Video summary

My $1,300,000 Trading Strategy (Explained in 10 Minutes)

Main summary

Key takeaways

Finance

Market / Trading Context & Instruments Mentioned

  • Instrument/market: Nasdaq futures
    • Referred to as the “future price of Nasdaq” and used as a proxy for fair pricing of Nasdaq-listed companies.

Trading Sessions (U.S. markets)

  • Pre-open: price before the open; used as the fair price anchor.
  • Market open (9:30 a.m. NY): treated as a major driver of dislocations.
  • 8:30 a.m. economic/news releases: treated like another “session open” and a major cause of fair price changes.

Prop Firms / Evaluation Constraints

  • Prop firm payout/eval model mentioned: minus 2,000 to plus 3,000
  • Implied constraint: about a ~1:1.5 risk:reward setup to pass evaluations.

Core “Fair Price” Framework (Methodology)

Define “Fair Price”

  • Fair price = the pre-open price

Why This Matters

  • The author argues the session open causes an influx of institutional volume, which can create unfair price dislocations (i.e., pump/dump behavior away from fair).

When Fair Price Changes

  • Only due to:
    • News at 8:30 a.m.
    • Session opens

Trade Logic Relative to Fair Price

Continuation Trades

  • Trade away from/with the open’s initial displacement early.
  • Preference rules:
    • The author only likes continuation longs right at the session open
    • On Monday, continuation is only favored within the first 10–15 minutes

Reversion Trades

  • After the initial move, trade a reversion back toward fair price:
    • Pre-open fair price on normal days
    • Pre-news price on 8:30 a.m. news days

Entry Trigger Used Throughout

  • Break of Structure (BoS)

Exit / Profit Targets

  • Uses point-based targets (see risk management section).
  • Mentions “target more” when price has moved far enough.

Risk Management & Explicit Number Rules

Standard Risk:Reward

  • 1:1.5 risk:reward, motivated by prop range (-2,000 to +3,000).

Stop / Take-Profit Templates

  • For continuation / larger opening candles:

    • If opening candle magnitude is > 25 points:
      • 50-point stop
      • 76-point take profit
    • Otherwise, the text implies a smaller default (e.g., 25/38 pair)

  • For reversion trades (commonly in examples):

    • 25-point stop
    • 38-point take profit

Time Cutoff

  • Stop trading / stop initiating at 11:00 a.m.
    • Reason given: volume dies out

Intraday Caution (Wicks)

  • Large wicks around the open can stop traders out before true reversion.
  • If you are in a trade and the open produces extreme wicks (especially on news-driven momentum):
    • Consider going break-even

Day-by-Day Playbook (As Described)

Friday (Example Week Day)

Bias Anchor

  • Mark pre-open price as fair price.

Continuation Long (early)

  • Setup:
    • First candle green but slight
    • Second candle breaks up and closes above prior candles
  • Example:
    • Candle move cited: 29 points
    • Trade plan used: 50-point stop / 76-point take profit

Alternative Continuation if Missed

  • Enter on a later confirmation:
    • Another structure break / close-above near the opening area

Reversion Trade

  • After continuation, look for reversion back to pre-open fair price
  • Entry:
    • Break of structure down
    • Strong displacement: “no wick on the bottom”
  • Targets:
    • Uses 25/38
  • Potential:
    • Could be up to ~100 points back to fair price (described as “very, very profitable”)

Thursday (8:30 a.m. News at the Open)

News Handling Rule

  • 8:30 a.m. news is treated like another “session open.”
  • If news is green:
    • Author allows continuation long similar to open behavior
  • After that:
    • Revert to pre-news price (not pre-open)

Shorting for Reversion

  • After opening wicks / possible displacement:
    • Short back to pre-news price once price breaks down structure

Wick Caution

  • Example given where the opening candle wicks the trader out before TP.
  • If wicked out:
    • Re-enter when break of structure occurs again

Explicit Suggestion

  • If you are already in at the open and face extreme wicks:
    • Consider going break-even

Wednesday (No 8:30 News)

Early Continuation Short

  • Open at 9:30 a.m.
  • Opening candle described as huge and red
  • Targets used:
    • 50-point stop / 76-point take profit
  • Includes explicit citation of 1:1.5

Reversion Long Back to Pre-Open

  • After initial move:
    • Go long off break of structure toward fair (pre-open)
  • Examples:
    • One TP misses by ~2.5 points
    • Another hits with ~1.5-point difference
  • The day’s results are described as mixed (win/loss pattern)

Time Cutoff

  • Stop after 11:00 a.m.

Interpretation

  • Even if you don’t get full reversion, partial movement toward fair is still profitable.

Tuesday (Reversion Day / Strong Wick Rejection)

Fair Price Anchor

  • Pre-open

Immediate Continuation / Reversion Short

  • Setup:
    • Large wick rejecting long on the opening candle
  • Preference:
    • Short as soon as the opening candle forms
  • Example:
    • Opening candle body: 18 points
  • Targets:
    • 25-point stop / 38-point take profit

Subsequent Reversion Short Back to Fair

  • Entry:
    • First break of structure
  • Targets:
    • Hits 38-point TP

Larger Move Option

  • Mentions the first BoS could yield ~181 points toward fair price
  • Described as potentially ~3.6k with one contract (no ticker/price provided)

Monday (Bank Holiday)

Fair Price Anchor / General Rule

  • Still trades if there’s an opening volume influx
  • Mark pre-open as fair price

Continuation Long

  • Evidence:
    • Larger-than-usual 9:30 a.m. candle indicating volume influx
  • Targets:
    • Uses 38 points continuation long entry/target
    • Explicitly: do not go for 76 because it’s a bank holiday and continuation may not go as far

Reversion Short

  • Short off first break of structure
  • Target around 38 points
  • Example:
    • 33.5 points moved, giving a 38-point target
  • Optional:
    • Mentions a possible scalp long back to fair if price continues down further

Explicit Recommendations / Cautions

Continuation Trades (Only take these conditions)

  • Only right at session open
    • The author discourages continuation trades away from the open
  • On Monday bank holiday:
    • Only within the first 10–15 minutes

Reversion Trades

  • Non-news days:
    • Revert to pre-open fair price
  • 8:30 a.m. news days:
    • Revert to pre-news price

Trading Hygiene

  • Watch for open wicks
    • They can stop you out before true reversion
  • Consider break-even if wicking is likely

Exit Discipline

  • Stop after 11:00 a.m.

Dislocation Cause Check

  • Determine whether movement is driven by:
    • News
    • or merely session open unfairness

Performance Claims & Key Numbers

  • Claimed results:
    • “over $1.3 million dollars” from prop firms in the last 12 months

EV / Prop Sizing Tool

  • Author claims a website can compute an optimal prop firm based on user stats.
  • Example outputs (per eval purchase):
    • Make $225 per eval on one account
    • Lose $186 per eval on another
  • Claim:
    • They may lose on multiple evals depending on the prop firm chosen

Tickers / Assets Mentioned

  • No specific tickers (e.g., AAPL, QQQ) are named.
  • Nasdaq futures are the primary referenced instrument.

Disclosures / Disclaimers

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

Presenters / Sources

  • Presenter: The YouTube channel owner/author (name not given in subtitles)
  • Source content mentioned: “my news trading video” (the author’s prior video)

Original video