2022 ICT Mentorship Episode 13

Finance/Markets Themes in the Subtitles

• Equities bearish bias (short-term): The speaker says they are “technically bearish on equities” and avoid initiating fresh live shorts after already capturing gains.
• Macro / event risk caution: They point to heightened volatility and uncertainty, including Ukraine-related risks, and mention potential “black swan” events as reasons to avoid live risk.
• Index correlation driving intraday bias: They monitor Nasdaq (Nasdaq-100 via “NQ” / “nasdaq”) and E-mini S&P 500 (ES / “e-mini s p”), arguing these often move “in tandem” (e.g., drawing Nasdaq behavior alongside ES / ES futures movement).

Instruments / Tickers / Assets Mentioned

Index Futures

• Nasdaq-100 futures
  • Referenced as: “nasdaq”
  • Also referenced: “micro e-mini nasdaq”
• E-mini S&P 500 futures
  • Referenced as: “e-mini S P” / “ES”

Trading Accounts / Platforms (Not Investments)

• TD Ameritrade
• TradingView (paper trading / executions)
• AMP Futures (mentioned hypothetically as a margin/account reference)
• “Discount broker” (unnamed; referenced in the context of AMP Futures)

Key Numbers, Performance Metrics, Timelines

Demo Account Growth (Performance Claim)

• $10,000 → $256,000 (described as occurring by “this morning” / “last night” in context)
• Later references include:
  • Another demo run reaching “200 some thousand dollars”
  • A hypothetical account history: $10,000 → $12,111 after “21+ in one trade with three scalings”
    • (They treat this as one scaled trade.)

Trading Goal / Recommendation Framing

• Target language: ~20% per month (“20 per month”)
• Emphasis on compounding: 20% compounding matters even from small starting capital
  • Example framing: “if you start with one dollar…”

Time Specifics for Trade Setup

• Equities opening: Discusses the 9:30 AM New York time open as a key volatility/tape context.
• Chart timeframes referenced: hourly, 5-minute, and 1-minute
  • Mentions drilling down further to 30-second detail for execution.

Micro Contract Point Value

• Micro E-mini Nasdaq:
  • “every one point or four ticks is equivalent to two dollars.”

Example Stop Level Mentioned

• “14 110” (appears to be a futures/index-style price reference used as an example stop level)

Position Sizing / Pyramiding Quantities

• A single overall trade built with three scalings:
  • Buys in sequence: 3 → 2 → 1 micro contracts
  • Largest initial tranche is at the base (pyramiding).
• They mention the sequence can total up to six micro contracts
  • Example cost framing: “that’s six micro contracts that requires technically 1,200 dollars.”

Methodology / Step-by-Step Framework (Order-Block / Liquidity Approach)

1) Bias and Objective Setting

• Set weekly / daily / monthly objectives for goal-based execution (rather than constant trading).
• Maintain directional bias:
  • Bearish on equities, but avoid live shorts due to recent gains and risk conditions.

2) Use Demo / Paper Trading for Execution Learning

• Use TradingView paper trading to demonstrate trades with reduced risk to the audience.
• Demo trades are treated as applying the same principles as live execution.

3) Liquidity-Driven Targets

• Wait for price movement toward buy-side liquidity (described as a “magnet/draw on liquidity”).
• Targets described using:
  • Equal highs / relative equal highs
  • Fair value gaps as rebalancing zones

4) Order-Block Logic

Bullish order block conditions (as described for upside)

• A down-close candle (on the relevant timeframe) should not be violated once price begins rallying.
• Typical components mentioned:
  • Gap / fair value gap
  • Down-close candle
  • A narrative that price should reach buy-side liquidity

Timeframe hierarchy

• Use higher-timeframe context plus lower-timeframe confirmation elements.

5) Intraday Timing Filter

• Avoid chasing the opening move around 9:30 AM ET.
• The opening action is described as potentially a “Judas swing” / fake move.
• Prefer discount entries.

6) Entry / Confirmation Sequence (Narrated)

• Price retraces into an imbalance / gap area inside the order block.
• The setup is treated as valid when price shows acceptance and then moves away.

7) Risk Management / Trailing Stop Rules

• Stop placement tied to order-block structure:
  • “Stop-loss must remain below this candle’s low”
  • Avoid placing stops “inside” the candle/range to prevent premature stop-outs.
• If price later breaks the order-block low, it indicates failure; then stopping out is framed as correct.

8) Position Construction

• Pyramiding (avoid inverted pyramiding):
  • Build the largest base first: 3 micros, then 2, then 1 as price confirms.
• Treat the three entries as one scaled trade (not three separate trades).

Disclosures / Cautions Explicitly Stated

• Not licensed to provide trade advice:

  “I’m not licensed to give you trade advice… I operate through the function of a demo account to protect me and protect you.”

• No guarantee of results:

  “I’m guaranteeing you’re going to lose money every trading system…”

  • Speaker also notes that trading systems all lose money at times.
  • Performance framing / expectation management:
  • Results are presented as demonstrations/theory.
  • Viewers should not expect identical outcomes without backtesting and developing a documented personal plan.
  • Risk caution (live trading):
  • Avoid live trading due to Ukraine/black swan risk and general uncertainty.
  • Live losses are described as psychologically “toxic.”

Key Presenters / Sources Mentioned

• Presenter / speaker: Michael (referenced repeatedly; full identity details are not provided beyond “Michael” in subtitles)
• Broker/platform/company references: TD Ameritrade, TradingView, AMP Futures
• Other educator referenced: Chris Laurie (mentioned for comparison; no endorsement details beyond that reference)