Market Mechanics Ep 25: How I Find A+ Setups — Transcript

Full transcript

1. 0:00The edge isn't in spotting A plus
2. 0:02setups. It's in ignoring everything
3. 0:04else.
4. 0:05Most traders do not blow their trading
5. 0:07accounts because they don't know how to
6. 0:09enter a trade. Like we all know how to
7. 0:11enter for a buy and enter for a sell.
8. 0:14But they blow their accounts because
9. 0:16they cannot filter trades.
10. 0:18They take B setups when they are bored.
11. 0:20They take C setups when they want
12. 0:23action. They want adrenaline. And they
13. 0:25are trading for the sake of
14. 0:27action rather than the sake of making
15. 0:30money. And they call it experience,
16. 0:32which is not true.
17. 0:33And remember, in trading, especially in
18. 0:36trading, boring pays. Okay, so it's all
19. 0:39about waiting for the A plus setup that
20. 0:42checks off every single box and saying
21. 0:45no to anything subpar in the meantime.
22. 0:48Right? It's always going to be the
23. 0:49boring, repetitive task that actually
24. 0:52allow you to get competent at trading,
25. 0:54which actually allow you to make money
26. 0:55from this market itself.
27. 0:58So, to me, I fundamentally believe that
28. 1:00the hardest part about trading isn't
29. 1:01spotting A plus setups, but rather
30. 1:04saying no to the B setups that the past
31. 1:07me would have called A plus.
32. 1:09Anyways, in this lesson, I'm going to
33. 1:11give you my exact A plus checklist right
34. 1:13here. These are what I call the five
35. 1:15golden rules. Okay, these are the five
36. 1:18entry triggers that I check for before
37. 1:21every single trade, right? Which means
38. 1:23that if I don't check off every single
39. 1:25one of these box right here, that's a no
40. 1:27trade. I will not enter for the trade
41. 1:29itself. If I miss just one, just like
42. 1:31this, that is not A plus setups. Okay,
43. 1:34that is just a A setup. Or it might not
44. 1:37even be a A setup to some people's um
45. 1:40definition.
46. 1:41So, anyways, let me just go through and
47. 1:42review each one of these entry criteria
48. 1:45step by step. The first entry criteria,
49. 1:49the first golden rule is bias alignment.
50. 1:53Now, what do I mean by bias alignment?
51. 1:55What I'm pretty much talking about is
52. 1:57your immediate bias, which is your trade
53. 1:59ideal, which is whether you're entering
54. 2:01for a buy or entering for a sell.
55. 2:03Okay, so your trade ideal must align
56. 2:07with the immediate bias. So, for
57. 2:09example, in this case right here, price
58. 2:11is clearly bearish, right?
59. 2:14So, if this is the case, I want to be
60. 2:16trading in alignment with this internal
61. 2:19structure, with this lower time frame
62. 2:21trend.
63. 2:22And if possible, I also want to be
64. 2:24trading with the higher time frame trend
65. 2:27because that dictates the institutional
66. 2:30flow of money.
67. 2:32Okay, so if the lower time frame trend
68. 2:34is bearish,
69. 2:36showing us that price is going down, and
70. 2:38the higher time frame trend is also
71. 2:39bearish as well, which signify to us
72. 2:41that price is clearly going down, then
73. 2:44my trade ideal needs to be bearish in
74. 2:47order for me to trade with the immediate
75. 2:49bias, with the higher time frame and the
76. 2:52lower time frame trend.
77. 2:54Okay, so ideally, I want to look for
78. 2:56shorts.
79. 2:57So, if I want to enter for a buy maybe
80. 2:59somewhere around here, then this is me
81. 3:00going against the lower time frame trend
82. 3:03and going against the higher time frame
83. 3:05trend. And I'm not saying it's not going
84. 3:07to work out, it could work out, but it's
85. 3:09lower probability compared to you
86. 3:12entering for sells because that is
87. 3:14actually in alignment with the overall
88. 3:17structure of the market itself.
89. 3:20And a general rule of thumb is that if
90. 3:22you find that the lower time frame
91. 3:24disagrees with the higher time frame,
92. 3:27it's probably not the right trade,
93. 3:30right? Or rather, it's probably not
94. 3:31going to work out in the way you
95. 3:32envision it to work out. So, for
96. 3:35example, if right now the lower time
97. 3:37frame trend is bearish, cool, you want
98. 3:38to enter for a sell. But the thing is,
99. 3:40if you go up to the higher time frame
100. 3:41trend, you realize that we are actually
101. 3:43bullish.
102. 3:44All right, so now you can see the lower
103. 3:45time frame trend is contradicting the
104. 3:47higher time frame trend. One is saying
105. 3:49that you should sell, the other is
106. 3:50saying that you should buy. One is
107. 3:52saying that it's bearish, one is saying
108. 3:53that it's bullish. So, when there's such
109. 3:56a contradiction, right? If you're a
110. 3:58beginner, especially if you're a
111. 3:59beginner, I would advise you to either
112. 4:01stay out of the market or just wait for
113. 4:04clarity. Wait for both of these
114. 4:07trends to actually align. Right? Wait
115. 4:08for the lower time frame trend to align
116. 4:10with the higher time frame trend.
117. 4:12So, that's the first thing. Okay? So, if
118. 4:14price is bearish and enter for sell,
119. 4:16price is bullish, I want to enter for
120. 4:18longs. As simple as that. Check.
121. 4:21This is where if I look at a higher time
122. 4:23frame trend, we are actually heavily
123. 4:26bullish. Okay? But, if I go down to the
124. 4:28lower time frame trend, this is actually
125. 4:30bearish. So, depending on your trading
126. 4:32style, if you're more of like a
127. 4:34short-term trader, you will probably
128. 4:35view this as a higher time frame trend,
129. 4:37right? So, this would be a easy sell
130. 4:39position for you. But, if you're swing
131. 4:41trader, which you are capitalizing on
132. 4:43the higher time frames, then ideally you
133. 4:45want to wait for price to get to a point
134. 4:47of interest that you can look for longs
135. 4:48to trade in continuation with the higher
136. 4:51time frame trend. So, that's the first
137. 4:53thing.
138. 4:54Now, the second criterion for me to deem
139. 4:57this setup as a high probability setup
140. 5:00is that it needs to be situated at a
141. 5:02high probability point of interest.
142. 5:05Now, you might be wondering, what is a
143. 5:07high probability point of interest,
144. 5:09Brent?
145. 5:10So, if you have some form of trading
146. 5:12experience or if you have watched any of
147. 5:14my videos, you would probably know how
148. 5:16to identify your supply and demand
149. 5:18zones. Okay? Supply and demand zones,
150. 5:21I'm not going to go through to in-depth
151. 5:23in to them like in this particular
152. 5:25lesson itself, right? So, if you need
153. 5:27help with that, please go through my
154. 5:29lessons on YouTube. But, anyways, if you
155. 5:32have went through those lessons, you
156. 5:33will understand how to draw your supply
157. 5:35and demand zones, how to identify them,
158. 5:37how to mark them up on the charts. So,
159. 5:39if that's the case, you'll probably see
160. 5:40say that this is a supply zone, and then
161. 5:42this is also a supply zone, and then
162. 5:44this is also a supply zone. Right? And
163. 5:46you can see in this case there is so
164. 5:47many different supply zones. And then
165. 5:49similarly there there's so many
166. 5:50different demand zones that we can mark
167. 5:52up right here.
168. 5:53The fundamental principle you must
169. 5:54understand is the fact that not all
170. 5:56supply and demand zones are created
171. 5:58equal.
172. 6:00Which means that there are certain zones
173. 6:01which is much more stronger than the
174. 6:03other zones. Which means that price is
175. 6:06most likely going to respect those
176. 6:07zones. And price is most likely going to
177. 6:10disregard those zones which is not
178. 6:12strong. Right, so for example in this
179. 6:14case if this supply zone is deemed as
180. 6:18high probability, price is most likely
181. 6:20going to get a reaction from it. Right,
182. 6:22so the minute price mitigate that supply
183. 6:24zone, price is actually going to start
184. 6:26shifting bearish. Okay, it's going to
185. 6:29respect that supply zone. But then if
186. 6:31it's a low probability point of
187. 6:32interest, which means that price is not
188. 6:34going to respect it, price is just going
189. 6:36to blast right through it just like this
190. 6:37and just continue going up. Okay, so
191. 6:40that's what I mean when I say high
192. 6:42probability point of interest. It's
193. 6:44simply a supply and demand zone or order
194. 6:46block or flip zone, whatever other names
195. 6:48you like to call it, that price is most
196. 6:50likely going to respect. The next
197. 6:52question becomes how do we identify
198. 6:55these high probability zones?
199. 6:58Now,
200. 6:59there's a few criteria, right? The first
201. 7:01criteria is that it needs to be aligned
202. 7:02with the trend itself. So if I'm looking
203. 7:05at this right here,
204. 7:06okay?
205. 7:07Is this
206. 7:09let's say like this is a extreme supply
207. 7:11zone. And then let's say there is
208. 7:12another demand zone like let's say right
209. 7:14here, okay? So we will just put this as
210. 7:16like green color to signal like a demand
211. 7:18zone.
212. 7:19Okay, so in this particular case itself,
213. 7:22a high probability zone, the first
214. 7:24criteria is that it needs to be aligned
215. 7:26with the trend. Right, similarly to like
216. 7:28what we mentioned just now on the
217. 7:30alignment of the buyers, the point of
218. 7:32interest needs to be aligned with the
219. 7:34immediate trend direction for us to deem
220. 7:36it as high probability.
221. 7:38So if the immediate trend right here is
222. 7:40bearish, right? We can clearly see price
223. 7:42is going down, creating lower highs and
224. 7:44lower lows, just like this. Then, we
225. 7:46will know that a supply zone, right?
226. 7:51Is aligned with the lower time frame
227. 7:54trend, which means that price is most
228. 7:56likely going to respect the previous
229. 7:57supply zone, just like this, and
230. 7:59continue going down even further.
231. 8:02However, if there's a demand zone in a
232. 8:04downtrend, just like this, price is most
233. 8:07likely going to blast right through it,
234. 8:09because the internal trend right now is
235. 8:11heavily bearish. Okay, so in this case,
236. 8:14a high probability zone would be supply
237. 8:16zone. A low probability zone would be
238. 8:17demand zone, right? Because the demand
239. 8:19zone is not aligned with the immediate
240. 8:21trend direction itself.
241. 8:23Okay?
242. 8:24Now, another criteria that I want to
243. 8:26look out for, this will be a little bit
244. 8:27advanced, so once again, I would highly
245. 8:29recommend you to check out my videos on
246. 8:31my YouTube channel, The Trading Geek,
247. 8:33where I talk more about this. But, the
248. 8:35next criteria is that it needs to have
249. 8:37liquidity, or it needs to have available
250. 8:39liquidity near it. Okay, so in this
251. 8:41case,
252. 8:43if I compare this point of interest to
253. 8:46this point of interest right here, you
254. 8:47can see that in this point of interest,
255. 8:49price actually go up, pulls back, goes
256. 8:52up, swept liquidity, and then comes down
257. 8:54even further, right? So, this right here
258. 8:56is what we call a liquidity sweep, and
259. 8:58this is a supply zone with liquidity
260. 8:59sweep. Compared to this one right here,
261. 9:01where price just went up there, did not
262. 9:03sweep any liquidity, and it just
263. 9:04reversed. So, this is the ordinary
264. 9:06supply zone. So, this supply zone that
265. 9:08swept liquidity is going to be much more
266. 9:10high probability, much more stronger
267. 9:13than this supply zone, in theory.
268. 9:15Okay? And, if there is available
269. 9:18liquidity near it, that'll be even
270. 9:19better. What I mean by available
271. 9:21liquidity is that when price goes down,
272. 9:23just like this, after the supply zone
273. 9:24was formed, it did not go down straight.
274. 9:26Instead of going down straight, it
275. 9:28actually made like a minor pullback,
276. 9:29just like this, creating a lower high,
277. 9:31which means that there is going to be
278. 9:32available liquidity, stop orders, stop
279. 9:35losses, sitting above these highs right
280. 9:37here, right? So, the next time price
281. 9:38comes up to this supply zone, it's most
282. 9:40likely going to sweep the liquidity
283. 9:41above these highs, use this available
284. 9:43liquidity to cause price to go down even
285. 9:46further.
286. 9:47All right. So,
287. 9:49it'll be good if we have available
288. 9:50liquidity near the the point of interest
289. 9:53itself. So, anyways, that's what
290. 9:55constitute as a high probability uh
291. 9:57point of interest, uh institutional
292. 9:58zone. It's one in which is aligned with
293. 10:01the trend direction, and it's also one
294. 10:03in which we have some form of liquidity
295. 10:06sweep or some form of available
296. 10:08liquidity sitting near it.
297. 10:10All right. So, the next criteria right
298. 10:12here
299. 10:13is that price needs to be sitting at the
300. 10:17hype of the point of interest, not near
301. 10:19it just like this, okay? Not almost
302. 10:21reaching it just like this. It needs to
303. 10:24actually be in it.
304. 10:25Okay. So, if I'm trading and I saw my my
305. 10:29setup, you know, I want to enter for a
306. 10:31buy or enter for a sell,
307. 10:33I need to ask myself, is price in a high
308. 10:36probability point of interest? Because
309. 10:38if it isn't, then my friend, you are
310. 10:40trading in the middle of nowhere, and if
311. 10:42you're trading in the middle of nowhere,
312. 10:43it's incredibly low probability because
313. 10:45price can go both ways. It can either go
314. 10:46up or it can either go down. So,
315. 10:48ideally, I want to see price situated
316. 10:51within the high probability point of
317. 10:53interest. So, in this case, I want to
318. 10:55see price enter into this supply zone,
319. 10:57and it needs to be in here, okay? If
320. 10:59it's over here, I cannot check off this
321. 11:01box. If it's over here, I cannot check
322. 11:03off this box. But once it goes inside
323. 11:05this box, then I can check off this box.
324. 11:07Right. Now, we see that price is within
325. 11:10a high probability point of interest.
326. 11:12And to me, that is the location in which
327. 11:15you want to be trading. All right.
328. 11:17Success equal location plus timing.
329. 11:21Okay. It requires you to take the right
330. 11:23trade ideal at the right place at the
331. 11:26right time.
332. 11:28Okay, those are the three criteria. I'm
333. 11:30We're talk about the right time later
334. 11:31on.
335. 11:32Now, the next step, or rather the next
336. 11:34golden rule, is liquidity shift and
337. 11:36market structure shift. All right. So,
338. 11:39this is what I call market shift. It's
339. 11:41something that signaled to us that the
340. 11:43structure is shifting. Let me explain,
341. 11:45right? So, obviously I've already
342. 11:46covered liquidity shift, so I'm not
343. 11:48going to cover that again. But, let's
344. 11:49say in this particular case, this is the
345. 11:51higher point of the point of interest in
346. 11:52which we want to be trading from. And
347. 11:54right now price has pretty much created
348. 11:56a created like a new higher low just
349. 11:58like this, okay? And then it's
350. 11:59approaching this supply zone over here.
351. 12:01So, the minute it enter into this supply
352. 12:03zone, there's a few things that I want
353. 12:04to look out for.
354. 12:06The first thing is I want to look out
355. 12:07for some form of liquidity shift, right?
356. 12:09So, ideally, you know, I want to see
357. 12:11price shift the available liquidity
358. 12:12above this highest right here, or create
359. 12:14some form of
360. 12:16swing high just like this, and then
361. 12:17shift that high, and then comes down
362. 12:19just like this, okay?
363. 12:21That's the first thing. I always look
364. 12:23for liquidity shift before I enter. No
365. 12:25liquidity shift, no entry, as simple as
366. 12:26that.
367. 12:27The next thing is that I want to see a
368. 12:29market shift. A market shift confirmed
369. 12:31to me that the structure is shifting
370. 12:32bearish. Because at this point of time
371. 12:34price is going up just like this, and
372. 12:36price can just continue going up, right?
373. 12:39That is why we need confirmation to tell
374. 12:41us that price is going to shift bearish.
375. 12:43If not, we cannot enter for a sell, and
376. 12:45that requires you to look out for a
377. 12:47market shift. So, in this case, price
378. 12:49goes up, comes down creating like this
379. 12:51last lower high, last higher low before
380. 12:54it goes up even further. So, I want to
381. 12:55see price comes down, take out the last
382. 12:56higher low, breaking structure, giving
383. 12:59me a market shift, confirming to me that
384. 13:02now the structure has shifted in my
385. 13:03desired direction. Right, price has
386. 13:06officially shifted up from bullish,
387. 13:08right, to bearish.
388. 13:11And right now price is reversing.
389. 13:14Okay, so the minute I got a liquidity
390. 13:16shift, and also got a market shift just
391. 13:18like this, then that is where we can
392. 13:19check off this next criteria itself.
393. 13:23Which brings us to the next golden rule,
394. 13:25which is timing.
395. 13:26I only want to enter for a trade when
396. 13:29it's within my Q zone window. Okay, this
397. 13:32is something that you can do if you're
398. 13:34trading on Edge Flow, which you should
399. 13:36be if you're watching this. You can
400. 13:37actually customize your trading window.
401. 13:40Right, you can specify what time you
402. 13:42want to be trading.
403. 13:44And ideally you want to be trading
404. 13:46within what we call Q zones, right, as
405. 13:48Forex traders. If you're not a Forex
406. 13:50trader, you probably do not know what
407. 13:51I'm talking about, but if you're a Forex
408. 13:52trader and you have some form of
409. 13:54experience, you would know exactly what
410. 13:56I'm talking about. Q zones are
411. 13:58essentially the best time to trade
412. 13:59throughout the day. Okay, because the
413. 14:02Forex market is open 24 hours a day, but
414. 14:04that doesn't mean you should be trading
415. 14:0624 hours every single day. There are
416. 14:08certain pockets of time within the day
417. 14:11itself that present you the most amount
418. 14:12of trading opportunities, and that's
419. 14:14what we call Q zones, right? Once again,
420. 14:16not going to go too in-depth into Q
421. 14:18zones. You can do more research about
422. 14:19this or you can check out my other
423. 14:20videos on this, but basically these are
424. 14:23the best time to trade.
425. 14:25So, for me I like to trade during the
426. 14:26London Q zone, which is around 3:00 p.m.
427. 14:29Singapore time to around like 5:00 to
428. 14:316:00 p.m. Singapore time.
429. 14:34So, that means that I want to see my
430. 14:36setup appear during that window itself.
431. 14:40If the setup appear before that window
432. 14:42or after with that window
433. 14:44and it's not within any Q zone, then I
434. 14:46personally will not enter for the setup
435. 14:48itself. It provides the ignition that I
436. 14:50need in order for price to move in my
437. 14:52desired direction. What I basically mean
438. 14:54by that is that liquidity is the fuel,
439. 14:56okay? Liquidity is the fuel, the rocket
440. 14:58fuel that price needs to move in the
441. 15:01particular direction that I want it to
442. 15:02move in.
443. 15:03But,
444. 15:04fuel requires ignition. Fuel requires
445. 15:07fire to light it up, and timing is that
446. 15:10fire. And to me,
447. 15:13the timing is usually during some form
448. 15:14of Q zone, right? So, at 3:00 p.m. that
449. 15:16is where institutions start trading the
450. 15:18London session. Huge amount of buy or
451. 15:21sell orders start entering to the market
452. 15:23and that caused price to move very very
453. 15:25fast in my desired direction. Right? So,
454. 15:28yeah, that is why ideally I want the
455. 15:30setup to appear during Q zone. So, in
456. 15:32this case, I want to see this exact
457. 15:34entry model during, let's say, like 3:00
458. 15:36p.m. to around like 6:00 p.m. Singapore
459. 15:39time, which is the London Q zone.
460. 15:42And
461. 15:44if you trade anywhere outside the Q
462. 15:45zone, I'm not saying that it cannot play
463. 15:47out. It could play out, right? The same
464. 15:49trade idea could play out perfectly if
465. 15:51it's at the right place at the is the
466. 15:53right trade idea, but I'm saying that
467. 15:56there's a lower chance of it playing out
468. 15:58and there's a higher chance for price to
469. 16:00take longer for it to go down to your
470. 16:03take profit level. And there's also more
471. 16:06randomness. There is more
472. 16:07unpredictability, right? There there's
473. 16:09more uncertainty in the market. So, that
474. 16:12this is your when filter, right? This is
475. 16:15the filter that allows you to know
476. 16:16exactly when to enter for the trade
477. 16:18itself.
478. 16:19Now, last but not least is a asymmetric
479. 16:23risk reward. I do not care how good the
480. 16:25setup is. I do not care how many entry
481. 16:28confluences the setup has if it does not
482. 16:31have an asymmetric risk reward ratio.
483. 16:34Okay, what do we basically mean by that
484. 16:35is that
485. 16:37I want to make sure that if I'm entering
486. 16:38for a trade, it needs to have
487. 16:41a much more smaller downside compared to
488. 16:43the upside. I need to get back twice as
489. 16:46much as I'm risking. All right? So, in
490. 16:48this case itself, if I'm entering for a
491. 16:50short right here at this point of
492. 16:51interest, I'm placing my stop loss above
493. 16:53this high or above this supply zone and
494. 16:55I'm placing my take profit at this area
495. 16:57right here. Like let's just put like a
496. 16:58random area right here. In this case,
497. 17:00this is a 1:5 risk reward ratio trade,
498. 17:03which means that I'm risking $10 to get
499. 17:05back $5.56
500. 17:07in return. And to me, that's pretty
501. 17:09worth it, right? Because you're
502. 17:10literally getting back five times in
503. 17:12return of what you're risking. But, if
504. 17:15you actually base it like something like
505. 17:17this, right? You place a stop loss above
506. 17:19the high, place a take profit below like
507. 17:21this low right here or something. In
508. 17:23this case, you can see a risk to reward
509. 17:25ratio just swing to one, right? Which
510. 17:28means that you are literally risking $10
511. 17:30to get back $10, which means not worth
512. 17:32it, right? Ideally, I wanted to have I
513. 17:35want to get back at least twice compared
514. 17:37to what I'm risking in the first place.
515. 17:39Okay? So, in order for you to go
516. 17:40calculate your risk to reward ratio, you
517. 17:42want to make sure that you place a stop
518. 17:43loss at a price point which invalidate
519. 17:45the trade idea, right? Where you are
520. 17:47wrong, and you want to base a take
521. 17:48profit at where you are targeting. If
522. 17:50you are completely new, I would highly
523. 17:52suggest you to just stick to like a
524. 17:53fixed risk to reward ratio trade set up
525. 17:56every single time. So, every single
526. 17:58time, you just After you place a stop
527. 17:59loss, you just try to target 2R just
528. 18:01like this. All right?
529. 18:03So, my personal rule is that if the
530. 18:05trade idea
531. 18:07presents a risk to reward ratio of less
532. 18:10than two, right? One or 0.5 just like
533. 18:13this, no matter how many confidences I
534. 18:15have, no matter how confident I am, I'm
535. 18:17going to be passing on the trade itself.
536. 18:19Okay, so that's when you should be
537. 18:21trading, okay? It's important to know
538. 18:22when to trade, but it's even more
539. 18:24important to know when not to trade.
540. 18:27Charlie Munger famously said, "The only
541. 18:29thing I want to know is where I'm going
542. 18:32to die, so I never go there."
543. 18:35He was basically talking about the
544. 18:36concept of inversion.
545. 18:38So, instead of asking, "How do I succeed
546. 18:41at trading?" you should be asking, "What
547. 18:43guarantees I fail?" Instead of asking,
548. 18:47"What are the entry criteria that I
549. 18:49should look out for so that I win?" you
550. 18:51should be asking, "What are the
551. 18:53conditions that I should be staying away
552. 18:56from so that I do not fail?" Right? So,
553. 18:59that's pretty much the concept of
554. 19:00inversion. You want to lay down the
555. 19:02stuff that is not going to work, and
556. 19:03then just don't do those stuff, right?
557. 19:05It's the same exact idea in trading. You
558. 19:08don't need to find some magical trick to
559. 19:10win more trade. You just need to stop
560. 19:13doing the dumb stuff that guarantee
561. 19:15losses. Things like trading outside your
562. 19:18time window,
563. 19:19trading without a trade plan. Right? If
564. 19:22you do have a trade plan, ignoring your
565. 19:24plan and taking random setups because
566. 19:26you want action, because you want
567. 19:28adrenaline, because you want to make
568. 19:30money rather than executing your
569. 19:32process.
570. 19:34All right. So, to me, when not to trade
571. 19:36is when your bias is not aligned. Okay?
572. 19:39When your bias is not aligned, highly
573. 19:41recommend you not to trade.
574. 19:44And another place that you should
575. 19:46probably not trade is when price is not
576. 19:49at a point of interest yet. Right? So,
577. 19:51if price is in the middle of nowhere,
578. 19:53okay, you probably shouldn't be trading.
579. 19:55And then if there's no sweep or no
580. 19:57market shift, this just tell us that,
581. 19:59you know, there is no confirmation,
582. 20:01there is no entry trigger, then once
583. 20:04again, you want to wait for further
584. 20:05confirmation before your entry.
585. 20:07And when it's outside your Q zone,
586. 20:09outside the best time that you should be
587. 20:11trading within. And also, most
588. 20:13importantly, your risk to reward is not
589. 20:14asymmetric or you cannot determine where
590. 20:17to place a stop loss or where to place a
591. 20:18take profit. Like if you don't know
592. 20:20exactly where to get out, then you
593. 20:21probably shouldn't enter for the trade
594. 20:23itself.
595. 20:25So, those are like my no trade
596. 20:27conditions. Right? If any one of these
597. 20:29is present in the market, I'm not going
598. 20:31to be trading. No matter how confluent
599. 20:33how confident I am, no matter how much I
600. 20:36want to make money in the market, okay?
601. 20:38All right. So, that's basically how you
602. 20:39actually identify A+ setups. Basically,
603. 20:42you don't want to be hunting trades, you
604. 20:44don't want to be chasing trade, you want
605. 20:46to wait for price to come to you. Right?
606. 20:49Because remember, whatever you chase
607. 20:51runs away. And that applies not just in
608. 20:52trading, but also in money as well. You
609. 20:54don't chase money, you attract money.
610. 20:57And I pretty much just gave you the
611. 20:59checklist that you should be looking out
612. 21:00for in order for you to attract the
613. 21:02right setups. And it's in this
614. 21:04particular order itself. Your bias, your
615. 21:06point of interest, your sweep plus
616. 21:07market shift, your timing, and your risk
617. 21:10to reward. As long as you follow this
618. 21:11order, you'll be fine, right? If any box
619. 21:14fails, right? If you fail to find any
620. 21:16one of these entry criteria, entry
621. 21:18triggers, you do nothing. You stay out
622. 21:20the market. That's it. Remember, the
623. 21:22most profitable position in the market
624. 21:24is waiting. That's it.
625. 21:26So, before we end here today, I thought
626. 21:27it'd be pretty good if I give you some
627. 21:29bonus tips, right? So,
628. 21:32the first thing I want to go through is
629. 21:34the definitions, right? Let me just put
630. 21:36this in, right here. These are the
631. 21:38definitions of the different sort of
632. 21:41setups that will probably be available
633. 21:43to you in the market itself.
634. 21:45And A+ setup is basically a setup where
635. 21:48all five of these triggers are checked.
636. 21:50And the mere A setup, not A+, A setup,
637. 21:53is
638. 21:54the trade idea which meets the entry
639. 21:55criteria within my active trade plan,
640. 21:58but it may not hit all five A+ triggers.
641. 22:01Okay, so sometimes
642. 22:03I look at my trade plan and I see
643. 22:04everything is checked off. If everything
644. 22:05is checked off, cool, right? I don't
645. 22:07need to have the five A+ triggers to
646. 22:09actually enter for the trade, because if
647. 22:10I'm always looking for A+ setups only,
648. 22:13I'm going to be under trading very
649. 22:15often, right? So, I actually allow A+
650. 22:17setup as well, right? And then for B's
651. 22:20and C setups, no trade whatsoever,
652. 22:23right? If a setup is low probability,
653. 22:26I don't want to be wasting my money on
654. 22:27it. As simple as that.
655. 22:30And this is, once again, like a bonus
656. 22:32tip. You don't have to follow this,
657. 22:34right? This is some This is what some
658. 22:35professional traders do, and that is to
659. 22:38size your trades according to the
660. 22:40criteria, not according to vibes, not
661. 22:43according to feelings, not according to
662. 22:45your confidence, your fake little
663. 22:47confidence.
664. 22:48So, you could take 0.5% risk on A setup,
665. 22:52and you could also take
666. 22:541% risk on A+ setup, which means that
667. 22:56you size up a little bit more based on
668. 23:00the fact that there is more confluences
669. 23:02in the market and since there's more
670. 23:04confluences in the market there's a
671. 23:05higher chance that price is going to
672. 23:07play out. And you want to make sure that
673. 23:08you are milking as much money as
674. 23:10possible from this win itself. Once
675. 23:12again, this is not for everybody. If you
676. 23:14don't have sufficient data, if you don't
677. 23:15know what you're doing, I would suggest
678. 23:17you to stick to like a consistent fixed
679. 23:20risk per trade. Whether it's A setup or
680. 23:22A+ setup, you just stick to 0.5% or 1%.
681. 23:24That's it. But if you want to be a
682. 23:26little bit more advanced, a little bit
683. 23:28more professional, right? This is
684. 23:30something that you can consider doing. I
685. 23:32would always advise you to just make the
686. 23:35correct judgment based on data. Right,
687. 23:38you can test this out and if it works
688. 23:39for you, you can stick to it. If it
689. 23:41doesn't, you can just go back to
690. 23:42sticking to a consistent risk per trade.
691. 23:45And here are also some non-negotiables,
692. 23:47right? Like no matter how
693. 23:49lucky you are, no matter how much of a
694. 23:51winning streak you are in right now, no
695. 23:53matter how much losses you incurred,
696. 23:55please always make sure you follow these
697. 23:57rules itself.
698. 23:58And that is never size up to make back
699. 24:00losses, never size up because you feel
700. 24:02good, right? Like I said, you follow the
701. 24:04entry criteria, you follow your risk
702. 24:06management. Anything else is just noise.
703. 24:09And you only size up when your checklist
704. 24:11quantifies it, right? So if it's an A+
705. 24:13setup, then you can consider ramping up
706. 24:14your lots a little bit.
707. 24:16And at the end of day, no matter how
708. 24:18confident you are, always protect your
709. 24:20downside by placing a stop loss, by
710. 24:23respecting your guardrails, right? By,
711. 24:26you know, sticking to the max daily
712. 24:28loss, the max daily profit, the max
713. 24:29streak rule, whatever guardrails that
714. 24:31you have set inside Edge Flow.
715. 24:33Okay? So that's pretty much it. Just
716. 24:36understand that when you start to
717. 24:37understand all of this stuff that I just
718. 24:39shared and you just internalize it and
719. 24:41you start implementing it and you build
720. 24:43it into your trading routine, now you
721. 24:45are improving your standards. Now you're
722. 24:47operating at a higher standard. And when
723. 24:49you're operating at a higher standard,
724. 24:51guess what? Your results is going to be
725. 24:54at a higher standard as well. Your
726. 24:55results will automatically improve when
727. 24:57you start doing all of these actions,
728. 24:59all of these um stuff that I just talked
729. 25:00about right here. Okay? So, in the next
730. 25:03lesson, we're going to go through how to
731. 25:04execute your trades properly, and how to
732. 25:07use the trade gods, and to like just
733. 25:09boost your execution, right? To allow
734. 25:11you to execute much more faster and much
735. 25:13more precise.