Summary of "This Strategy Should be ILLEGAL.. :)"

This Strategy Should be ILLEGAL.. :)

Key Finance-Specific Content

Markets & Instruments

Focus on NASDAQ futures (June delivery) and ES (E-mini S&P 500 futures).
Discussion centers around:
- Opening range gaps
- Electronic trading hours
- Pre-market trading
Important time windows and price levels:
- Opening bell: 9:30 AM Eastern Time
- Premarket window: 8:00 AM to 9:30 AM (90 minutes)
- New York lunch period: 11:30 AM to 1:30 PM Eastern
- PM session opening range: 1:30 PM to 2:00 PM Eastern
Key price levels mentioned:
- NASDAQ target: 17,750
- Electronic trading hours low example: 18,830
- Trade entry example: 18,991 (inside a fair value gap)
- Afternoon session target: 18,664.5
Concepts and instruments:
- Futures contracts on NASDAQ (NQ) and ES
- Use of fair value gaps, order blocks, liquidity pools, imbalance zones, and volume profile concepts
- References to algorithmic trading behavior and smart money concepts

Investing/Trading Strategy & Methodology (The Venom Model)

Overview

The Venom model is a price action and liquidity-based trading framework designed to identify reversal patterns and liquidity raids within the market’s opening range. It targets high-probability levels derived from electronic trading hours and opening range gaps, combining price levels, liquidity pools, and candlestick inefficiencies to predict market moves—especially bearish reversals.

Step-by-Step Framework

Identify the 90-minute pre-market range (8:00 - 9:30 AM): Mark the high and low within this window, which act as buy side (high) and sell side (low) liquidity pools.
Opening Range Gap Analysis: Observe the gap between the previous regular trading hours settlement and the opening price. Large gaps (e.g., ~1000 points in NASDAQ) often indicate directional bias (bearish in this example due to tariffs and macro context).
Watch for Relative Equal Highs: Identify two or more relative equal highs formed in the opening range. When price rallies above these highs with an inefficient candlestick (a quick run-up followed by a sharp drop), this forms the Venom “fangs” signature—a liquidity raid on buy stops above the highs, “poisoning” trapped traders.
Confirm Venom Setup: The candlestick must close above these relative equal highs, then quickly break down and close below them, creating an imbalance and confirming the liquidity trap.
Entry Points:
- Aggressive entry: Short above the relative equal highs during the liquidity raid.
- Lower risk entry: Wait for price to retrace back to the Venom order block (opening price of the candlestick that formed the liquidity raid).
- Additional entries can be taken near fair value gaps or inversion fair value gaps formed after the raid.
Trade Management: Use fair value gaps, volume imbalances, and consequent encouragement levels as dynamic support/resistance. Watch for breakdowns below electronic trading hours lows to confirm bearish continuation. Monitor the New York lunch period and PM session opening range for further liquidity pools and potential setups.
Contextual Considerations:
- Best suited for trending or directional markets, particularly bearish in this example.
- Does not perform well in choppy or range-bound markets.
- Requires discipline and patience to wait for correct setups and confirmations.
- Emphasizes understanding market structure and algorithmic behavior rather than blindly following price or time.

Macroeconomic Context

The bearish bias is influenced by tariffs implemented by the Trump administration, which create downward pressure on NASDAQ futures.
The market environment is described as highly manipulated and volatile, necessitating precise entries and risk management.

Performance & Risk Management

The presenter has demonstrated real-money trades with AMP Global, including an $18,000 profit in a single trade using this model.
The example in the video was executed in a demo account for transparency and risk control.
Entry was made at 18,991 with zero initial drawdown.
The trade capitalized on inefficiencies and fair value gaps to maximize risk/reward.
Emphasizes not chasing trades and waiting for the model’s specific conditions.
Warns against market replay or hindsight trading as misleading and encourages live price action execution.

Explicit Recommendations & Cautions

The Venom model is highly precise and requires deep understanding; beginners may find it disjointed initially.
Avoid mixing or cherry-picking this model with other trading strategies or buzzwords.
Beware of imitators and scammers who misuse the Venom name or show only market replay.
Success requires journaling, backtesting, forward testing, and discipline.
The presenter stresses teaching with live price action and proof of execution.
This is not a simple or beginner-friendly approach; it demands commitment and learning.

Key Numbers & Timelines

NASDAQ target: 17,750 (key level for the year/first half)
Demo trade entry: 18,991
Electronic trading hours low: 18,830
PM session trade target: 18,664.5

Important time windows: - 8:00 - 9:30 AM (premarket range) - 9:30 AM (market open) - 11:30 AM - 1:30 PM (New York lunch) - 1:30 PM - 2:00 PM (PM session opening range)

Disclosures

The presenter clarifies that today’s trade example was done in a demo account.
Past trades with real money have been shown live.
Strong disclaimer against market replay and hindsight trading as valid educational tools.
Emphasizes this is not financial advice but a teaching of a personal model.
Encourages viewers to do their own work and not rely solely on videos.

Presenter

The presenter is a trader and educator known as Papa ICT (Inner Circle Trader).
Known for teaching algorithmic price action, smart money concepts, order blocks, fair value gaps, and liquidity-based trading.
Has a community of students and a reputation for live trading and transparency.
Critical of scammers and imitators in the trading education space.

Summary

This video introduces the Venom model, a sophisticated, algorithmically-informed trading strategy focused on the NASDAQ futures market. It centers on the opening range, premarket liquidity pools, and a signature reversal pattern involving relative equal highs and liquidity raids (“fangs”). The strategy uses precise price levels, fair value gaps, and order blocks to time entries and exits, particularly in bearish environments influenced by macro factors like tariffs.

The presenter shares a recent demo trade example, emphasizing live execution and proof over hindsight or replay. The model requires discipline, patience, and understanding of market structure and algorithmic behavior. The video also critiques many trading educators who rely on buzzwords or market replay without real-time execution.

Key levels, timelines, and methodology are provided to help traders frame the market narrative and anticipate price action with high probability. The presenter encourages rigorous study, journaling, and live practice to master the approach.

End of Summary