Full Set and Forget Strategy

Market Structure and Trend

Price Action and Market Structure

1. Price Action:

o Represents the movement of price to create market structure.

o Composed of candlesticks moving up and down.

2. Market Structure:

o Created by reversals in price forming points or "elbows," often referred to as

highs and lows.

o Can be bullish (price trending upward) or bearish (price trending downward).

3. Elbows or Points:

o Defined as clean reversal points in the market, based on body closures, not
wicks.

o Use the "snake trick" for identifying them.

4. Bullish vs. Bearish Markets:

o Bullish (Upward Trend): Price forms Higher Highs (HH) and Higher Lows (HL).

o Bearish (Downward Trend): Price forms Lower Lows (LL) and Lower Highs
(LH).

5. Trend Reversals/Shift of Trend and Structure:

o A trend becomes bearish when price closes below a Higher Low (HL).
 o A trend becomes bullish when price closes above a Lower High (LH).

LH

6. Formation of New Highs and Lows:

o When price closes above a Higher High (HH), a new HH and HL are formed.

o When price closes below a Lower Low (LL), a new LL and LH are formed.

o The point before a push to a new HH is the new HL, and the point before a
push to a new LL is the new LH.

Identifying Trends and Key Levels

1. Timeframe Analysis:

o Identify trends on Weekly (W), Daily (D), and 4-hour (4hr) timeframes.

o Mark highs and lows with lines, using body closures, not wicks.

2. Consecutive Timeframes in Sync:

o Focus on pairs where at least two consecutive timeframes are in sync (e.g., W
bearish, D bullish, 4hr bullish).
 o Place alarms where the 4hr timeframe could resync with the others, if you
see a pair with potential that’s currently not in sync.

3. Top Pair Selection:

o Evaluate pairs during the weekend to identify those with consecutive

timeframes in sync.

o Disregard pairs consolidating for extended periods or showing no potential.

4. Finding Valid HLs and LHs When Unsure:

LH LH

o Use AOIs to find valid HLs or LHs:

▪ Place a small box to validate AOIs (body touches, not wicks).

▪ If there’s no body touch, it’s not a valid HL or LH.

o AOIs are critical for retracements and trend reversals.

Trading Around AOIs (ONCE AOIs ARE ESTABLISHED)

1. Retracements and AOI Interaction:

o A bullish W and D trend may require the 4hr timeframe to go bearish for a
retracement. But this is okay since we hopefully still have 2 timeframes in-
sync.
 o If the retracement causes the D timeframe to turn bearish, we shift our focus
to selling instead of buying.

o A bearish W and D trend may require the 4hr timeframe to go bullish for a
retracement. But this is okay since we hopefully still have 2 timeframes in-
sync.

o If the retracement causes the D timeframe to turn bullish, we shift our focus
to buying instead of buying.

2. Switching from Buy to Sell and Vice Versa:

o When retracement turns the D bearish:

▪ Sell from a D AOI (not W AOI), as the W remains bullish.

▪ The sell might serve as the retracement to the original W AOI, where
price may eventually go up.
 ▪ Real example:

o When retracement turns the D bullish:

▪ Buy from a D AOI (not W AOI), as the W remains bearish.

▪ The buy might serve as the retracement to the original W AOI, where
price may eventually go down.

3. Avoiding Incompetent Trades:

o Never sell from a D AOI when you’re near/approaching closely to a W AOI

when the W is bullish and the D is bearish, as the price could react strongly
from the W AOI, and prematurely rocket into your stop loss.

o Never buy from a D AOI when you’re near/approaching closely to a W AOI

when the W is bearish and the D is bullish, as the price could react strongly
from the W AOI, and prematurely rocket into your stop loss.

4. Alerts and Monitoring:

o Instead of totally discarding pairs without in sync timeframes, place alerts

where 4hr timeframe could re-sync again, after it has rejected the AOI, and
 then wait for pullback opportunities back into the AOI, or near the AOI
(higher risk).

o Continuously reassess the trend on W, D, and 4hr timeframes for updates.

Risk Management

1. Avoid Extreme Market Levels:

o Don’t trade above the highest high or below the lowest low in market history
due to lack of historical data to base trades, take profits and stop losses.

2. Avoid Consolidating Markets:

o Avoid pairs stuck in long-term consolidation with no clear potential.

Trade Evaluation

1. Understanding Price Movements:

o Assess where price is relative to AOIs:

 ▪ At the top of a move.

▪ On the way to an AOI.

▪ At the AOI.

2. Reanalysing Shifts:

o When trends shift (e.g., bullish to bearish), establish new AOIs based on the
latest LLs and LHs.
 3. Checklist:

• Revisit the trend analysis for W, D, and 4hr timeframes before every trade to
confirm the trade is still viable, or if the timeframes are out of sync and what
must happen for the trade become viable again.

Areas of Interest – Support and Resistance

Key Concepts

• Support and Resistance:

o Support: A price level with a high probability of preventing the price from
falling further.

o Resistance: A price level with a high probability of preventing the price from
rising further.

o Support and resistance are also referred to as supply and demand zones.

o Valid AOIs require at least three touches of support or resistance to be

considered significant.

• Timeframes:

o AOIs are identified only on Daily (D) and Weekly (W) timeframes for high-
quality set-ups, as these are most respected by price and provide the greatest
confirmation of support and resistance.

Purpose of AOIs

• AOIs help us determine potential buy or sell zones, as they represent areas where
price has a high likelihood of reversing.
 • Fake-outs can occur: Price might slightly overshoot an AOI before reversing,
potentially misleading traders.

Marking AOIs

1. Initial Identification:

o After establishing the market trend on higher timeframes, AOIs are identified
between:

1. Higher Highs (HH) and Higher Lows (HL) in an uptrend.

2. Lower Lows (LL) and Lower Highs (LH) in a downtrend.

o Mark potential AOIs with a horizontal line, focusing on areas with the most
body touches.

o There is no maximum or minimum number of AOIs; identify all that the

market presents.

2. Creating Zones:

o Convert horizontal lines into AOI zones using a rectangle to capture as many
touches as possible in a narrow range.

o Avoid overly large zones; focus on the bulk of closures to keep the area
confined.
 o If W and D AOIs overlap then make them like the following:

3. Zone Characteristics:

o A valid AOI remains valid regardless of size or the number of touches.

o AOI zones should not exceed 60 pips in width.

o Bullish Trend: HLs with three touches can act as AOIs. However, a close below
an HL indicates a trend change.

o Bearish Trend: LHs with three touches can act as AOIs. However, a close
below an LH indicates a trend change.

Further AOI Related Strategy

• Waiting for Price to reach the AOI:

o The strategy is contingent on price reaching an AOI. No trades should be

taken if price is outside the AOI, or more than ±5 pips away.

o Rank currency pairs based on proximity to AOIs or whether they’re already at

an AOI.

• Waiting for a Break and Retest in relation to AOIs:

o If price closes below a D or W AOI during a buy scenario:

▪ Wait for a break and retest above the AOI before considering a trade.

▪ Ensure timeframes remain in sync to proceed with the trade.

• Waiting for a reaction from a Valid AOI:

o Valid AOIs require a price reaction. If no reaction occurs at the first AOI, wait
for price to react from the next AOIs.

Higher Risk Trades Away From The AOI

• High-risk trades occur when entering a position after price has already rejected the
Area of Interest (AOI) and is in the middle of a move

1. Price Movement Post-AOI:

o Even if price moves away from the AOI without us entering, this does not
guarantee it won't return to the AOI for another rejection.

o Entering trades mid-move carries higher risk due to reduced probability of

another significant move in the desired direction.

2. Waiting for AOI Re-entry:

o To reduce risk, wait for price to return to the AOI before entering a trade.

o However, the moves occurring after a return to the AOI may not always be as
strong as the initial move.

1. Tracking Key Pairs:

o If price rejects the AOI, add the pair to a watchlist to monitor further
developments.

o Prioritize pairs currently at AOIs that are on your hot list of pairs with higher
quality

2. Setting Alerts:

o Use alarms or alerts to notify you when price returns to the AOI, ensuring you
don't miss potential re-entry opportunities.
Round Psychological Levels
Definition

• Round psychological levels are price points where banks and large institutions
are likely to place significant buy and sell orders. These are typically rounded
values such as 1.5000, 0.8500, etc.

• Alex refers to these as “every 500”, reflecting key levels spaced by increments of
500 units.

Characteristics

• Psychological levels are sometimes called order blocks.

• They are less likely to cause a reversal in price compared to Areas of Interest
(AOIs), but they serve as an additional confluence when within an AOI.

Identification Process

1. Placement:

o Draw a horizontal ray within an AOI.

o Adjust the coordinates of the ray to the nearest “500” level (e.g., 1.5000,
1.4500).

2. Validation:

o If the adjusted level lies outside the AOI, discard it.

o If it lies within the AOI or is within ±5 pips of the AOI, adjust the AOI to
include the psychological level.

3. Exclusions:

o If no round psychological level exists within the AOI, ignore this factor.
Usage in Confluences

• Current Price Rejection:

o If the current price shows rejection from a round psychological level

(indicated by wicks or candle bodies), it can be added to your list of
confluences.

o Only include this confluence if the rejection is happening in live price

action, not based on historical rejections far from the current price.

• Appearing Only Once Within Confluences:

o A psychological level should only appear once in your confluence

analysis, regardless of the timeframe, as it is the same across all
timeframes.
50 EMA Indicator
Definition

• The 50 EMA (Exponential Moving Average) is a dynamic level of support and

resistance, functioning similarly to Areas of Interest (AOIs) but with a much lower
probability of causing a price reversal.

Characteristics

• Purpose:

o The 50 EMA is used as an additional confluence, alongside AOIs and

round psychological levels, to strengthen trade setups.

• Behaviour:

o Price interactions with the 50 EMA are considered significant when the
price is touching, hitting, or rejecting the EMA.

o Valid rejections can occur from both wicks and bodies, indicating the
EMA's effect on reversing price.

Usage in Confluences
1. Live Price Rejection:

o Include the 50 EMA in your confluences only if live price action is

interacting with it.

o Rejections based on historical price movements far from the current price
are not considered valid.

2. Rejections:

o A rejection occurs when price touches the EMA and moves in the
opposite direction, leaving a wick. This demonstrates the EMA's force in
reversing price.

3. Application Across Timeframes:

o The 50 EMA is observed and utilized on all timeframes.

Rejection From Previous Structure Points
Definition

• A previous structure point refers to a key level in the price action where
significant turning points occurred, such as a high or low.

o For example, in a bullish market, this could be the high preceding the
current Higher High (HH).

o It doesn’t have to be the most recent HH or HL but rather the previous

H/elbow in the market structure.

o Using the "snake trick," it is identified as the second turn from the current
HH or LL.

Characteristics

• Role in Market Movement:

o In a bullish market, previous structure points can act as a level of support,

pushing the price back up.
 o In a bearish market, they can act as resistance, pushing the price down.

• Rejections:

o A rejection occurs when price touches or approaches the previous

structure point and reverses direction, leaving wicks or body rejections on
the chart.

Usage in Confluences

1. Part of AOI:

o The previous structure point is only included in confluences if it aligns

with the current Area of Interest (AOI) where the trade is being
considered.

2. Validation:

o Rejections from previous structure points are considered valid when they
involve live price action interacting with these levels, with visible body or
wick rejections.
Candlestick Rejection Formations
Definition

• Candlestick rejections occur through specific candlestick formations,

signalling that the price is reacting to an Area of Interest (AOI) and is likely to
reverse direction.

Types of Candlestick Rejection Formations

1. Bullish Engulfing:

o Found at the end of a downtrend, retracement, or AOI.

o The second bullish candle fully engulfs the first bearish candle.

o Signal: Buyers overpower sellers, indicating a possible upward reversal.

2. Bearish Engulfing:

o Found at the end of an uptrend, retracement, or AOI.

o The second bearish candle fully engulfs the first bullish candle.

o Signal: Sellers overpower buyers, indicating a possible downward

reversal.

3. Doji:

o Formed when the open and close prices are the same or nearly the same,
reflecting market indecision.

o Found during consolidation or at key reversal points.

 o Signal: Potential reversal when at the top or bottom of a
trend/retracement or near an AOI.

4. Gravestone Doji:

o Bearish reversal pattern with a long upper shadow and open/close at the
same level.

o Signal: Sellers overcame buyers, often found at the top of an uptrend or

near AOIs.

5. Dragonfly Doji:

o Bullish reversal pattern with a long lower shadow and open/close at the
same level.

o Signal: Buyers overcame sellers, often found at the bottom of a

downtrend or near AOIs.

6. Morning Star:

o Bullish reversal pattern formed at the bottom of a

downtrend/retracement.

o Composed of:

1. Bearish candle.
 2. Small candle (often a Doji).

3. Bullish candle closing above the midpoint of the first.

o Signal: Likely beginning of an uptrend from strong AOIs.

7. Evening Star:

o Bearish reversal pattern formed at the top of an uptrend/retracement.

o Composed of:

1. Bullish candle.

2. Small candle (often a Doji).

3. Bearish candle closing below the midpoint of the first.

o Signal: Likely beginning of a downtrend from strong AOIs.

8. Hammer/Pin Bar:

o Bullish reversal pattern with a small body at the top and a long lower
shadow.

o Signal: Buyers rejected lower prices, indicating a potential upward move

when near strong AOIs.

9. Shooting Star/Bearish Pin Bar:

o Bearish reversal pattern with a small body at the bottom and a long upper
shadow.

o Signal: Sellers rejected higher prices, indicating a potential downward

move when near strong AOIs.
10. Harami/Inside Bar:

o Two-candle pattern:

▪ First candle is larger (mother candle).

▪ Second candle is smaller, completely within the first candle’s

range.

o Bullish Harami: Reversal signal at the bottom of a downtrend or AOI.

o Bearish Harami: Reversal signal at the top of an uptrend or AOI.

o Signal: Consolidation and potential continuation if found within a trend.

11. Tweezer Top:

o Bearish reversal pattern at the top of an uptrend.

o Composed of a bullish candle followed by a bearish candle closing at the

bullish candle’s open.

o Signal: Sellers have overtaken buyers, indicating a sell opportunity at

AOIs.
 12. Tweezer Bottom:

o Bullish reversal pattern at the bottom of a downtrend.

o Composed of a bearish candle followed by a bullish candle closing at the

bearish candle’s open.

o Signal: Buyers have overtaken sellers, indicating a buy opportunity at

AOIs.

Usage in Confluences

• Add these candlestick patterns to the confluence list only if they occur at an
AOI.

• These patterns provide stronger validation for potential price reversals when
combined with other factors like AOIs, psychological levels, or EMA interactions.

Market Patterns
Definition

• Market patterns are recurring structural shapes that appear repeatedly in the
market, enabling traders to predict future price movements.

• Patterns formed on higher timeframes are more reliable and respected.

• The three key patterns used are:

1. Break and Retest

2. Head and Shoulders (and Inverted)

3. Double Bottom/Top
1. Break and Retest

• Type: Trend Continuation Pattern.

• Description:

o Price breaks through an Area of Interest (AOI) or structure point.

o Retraces to the broken area, then rejects and continues in the direction of
the trend.

• Applicability: Effective on all timeframes.

• Purpose: Used to position trades on the correct side of the AOI. Not used as a
confluence.

2. Head and Shoulders (and Inverted)

• Type: Trend Reversal Pattern.

• Description:

o Regular Head and Shoulders indicates a bearish reversal.

o Inverted Head and Shoulders indicates a bullish reversal.

o The "head" is higher (or lower, in the inverted version) than the two
"shoulders."

o Shoulders can vary in size and do not need to be symmetrical.

• Validation:
 o For the pattern to be valid, price must close below (or above, in the
inverted version) the neckline.

o Add to confluences when the pattern breaks and retests/rejects the

neckline.

3. Double Bottom and Double Top

• Type: Trend Reversal Pattern.

• Description:

o Double Bottom occurs when the price enters an AOI, rejects, attempts to
break through again, but rejects a second time.

o Double Top is the reverse, occurring in a bearish context.

o Tops and bottoms do not have to be the exact same height but must align
with the AOI.

• Validation:

o For the pattern to be valid, price must close above (double bottom) or
below (double top) the neckline.
 o Add to confluences when price breaks and retests/rejects the neckline.

Usage in Confluences

• Patterns included as confluences:

o Head and Shoulders (and Inverted).

o Double Bottom/Top.

• Patterns not included as confluences:

o Break and Retest – this pattern is used for determining the correct
position relative to the AOI but is not considered a standalone
confluence.
Entry, Take Profit and Stop Loss
Entry Signals

• Definition: An entry signal is the final step of a trading plan, signalling the
execution of a trade. No trade should be entered without a confirmed entry
signal, regardless of setup probability.

• Shift of Structure:

o A shift of structure occurs when price changes its trend on a specific

timeframe.

o Look for a shift of structure at the AOI, aligning with the desired trade
direction (e.g., bullish for buys).

o This shift doesn’t need to occur strictly within the AOI box but must occur
after price enters the AOI (within ±5 pips tolerance).

o Timeframes to observe: 4hr, 2hr, 1hr, 30min, 15min. Choose the cleanest
visible shift on one of these.

o Lower timeframes often shift first, signalling a potential move.

• No Shift, No Trade:

o If no shift of structure occurs or it happens too far from the AOI, avoid the
trade.

o In Case of Price Moving Far from AOI:

▪ If the risk-to-reward (RR) ratio is insufficient, wait for a pullback.

Do not chase trades.
 ▪ In higher-risk scenarios, where the shift occurs far from the AOI,
you can adjust the stop loss to the last structure point of the
retracement for a better RR

Exception With Shift of Structure – Found on Alex Post Bootcamp Recording 2

• As seen above Alex enters a short when there was no true, shift of
structure. The price action mimicked a shift of structure, but a real shift
would not have occurred until price closed below where the pointer is.
This is because part of the retracement on the lower time frames
consisted of completely bullish candles with no highs and lows, just one
big move. This may be more high risk, and won’t occur often. But the trade
ended up playing out to TP

Confirmation: Engulfing Candlestick

• After the shift of structure, look for an engulfing candlestick on the same
timeframes.

• Key Points:

o Higher timeframe engulfing signals offer stronger confirmation.

o Engulfing candles typically occur during high-volume sessions (e.g.,

London/New York).
 o The ideal scenario: While the 4hr is already in sync, a 4hr timeframe
engulfing candle will coincide with a lower timeframe shift of structure.
We can enter right after the engulfing and shift are confirmed

• Missed Entry:

o If an engulfing candle forms and the entry is missed, wait for a pullback
into an area with an acceptable RR.

o Post-pullback, wait for another engulfing candlestick before entering. A

second shift of structure is not required unless the trend shifts
unfavourably.

• No Pullback?

o Sometimes pullbacks don’t happen or aren’t sufficient for a favourable

RR. Accept this and move on to other setups.

Take Profit (TP)

 • Definition: A pre-determined price level to close positions and secure profits.

• Placement:

o Trading from a Daily AOI: Place TP at or just below the closest respected
daily structure point (e.g., current HH in a bullish market).

o Trading from a Weekly AOI: Place TP at or just below the closest

respected weekly structure point (e.g., current LL in a bearish market).

o If trading from both a Weekly and Daily AOI, select the closest respected
point across both timeframes.

o You should adjust TP to just before a strong AOI when selling from a Daily
AOI into a Weekly AOI with a bullish weekly trend.

• No Partials:

o Avoid taking partial profits. The strategy's win rate negates the need for
partial exits and maximizes profits.

Stop Loss (SL)

• Definition: A level to cap losses if price moves in the opposite direction.

• Placement:

o Place SL 5–7 pips under the AOI (for buys) or above it (for sells).

o This placement provides room for price fluctuations and avoids

premature exit while also being at a level where if price crosses, the trend
will shift in the wrong direction and the trade is wrong.

• No Adjustments to SL:

o Do not move the stop loss after placement. Trust the initial plan and allow
for potential drawdowns within the SL.

Risk-to-Reward (RR)
 • Minimum RR: 1:2 or 1:2.5.

o Example: With a 50%-win rate (5 wins, 5 losses) and 1% risk per trade:

▪ Losses: 5 trades x 1% = 5%.

▪ Wins: 5 trades x 2.5% = 12.5%.

▪ Net profit: 12.5% - 5% = 7.5%.

• Avoid trades with an RR below the minimum threshold.

General Rules

• Never move SL to breakeven. Allow the trade to develop fully.

• Adhere strictly to planned SL and TP levels to maintain consistency and strategy

integrity.

Confluence Checklists
• Consecutive In-Sync Timeframes W, D, 4hr (20-30%)

Swing/Inter-Day Trade (W and D In-Sync)

WEEKLY/DAILY CHECKLIST:

• At/Rejected W AOI 10%

• At/Rejected D AOI 10%

• Touching/Rejecting W 50 EMA 5%

• Touching/Rejecting D 50 EMA 5%

• Round Psychological Level 5%

 • Rejection from W previous structure point 10%

• Rejection from D previous structure point 10%

• W Candlestick Rejection 10%

• D Candlestick Rejection 10%

• W Patterns - Head and Shoulders, Double Top or Bottom 10%

• D Patterns - Head and Shoulders, Double Top or Bottom 10%

4HR CHECKLIST:

• Touching/rejecting 50 EMA 5%

• Candlestick Rejection 10%

• Rejection from previous structure point 5%

• Patterns 10%

ENTRY CHECKLIST:

• Shift of Structure 10% - Required

• Engulfing Candlestick 10% - Required

• Pattern – 5%

• 1:2.5 RR Minimum – No Grade

Day Trade (D and 4hr In-Sync)

DAILY/4HR:

• At/Rejected D AOI 10%

• At/Rejected 4hr AOI 5%

• Touching/Rejecting D 50 EMA 5%

• Touching/Rejecting 4hr 50 EMA 5%

• Round Psychological Level 5%

• Rejection from D previous structure point 10%

• Rejection from 4hr previous structure point 5%

• D Candlestick Rejection 10%

• 4hr Candlestick Rejection 10%

 • D Patterns - Head and Shoulders, Double Top or Bottom 10%

• 4hr Patterns - Head and Shoulders, Double Top or Bottom 10%

ENTRY CHECKLIST:

• Shift of Structure 10% - Required

• Engulfing Candlestick 10% - Required

• Pattern – 5%

• 1:2.5 RR Minimum – No Grade

Scalp Trade

• The strategy is the same here, however uses confluences on lower timeframes

• These confluences have a lower percentage, as they aren’t as likely indicators as

those on the stronger timeframes

• This isn’t recommended but it’s just to show that the strategy works

• It’s never necessary to do these trades since there are always high-quality
textbook trades available

• Each consecutive time frame in sync is 5% (4hr, 2hr, 1hr)

4Hr and 2Hr In-Sync

4HR/2HR CHECKLIST:

• At/Rejected 4hr AOI 5%

• At/Rejected 2hr AOI 5%

• Touching/Rejecting 4hr 50 EMA 5%

• Touching/Rejecting 2hr 50 EMA 5%

• Round Psychological Level 5%

• Rejection from 4hr previous structure point 5%

• Rejection from 2hr previous structure point 5%

• 4hr Candlestick Rejection 5%

• 2hr Candlestick Rejection 5%

• 4hr Patterns - Head and Shoulders, Double Top or Bottom 5%

 • 2hr Patterns - Head and Shoulders, Double Top or Bottom 5%

1HR CHECKLIST:

• Touching/rejecting 50 EMA 5%

• Candlestick Rejection 5%

• Rejection from previous structure point 5%

• Patterns 5%

2hr and 1hr In-Sync

DAILY/4HR:

• At/Rejected 2hr AOI 5%

• At/Rejected 1hr AOI 5%

• Touching/Rejecting 2hr 50 EMA 5%

• Touching/Rejecting 1hr 50 EMA 5%

• Round Psychological Level 5%

• Rejection from 2hr previous structure point 5%

• Rejection from 1hr previous structure point 5%

• 2hr Candlestick Rejection 5%

• 1hr Candlestick Rejection 5%

• 2hr Patterns - Head and Shoulders, Double Top or Bottom 5%

• 1hr Patterns - Head and Shoulders, Double Top or Bottom 5%

ENTRY CHECKLIST (1hr, 30min, 15min):

• Shift of Structure 10%

• Engulfing Candlestick 10%

• RR Minimum 1:2.5

Risk Management
Seasonal Trends in Trading

• Best Months: January–March and October–December are historically the most

profitable months for trading.
 • Slow Months: June and July are typically the slowest and least profitable
months.

• Average Months: April, May, August, and September provide moderate trading
opportunities.

Risk Allocation

• Best Months (Jan-Mar, Oct-Dec):

o Live Accounts: Risk 2-4% per trade.

o Funded Accounts: Risk 2-3% per trade.

o Challenge Accounts: Risk 0.5-1.5% per trade.

• Slow Months (June, July):

o Live Accounts: Risk 2% per trade.

o Funded Accounts: Risk 1% per trade.

o Challenge Accounts: Risk 0.5-1% per trade.

• Average Months (Apr, May, Aug, Sep):

o Live Accounts: Risk 2-3% per trade.

o Funded Accounts: Risk 1-2% per trade.

o Challenge Accounts: Risk 0.5-1% per trade.

Guidelines for Risk Management

1. Start Small:

o Begin by risking amounts on the lower to medium end of the specified

ranges. This helps you become comfortable with managing risk and
handling losses.

2. Consistency:

o Choose a percentage based on the time of year and stick to it consistently

throughout that period.

o Maintain the same risk percentage for all trades, regardless of trade
quality (e.g., "good grade" or "textbook" vs. lesser-grade setups).

3. Trade Frequency:

o Focus on quality over quantity. Aim to trade only 1-2 high-quality setups
per week at most.
By following these risk guidelines and aligning your strategy with seasonal trends, you
can manage your capital effectively and maximize profitability throughout the year.

Market Sessions
High-Volume Trading Sessions

• Best Sessions:

o London Session: Offers high liquidity and significant market movements.

o New York Session: Features strong market activity and impactful price
moves.

o London-New York Overlap: The period where both sessions overlap is

when the highest volume occurs, leading to larger and more predictable
price movements.

• Worst Sessions:

o Sydney Session: Generally low volume and limited market movement.

 o Tokyo Session: Also characterized by lower volatility and fewer
opportunities for significant trades.

Trading Execution Timing

• To minimize costs and maximize profitability:

o Execute trades from the start of the London session to up to 2 hours

before the New York session closes.

o This timing ensures the smallest spreads and lowest fees for trade
execution.

Trade Grading
Confluences and Trade Probability

• Each confluence in a trade setup is assigned a specific percentage weight,

reflecting its importance and contribution to the overall probability of success.

• Combining multiple confluences results in a higher cumulative percentage,

indicating a higher-probability trade.

Grading System

• Trades are graded based on their total percentage score, using the following
scale:

o A: 90% or higher

o B: 80% or higher

o C: 70% or higher

o D: 60% or higher

o F: 50% or higher

High-Probability Trades

• Grades can exceed 100%, indicating an exceptionally strong setup with a very
high likelihood of success. Such setups are ideal for execution.