2022 ICT Mentorship Episode 11

Finance-Focused Summary (Markets / Investing / Risk / Performance)

• The speaker analyzes e-mini Nasdaq futures (NQ) for the March delivery, using ICT-style “imbalances” and fair value gaps (FVGs) across multiple intraday timeframes to forecast and execute a short-biased move.
• Core directional thesis: after price retraces upward into a “premium” area (above the midpoint of the dealing range), it is expected to re-balance by moving down to attack resting sell-side liquidity below a key prior low zone.
• Key sequence described:
  • Price trades down into a discount, then rallies back into premium.
  • After failing to hold above a prior high, price breaks below the 50% equilibrium, forms a gap, and later returns to the premium / FVG zone to fill it.
  • This process can lull traders into chasing higher before the market turns down again.
  • After “spending three days” consolidating in the range, the market later releases downward, targeting sell-side liquidity.

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Instruments / Tickers / Assets Mentioned

• E-mini Nasdaq futures: NQ
  • Explicitly referenced as the “e-mini nasdaq futures contract for the march delivery.”
• Trading platforms/accounts:
  • TD Ameritrade — used for live trade execution (not demo)
  • TradingView — mentioned for workflows (paper/market replay comparison)
  • NinjaTrader — mentioned for workflows (paper/market replay comparison)

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Key Framework / Methodology (Step-by-Step)

1. Identify an imbalance / fair value gap (FVG) and define a deal range with a high and low.
2. Compute the equilibrium at 50% of the high-to-low range:
   • Below 50% = discount
   • Above 50% = premium
3. Wait for price to:
   • Rally back into premium and/or into the top of the FVG.
   • Show market structure with lower highs around a key swing high (described as bearish “nesting”).
4. Execute shorts when price revisits the FVG/imbalance zone at an optimal entry, rather than waiting for a clean breakdown below the low.
5. Require displacement (follow-through) as confirmation:
   • Once displacement occurs away from the level, hold long enough to hit the target liquidity sweep.
6. Profit-taking / workflow:
   • “Take your profits and move the sidelines” after hitting the liquidity target, then wait for the next setup.
7. Timing caution:
   • Warns against trading in the morning session after a big move (to reduce noise/chop).
   • Demonstrates using a demo account to manage impulsivity.

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Key Numbers and Performance Metrics Mentioned

Trade Entry / Exit (NQ Live Account — Example)

• Decision reference level: 13,586
• Entry: 13,858.25
• Exit: 13,612.25
• Result: approximately 204+ points
  • The speaker also frames it as “204 some plus handles.”
• Notes on tick/value math:
  • Mentions “240 sum times that by four” to express tick value (the exact derivation is not fully clear from the subtitles).

Timing / Session Hours

• Bank holiday behavior:
  • Trading stops at 1:00 PM New York time
  • Resumes around 6:00 PM New York time
• Monday note:
  • A gap down occurred after the 6:00 PM open.

Target Areas / Bias Levels (Later “Thinking Out Loud”)

• If weakness continues:
  • Preferred area: 13,300
  • Potential deeper move: 12,850–12,875 (spoken as “twelve thousand eight fifty … twelve thousand eight seventy five”)

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Performance / Account Results

• “Last six days trading” screenshot/log:
  • Shown figure: -$2,700.55
  • Explained as a broker administrative adjustment at settlement
• At closure, the speaker reports they were up:
  • +$4,920
• Broker displayed reflected gain:
  • +$7,675
• Speaker clarification:
  • The difference is not an actual realized trading outcome and cannot be controlled by them.

Described Trades From the Prior Day

• One trade labeled a “scratch” (small loss/covering costs)
• One trade captured a gain of $4,920 (described as “nice little dandy”)
• They claim no commission costs on the higher-result trade (stated via subtitles)

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Explicit Recommendations / Cautions

• Directional bias:
  • Bearish, and “has not changed,” even after a run-up.
• Execution discipline:
  • Don’t rush back into trades after a win (avoid “dopamine hit” behavior).
  • “Push your edge” is discouraged—overtrading dulls edge, and “gamblers” trade too frequently.
• Trading timing caution:
  • After major moves, avoid initiating trades in the morning session (implies increased chop/noise).
• Risk management via process:
  • Use demo trading to scratch the itch without burning a live account.
• Profit workflow:
  • After liquidity targets are hit: take profits and wait for the next setup.

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Disclosures / Disclaimers

• The speaker states they are teaching on YouTube and explicitly says:
  • People do not need to email or send payment info to join.
• They mention showing executions from accounts:
  • Demo vs live
• They provide a broker accounting explanation for mismatched P&L figures.
• No explicit “financial advice” disclaimer is quoted in the provided subtitles.

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Presenters / Sources Mentioned (End)

• Larry Williams — market structure concepts referenced as learned from his course/book
• ICT — referenced via “ICT Mentorship Episode 11” and repeated discussion of the ICT model
• TD Ameritrade — referenced for trade execution
• NinjaTrader and TradingView — referenced for replay/paper trading comparisons