This Smart Money Concepts Strategy Makes 1043% Profit!

for over 10 years retail Traders have been looking for ways to trade and make money using smart money Concepts earlier this year ICT launched their 2022 mentorship program and the philosophy of trading like the banks has only gained enormous popularity since then in this video we will explore a simple but highly effective trading strategy that's deeply rooted in the philosophy of smart money Concepts later in the video we will also backdest this particular strategy 150 times using a risk to reward ratio of one to two on the one minute time frame the bug testing software I'm gonna be using is called Trader Edge I'll leave a link in the description let's get into it now as you may already know tradingview doesn't give you a lot of chart data on the one minute time frame so now the question is how exactly am I gonna find this 150 trades for bug testing when the one minute time frame has only two weeks of data well if you stick to the end of the video I'm gonna show you a cool trick that you can use to get up to three times more data on the one minute time frame on your trading View this trick actually works on any time frame not just the one minute time frame so be sure to stick to the end for exactly that now for this practice thing I'm gonna be using the Euro USD on the one minute time frame but you can do this strategy on any security that you like to trade head over to the indicator search Tab and type in smart money Concepts be sure to select this one by Lux algo thermagna access this indicator settings to make some changes to do that click right here and on the inputs tab uncheck the following options exactly like I'm doing right now [Music] Deluxe I'll go smart money Concepts indicator is a highly accurate tool designed to provide real-time analysis of Market structure and activity it includes a range of features relevant to SMC such as break-off structure labeled as BOS change of character labeled as chalk bullish and bearish Order blocks equal highs and equal lows fair value Gap detection previous highs and lows Etc we're obviously not going to be using all of these indicators features just two of them that is change of character and break of structure to take a long trade we're gonna wait for a bullish change of character to form followed by a bullish brick of structure and then we're gonna enter the trade on this candle right here now you may be wondering how do I know it's a bullish change of character or a bullish Breco structure well when both the dotted line and the text are green that is a bullish Market structure label like this one right here you see the text and the dotted line are all green but when the line and the text are red like here that becomes a bearish market structure label speaking of bearish how do we take a short trade well we're gonna take a short trade when there is a bearish change of character labeled as chalk followed by a bearish breakoff structure labeled as BOS like right here now for the second indicator head back to the indicator's search Tab and type in Market bias be sure to select this one by Professor X again we're going to access this indicator settings by clicking right here and on the inputs tab change the period to 60 and then change the smoothing to 10 . after that head over to the style Tab and uncheck this option right here then here on the plots background Click on each color and change the opacity to 30. [Music] after that click ok now this indicator will be our Trend identifier when it's green we only take long trades when it's red we only take short trades now let's go over the conditions for entering trades to enter a long trade first the smart money Concepts indicator should print a bullish change of character in a downtrend followed by a bullish break of structure in an uptrend what I mean by this is that this chalk label this one right here should be within the red zone of the market bias indicator while the BOS label this one right here should be within the green zone of the market bias indicator second um there actually isn't any other Condition it's just that one condition we've already talked about that's how simple this strategy is all entry conditions are met on this candle so we're gonna enter a long trade the stop loss is going to be set below the most recent swing low which is this one right here and for the tech profit we're gonna set it at two times the risk we let this trade run and full TP now here's another example as we can see here chalk label in the red zone BOS label in the green zone so we enter a long trade here set a stop loss below the most recent swing low which is this one right here and for the tech profit we're gonna set it at two times the risk we let this trade run and full taping here's one more example chalk label in the Red Zone POS label in a green zone we enter a long trade here so let's stop loss below the most recent swing low which is this one right here Yen for the check profit we're gonna set it at two times the risk we let the trade run and full dipping now I know sometimes simple can be complicated now what you want to remember is that for a long trade the chalk label should be within the red zone and the BOS label should be within the green zone I repeat chalk label in the Red Zone boss label in a green zone now you may be asking yourself but what are the conditions for entering a short trade well we're gonna do the opposite of everything we did for a long trade first the smart money Concepts indicator should print a bearish change of character in a bullish Trend followed by a bearish break of structure in a downtrend again what I mean by this is that this chalk label this one right here should be within the green zone of the market bias indicator while the BOS label this one right here should be within the red zone of the market bias indicator second oh I forgot no other conditions just the one our entry condition is met on this candle so we enter short trade we're going to set our stop loss above the most recent swing High which is this one right here and for Tech profit we're gonna set it at 2 times the risk we let the trade run and full tape now here's another example as you can see here chalk label in a green zone BOS label in a red zone so we enter a short trade here there are stop loss above the most recent swing High which is this one right here and for the check profit we're gonna set it at 2 times the risk we let this trade run and fault Epi here's one more example chalk label in a green zone the OS label in a red zone we enter a short trade here so a stop loss above the most recent swing High which is this one right here and for the tech profit we're gonna set it at two times the risk we let this trade run and four TB now the most important question how exactly does this strategy perform in different market conditions well to answer that I'm gonna do a bug test with 150 trades using a risk to reward ratio of one to two the account size is going to be set at a thousand dollars and we're gonna be risking two percent of that every time we take a trade let's get into it after 150 trades we see that the win rate of this strategy was 61 and the gain on the account was a thousand and forty three percent these numbers are really good for risk to reward ratio of one to two we say that it had an amazing profit factor of 3.17 7 consecutive wins against four consecutive losses and a maximum drawdown of 7.87 percent also the back testing for this strategy took five weeks so the trick that I promised you in the beginning of the video you know the one that you can do to get up to three times more data on your chart works like this first you have to be on any of the paid trading view plans then even a good year time Jump tool and jump as far back as possible basically you want to get to the end of the data that you've already been provided by tradingview for me I'm on a Pro Plan so I'm gonna jump as far back as possible maybe to this date now as you can see here I'm at the very end of the data that I already have on my Pro Plan to access more data you basically go and activate bar replay like this and then you click on this last bar right here and then boom here you go now I have two more weeks of data right here if I scroll to the left now if you want more data we do the exact same thing we did before and it's gonna give us two more weeks of data so we're gonna jump all the way back and as you can see here this is the last candle so what we do is we again activate the bar replay on this very last candle right here and just like before there you go more data and the cool thing is we can do it again so we're gonna jump as far back as possible again to the very last bar and right here again we activate the bar replay on the last candle and just like that we have three times more data than before now you may be asking yourself can we jump as far back as possible maybe all the way to the beginning of time well no we can jump back in time only three times why only three times I have no idea now the three time jumps that we did have given me a total of six weeks of chart data add that the two weeks of data I already have and that's two months of data right there so if you have let's say a one minute strategy that you need to back test on more than just two weeks of data on trading view then you're welcome if you like this video hit the like button below and consider subscribing to stay tuned that's been it thanks for watching and I'll see you guys next time

Channel: PineTrades

Views: 67,061

Keywords: forex trading for beginners, forex trading strategies, forex trading, scalping strategy, best scalping strategy, profitable trading strategies, best buy sell indicator, best buy sell indicator tradingview, best buy sell indicator tradingview free, best buy sell signal, best buy sell strategy, macd trading strategy, macd scalping strategy, pinetrades, smc, smart money concepts, smc strategy, smart money concepts strategy, ICT, Smart Money Concepts Indicator

Id: 9ZrG89jzmng

Length: 10min 54sec (654 seconds)

Published: Sun Jan 01 2023