Video summary

2022 ICT Mentorship Episode 7

Main summary

Key takeaways

Finance

Finance-Specific Summary (Markets, Strategy, Risk, Performance)

Market Focus

  • Primary instrument: Daily and intraday price-action analysis on NASDAQ (continuous contract).
  • Cross-checks/correlation: Uses S&P 500 and Dow futures behavior to confirm or contextualize moves.

Core Daily “Bias” Framework (ICT-Style)

Daily Range + Liquidity Logic

  • Identify a daily range defined between a prior high and low after liquidity events (e.g., buy-side/sell-side sweeps).
  • After price takes out sell-side liquidity, expect retracement back into the daily range (i.e., movement between high ↔ low).

Premium/Discount Influence (and Its Limits)

  • If the market is in premium/discount (above/below equilibrium), the directional bias may be clearer.
  • If price action consolidates around equilibrium, directional bias can become unreliable.

Bearish Structure Shift Rule (Daily)

  • If daily structure shifts lower, expect:
    • down closes (bearish continuation)
    • continuation unless new evidence appears that invalidates the bearish shift.

Intraday Execution When Daily Bias Is Unclear

Reduce Reliance on Daily Calls

  • When daily bias is hard to read (equilibrium/consolidation):
    • shift to liquidity-pool hunting on lower timeframes (15-min, 2-min)
    • trade intraday volatility more “surgically,” targeting prior highs/lows and waiting for confirmation.

Methodology Elements (Step-by-Step Examples)

Daily Bias Interpretation — Bearish Example

  • If the daily market structure shifts lower, then:
    • anticipate price trading down toward prior lows
    • expect more bearish candles (“down closed candles”)
  • Countertrend caution: If taking longs against bearish daily bias, do so as a countertrend trade with reduced leverage.

Leverage & Position Sizing (Risk Management Emphasis)

  • Prefer fixed percentage risk concepts rather than fixed leverage.
  • Risk guidance referenced:
    • Avoid high risk early
    • examples mentioned around < 1% (e.g., ~0.5% or 3.5% as preference)
    • later a “maximum risk” referenced around 4.5% (speaker clarifies they prefer less)
  • Early-stage execution recommendation:
    • use demo / very low leverage to avoid “toxic thinking” and fear-driven execution.

Key idea: Losses are expected; stops and risk limits are required.

Intraday Setup Process (Example Around the NY Open Window)

  • Practical time framing:
    • speaker references a chart reference like “8:30 in the morning crosshairs”
    • takeaway remains the New York open window (referenced as 9:30am New York).

15-Minute Plan

  • Mark relative equal highs / resistance zones where retail often reacts (look left).
  • Choose liquidity targets using the extreme (not inside-candle lows), then expect interaction with those levels.

2-Minute Execution Plan

  • Identify post-break behavior around an old low:
    • price trades below an old low
    • may rally
    • then either confirms bullish structure or fails and drops again
  • Entry timing concepts:
    • use FVG (fair value gaps)
    • use displacement + structure shift to time entries
  • Cross-market note:
    • speaker describes borrowing timing logic from S&P (FVG logic used heavily on S&P)
    • claims NASDAQ timing is supported by using S&P as an indicator, and therefore FVG may not be required on NASDAQ in the same way.

Key Instruments / Levels Mentioned

Indices / Futures

  • NASDAQ (continuous contract)
  • E-mini S&P 500
  • Dow futures / Dow (used as correlation indicator)

Approximate Order/Level Mentions

  • 14,505.5 (NASDAQ order-block context entry level)
  • 14,622 3/4 (NASDAQ noted as a high/exit area)
  • 44.95 / 44.96 / 4496 / “4496-ish” (short-term high/target region; context treated as a market level tied to the S&P portion of the setup)

Performance & Outcomes (Trading Results)

Portfolio/Account-Level Figures (as Cited)

  • Account balance / equity: approximately $37,823.15
  • Profit & loss tab: approximately $13,926
  • Stated return: about 51% in roughly 2 weeks + 1 day
  • Example trade outcome mentioned:
    • + $2,345 profit from a specific transaction (net of described commissions/fees)
  • Another cited quick-win example:
    • + $1,100 “for one day” (short time window)

Additional Notes on Scaling

  • Live results are described using a mini contract basis.
  • Scaling leverage/contracts can materially change profitability, but requires experience; speaker warns against unrealistic expectations.

Recommendations & Cautions

No “Perfect Trading” Expectations

  • Repeated warning against demanding magic bullets (highest high/lowest low with no losses).
  • Emphasizes:
    • imperfect entries/exits are normal
    • being right ≠ being profitable

Avoid Overtrading When Bias Is Unclear

  • If daily bias is obscured by equilibrium/consolidation, rely more on intraday liquidity and smaller timeframes.

Stop-Loss Discipline

  • Stops are tied to structure levels (e.g., below a highlighted low on the 2-min chart).
  • Psychological point:
    • traders fear being wrong
    • speaker argues stops are necessary and losses will occur.

Demo vs Live Feedback Loop

  • Demo can help, but provides less realistic feedback.
  • Encouraged approach: single-contract live style for feedback and learning.

Anti-Misinformation / Credibility Claims

  • Speaker disputes claims that deposits are reflected directly in P&L in the way some commentators allege.
  • Argues broker P&L reflects trading profits rather than deposits.
  • Challenges claims of extreme daily earnings (e.g., “$220,000 a day”) to be proven with live account log-ins.

Disclosures / Disclaimers Mentioned

  • Frequent framing around paid membership and training methods with risk cautions.
  • Mentions CFTC in the context of regulatory/legal implications if profits weren’t real.
  • The summary does not state a literal “not financial advice” phrase, but the speaker’s framing functions similarly.

Presenter / Sources Referenced

Presenter

  • ICT (speaker repeatedly references “ICT mentorship” and “as ICT”; no real name provided in subtitles)

Referenced Author/Book (Pattern Contrast)

  • Linda Rasch / Larry Connor — “Street Smarts”
    • mentioned as a different pattern reference
    • speaker states they use their own interpretation rather than teaching that specific pattern.

Original video