OTE BOOTCAMP LESSON 2: The secret to OTE and why YOU can make it work... — Transcript

Full transcript

1. 0:00Hello everyone.
2. 0:01So, this is the second lesson on the OTE
3. 0:04bootcamp, okay?
4. 0:05Okay.
5. 0:08And I'm going to show you how OTE
6. 0:10got me this Rollie, okay? Okay.
7. 0:13No, I'm playing gang. Let's go through
8. 0:15this though. So, this is the secret of
9. 0:17OTE and it's kind of a different kind of
10. 0:19video. It's for people who are advanced
11. 0:22and people who aren't at the same time.
12. 0:24Uh it's really simple as well. So, first
13. 0:26I want you to imagine how the chart
14. 0:29tends to play out on on a day, right?
15. 0:30And I'm going to numb it down really
16. 0:32simple.
17. 0:33Do you know when we're in an uptrend or
18. 0:35when we're in a bearish trend, right?
19. 0:37So, we're making those highs and we're
20. 0:40making those lows. It's really simple,
21. 0:41right? Now, the reason why OTE is one of
22. 0:44the one strategies that's proven to give
23. 0:47you less setups but a higher win rate
24. 0:49and a higher RR is because we numb down
25. 0:52those entries by using OTE, right? Where
26. 0:55we want price to go and if it goes to
27. 0:57there, then we could have minimal
28. 0:58drawdown. So, let me just really numb
29. 1:00this down. So, in an ideal world, this
30. 1:02is what the chart will look like.
31. 1:03Obviously, it doesn't look like this.
32. 1:05We're going to have to use discretion.
33. 1:06We're going to have to get better with
34. 1:07the trader model. We're going to have
35. 1:08to,
36. 1:09you know, trade a lot longer than this
37. 1:11to just see the price like this every
38. 1:12day. But, this is a casual uptrend,
39. 1:14right? What do we see? Let's just draw
40. 1:16out the fib, right? Each one of these
41. 1:18represents a high and a low made in the
42. 1:20market, okay?
43. 1:21The majority of the time, price isn't
44. 1:24retracing all the way down into the 705
45. 1:27to the 709, right?
46. 1:29As you can see, right? This is really
47. 1:31how it does look. Most of the time,
48. 1:33price does not want to retrace all the
49. 1:34way down.
50. 1:38Okay.
51. 1:39I'm getting cold right now.
52. 1:40But, that's why we use OTE. So, what OTE
53. 1:43does is it gives us that entry for times
54. 1:46when price does want to go down. And on
55. 1:48those minimal times where price does go
56. 1:50and retrace to the OTE and not just the
57. 1:53discount, then we get a higher RR.
58. 1:55Higher RR means higher risk to reward,
59. 1:58right? And higher ROI in the long run if
60. 2:00we can wait for those setups. There's
61. 2:02two ways to trade continuation uptrends,
62. 2:04right? There's either this, you
63. 2:06genuinely just long and cover the whole
64. 2:08stop, right?
65. 2:10But then if you're risking one to one,
66. 2:13you're basically not gambling, but like
67. 2:15your win rate is going to be a maybe a
68. 2:17little bit higher, right? However,
69. 2:20you're also going to have a much lower
70. 2:22like ROI. I mean, you're using a one to
71. 2:24one and you basically just praying that
72. 2:25price is going to go up to the draw
73. 2:26without sweeping any inducement. Well,
74. 2:28with OTE you're minimizing your losses,
75. 2:30but you're also maximizing the potential
76. 2:33of that trade. So, let's look at this.
77. 2:35You're looking for that draw. That draw
78. 2:37is the most important. That's what's
79. 2:38going to define every single OTE trade
80. 2:40you take. OTE without a draw is just
81. 2:42gambling, right? And that's the biggest
82. 2:44thing ever. Let me write that down.
83. 2:46OTE
84. 2:48without a draw is
85. 2:52gambling. Because the way we see OTE
86. 2:56is this.
87. 2:58Let me just really draw this out.
88. 3:00So, we're going to have a draw
89. 3:02like this draw you see. This could be
90. 3:03any kind of draw and MMX all time highs,
91. 3:05whatever, you name it. We have price and
92. 3:08price is what what price is going to
93. 3:09want to do if I can just get this for
94. 3:11you.
95. 3:13Uh uh uh it's going to want to tap into
96. 3:16some kind of PDA. This is the PDA,
97. 3:17right? And then we're going to have that
98. 3:20push to the draw. Understand? Okay? Now,
99. 3:23what we're trying to catch, unless the
100. 3:25PDA is already already aligned within
101. 3:28that, is we're trying to minimize our
102. 3:30losses and maximize our RR by finding
103. 3:33the OTE entry from that, okay? So, look
104. 3:35at this. Let's say this is a one-hour
105. 3:38FVG.
106. 3:40Price has tapped into this and rejected.
107. 3:43The place we're going to look for that
108. 3:44entry is going to be here,
109. 3:46right? We're expecting, yes, price is
110. 3:49not always going to want to go down to
111. 3:50this, but this is how we maximize This
112. 3:52is why my win rate is so high because
113. 3:54you've got to look for those A plus.
114. 3:55You've got to be patient. If price
115. 3:57doesn't want to and price wants to just
116. 3:58react from the 2 5 and go to that draw,
117. 4:00it does that, right? But if you want to
118. 4:02have a higher you know, like a more
119. 4:04conviction, higher RR, higher higher win
120. 4:07rate, right? Then this is why you've got
121. 4:09to be patient. Now, we want to get this.
122. 4:12And that 6 2 to 7 0 5 to 7 9 is just
123. 4:15what I explained in every single other
124. 4:16video is discretion, right? Which one
125. 4:18are we going to enter off? Okay? Now,
126. 4:20depending on market volatility, you
127. 4:22enter the 10 to 30 point stop. At the
128. 4:24moment, it's 20 for me, okay? And those
129. 4:276 2 to 7 0 5 to 7 9 are going to be
130. 4:29aligned with PD arrays. So, let's say we
131. 4:31go deeper inside of this range right
132. 4:32here. What we're going to look for is
133. 4:34the second the 6 2, the 7 0 5, or the 7
134. 4:379 aligned with a lower time frame PD
135. 4:40array, like 15 to 5. In an ideal world,
136. 4:44that'd be really clean. And this
137. 4:45honestly does play a lot, right? Tapping
138. 4:47on 1 hour fair value gap, pumping from
139. 4:48that, creating that range low to high.
140. 4:51We've had our our mitigation. This low
141. 4:54is protected.
142. 4:57And if it gets swept, then we don't
143. 4:59expect price to continue going to this
144. 5:01draw. Usually, we have inducement as
145. 5:03well around here. That's just liquidity
146. 5:05we've swept out into that level. We
147. 5:07pump, and you want to enter off one of
148. 5:08these levels aligned with something, a
149. 5:1015 to a 5 minute
150. 5:14PD array, okay?
151. 5:18And that PD array can be anything from
152. 5:20an
153. 5:21OB to a fair value gap to a inverse fair
154. 5:25value gap to a wick, right? The majority
155. 5:29is important. And then I'm going to
156. 5:30teach you in my other lessons to really
157. 5:32numb down and find out which OT level's
158. 5:34going to play by using time frame
159. 5:37alignment, right? Let's say we have a 5
160. 5:39minute fair value gap aligned with a 15
161. 5:40minute, but then on the 6 2, we have a 1
162. 5:42hour, right?
163. 5:44Higher time frame holds higher holds
164. 5:45higher power, but you also don't want to
165. 5:47be stupid and just take every single
166. 5:49level. So, you always want to find that
167. 5:51one level that if it gets swept, you
168. 5:52know, all right, price isn't going to
169. 5:54play from there.
170. 5:55All right? Cuz if you manage to just
171. 5:56keep entering the highest one and get
172. 5:58stopped out and then finally the 79
173. 5:59plays, you've already lost two trades
174. 6:00before that. You may as well just enter
175. 6:01with the 1:1.
176. 6:03Just like so. Just like you're entering
177. 6:05on a continuation, right? But here is
178. 6:07just the secret that I wanted to talk
179. 6:08about is
180. 6:10obviously the draw is important. OTE
181. 6:12draw is in gambling. But the secret is
182. 6:14the real The real secret with OTE is
183. 6:16that is it really is a high win rate and
184. 6:19high RR strategy. Because if you can be
185. 6:21patient and wait for price to finally
186. 6:23come down on that draw and not use you
187. 6:26as inducement, that's good. Cuz a lot of
188. 6:28the time a lot of the time
189. 6:31what price will do is it will tap a PD
190. 6:33array. Yes, our draw is still here, but
191. 6:35price will tap a PD array here, okay?
192. 6:37And in in in that scenario, before price
193. 6:39wants to go higher, it's going to want
194. 6:41to use the previous range as inducement.
195. 6:43Now, this is more source, right? And in
196. 6:45that case, you'd be using the entire
197. 6:47range, all right?
198. 6:49And in these scenarios, the 62 tends to
199. 6:51play a lot more, especially if the 705
200. 6:54Let me remove this.
201. 6:55Especially if the 705 or the 79 is
202. 6:58closer to that liquidity. The 79
203. 7:00shouldn't play because it's so close to
204. 7:01the liquidity. If you come down, it may
205. 7:02as well just play from there, all right?
206. 7:04The 62 usually is right below that
207. 7:06inducement, meaning we have the 62 to
208. 7:08the 705 to argue the trade against,
209. 7:10which is going to be discretionalized
210. 7:12due to the PD arrays within that
211. 7:14previous range.
212. 7:15Okay?
213. 7:16It's a little bit of source, a little
214. 7:17bit confusing. However, I really numb
215. 7:19down the secret of OTE, and that really
216. 7:21is right now I'm explaining it. The
217. 7:23secret of OTE is that if you can be
218. 7:25patient and just continue to take trades
219. 7:27towards the draw, your RR and your win
220. 7:30rate will be high. That's the one time I
221. 7:32can positively explain that in a very
222. 7:34very simple scenario way, all right?
223. 7:37Make sure that your range is created
224. 7:39from a PD array. Make sure your range is
225. 7:41heading towards the draw, and make sure
226. 7:42that everything inside of the range
227. 7:44you're taking is aligned with the OT.
228. 7:46Really simple, really clean video, all
229. 7:49right? I love you all, and I hope you
230. 7:51have an amazing day.