Use This Mechanical SMC Strategy To Get Funded

Key finance/investing themes

• Most traders fail because, after losses, they develop emotional “discretion,” leading them to:
  • skip winning trades
  • enter “revenge/FOMO” cycles
• The proposed solution for consistency (and optionally to qualify for “funded accounts”) is a strict mechanical trading plan with predefined rules.

Instruments / tickers mentioned

• None explicitly (no stocks/ETFs/crypto/bonds/commodities mentioned).

Methodology / step-by-step framework (mechanical trading plan)

Goal

• Reduce the “performance discrepancy gap” by aligning execution with the strategy exactly as it was planned.

The 4 main areas to make a strategy mechanical

1. Idea generation

   • Directional bias (mechanical decision each session/day) based on:
     • current trend / order flow direction
     • market structure mapping (what has been “mitigated,” current “objective of price”)
     • available liquidity / likely target draw
   • POI selection (Point of Interest, i.e., supply/demand/value zones):
     • choose tradeable zones using mechanical criteria (examples below)

2. Entry model (execution after alerts)

   • Wait for the POI to be mitigated (avoid trading mid-zone).
   • Look for a strong liquidation (more participants liquidated → implied liquidity / “BFI” involvement).
   • Require a lower-timeframe structure break in your favor (described generally as “chalk/boss” and “flip,” including choices about entry style like extreme vs flip).
   • Optionally add conditions such as:
     • liquidity sweep
     • momentum shift (a “V-shape” concept: momentum coming out of the POI)
   • Define the exact entry location mechanically, e.g.:
     • at the edge of the zone
     • within a percentage into the zone (examples: 25% or 50%)
     • “counter body” approach

3. Trade management

   • Start with a fixed R framework:
     • target the same multiple consistently (examples: 3R or 5R)
   • Optionally make exits mechanical using rules like:
     • key technical levels (e.g., nearest weak swing high/low, specified timeframe)
     • trailing based on structural highs/lows
     • a combination of fixed-R with technical targets
   • Emphasis: avoid “making it up as you go along” (no random partials/targets).

4. Risk management / position sizing

   • Focuses on consistency because you can’t predict the win/loss sequence.
   • Example rule set:
     • Max daily loss: 3 losses/day
       • “three if I take three losses in a day… that’s it walk away”
     • Max strikes per month: 3 losses/month
       • “three strikes a month”
     • limit total open risk across positions (referred to as “CMR open risk”).

Explicit POI / zone selection criteria mentioned (examples)

The speaker describes many “mechanical as possible” filters (not all are mandatory). Examples include:

• Use supply/demand zones with decisions like:
  • trade a single-candle pivot zone
  • or trade a whole range
• Filter zones by structural/flow quality:
  • only zones that led to a breaker structure
  • only zones that flipped
  • zones that also suspect liquidity
  • zones with inducement in front of the zone
  • stacked POIs with another higher-timeframe zone
• Trading location preference:
  • buy in discount / sell in premium (“Buy Low sell high”)
• Freshness rules:
  • trade completely unmitigated/fresh zones (orders still untapped)
  • avoid zones that are part of a long mitigation chain (as described)

Multi-timeframe execution (“3 time frame philosophy”)

Fractal philosophy

• Trade medium-timeframe POIs using lower-timeframe execution.
• Use higher-timeframe context to define the “objective of price” and when to be aggressive vs cautious.

Timeframe examples given

• Swing trading
  • Higher: Daily
  • Medium: 4H
  • Execution: 1H
• Day trading
  • Higher: 4H
  • Medium: M15
  • Execution: M1

How the objectives connect (narrative logic)

• Higher timeframe indicates whether price is in:
  • trend/run phase
  • or pullback phase
• Medium timeframe is treated as the layer where the objective fulfills.
  • Example logic described:
    • If higher timeframe is bullish, after a higher-timeframe break you expect a high-timeframe pullback likely from a high-timeframe zone.
    • When the medium timeframe shifts bearish, shorts can be considered from medium POIs—but the deeper you go, the more cautious you should be because the pullback may be nearing completion.
    • Once the pullback objective is fulfilled, medium shifts bullish again, setting up a next leg long toward weak highs.

Common mistake and adjustment

• Traders get “caught out” by trading every medium-timeframe POI everywhere without aligning to the higher-timeframe objective.
• The fix is to adjust aggressiveness:
  • sometimes take early counter-trend entries
  • sometimes wait for additional confirmation (e.g., specific POI mitigation followed by a lower-timeframe structure/flow shift)

Key numbers / thresholds mentioned

• Fixed R targets: 3R or 5R
• Risk limits (explicit):
  • 3 losses in a day → stop for the day
  • 3 strikes in a month → stop/withdraw after 3
• Entry location percentage examples:
  • enter at 25% or 50% into the zone
• No prices, yields, or valuation multiples were provided.

Disclosures / disclaimers

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

Presenters / sources

• Single unnamed speaker (no name, channel, or external source credited in the subtitles).