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This Strategy Might Get Him Banned From Prop Firms, So I built it — Transcript

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0:00So, Topstep is probably going to ban me
0:01from using this strategy because I'm up
0:02over 100k on the month using it. And
0:04Topstep keeps leaving me alive account
0:06after account and I'm honestly tired of
0:08it, so I'm leaking the strat so you guys
0:09can help me rinse them. First step of
0:10the strategy is going to NQ and marking
0:12out your 10:00 a.m. EST open. Now that
0:14we have that marked out, we're going to
0:15wait for manipulation to one or both
0:16sides to figure out which way we're
0:17trading. Now that we swept previous day
0:18highs and took out all of our higher
0:20DOLs and we manipulated to both sides of
0:22the 10:00 a.m. open, we're going to be
0:23looking short. Now that we are rejecting
0:25off this rejection block, we're making
0:26our way back down to our 10:00 a.m.
0:27open. We're going to wait for an entry
0:28trigger for entry short. Now below our
0:3010:00 a.m. with a 5-minute close below
0:32our line, we're tapping off this
0:331-minute rejection block and we have an
0:34imbalance order block. We're going to
0:35set our limit short and target previous
0:37lows. Same exact thing here, mark out
0:39your 10:00 a.m. Eastern Time open. Once
0:41you mark that 10:00 a.m. out, you look
0:42for manipulation to one or both sides.
0:43You manipulate it to both sides. We just
0:45swept previous day lows and we have a
0:4615-minute rejection block below. So,
0:48what that means for us is that we're
0:49going to be looking longs. Now we're
0:50shooting to the upside and we have an
0:51imbalance order block at our 10:00 a.m.
0:53open. We're going to set our limits long
0:54and target previous highs.
0:55>> All right, all that information was a
0:57lot very quickly. I like that he built
1:00it out. Um the 10:00 a.m. open is clever
1:04because you get rid of that morning
1:06volatility where price is trying to
1:08figure out typically where to go. I love
1:11trading after 10:00 a.m. I think that's
1:12a better time cuz then you kind of get a
1:14rough sense of where price may be
1:16heading for the day and you get some
1:17pretty key levels. As you can see here,
1:18it has the previous day high, it was
1:20swept um going into that 10:00 a.m.
1:23which is good. He mentioned uh the DOLs
1:26which is those draws on liquidity. I
1:28think it's important obviously to pay
1:29attention to those. He started mapping
1:31out some rejection blocks, so I think we
1:35could build something around some draws
1:37on liquidity, order blocks, uh potential
1:40rejection blocks, and then maybe some
1:42mitigated stuff. Could build an
1:44indicator around that 10:00 a.m. open
1:46looking to see how it manipulates uh
1:48both sides potentially of the open. Look
1:51at um draws on liquidity and have that
1:53doing indicator and let's see if we can
1:55roughly replicate a strategy similar to
1:57his. I think we can. I think it could be
2:00a lot better than you think. [music] Um
2:01so, let's dive in and get to it. All the
2:04labels are now the same and they're nice
2:05and fun. So, it's cool to see these
2:07labels very clearly on your chart nine.
2:08You really nice rejection, like strong
2:09candle. And from here, you would just,
2:11in my opinion, take a short and then
2:12just let it play out and this thing
2:13drills right through that price point.
2:14So, a perfect setup nonetheless.
2:17All right. So, I have Vela up here. We
2:18have the NQ chart with the one minute.
2:20It's what he had. Um so, the first thing
2:22like he talked about was that marking
2:25the 10:00 a.m. open um on the one-minute
2:27chart. Uh we could probably just have it
2:29plotted regardless. So, I'm going to do
2:31is go up to your quant left-hand corner.
2:33I'm going to make sure the model's on
2:34auto. And we're going to build uh
2:36similar to what he had. Can you build me
2:38an indicator that plots a line at the
2:4110:00 a.m. Eastern open and follows
2:44price forward cuz we want to trade that
2:47and level on the one minute. So, we're
2:48going to let it build that out. We are
2:50on the one minute here. And let's kind
2:52of go back to There you go. You can
2:54already see the uh the level there,
2:56which is great. There's your 10:00 a.m.
2:58open. You can even see today literally
3:00at 10:00 a.m. move lower and higher. So,
3:02it took out both level both highs and
3:05lows. So, it ended up actually setting a
3:07pretty significant low and high, which
3:09is really nice. We can kind of look at
3:10what happened potentially pre-market.
3:12Had a nice significant pre-market low,
3:14pre-market high. Price ends up taking
3:16out pre-market low. 10:00 a.m. you get
3:18that back and forth. Price comes back
3:20down and then makes that move um back
3:23through that pre-market high.
3:25>> previous day highs and took out all of
3:27our higher DOLs and we
3:28>> So, let's add the previous day highs and
3:30lows. Let's add that. Next, for each
3:32day, can you mark out the previous day
3:34highs and lows? Now, if we're looking
3:36back on history, just either put the
3:38date on which day that high and low was
3:40set or just how many days it's been.
3:42It's up to you. Um but yeah, I want to
3:44mark out previous highs and lows of the
3:46previous day. So, we're going to have
3:47that be marked out as well so we can
3:49just see what it looks like. All right.
3:51So, we have the previous day highs and
3:52lows marked here. Looks like it's
3:53resetting at uh midnight. Um actually, I
3:56wanted to be probably based on the
3:59session. Can we actually have the highs
4:01and lows for the previous day be based
4:03on the session? That would be better.
4:07So, the previous sessions high and low
4:10versus the previous day cuz I see you
4:11have it based on the clock. Have the
4:13session open be from 1800 hours to 1600
4:16hours. And also, if you look at my chart
4:18right now, you'll see that the labels
4:21are crossed over the lines. I know we
4:25have the previous session highs and
4:26lows, which is really nice here. You can
4:27see this is just from the uh obviously
4:30this day. You have that high marked out
4:32from the open of the session with
4:34through the overnight session, which is
4:36good. Uh we do now need to still mark
4:39out like significant highs and lows. Um
4:42so, that's the next thing I'm going to
4:43say. Now, let's mark out significant
4:45highs and lows that happened after
4:48hours, so during the premarket {slash}
4:51postmarket time. Don't mark any highs or
4:54lows that occur during market hours.
4:57Just the significant ones that happen
4:59after hours. You can see going into the
5:0110:00 a.m. open, how is it swept those
5:03premarket levels? And do they come into
5:06contact as well the previous session
5:08highs and lows, which I think is super
5:10significant. Okay, so we have the
5:11overnight high and low now plotted. It
5:14should move properly with the chart in
5:17real time. I only want two sets of
5:20levels. I only want the previous session
5:21low and high and the overnight low and
5:24high. I don't want the previous day. So,
5:26almost there. We're going to run some
5:28tests. All right, we got those removed.
5:30Now, add just a 10:00 a.m. open label at
5:33the end of the blue line. We're getting
5:34really close to being where we want to
5:37be with this. All right, so let's check
5:38this thing out now. We got our label
5:40here, 10:00 a.m. ET open. We have the
5:42overnight low, overnight high. And then
5:44we have our PSL, which is the previous
5:47session low and high as well. Um that
5:49way we just know it in real time. I'm
5:51going to do here. Let's go on replay
5:52mode and see if we need to adjust
5:54anything else. Make sure the uh previous
5:56session high and low labels are also
5:58plotted the same way as the overnight
6:01low and high as well. I want them to be
6:04projected forward, but to stop when
6:07obviously all these levels need to be
6:09reset. All the labels are now the same
6:12and they're nice and fun. So, it's cool
6:15to see these labels very clearly on your
6:17chart now and you also have that 10:00
6:18a.m. open. So, essentially what I would
6:21want to look for when trading out this
6:23is you want to be targeting these levels
6:26for one. These are very just significant
6:28overnight high low, very simple and then
6:30you have the previous session high low
6:32as well and that 10:00 a.m. So, these
6:33are really good targets for if you are
6:36in a trade and they're also really good
6:38targets for helping you understand where
6:40price may head after they are hit. So,
6:42let's now go back to this video once
6:44again and see how we may want to look
6:46for entries. Okay, so this first
6:48example, he's on a 5-minute chart
6:50supposedly and he's looking at the
6:53rejection of a 1-minute rejection block
6:55and he had that 5-minute closure under
6:58the 10:00 a.m. low. So, there's other
7:00things within this that are helping him
7:02understand
7:03the
7:05what he would like to actually trade in
7:07which direction. So, like in this case
7:09here on the 1-minute you're seeing that
7:11we have taken out the overnight high and
7:13now we have already made a shift in
7:15structure and we potentially would want
7:18to see if we get a continuation down to
7:20the 10:00 a.m. open, which we actually
7:22end up doing. Now, if we weren't going
7:24to be trading let's say back to the
7:2610:00 a.m. open and wanted to trade
7:28something with the 10:00 a.m. open, we
7:30can see that maybe we look to identify a
7:33move into the overnight low after we see
7:36something that happens around the 10:00
7:38a.m. open and let's see. We get a
7:40bounce, but then a very, very large move
7:42to the downside. Let's see if it just
7:44ends up moving all the way to the
7:46overnight low and it does, but notice
7:47what happens. Price breaks below the
7:4910:00 a.m., comes back and then yet
7:51again rejects it one more time. So, this
7:53is
7:54>> [clears throat]
7:54>> let's say something you would want to
7:55take a short off of and target that low
7:58there from the overnight session, you
8:00actually could have take a stop above
8:02where price rejected around the 10:00
8:04a.m. point there and would have ended up
8:07with almost a two to one trade, which is
8:09pretty nice. And these are just very
8:11simple levels and helping understand
8:14what sometimes simplicity wins all
8:17always. All right, so we have our 10:00
8:18a.m. market open. We have our overnight
8:20high, overnight low. The previous
8:22session highs and lows are quite far
8:24away on this random day. And what we're
8:26going to do is we're going to play for
8:26it and see if the overnight high low can
8:28get taken. You can see now the overnight
8:30high did get taken. Let's see if we get
8:32any type of change or rejection from
8:35there. And we do right here. Now, I
8:37don't want to see what we do at the
8:3910:00 a.m. open if we can make an
8:40approach back down there, which we do.
8:42Let's see how price now reacts off of
8:44that level. It ends up closing lower.
8:46Now, in this case, I personally think
8:49that price would actually run and hit
8:51hit that overnight low with our stop
8:54right above where it continued to
8:56bounce, but then inevitably rejected
8:58that 10:00 a.m. So, we're risking 970 to
9:01make 1,500. And let's go ahead and play
9:04this out. As you can see, we actually
9:05end up running through the overnight low
9:07as well there after showing very clear
9:09rejection of the 10:00 a.m. open. Now,
9:11that was just a generic entry. We had no
9:14rejection blocks or anything like that.
9:17We were just identifying that we took
9:19the overnight high out and we ended up
9:21looking for a trade back to the
9:22overnight low. Okay, so we're on October
9:2428th now. Let's see if we get uh let's
9:27get to market open here and see where we
9:29end up. All right, so we are at market
9:31open. And now, as you can see, we have
9:33our previous session high, which we
9:34broke already um in the after hours
9:37movement. We have the overnight high and
9:39the overnight low. Let's see what we see
9:40at 10:00 a.m. Do we get the crazy
9:42morning moves? And we go right through
9:44the overnight low. That's wild move. And
9:46you're going to see our 10:00 a.m. open
9:47here. Here's our 10:00 a.m. open. It's
9:49all the way up there. Let's see where we
9:50end up from the push off that. So, we
9:53push lower, which is nice after taking
9:56out the overnight low. And now, we have
9:57created a very aggressive past the 10:00
10:00a.m. Eastern. Taking out that overnight
10:02low makes me want to think more long,
10:04but we have to see some type of
10:05confirmation. So, we have closed
10:06obviously over that 10:00 a.m. uh
10:08Eastern open already, showing a little
10:10bit of confirmation. Let's look at a
10:125-minute. 5-minute we don't have very
10:14aggressive um confirmation over the
10:1610:00 a.m. yet. Let's see if we get
10:17anything. And we continue to reject the
10:2010:00 a.m. Starting to show a little bit
10:21more, which is good here. We haven't
10:23touched the overnight high just yet,
10:25which is a good sign. We touched the
10:27previous session high already, and we're
10:29starting to see some type of uh bigger
10:31moves here. I would want to see a very
10:32large closure over that 10:00 a.m. open.
10:35And we get one right here. And we get a
10:37nice aggressive push right there through
10:40that 10:00 a.m. open. We've already
10:41taken out the overnight low. So, I do
10:43like this for a long. I'd want to set a
10:45buy here with a take profit at the
10:48overnight high and a stop loss right at
10:50that overnight low. So, I end up playing
10:51it out, and we almost get triggered for
10:54a stop, but we end up taking out that
10:55overnight high, which is nice. I think
10:57what we do need to add now is what he
10:59stated, which was rejection blocks. So,
11:01what we're going to do is we're going to
11:02add rejection blocks. I'm going to go
11:03back to uh Quant here. I'm going to say,
11:06"Now, the last thing I want to add to
11:08this indicator is 1-minute rejection
11:10blocks, but I do want the rejection
11:12blocks to be able to switch time frame.
11:15So, if I wanted to see rejection blocks
11:18on the 5-minute or the 15-minute, just
11:20have that in the setting for me to
11:22change, but default it at 1-minute." All
11:24right. So, now it's going to build
11:25rejection blocks into the indicator, and
11:27I think we're actually going to get
11:29something really nice here. All right.
11:30To match his, we're actually going to
11:32take a screenshot of his rejection block
11:34in Vella and the Quant chat. I'm going
11:36to say, "Make the rejection blocks look
11:38like this, and there's a lot of
11:40overlapping going on right now. They
11:41need to be the significant rejection
11:44blocks." All right. Much better clean up
11:46there. You can see the rejection block
11:47labels are perfect, and we have one that
11:50was part of there, then it got
11:52mitigated. So, that's perfect. We can
11:53see when they actually get don't get
11:55mitigated. If we take a look at the
11:56settings as well, then here's where you
11:57can adjust the rejection blocks,
11:591-minute, 5-minute, 15-minute, as well
12:01as the minimum rejection wick/body
12:03ratio, which is nice. You can adjust
12:05that the way you want. Gives you a clear
12:07understanding of what it is as well. And
12:09the swing pivot strength. So, the the
12:11great the more that you would add there,
12:13the more candles you need to uh uh
12:15actually make it a stronger uh rejection
12:18block. So, this is very nice. I'm going
12:20to head to the 5-minute right now, see
12:21if the 1-minute trades off 5-minute
12:23rejection blocks really nicely. All
12:25right, so now that we're on the 1-minute
12:27chart, you can now see the 5-minute
12:28rejection blocks that are there, as well
12:31as when I go to the 5-minute time frame,
12:33you can see we also have that same
12:345-minute rejection block. Now, we can
12:36put Quant away. I think this indicator
12:38is pretty much built out exactly how we
12:40would want to trade it. And so, what I
12:43want to go now is back to replay mode
12:46and look at some potential setups to
12:48where we could actually trade it um day
12:52in and day out. So, there are two ways
12:54that you can actually trade the
12:55rejection block. You could trade via
12:58rejection, but the nice part is you
12:59could also trade when it gets mitigated
13:02for a continuation of a trend. So, like
13:05in this case, we take out the overnight
13:07low, we've also take out the previous
13:09session low um before market even
13:11opened. Market opened, then took out the
13:13overnight low. So, from here, what I
13:15would have looked for is longs, but I
13:16would have want to look for a rejection
13:18block to actually get fully mitigated.
13:20And so, what I would want to And so,
13:22what we're looking for is price to
13:24pretty much just bounce off of this
13:26overnight low after it took it out and
13:28see if we get a full mitigation. Here's
13:30that 10:00 a.m. open. Now, I want to
13:32make sure that we're going to hold that
13:3310:00 a.m. open. You can see we continue
13:35to tap that. You can see we show a nice
13:37bounce off the overnight low again, and
13:39then we mitigate the rejection block.
13:41Now, from here, I would want to take my
13:42buy position and then have the stop loss
13:45probably below that overnight low, and
13:46then in this case target the overnight
13:49high, which actually has not been tapped
13:51yet today. So, we'll see if we get up
13:53there um throughout the day. Nice
13:55continuation so far, exactly what we are
13:57looking for. You can see some more
13:59rejection blocks starting to form.
14:01Continue to mitigate them, and we'll
14:03actually go into the overnight session,
14:05and we don't fully hit it during that
14:07day, but we get a nice continuation. So,
14:09that could be considered a nice close.
14:11Now, the rejection blocks are nice, but
14:13I've actually been looking at the
14:143-minute time frame and it's been really
14:16strong. And what you really want to look
14:18at is what levels have not been touched
14:22and what levels have. As you can see
14:23here, we have the previous session high
14:25and overnight high way up here together,
14:27and that previous session high gets
14:28taken out before market even opens. When
14:30market opens, it ends up dumping, but
14:32you'll notice the previous session low
14:34and overnight low have not been hit at
14:37all. So, then what I want to watch is
14:38the 10:00 a.m. level and see if we can
14:40get something that shows us that it
14:42wants to go tap those untouched levels.
14:45So, in this case, we would want to look
14:46short because we know the highs have
14:48already been tapped. So, we get a nice
14:50aggressive move here out of the open,
14:51but is there any point in time where
14:53price really rejects? You can see here
14:55it's a very strong 3-minute closure, and
14:57from here, I'd probably take a sell stop
14:59loss above this high and then look for a
15:02take profit at the overnight low or the
15:04previous session low. In this case,
15:05let's just do it down there, and we'll
15:07play it out. And we actually get a push
15:09right to that overnight low, nice little
15:11bounce, and then takes out the previous
15:12session low as well. There's a bunch of
15:14other ways that you can trade this.
15:15Like, for example, here, pre-market,
15:18overnight, the previous session low was
15:21already taken. Nothing happened. It
15:23drives all the way down, sets a new low.
15:26Market opens, doesn't ever touch that
15:28overnight low. And of course, the
15:30previous session high and overnight high
15:32are way out of the picture here. So,
15:34what's the ideal place for this to go if
15:36we get some type of move after 10:00
15:38a.m.? It would be probably to that
15:40overnight low. So, in this case here,
15:42you see a really nice after that 10:00
15:44a.m. open, a really nice rejection, like
15:47strong candle. And from here, you would
15:49just, in my opinion, you take a short,
15:50you could stop at the high or you could
15:52stop maybe at the previous low, and then
15:54you would target the overnight low, and
15:56then just let it play out. And this
15:57thing drills right through that price
15:59point. So, a perfect setup, nonetheless.
16:02Here's a very similar setup as well. As
16:04you can see, overnight, we have the high
16:06that didn't end up getting hit at market
16:09open. Right? We end up actually taking
16:11out this very small pre-market low. You
16:13can notice the actual previous session
16:15low and overnight low were from that
16:18opening candle overnight, but notice
16:21here we have the push off of that. We
16:24never touch that high. So, the closest
16:25level, let's see if we get a nice push
16:27through, which we do get a very nice
16:30bullish candle break with a strong body.
16:32From here, once again, you would take a
16:34a long stop loss below the low and then
16:36take profit, in my opinion, at that high
16:38because maybe from there we'd want to
16:40trade back down lower. But, it ends up
16:42trailing right through that level yet
16:44again. So, it sometimes depend on what
16:47is the closest level and are the other
16:49levels very far away. So, that's
16:50something I would definitely focus on as
16:52well. This is quite interesting with the
16:5410:00 a.m. open. I think the 10:00 a.m.
16:56open price is good to just identify when
16:58you should pop possibly start trading
17:01versus using it as super significant
17:03level. I think it just helps understand
17:05of when the best time it is to start
17:07trading. After that, you get that
17:08morning volatility. But, again, a lot of
17:10great ideas with this type of strategy.
17:12It's not exactly what he trades, but
17:14identifying those key levels is super
17:16important. Do we take them out at market
17:19open between those, let's say, 30
17:20minutes of uh
17:229:30 to 10:00 a.m. and how far or close
17:26are we from those levels that we could
17:28trade? In my opinion, it seems like the
17:30closer you are to a level and as far
17:32away as the other levels are is a good
17:34one. Um there's several setups you could
17:36trade with these levels, but you
17:38definitely want to take into
17:39consideration where they are on the
17:41chart. But, if you enjoyed this video,
17:42please hit the like button and also
17:44subscribe if you have any strategies you
17:46want us to build or go over, leave it in
17:48the comments below. This indicator will
17:50also be tagged below, or you can just go
17:53to the indicators tab on Vella. And you
17:55know what? We're going to name it. We're
17:56actually going to tell Quant here to
17:58name it 10:00 a.m. open key levels. That
18:00way, you can go to the indicators tab
18:02here on Vella, and you can just search
18:04it and add it to your chart. Other than
18:05that, go test it out, and we'll see you
18:07in the next video.

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