Video summary

The 3 Step A+ Strategy I Use Everyday

Main summary

Key takeaways

Finance

Finance-focused summary (trading framework + risk/entry logic)

This video outlines a 3-step discretionary trading framework (primarily price-action) designed to be applied consistently to reduce overtrading—especially after losses. It emphasizes:

  • Not changing “bias” mid-session
  • Waiting for a liquidity sweep
  • Using Swing Failure Patterns (SFPs) as the trigger
  • Applying predefined invalidation and stop-loss placement

Disclosures/intent: The subtitles do not include a “not financial advice” disclaimer, though the content is clearly instructional and trading-focused.

Framework / methodology (3 steps)

1) Set “daily bias” before the open (no guessing)

  • Determine whether the market is bullish, bearish, or neutral using a higher timeframe (e.g., daily / 4-hour / 1-hour).
  • Bias definition: a lean, not a prediction—answering: “Which side am I willing to be on today?”
  • Do not switch bias mid-session to avoid:
    • revenge trading
    • tilt
    • oversizing
  • If conflicted or neutral → sit out.

Three checks (as stated):

  1. Which direction is the higher timeframe delivering?
  2. What key liquidity level has not yet been taken (untouched highs/lows = potential targets)?
  3. Pre-define an invalidation level (stop-loss). If price trades through and holds, bias is dead.

Implementation rule:

  • Once invalidation is hit for the day, stop trading that day (no impulse flip).

2) Identify liquidity pools and wait for a sweep (“market runs something first”)

Stops/limits are assumed to cluster at obvious swing points:

  • Buy stops above swing highs
  • Sell stops below swing lows

Target liquidity levels using:

  • Weekly highs/lows
  • Daily highs/lows
  • Session highs/lows (Asia / London / New York)

Core idea: the market often needs to run opposing liquidity before reversal or continuation. Reactions at equal highs/equal lows (double tops/bottoms) are highlighted as especially strong.

3) Trade only when an SFP confirms at the right level

Swing Failure Pattern (SFP) definition (bearish example)

  • Price raids/takes out a prior swing high
  • Then fails to displace further
  • And closes back below the level

Requirements for a “good” SFP (as stated)

  • Occurs at a meaningful level (e.g., weekly swing high, session swing high, equal swing highs—not random mid-day swings)
  • Aligns with bias direction (a bearish SFP shouldn’t fight a bullish bias)
  • Produces a strong/quick rejection (not a slow drift)

Explicit trade construction (how entries/stops/targets are set)

From the walkthrough example, the video uses:

  • Entry: short after SFP confirmation
  • Stop-loss: placed above the wick/high that created the SFP
  • Target: the next opposing pool, specifically the previous daily low

Example numbers (price/risk/reward shown)

  • Short trade
    • Stop: 30,144.50
    • Target: 29,108.25
    • Risk: $3,500
    • Potential reward: $17,000
    • Implied: ~4.9R (17,000 / 3,500)

Risk management adjustment described:

  • After a very large expansion down, the speaker moves toward:
    • reducing risk, potentially moving stop toward break-even
    • using a previous hourly high as the later stop reference

Caution / behavioral risk notes (anti-overtrading)

  • The behavioral problem framed:
    • Traders switch strategies every ~3 weeks due to losing streaks.
  • Suggested fix:
    • accountability to run the framework long enough for the statistical edge to emerge.

Trading psychology cautions:

  • Don’t flip bias impulsively after invalidation
  • Don’t enter too early (chop risk) or too late (missed move); wait for SFP confirmation

Instruments / tickers / assets mentioned

No specific tickers, ETFs, stocks, bonds, commodities, or crypto symbols are mentioned in the subtitles.

(An example includes numeric price levels, but the underlying instrument/symbol is not specified.)

Timelines referenced

  • Bias is set before the open
  • Trading windows mentioned:
    • Asian session
    • London session
    • New York session
    • PM window and timing around 3:00 p.m. / ~4:00 p.m.
  • Framework tested via a stated historical study:
    • 1983 commodities traders experiment
    • 3 years evaluation period
  • Behavioral loop described:
    • switching strategies after ~every 3 weeks

Explicit recommendations / rules

  • Before trading each day
    • Decide bias from higher timeframe
    • If neutral/conflicted → sit out
  • During the session
    • Avoid switching bias mid-session
  • When trading
    • Wait for liquidity sweep + SFP
    • Place stop at the invalidation level (or above/below the SFP wick as confirmed)
    • Target the next opposing liquidity pool (e.g., previous daily high/low)
  • If invalidation hits
    • Stop trading for that day; don’t flip impulsively
  • Prop-firm note
    • Cannot hold overnight; can re-open after rollover if price hasn’t gapped too much

Disclosures / disclaimers

  • No explicit “not financial advice” or regulatory disclaimer appears in the provided subtitles.

Presenters / sources (as mentioned)

  • No names or organizations are credited as presenters.
  • Historical reference: “In 1983, two commodities traders” conducted an experiment (names not given).

Original video