profit on the
25:33most likely daily high, daily low, um
25:36previous high, because there is a lot of
25:38liquidity. I will take a partial on the
25:40way to it because I feel like there are
25:42a lot of cases where I'm targeting like
25:44a 5:1, 4:1, and I managed to get a 3:1,
25:48but I'm not able to close this on a
25:50profit, so that is why I'm taking
25:51partials nowadays. So, you mentioned
25:53that the daily high could be a profit
25:56target, correct?
25:58>> Exactly. Because on on those levels are
26:01the most interested buyers and sellers,
26:03because you know, everybody knows this,
26:05if we break the daily high, we are
26:07forming a new long, a new long. If we
26:10break the daily low, we are forming a
26:11new short. And that [clears throat] is
26:12where many people are trying to get into
26:14the market, because that is where the
26:16action is. This means that some trades
26:19you take will be below the daily high.
26:21Do you ever take trades on a breakout of
26:24the daily high? I don't jump into a
26:27breakout, I wait for price to accumulate
26:29again. Like we can still be long for the
26:33whole day, we made like 250 points, and
26:36I still try to get into a position if I
26:38see the structure still intact. You
26:40know, um
26:42what was it? What day was it? I think it
26:43was last Wednesday, the market has
26:45already made 150 points on London
26:47session, and I was absolutely sure that
26:50we were going to continue this on New
26:52York. And I still missed another 100
26:54point move on New York, and I was still
26:56able to get into another long. So, I
26:58don't really care how the markets are
27:01overextending as long as the as long as
27:03the structure is intact, I will still
27:06try to continue the breakout because
27:08everybody knows when it rains, it
27:11pours. You know, it's it's
27:12always the same. Once we break out, we
27:15break out heavily. Neither either if
27:18it's long or if it's short. If we break
27:20out, we break out. And just to be clear,
27:22you will let a trade run past the daily
27:25high. Of course. If if I entered after
27:27the daily high, you know, if we broke
27:30the daily high and start accumulating
27:32again, I will still try to long it. I
27:34would never sell on a daily high because
27:36the odds of you being right are already
27:39against you by market structure. That's
27:41why that's actually why I stopped
27:42trading absorptions on those levels
27:45because, you know, why do you want to
27:46short the market when the market already
27:49tells you it wants to go long?
27:52That makes no sense. You can If you want
27:54to trade absorptions, you can try to
27:56absorb a daily high, daily low, but not
27:58if we're already shooting up 100 points,
28:01150 points. Don't ever do that. What's a
28:03setup that might be profitable on paper,
28:07looks great, everyone think it everyone
28:10thinks it works, grandma and grandpa are
28:12trading it,
28:14but you should never take it on a prop
28:15firm account?
28:16>> I think chart patterns. I don't really
28:18see the point in trading them because I
28:20don't really feel like you have an edge
28:22when everybody knows what what you're
28:24trying to do, like the head and
28:26shoulders, double top, double bottom. I
28:28know these things might work, but to me
28:31it makes no sense trading them because
28:33everybody knows them. It's the same with
28:35ICT.
28:36I don't know how to trade it, but I know
28:38everybody else I know knows how to trade
28:41it. And I feel like that destroys edge
28:43for me. You know, edge defines you have
28:46an advantage compared to other market
28:49participants.
28:51You don't have that when everybody knows
28:53of it. Well, I don't think the ICT guy
28:55has it anymore, either. I've heard a lot
28:57of things, um,
28:58I heard uh, things didn't go so well in
29:00some areas. So, he sold his edge. Uh,
29:04>> [laughter]
29:05>> he taught everybody his edge. Now, it's
29:06been completely eroded.
29:08So, you know, people can still trade ICT
29:11and make money of it. I don't say ICT is
29:13not a profitable system. I don't know. I
29:15don't trade it. But, in my mind, it
29:16makes no sense. Why
29:18It's the same with support and
29:20resistance. It makes no sense, but it
29:22still works. You know, everybody, every
29:24trader that is on the markets knows
29:26about support and resistance. If you
29:28don't, you really have to learn about
29:31it. Everybody knows about it. Few use
29:34it. And everybody who uses it always
29:36wonders, like, why is it so easy?
29:38Everybody knows this, and it still
29:40works. So, this might be the case for
29:41ICT, too. So, Jonas, you said chart
29:44patterns. You'd never trade these on a
29:46prop account, right?
29:48Never. How about an indicator like RSI?
29:51I used to trade with RSI on the
29:5315-minute chart because I felt like
29:56the lower the time frame, the less it
29:58works. I think if you know how to trade
30:02RSI correctly or any sort of oscillator,
30:06it can still work, but it's
30:09>> [sighs]
30:10>> I don't want to say
30:12lack, but I don't really see an edge
30:14there. Maybe it's just for me that I
30:16cannot change on the overextension
30:19because my beliefs are just different.
30:21If people are profitable trading it,
30:23just go for it, you know?
30:25And
30:26Do what works for you.
30:27>> the ICT. Do you think that that's
30:29applicable on a prop firm? I don't know.
30:32Honestly, I don't know. I never traded
30:34it. I know some concepts are pretty
30:36similar to using order flow, but it's
30:39trying to predict the order flow and not
30:41actually taking advantage of the order
30:43flow. And that is like a really start a
30:46really start of bad habits because you
30:48are getting forced on trying to predict
30:51something and not reacting to it. So, no
30:53matter what, your bread and butter is
30:55market structure and order flow. Always.
30:57I never switched of it. I tried some
31:00things at first, but I got into
31:02liquidity and order flow and all this
31:04stuff in the first two months. And I've
31:06been trading for 1 and 1/2 years now. I
31:08never switched of it. And I think that
31:10is where the most edge really develops
31:13itself by just watching your edge play
31:16out. I've so much screen time now that I
31:18don't really care if I lose because I
31:20know I've watched I've watched the
31:22markets for so many hours. I know this
31:25thing I'm trading is going to work. No
31:28matter if I take 5, 10, 15 losses in a
31:30row, I know I can still come back. So,
31:33that brings up an important question.
31:34Let's say you're at a loss over two or
31:36three months.
31:37Would you still stick to your strategy?
31:40Actually, this happened to me this year.
31:42I got my last payout in March 5th or
31:46something, and then my next one I got it
31:48on April 20th, and I was losing a ton of
31:52money in that time because I was blowing
31:54e-wallets like crazy because I was so
31:57still greedy and I wanted to make so
32:00much money and
32:02I knew the only way to get back on track
32:05is by sticking to the plan. You have no
32:08other choice. So, if
32:11things just don't work out for an
32:13extended period of time, which happens
32:16to like everyone, you're not going to
32:17question yourself for the market,
32:20uh you're not going to question your
32:21strategy or the discipline. You know
32:24that what you do works, and you're going
32:26to continue doing it.
32:27>> Yeah. And what I really had to learn on
32:30that period where I was getting no
32:31payouts and just blowing accounts,
32:33sometimes
32:34just taking 1 to 2 weeks off is actually
32:38not a bad thing. I always looked at
32:40breaks like something bad. You're going
32:42to miss out on the opportunity. You're
32:43going to miss out on development. And
32:45actually, quite the opposite is the case
32:48because sometimes you have to develop
32:52your own progress by
32:54not being on the markets because
32:56abundance is something that really
32:59pushes your edge. Like,
33:01you know you don't have to do this today
33:04to make money. Sometimes no trade is the
33:06best trade. And that is really what I
33:08learned in being away two weeks because
33:10I'm going to be honest with you. I
33:12started in January of 2025. And since
33:17the week of April,
33:20I didn't take no break for over a year.
33:23And that really burned me out.
33:25Did meditation fix it?
33:26>> Nah.
33:27Not even meditation could fix that.
33:29Honestly, I was so burned out
33:32I couldn't even concentrate on that. And
33:34I would say I learned meditation pretty
33:37quickly. But in those times, I wasn't
33:39even even able to do that. So, my mind
33:42was just so foggy I couldn't do it.
33:45So, Jonas, what does a bad trading day
33:47look like for you now?
33:48>> Not sticking to my plan.
33:50That's the only bad case I have. I can
33:53blow five accounts and stick to my plan.
33:56I'm not going to be mad for it because I
33:58know it's part of the game. But I know
34:00if I blow accounts and I know, you know,
34:02this was not really what I normally do,
34:07I really get still get angry at myself
34:09and I really fight myself for that
34:11because, you know, everybody still has
34:14bad days. Even the best traders in the
34:16world has bad days. But a bad day is not
34:19defined by your
34:21results, but by your actions. You know,
34:24I can lose $2,000 and be fine with it
34:27when I stick to my plan. But I know I
34:29took 20 trades, 30 trades, and I lost
34:32that amount. And I know I didn't stick
34:33to the plan. I really But what makes you
34:36break from your plan?
34:37>> we are still all human, man. We are all
34:39emotional. You cannot turn this off.
34:42Everybody who tells you
34:43Everybody who tells you to turn off
34:45emotions on trading is either selling
34:48you a course or is a liar. Most likely
34:51both is the case.
34:52>> Oh, I'm an emotional wreck
34:53when I'm trading.
34:55>> [laughter]
34:56>> Actually, I have a lot of days where I
34:58enter a trade and it goes into my favor
35:00and I still feel like, "Ah, what am I
35:02doing here? Why am I even trading today?
35:05I don't really feel so good." And the
35:06best thing to me is let that setup play
35:09out and leave the PC, you know? I really
35:11don't get emotional when I'm not on the
35:13monitor. So, I start cleaning my room,
35:15maybe taking a shower, something like
35:17that, going for a walk because the more
35:20abundant you are, the less emotional you
35:22will be.
35:23So, do you do anything to get you back
35:25on track or set you straight?
35:27>> Usually when I get on a losing streak,
35:30I'm always trying to prove myself that I
35:33still have the edge by back testing. By
35:35back testing? Actually, yeah. I still do
35:38it today because when I started trading,
35:40I feel like back testing is a waste of
35:42waste of time. I didn't back test my own
35:45strategy for the first 9 months I was
35:47trading. I And I also think that I left
35:50a lot of time on the table there because
35:52I For the first 9 months, I didn't even
35:54know if I have an edge. And when I get
35:56into those bad periods, I just hop onto
36:00the Nasdaq and start like back testing 1
36:02to 2 months and just see by the numbers
36:05that I still got it. Because sometimes
36:07you just can't prove it to yourself with
36:09your own thoughts. It's not possible.
36:11>> So, when you back test, you do manual
36:13back testing? I actually have a
36:15back testing software. You have
36:17software? Oh. So, you see an equity
36:19curve, drawdown, everything? Yeah, I use
36:22Trade Scalper for it. It works pretty
36:24well. The only problem that you have is
36:26you cannot see order flow. But that's
36:28totally fine for me because, you know,
36:31if you break down my edge, it's like
36:33three parts. And if you know that only
36:36the first part is already enough to make
36:38money, you don't really stress that much
36:42out about it because when I'm back
36:43testing on Tradezilla, I usually usually
36:45have a 45 to 50% win rate on an average
36:49two to one. And when I attend live
36:51markets, my win rate is even higher
36:52because I have those other two parts of
36:55my edge, too. And when I know only a
36:57third of my edge is already working
37:00well, I get so comfortable. And I know
37:02comfortability is not always a good
37:04thing, but I'd rather be comfortable
37:06than being uncertain.
37:07>> So, you back test the market structure
37:09portion of your strategy.
37:11>> Exactly.
37:12Right.
37:13And this means that you have it into a
37:16set of rules, right? So, what what are
37:19the rules then for that back test on the
37:22market structure? For the market
37:23structure,
37:25I still want to see where the market is
37:27going right now. I want to see a
37:29pullback if I'm trying to trade a
37:31continuation, and if I'm trying to trade
37:33a breakout, I have to measure it a
37:37little different because I don't have
37:38order flow. I just use the normal volume
37:41bars for it. And what I can see in there
37:43is a volume spike is 100% a big trade.
37:47You know, it cannot be different. It's
37:49so unlikely that there are like 20 30 40
37:54people pressing long at the same time.
37:56It's most likely going to be one limit
37:58order that's filled. So, I want to see a
38:00volume spike if I don't have the heat
38:02map cuz it basically tells the same.
38:03>> Would you recommend that everyone back
38:05tests?
38:06>> Yes. Why? For a specific case. You don't
38:10have to back test every day, every week,
38:12but I still suggest you to back test
38:15like once or twice a month just to be
38:18able to spot new opportunities because
38:21when I started, I was trading the S&P
38:23and I was also always using a 15 tick
38:26stop loss until I started back testing
38:29my previous sessions and I realized 15
38:32ticks way too small. I need 25, 30 and I
38:35still get the same profit targets, but
38:38the stop loss I'm using is just not good
38:40for the current market we're in. And
38:43when you're always live trading, I don't
38:45really feel like you're going to be able
38:47to spot it as quickly as I'm back
38:48testing. So you back test and you use
38:51the back test to improve your strategy.
38:54Yeah. And it's been helpful? Of course,
38:56a lot. Because as I as I told you, I
38:59didn't back test for the first 9 months
39:01I was trading and the main issue I had
39:03in those times, I always knew that I
39:06don't have a proven system. I have a
39:08system, but I cannot prove it to myself
39:10that it works. I know it works for some
39:13people, but I don't know if it works for
39:15me and that is why I lost so much money
39:17in the first year of trading because I
39:19had no nothing to watch on and see that
39:23the thing I'm trying to do here is
39:25actually working. Well, here's something
39:28that might make people upset. How does
39:30someone know they have an edge if
39:31they've never back tested the strategy?
39:33It's like going to the casino every day
39:36for 1 year straight, just because you
39:39end up making money, it doesn't that
39:41mean that you have an edge. The casino
39:43has still the edge. You were just lucky.
39:45You heard it from him, not me.
39:47>> [laughter]
39:50[gasps]
39:50>> You know, people misunderstand back
39:52testing. Even I misunderstood it when I
39:55started. Because my mentor told me when
39:57I started trading, you have to trade on
39:59demo for 1 to 2 months just to prove
40:02yourself that you actually can make
40:04money. I don't think you need to do that
40:06in the start because I feel like in the
40:08first 3 to 6 months, I'm going to be
40:11honest with you, you're not going to
40:12make money, most likely. And if you are,
40:15you're probably lucky. I
40:17personally, I know a lot of traders and
40:20the most of them are just making money
40:23after making a lot of experience. And
40:26the thing that
40:27that why backtesting goes hand in hand
40:30with that is when you start trading, you
40:32don't even know what to backtest. What
40:34market, what what timeframe, what edge.
40:36And even if somebody tells you that, you
40:39can backtest this for 3 months straight
40:41and you still don't know if what you're
40:43doing there is actually working for you.
40:46That's why people hate backtesting so
40:47much. So, that that's what I saw when I
40:51started because when I started trading,
40:52I was starting with a large group of
40:55friends and all of them were
40:57backtesting. I was the only one not
40:58doing it. And all of the people that
41:00started with backtesting ended up not
41:03trading at all. Jonas, would you say if
41:06someone is trading a strategy they
41:07haven't backtested, are they just
41:10guessing? Yeah. Are they wasting their
41:11time? Yeah. And so did I. I did do exact
41:15the same thing and I'm speaking out of
41:17ex- experience.
41:19You are not going to build edge
41:23if you're always just imitating someone
41:25else. And even though you might reject
41:27this, but you are doing it.
41:30When you start and you copy the strategy
41:32of somebody else, you're just imitating
41:34them.
41:35And you don't even know if you're what
41:37you're imitating works and if it works
41:40for you. Because, you know, when I
41:41started, I was a position trader. I was
41:44holding positions for the whole day.
41:47I opened a long
41:49on 10:00 and it was running until 8:00.
41:52Like, it crazy amounts of time that I
41:55had to wait until I get the result. And
41:57I actually figured out this doesn't work
41:59for me. I need fast feedback. I If I'm
42:02wrong, I want to know I'm wrong right
42:04now and not in 10 hours. And that was
42:06what many people
42:08misunderstand that it's not the strategy
42:11that makes the money, It makes you
42:12matching the strategy that makes money.
42:15Now, Jonas, for someone watching who
42:18actually wants to improve, earn
42:20consistent payouts on a prop firm,
42:22what's one thing they should focus on
42:24this week?
42:24>> Honestly,
42:26just taking a step back and
42:29realizing that you don't have to make
42:32all this money tomorrow.
42:35Not next week.
42:36Not next month. There is one thing I
42:39learned before I started getting payouts
42:41that
42:42you know the 80/20 rule?
42:45Yeah. It basically says 80% of your
42:48results are going to be made by 20% of
42:51your work. If it comes to trading, we
42:53have to redefine
42:55this saying a little bit because 80% of
42:58your profits
43:00are made by 20% of your trades. And as
43:03long as you know that the smallest
43:06amount of trades will lead to the
43:08biggest outcome, that will really relax
43:11you. Trust me.
43:12It may take a few days to realize that,
43:14but when I started to realize, okay, 80%
43:18of my trades are either way going to be
43:20trash or just
43:22basic TP hits, you know, if you hit
43:2520% really high targets. And even for
43:28people who target lower
43:30um
43:31lower profits,
43:33it's still going to be that way. For you
43:34will have days where you close out with
43:37a monthly P&L. And we you will have
43:40months where you close negative, and
43:41that is totally fine.
43:43That is totally fine. I still have weeks
43:46where I close in the big red. I know
43:48people that are making much more money
43:50than you, that are closing red on a
43:52quarter. And that is still okay.
43:55You have just have to relax and trust in
43:58the process.
43:59And that is something you cannot just
44:01start next week. You have to start this
44:03right now.
44:04This is something you have to visualize
44:07and envision it because no one else is
44:09going to do this for you. You have to
44:11learn how to trust yourself, your edge,
44:15your process, and your development.
44:18So, what should this new trader that
44:20you're speaking to
44:21what should they stop doing immediately?
44:24Mhm, blaming things on other people.
44:27That's what I can see a lot in the
44:29scenery. Like, you know, I had those
44:31cases too where like
44:33I got a payout at a prop firm and they
44:36rejected it and I still get angry of
44:38that too, but you know, I see so many
44:41people posting on social media payouts
44:43rejected, funded closed, funded
44:46declined, whatever, and they start
44:48raging and they start buying more
44:50accounts because they are trying to
44:53prove to themselves that they can do
44:55this again. And you know, the the hate
44:57that you got onto an external factor to
45:00not project it onto your markets. It
45:03doesn't even need to be trading. If you
45:05have a fight with your family or your
45:07girlfriend or your whatever, your dog,
45:10don't go onto the markets. You are going
45:12to be emotional and you cannot change
45:14it. And it's okay that you're emotional.
45:15You have to accept that you're
45:16emotional, but it's a bad idea to like
45:19extract dopamine when you
45:22feel like you need this right now. This
45:24is just gambling because you're so
45:26emotional. And that is a thing that I
45:29really, really had to struggle with for
45:31a long, long time because I always knew
45:33like I'm super emotional when I'm on the
45:35markets, but I didn't realize that it
45:37was so many external factors that made
45:40me emotional on the markets. It was not
45:42losing a hundred dollars. It was coming
45:44home from work after an eight-hour shift
45:46and still losing money. That was what
45:48made me angry, not the
45:50part of losing itself.
45:53Now, for the new trader, what should
45:55they track about their progress?
45:58Discipline. Did you execute on your
46:00plan? Yes or no. Outcomes don't matter
46:03because you know when you got a plan,
46:05the outcome is going to come by
46:06execution over time, not execution
46:09today. Is there any measurable way to
46:11track discipline? When I was tracking
46:13it, I was just writing everything down
46:15by hand. So, I was writing down entry,
46:17exit, did I move my stop loss? Yes, no.
46:20Did I move my TP? Yes, no. Did I scale
46:22in? Did I force another trade? Did I
46:25size up on purposely? Those things would
46:29be what I would track for.
46:31>> And finally, what would prove that this
46:34trader is actually getting better?
46:36Sticking to the plan, actually. You
46:38know, it's such an easy answer, but it's
46:40the only answer I got because this is
46:42like the only thing that worked for me,
46:44sticking to the plan. And I know it
46:46sounds easy, but it's actually
46:47>> But the plan has to work.
46:49>> the actual plan, the strategy, it has to
46:51be able to be profitable, right?
46:53>> Yeah, sure. But we were just showcasing
46:55a new trader that has a plan.
46:57>> Okay. Because I told him how to make a
46:59plan. If If that new trader we can turn
47:02the question also to a trader who
47:04doesn't have a plan, then my answer
47:05would be first, find a strategy that
47:08suits you, not a strategy that everyone
47:10is saying, "Oh my god, this makes so
47:12much money." Find something that suits
47:14you, back test it,
47:16build your rules, and define your plan.
47:20And then, after defining your plan, you
47:22will take two to three months just
47:24trading the plan and see if it works.
47:26But if you take those four steps
47:28correctly, it's most likely going to
47:30work because actually making a
47:31profitable plan is not so hard, really.
47:35It's not And this is the only hard thing
47:37about trading that people don't want to
47:39hear of. It's actually easy to build
47:41edge. It's easy. It's not You know, you
47:43just have to find a strategy that suits
47:45you. This should take like 1 month at
47:46max. If you take every day and you look
47:49for strategies that may suit you and you
47:51back test them, you will find something
47:53really, really soon because when you
47:56attend the markets, you will really get
47:58to the gut feeling when you know this is
48:00what suits me and this is not what suits
48:02me. And after that, it's just sticking
48:04to it. And sticking to it is the only
48:07hard thing why people lose money because
48:09they cannot trust themselves. Jonas,
48:11$50,000
48:13in payouts.
48:16Listen, that's a lot.
48:19>> [laughter]
48:19>> Yeah, it is actually.
48:21>> Everyone at IQ Capital knows you.
48:23Um
48:24So,
48:26>> [laughter]
48:26>> congratulations.
48:28It was a pleasure having you here.
48:29>> man. For those of you watching, you can
48:32start with IQ Capital for as little as
48:35$1.
48:37Check the link in the description below.
48:39IQ Capital, built by traders for
48:42traders.

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