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My Updated Trading Strategy (2026) — Transcript

by JadeCap · 3,799 words · 522 segments · language en · Watch on YouTube

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0:00My new strategy allows me to get wins
0:01like this, this, and this. And something
0:04I've noticed across the trading space is
0:05that strategies are overly complicated
0:08with way too many moving parts. Multiple
0:10tools, indicators, confirmations, and
0:12look, they're all great. I use multiple
0:14tools myself, but some traders have a
0:16hard time putting it all together. So,
0:17in this video, I'm going to give you a
0:19three-step strategy that is one, easy to
0:21understand, and two, easy to execute.
0:24But before we get into that, we need to
0:25understand why most traders fail.
0:27Because if you skip this part, the
0:28strategy isn't going to save you. It's
0:30just going to become the 10th one you
0:32abandon. So, before we get into the
0:33model, almost every trader that I've
0:35talked to that is having a hard time in
0:37the markets has one of two things going
0:39on. The first one is you're just
0:41collecting information, and you're not
0:43actually executing. You've got a folder
0:44of PDFs, you're in multiple Discords,
0:47you have a list of YouTube videos that
0:48you constantly are watching, and you
0:50never learn how to actually put in the
0:52reps and the execution to learn what
0:54you've been studying. Now, I was stuck
0:56in this phase for years, not months.
0:58Years. And it wasn't because I was lazy,
1:01it was because I kept adding something
1:03new that felt like progress. I would
1:05trade a concept or a strategy for a
1:06little bit, maybe a month, 2 months, and
1:08then I would go into a losing period,
1:10and then I would abandon it and try and
1:12learn something new. And this is just a
1:13never-ending cycle, and it becomes a
1:15point in the road where a lot of traders
1:17end up quitting. So, what you need to do
1:19is understand that the markets are
1:21probabilistic in nature, and you're not
1:23going to win on every trade. You just
1:24need to find an edge that works 50% of
1:28the time, maybe a little less, maybe a
1:29little bit more, but you need to find an
1:31edge that you can consistently come back
1:33to and execute on a week-to-week basis.
1:36That means you need to trade through the
1:37slow periods, you can't get
1:38overconfident using it, and you just
1:40have to show up and repeat the same
1:42processes over and over again. Now, the
1:44second one is that your strategy doesn't
1:46refuse any trade, meaning you have so
1:49many different things that you're
1:50looking at, and you're finding all these
1:52confluences, but the problem is when it
1:54comes to developing a high-probability
1:56trade idea, now you have so many things
1:58going on on your chart that you're
2:00always going to find a trade. Now this
2:02is a really bad thing because instead of
2:04just trading one concept that you've
2:05mastered, you're taking all these
2:07different trades with things that you
2:08don't really have a 100% understanding
2:11of. So let's say if you're just
2:12typically used to fair value gaps, but
2:14then a breaker appears, all of a sudden
2:16you're going to be trading breakers but
2:17you don't really understand them. Now
2:19yes, it all leads to a trade idea, but
2:21you don't understand the nuances behind
2:23breakers because you haven't traded them
2:25enough. So instead of having this wide
2:27funnel of ideas that you're trying to
2:29trade with, what we're going to do is
2:30narrow them down to just a few. So what
2:33does my new simplified strategy actually
2:35look like? First of all, we just have
2:37one idea, one trade setup that we're
2:39looking for, and we're going to repeat
2:41that on a daily basis. So the premise of
2:43this trading strategy is we're looking
2:45for levels to be ran out, failing to
2:47hold those levels and reverse. So the
2:49most reliable liquidity on a chart rests
2:51at previous highs and lows. Now that can
2:54either be a previous weekly high and
2:56low, a previous daily high and low, or a
2:58previous session high and low. Now the
3:00daily sweep model, or my specific model,
3:02waits for price to run one of those
3:04levels, you have a failure to hold
3:06beyond it, and then we're going to trade
3:07the reversal back through the range
3:09targeting a point of liquidity. Our bias
3:11is going to come from the higher time
3:13frames and execution is going to happen
3:14on the lower time frame. Now a question
3:16that I get a lot is what time frames do
3:18these work on? Does it work on a weekly
3:20or a four-hour? Does it work on a daily
3:22or a one-hour? Does it work on a
3:2415-minute or a five-minute? The answer
3:26comes down to the type of trader that
3:28you are. So if you're going to be a
3:29swing trader, obviously our higher time
3:32frame focus, where we're going to get
3:33our trade direction from, is going to be
3:35the weekly chart, and we're going to
3:36execute on the four-hour time frame. Now
3:38if you're a short-term trader, meaning
3:40you might hold overnight, now you don't
3:41have to hold overnight, but you're going
3:43to fall into this category. We're going
3:44to use our daily time frame for our
3:46direction and our bias, and then we're
3:48going to use our one-hour time frame for
3:50execution. Now if you're a day trader or
3:52scalper, we're going to use our 4-hour
3:54or 1-hour as our bias or direction and
3:57our 15-minute and our 5-minute as our
4:00execution time frame. So, yes, this
4:01model does work on every time frame. The
4:04only thing that really changes is the
4:05time horizon of the trade and how fast
4:08you have to make decisions. And it's
4:09also going to affect the frequency of
4:11trades that you're taking. So, step one,
4:13we're going to start with
4:14identification, meaning we're trying to
4:16determine if the market is trending or
4:18ranging. So, in a trending bullish
4:20market, the market is going to be
4:21creating higher lows and higher highs as
4:24it's moving higher. And in a bearish
4:26market, it's going to be creating lower
4:27lows and lower highs as it's moving
4:29lower. And finally, if we're stuck in
4:31consolidation, meaning that there's no
4:33clear range or direction that we're
4:35trading in, we might not have a trade.
4:37So, again, reiterating on this, before
4:39any pattern or any confirmation, we are
4:41trying to identify the market condition.
4:44Is the market trending up or is it
4:46trending down? Or if it's ranging or
4:48unclear, then we're just going to watch
4:50the edges of the range and tread
4:52carefully, meaning we might not have any
4:54trades. Now, when it comes to reading
4:56the higher time frame, we're going to
4:57start wide first and then narrow. We're
5:00going to do two passes. So, pass number
5:02one is going to be the bigger picture.
5:04If you zoom out on the higher time
5:06frame, you should be able to read a
5:07sequence. So, in a bullish market, we're
5:09going to see those higher highs and
5:11higher lows as the market's moving
5:13higher. Vice versa, if the market is
5:14bearish and we zoom out, we should be
5:16able to see the market stair-stepping
5:18lower. And obviously, if it's doing
5:19neither, we're in a range. Now, pass
5:21number two, and this is where we really
5:23dial in, is just narrow down to the last
5:25few candles and compare them against the
5:27one before. So, as an example, if we're
5:30looking at our daily chart as our higher
5:32time frame, what did yesterday do
5:34compared to the previous day? Did that
5:36daily candle create a higher low and
5:39higher high compared to the previous
5:41day? Or did it create a lower high and
5:43lower low compared to the previous day?
5:45We're also going to be looking at
5:46outside bars for strong confirmation,
5:48meaning the daily candle took out the
5:50previous day's high, but also took out
5:52the previous day's low and closed a
5:54specific way. And finally, we have an
5:56inside bar, meaning the daily candle
5:57didn't take out the previous day's high
6:00or low, showing us that we have
6:01indecision in the market. So, based on
6:03our analysis, this is going to confirm
6:06our bias, and you need to clearly write
6:08down your bias prior to looking for
6:10these entries. So, if the market is
6:12creating higher lows and higher highs,
6:14we have a bullish bias, meaning we're
6:16looking for a sweep of a low. And if we
6:18have a bearish bias, we're looking for a
6:19sweep of a high. Again, no bias, that
6:22means we don't have a trade. Coming into
6:24step two, we're looking for the
6:26confirmation of a trade. So, what we're
6:28going to do is mark out our previous
6:30levels, and we're going to mark to the
6:31scale of our trade, meaning our time
6:33frames. So, if we are swing trading, we
6:35are going to mark out the previous
6:37weekly high and low, plus all the
6:39intraweek highs and lows from the prior
6:42week. If we're day trading, we're going
6:43to mark out the previous daily high and
6:46low, plus all the intraday highs and
6:48lows. So, that might mean session highs
6:50and lows. And if we're scalping, we
6:51might mark out those daily levels along
6:54with previous session highs and lows.
6:55The outer extremes of our ranges are
6:58going to be our primary targets. The
7:00internal levels is really where we're
7:02going to be seeking these sweeps. So,
7:04what is a sweep or a swing failure
7:06pattern? If our high time frame is
7:08bearish, we're going to mark out all of
7:10our previous day's swing highs. Now,
7:12this doesn't only have to be the
7:14previous day's highs. There might be
7:16intraday swing highs inside of
7:18yesterday's range where we're also going
7:19to mark out and look for a reaction.
7:21Now, what makes a swing high? We have a
7:23three-candle pattern where the highs on
7:25either side of candle number two are
7:28lower than this high. So, we have a
7:29high, a higher high, and then a lower
7:32high. And just reverse that if you're
7:33looking for a bullish swing point. So,
7:35you'll have a low, a lower low, and then
7:37a higher low. So, we have our swing
7:39point. Now, what creates the swing
7:40failure pattern? What we're looking for
7:42is a run above that swing high and then
7:45a closure back below it. This indicates
7:47that the buyers were absorbed above this
7:50specific level and failed to push the
7:52market higher. The closure back into the
7:54range is telling us two things. People
7:56that were short got stopped out with
7:58their stops above this high and also
8:00people that were trying to go long on a
8:02breakout are now trapped in their long
8:04position, meaning they're underwater.
8:06This very simple pattern is giving us
8:08context around the market. It's giving
8:10you a deeper understanding of the
8:12players that are operating in the market
8:14and the reactions to liquidity levels
8:16being hit. Now that we have our bias or
8:17direction identified and a confirmation
8:20of a trade idea, the next step is the
8:22execution. And this is why this model is
8:24so simple is that you don't need an
8:26entry model. The swing failure
8:27confirmation is enough to enter a trade.
8:30We have no additional indicators and no
8:32extra confluence. We just enter on the
8:34close with our stop above or below the
8:37wick that made the swing failure
8:38pattern. And if price reclaims the wick,
8:41it's invalidating our trade. So, we're
8:42going to enter on the closure of the
8:44candle that gives us the SFP and then
8:46we're going to put our stop above the
8:48wick that created it. Now that we have
8:50our entry and our stop loss, where do we
8:52exit? So, we have two different methods
8:54of taking profits. We either have a
8:55time-based exit or a liquidity-based
8:58exit. With time-based exits, this is
9:00really all around session overlaps. So,
9:03if you enter during London session, you
9:05might want to manage that trade ahead of
9:06New York open. Or if you enter at New
9:08York open or the AM session, you might
9:10want to manage that trade or exit around
9:12or before lunchtime. Now, if this is
9:14something that you've been struggling
9:16with, I want you to study how the volume
9:18drops and trends stall around these
9:21session overlaps. Exit number two is
9:23going to be liquidity-based, meaning
9:25we're going to just target a previous
9:26daily high or low, which is our next
9:28pool of resting orders. So, now that
9:30we've gone over the three steps, let me
9:32show you what it actually looks like on
9:34a chart. So, step one is going to be
9:35identification of our high time frame
9:37bias. And in this example, we're going
9:39to use the daily chart as our higher
9:41time frame. Now, if it's unclear and you
9:43zoom out and you can't tell if the
9:44market's creating higher lows and higher
9:46highs and it's kind of just pushing
9:47higher, then we're going to do is just
9:49take a look at what the day did compared
9:51to the previous day or last few days.
9:53So, in this example, we can see that the
9:54market is creating a low, a lower low,
9:57and then a higher low. So, this becomes
9:58our last bullish swing point. So, let's
10:00mark that out. We have a bullish swing
10:02point right here. Now, we also have a
10:04bearish swing point, but this market
10:06created a higher high. Now, if the
10:08market were overall bearish, it should
10:10not be creating a higher high up here.
10:12In fact, it should be be creating a
10:13lower high, and then the market would
10:15then possibly trade lower. So, because
10:17this daily chart created this higher
10:19high, we are in a bullish market
10:20environment. Now, to make things even
10:22more simple, just compare the day's
10:24close with the previous day. So, in this
10:27example, we can see that we have a low,
10:29and then a higher low, and then we have
10:31a high and a higher high. So, just
10:33within these two candles, we can tell
10:35that the market is creating higher lows
10:37and higher highs. So, coming into the
10:39next trading day, we've identified that
10:41the market is bullish. So, for our
10:43identification, our market condition is
10:46bullish. And when I sit down in front of
10:48my charts right before the open, I'm
10:50going to mark out any intraday swing
10:52highs and lows that I see. Because it's
10:54not every day that you're going to get a
10:56raid on a previous daily level. And if
10:58we're bullish, we're only looking for a
11:00swing low to be raided. So, I don't need
11:02to mark out any of my intraday swing
11:05highs. What I'm going to do is mark out
11:06this intraday swing low because it's the
11:08last swing low that I see when I look at
11:11this chart. All right, so if I look at
11:12the previous day's low and the previous
11:13day's high, there's no other swing lows
11:16in here that are really drawing my
11:17attention. So, let's go step by step and
11:19see if we get that confirmation, which
11:21is going to be a swing failure. Here we
11:23have the market open, and we are
11:24approaching this swing low. Now, again,
11:26what we're looking for is a raid on one
11:28of these swing lows with a closure back
11:30above that level. Here we get a raid on
11:33the swing low and then we get the
11:34closure back above that level. So that
11:37gives us our confirmation of a swing
11:39failure pattern. And now we can move to
11:41step three, which is the execution. So
11:43what we're going to do is enter a long
11:45position on the close of this candle
11:47with our stop loss below the low. What
11:49we're going to do is maybe just target
11:51this previous daily high. So again,
11:52we're going to go long one contract. Our
11:54stop is going to go at 27455.25
11:57with our take profit at 27 918.50.
12:01Now this is about a 1.3 to 1 reward to
12:04risk. We're going to go long here and
12:06play this forward. So we can see there
12:07our take profit was hit right at the
12:09previous daily high. Now I want to show
12:11you guys a bearish example again using
12:13the 1-hour time frame. So as we can see
12:14here, if we just zoom out and look at
12:17what the market is actually doing. We
12:18have this low here, we have a high, we
12:21have a lower high, a lower low, a lower
12:23high, lower low, lower high. So what
12:25we're anticipating is a run down to this
12:27old low to continue bearishness in the
12:29market. So again, what I'm going to do
12:31when I sit down on my charts before the
12:33AM session is mark out all of our
12:35previous intraday highs. So here we have
12:37a high and we have another swing high
12:39all the way up here. And our target is
12:41going to be all the way down here at
12:42this low. Now we don't have any other
12:44swing highs in here that's notable other
12:46than this one, but obviously we didn't
12:47get a swing failure there. So I don't
12:49need to mark that until we actually get
12:50a strong rejection. So again, one
12:52identification, bearish. Two is going to
12:54be confirmation. So we're looking for
12:56that swing failure pattern. So let's
12:57play through some of this price action.
12:58So here we have a very long wick, but
13:00obviously we didn't run out this high
13:01yet. Here we get the run on the high,
13:03but we're looking for a closure back
13:05below that high for a swing failure
13:07pattern. Another hour goes by, we don't
13:09have that closure yet, so we're not
13:11going to just jump in a short right
13:12away. Now here we have a closure back
13:15below the swing high and that's our
13:16confirmation. So now we come to execute.
13:19So we're going to go short on the
13:21closure of this candle. We're going to
13:22put our stop above the wick of the
13:25candle that gave us the swing failure
13:26pattern and we're going to target one of
13:28these lows. We can either target this
13:29swing low here, we can target this
13:31intraday low here, or we can target this
13:33low all the way down here. So, what I'm
13:35going to do is target this low all the
13:36way down here, and maybe we're going to
13:38take some partials when we get to this
13:39low. So, we're going to go short, our
13:41stop's going to go at 30096,
13:43and our take profit's going to go at
13:4429330.75.
13:47Let's short two contracts. So, this is
13:49going to allow us to take partials if we
13:51rate out some of these intraday levels.
13:52We're going to go short, and let's see
13:54what price does. So, I want to point out
13:55that the market doesn't just move in a
13:57straight line, and you have to be
13:58comfortable seeing that market turn
13:59around on you, and maybe you have to sit
14:01in drawdown for a little bit before the
14:02trade actually pans out. So, there you
14:04go, we get a little bit of
14:05follow-through. So, now that we've taken
14:06out that old intraday low, what we're
14:08going to do is take off one of our
14:10positions. So, we're going to buy back
14:11one of our contracts, and we're going to
14:13leave one contract remaining, and maybe
14:15we'll trail our stop loss down to break
14:17even. And then we'll see if we get the
14:18run on this previous daily low, right?
14:20The higher time frame is still bearish,
14:22so we are anticipating maybe running to
14:24that old previous daily low. And there
14:26we go. Now, we've gone through a couple
14:27of replay examples, but let me show you
14:29guys that this actually works in a live
14:31trade. So, going through the same exact
14:33process that we were just doing, this is
14:35exactly how I intraday trade using this
14:37specific model. Now, in this example, I
14:40have my higher time frame hourly candles
14:42here on the right-hand side of my
14:44screen, and as you guys can see, each
14:46one of these hours is creating a lower
14:48low and lower high compared to the
14:50previous hour. So, leading up into the
14:52afternoon, I could see that this market
14:55created a lower low and lower high
14:57compared to the previous hour. So, what
14:59I'm looking for inside of that next
15:01hourly candle is some type of swing
15:03failure pattern on the lower time frame.
15:05In this case, this was a 5-minute time
15:07frame. So, we have this swing high here.
15:08We can see that the market has traded
15:10above that level, then we closed below
15:12it, and this is where I entered. I
15:14entered on a retracement on this
15:155-minute candle because we had that
15:17closure. My stop is going to go above
15:19one of these swing points up here, this
15:215-minute swing point. Yes, I probably
15:22should have used this wick, but because
15:24I was confident in the market going
15:25lower, I wasn't anticipating price to
15:28retrade above this old swing high again.
15:30So, as we play this market forward, we
15:32can see that we have further
15:33continuation to the downside. So, as we
15:35approach here, I adjusted my stop loss
15:37aggressively at about 3R. Now, we
15:39eventually didn't make it down to that
15:41take profit, but I was able to adjust my
15:42stop loss one more time down to about
15:45here, and then I was taken fully out of
15:47the trade for about 3R on the day. So,
15:49that's the model. Three steps, one idea,
15:51no indicators. Bias, sweep, failure. Go
15:54mark your levels and watch a repeat for
15:56at least a month before you decide to
15:58trade with it. Now, some of you are
15:59going to run this strategy on your own,
16:01and you'll be completely fine. You'll do
16:03the reps, you'll figure out the parts
16:04that I didn't cover. But, some of you
16:06have been trying to do this on your own
16:07already for 2 years, and you're standing
16:09in the exact same spot you were when you
16:11first started, and you know which ones
16:13you are. If that's you, and you're
16:14looking for more personalized help, I'm
16:16opening just five spots to my mentorship
16:18program, where I trade with my students
16:20live each and every week. They've gotten
16:21results like this, this, and this, all
16:24from following the systems we've created
16:26that any trader, no matter the skill
16:28level, can follow. So, if you're
16:29interested and think you might be a good
16:31fit, I'll leave a link to apply in the
16:32description. As always, thanks for
16:34watching. Don't forget to subscribe, and
16:35I'll see you in the next one.

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