The Last Trading Model You'll Ever Need (DTE Method Explained) — Transcript

Full transcript

1. 0:00All right, welcome back to the channel,
2. 0:01guys. Today we have a very special
3. 0:03video. I'm going to be going over my DTE
4. 0:07model. Now, if you guys have watched
5. 0:08some of my videos before, then you know
6. 0:10that I like to trade fair value gaps,
7. 0:12specifically higher time frame fair
8. 0:13value gaps for price to react from and
9. 0:15then trading inversion fair value gaps
10. 0:17as an entry model. Now, I have
11. 0:19simplified my entire trading strategy
12. 0:21into a model I call the DTE model. This
13. 0:24includes both reversals and
14. 0:26continuations. And the best part about
15. 0:27this is that it's literally so damn
16. 0:30simple. Okay, will you win every single
17. 0:31trade? No. In fact, I'm going to show
18. 0:33you guys uh some trades that we took
19. 0:35today. One of which I ended up losing.
20. 0:37So, it does not have a 100% win rate.
21. 0:39But this is the model that I have been
22. 0:41using over the past couple of years. And
23. 0:43also the model that our newest analyst
24. 0:45Joe or Pixie uses to get results like
25. 0:48this. This is from June and July. So,
26. 0:50nearly a 90% uh winning day percentage
27. 0:53using this model. Okay, so let's jump
28. 0:55right into it. So here is the DTE model.
29. 0:58Okay, what does this mean? Well, we have
30. 0:59to start with the D which is for
31. 1:01delivery. Okay, I would like to see
32. 1:03price delivering or reacting from a
33. 1:07higher time frame fair value gap. Okay,
34. 1:10this is a non-negotiable. If I don't see
35. 1:12price delivering from a higher time
36. 1:14frame fair value gap, I do not enter the
37. 1:16trade. Doesn't matter what time frame
38. 1:18I'm entering, I need to have high time
39. 1:20frame alignment plus low time frame
40. 1:21alignment. So for this, I use the 4
41. 1:23hour, the 1 hour, and the 15-minute. You
42. 1:25could go down to a 5minute as well if
43. 1:27you are trading continuations. So always
44. 1:29ask yourself is price delivering from a
45. 1:30higher time frame fair value gap. For
46. 1:32example, if you are inside of a 1 hour
47. 1:34or a 4 hour fair value gap, you should
48. 1:36only be looking for longs and vice
49. 1:38versa. Okay, after that we have the
50. 1:40target. You have to be asking yourself,
51. 1:42do I have a target for this trade? Okay,
52. 1:44so as a target I like to see something
53. 1:46called LRL or low resistance liquidity
54. 1:49leading up to my high time frame DOL.
55. 1:53I'll get into what low resistance
56. 1:54liquidity is in just a moment. But a
57. 1:56high time frame DOL is going to be where
58. 1:58you expect price to go to for that day.
59. 2:00A high time frame DOL is going to be a
60. 2:02session high, a previous day high, an
61. 2:04untapped higher time frame for a value
62. 2:06gap, wherever price is trending towards.
63. 2:08Okay. And finally, last but not least,
64. 2:10we have the E, which stands for
65. 2:12execution. Okay. Okay, if you guys have
66. 2:14been watching videos on this channel for
67. 2:16any amount of time now, you guys should
68. 2:17know that I love trading IFGS,
69. 2:20specifically Vspike or V-shaped IFG,
70. 2:23which is just an IFG within six candles
71. 2:27with really nice displacement with
72. 2:28really nice volume behind that
73. 2:30inversion. That is my execution. And
74. 2:32guys, this is the DTE model. Okay, let's
75. 2:35jump into what this actually looks like
76. 2:37on a real chart. So on my chart here, I
77. 2:39have five trades using the DTE model.
78. 2:42Okay, I took four of these. One of them
79. 2:44I took on a funded account which ended
80. 2:45up being a stopout trade. Again, full
81. 2:48transparency, no trading model has a
82. 2:49100% win rate. And this one follows the
83. 2:51DTE model perfectly. Uh, unfortunately,
84. 2:53I just missed this one as well. And the
85. 2:56rest I ended up passing some evals with.
86. 2:58By the way, these trades were called
87. 3:00live in the Discord and called by our
88. 3:02trading indicator called the
89. 3:03manipulation XV7 indicator. If I pull up
90. 3:06the indicator, you can see it called all
91. 3:07of these except for this first trade
92. 3:09here. So, we are going to remove all
93. 3:10drawings here and go back into replay
94. 3:13mode here. And to start, guys, we always
95. 3:14want to go to a higher time frame.
96. 3:17Right? The reason we're going to a
97. 3:18higher time frame is looking for that
98. 3:19higher time frame delivery. We're simply
99. 3:21marking out our 4hour fair value gaps.
100. 3:24Okay? So, I can see currently we are
101. 3:25inside of a 4hour bearish fair value gap
102. 3:28right here. And we also have an untapped
103. 3:30or an unmitigated 4hour fair value gap
104. 3:32below. So, my bias coming into the
105. 3:34market today is I'm looking for short
106. 3:36positions from this 4hour bearish gap
107. 3:38back down to this 4hour bullish and then
108. 3:40potentially continue the trend higher
109. 3:42because we are bullish on a higher time
110. 3:43frame. But I'm not interested in taking
111. 3:45longs until one, we get a 4hour closure
112. 3:48above this bearish for value gap or two,
113. 3:50we take longs on a lower time frame
114. 3:52inside of this 4hour bullish gap. That's
115. 3:54what I mean when I talk about higher
116. 3:55time frame delivery. Okay, now let's
117. 3:57drop down to a 1 hour time frame and
118. 3:59mark out our other fair value gaps.
119. 4:01Okay, I do not have any untapped fair
120. 4:03value gaps on a 1 hour time frame. I
121. 4:05just have the 4 hour for now. Now, I'm
122. 4:07going to drop down to the 15-minute time
123. 4:09frame. This is where I'm starting to
124. 4:10mark out my draws on liquidity. And I
125. 4:12can see we have a ton of low resistance
126. 4:15liquidity leading up to my higher time
127. 4:18frame draw on liquidity, which is going
128. 4:20to be this untapped 4hour fair value
129. 4:22gap. So, at this point, I have my
130. 4:23delivery, which is this 4hour fair value
131. 4:26gap, right? 4hour fair value gap which
132. 4:28is going to be the delivery which is
133. 4:30right here. I'm going to mark this out.
134. 4:32Make this a little bit smaller. Okay,
135. 4:34cool. And we have our T for target,
136. 4:37right? We have our target right here
137. 4:39which is going to be low resistance
138. 4:41liquidity or a series of untapped lows.
139. 4:43I've already made videos going over what
140. 4:45lower resistance liquidity is leading up
141. 4:48to high time frame DO which is going to
142. 4:51be this untapped 4hour fair value gap
143. 4:55plus the equal lows that we have below.
144. 4:57Okay, so I'm looking for a move from
145. 4:59here to here. I also see that we had
146. 5:01this data low on my chart as well. Okay,
147. 5:04a data low is just the candle that is
148. 5:06formed during red folder news. So we had
149. 5:08NFP news this morning. This is always a
150. 5:10strong draw in liquidity. This brings me
151. 5:12into the first trade that I ended up
152. 5:14taking, which was this V-shaped 5minute
153. 5:16inversion. Bringing us to step number
154. 5:18three, which is E for execution, which
155. 5:21is going to be a V-shaped IFG with
156. 5:24displacement, right? Displacement just
157. 5:26means a really nice volume candle. Here,
158. 5:28you can see that this inversion fair
159. 5:30value gap is within six candles. This
160. 5:32was the first trade of the day that I
161. 5:34called out in the stream at around 9:00
162. 5:35a.m. This was an eval trade because my
163. 5:37trading rules is that I don't trade on
164. 5:39funded until the market open. And this
165. 5:41one ended up smashing TP for a 1:22.
166. 5:44Again, using the DTE model, higher time
167. 5:46frame delivery with our lower resistance
168. 5:48liquidity leading into our higher time
169. 5:49frame drawn liquidity. Finally using
170. 5:51that V-shaped IFG for our entry. Okay,
171. 5:54this brings us into trade number two of
172. 5:57the day, which was this 1 minute short
173. 5:59position that we got right here. Now,
174. 6:01this trade in particular ended up being
175. 6:03a stopout trade, but this was an A+
176. 6:05trade setup, guys. Okay, you will have
177. 6:07statistical losses. Again, nothing has a
178. 6:09100% win rate. We had a 1.7R hour short
179. 6:11position back down to this data low. We
180. 6:14had a very clear break even level. And
181. 6:16if we go to a higher time frame, we can
182. 6:18see that we are now delivering off of a
183. 6:2015-minute bearish fair value gap. Here
184. 6:23we can see a little bit better on the
185. 6:2415-minute time frame. We created that
186. 6:26fair value gap. We perfectly test this
187. 6:28fair value gap. Keep in mind this
188. 6:3015-minute is actually sponsored by the
189. 6:324our. So, we technically don't need to
190. 6:34see a stop hunt or a liquidity sweep to
191. 6:36enter this trade. You can see we had
192. 6:38that IFG within six candles. And if we
193. 6:40let this trade play out, this one ended
194. 6:42up being a stop out unfortunately on the
195. 6:44funded accounts today. Bringing us to
196. 6:46trade number three, which was a re-entry
197. 6:48idea called by our pro analyst Joe
198. 6:50because it was a Friday today, guys. I
199. 6:52was a one and done. I did not want to
200. 6:54put on any more risk. I was happy with
201. 6:56this trade. I understood the risk
202. 6:57involved. But we ended up getting
203. 6:58another trade to follow right after.
204. 7:01Okay, you can see our indicator also
205. 7:02alerted the short position for this
206. 7:04trade right here. This is the same exact
207. 7:06entry model as the first trade, except
208. 7:08now you have something called a
209. 7:10protected high. A protected high just
210. 7:12means you have a liquidity sweep inside
211. 7:13of a higher time frame for a value gap
212. 7:15as your stop loss. And the good thing
213. 7:17about this re-entry is that we have now
214. 7:18generated a ton more low resistance
215. 7:20liquidity leading into our higher time
216. 7:22frame DOL. And if we let price play out,
217. 7:24you can see that this one ended up
218. 7:26hitting full take profit as well using
219. 7:28the DTE model. So at this point in time,
220. 7:30guys, we have now swept out the data
221. 7:32low. But if we go to a 4hour time frame,
222. 7:35we still have that untapped 4hour fair
223. 7:37value gap with all of that low
224. 7:39resistance liquidity leading up to it.
225. 7:41So all I'm waiting for at this point,
226. 7:42guys, is for price to sweep into this
227. 7:444hour fair value gap and look for a
228. 7:46V-shaped reversal with low resistance
229. 7:48liquidity leading into that inversion.
230. 7:50We're using higher time from delivery,
231. 7:51which is that 4hour fair value gap. Step
232. 7:53number two is target. So I'm looking for
233. 7:55that lower resistance liquidity. And
234. 7:57step number three, I'm looking for my
235. 7:58entry. And you can see here we end up
236. 8:00tapping into that 4hour fair value gap.
237. 8:05And during this move down, we end up
238. 8:07creating a 2minut bearish fair value
239. 8:09gap. You always want to make sure you're
240. 8:10taking the highest time frame inversion
241. 8:12in the leg in most cases. So we've
242. 8:14created a 2-minute fair value gap. We've
243. 8:16taken out some of these pre-market lows.
244. 8:18We've taken out these 8 a.m. lows. And
245. 8:20you can see on this candle right here,
246. 8:22we get a V-shaped inversion. Let's go to
247. 8:24a 3minut. Okay, we actually had a 3minut
248. 8:25bearish for a value gap, which is even
249. 8:27better. So this is going to be our entry
250. 8:29on a threeminute Vshape because this is
251. 8:31a low that is swept inside of a fair
252. 8:33value gap. This is also a protected low.
253. 8:35So we can put our stop loss at this low.
254. 8:37We can use this untapped 5minute fair
255. 8:38value gap as a break even and simply
256. 8:40target a 1:1 risk-to-reward. And you can
257. 8:42see that this one ends up smacking
258. 8:44takeprofit within literally a few
259. 8:46minutes guys. This brings us into trade
260. 8:48number five using the DTE model. Okay,
261. 8:51you can see that we are generating all
262. 8:52of this low resistance liquidity here to
263. 8:55the upside. And keep in mind our higher
264. 8:56time frame is bullish and we are already
265. 8:58reacting from a 4hour fair value gap.
266. 9:00This is where we can use something
267. 9:02called the continuation model which is
268. 9:03wait for price to retrace into our
269. 9:05discounted zone. Do we have higher time
270. 9:07frame delivery? Yes, we do with this
271. 9:095minute bullish fair value gap. So now
272. 9:11we have delivery, we have target above
273. 9:13us with that low resistance. All we're
274. 9:15waiting for now is a V-shaped inversion
275. 9:17which we get right here. We have a
276. 9:19really nice V-shaped inversion. We also
277. 9:21had another V-shaped inversion before
278. 9:23this one. So, both of these trades were
279. 9:25valid. Because you have a liquidity
280. 9:26sweep inside of a higher time frame for
281. 9:28a value gap, your stop loss is
282. 9:30technically protected at this low right
283. 9:32here. And in this case, I'm going to
284. 9:33target this high right here as my full
285. 9:35TP. And we let price play out. And this
286. 9:37one ends up hitting TP as well. Well
287. 9:40guys, that is going to be it for the DTE
288. 9:42model, which I believe is the only
289. 9:43strategy that you guys should be using.
290. 9:45Keep in mind, guys, every single trade
291. 9:46is going to have its own context. But if
292. 9:49you make sure that you have higher time
293. 9:50frame delivery, low time frame draws and
294. 9:52liquidity, and are waiting for a
295. 9:53V-shaped IFG before you enter a trade,
296. 9:56it really does mitigate like 80% of
297. 9:58losses that you otherwise would take
298. 9:59because you're waiting for so much
299. 10:00alignment and confluence before you get
300. 10:02into the trade. Guys, that's going to do
301. 10:03it for this video. If you want to follow
302. 10:05the trades of myself and our other
303. 10:06full-time analysts, then make sure to
304. 10:08click the first link in the description
305. 10:09below. We trade live every single
306. 10:11morning, Monday through Friday. We also
307. 10:12have coded this entire strategy into its
308. 10:14own indicator called the Manipulation X
309. 10:16indicator. Leave a like if you guys
310. 10:17enjoyed. Subscribe to the channel for
311. 10:18more trading content.