That’s the central banks job. Not the treasury.
7T in liquidity from central banks in the past couple years.
Chump change :eek:
I should perhaps not have added the link - it was only to illustrate that there are more ways to cut off the inventor’s head…
First lets be clear that ICT has a very high probability trading methodology even when used with the industry standard risk
profile.
It is very simple PTG,
Trading is psychological, NOT technical.
Why else would 80% of all traders be right about direction but still end up losing $$?
Most traders, and ALL losers, do NOT make even 1:1 on their trades.
They are closing for less pips than their stops.
They are taking some profits “to fund their trade” (dang I HATE that saying) when in reality they are giving the brokers/banks an advantage by making their winners smaller. Do you ever “fund” your losing trade, hell no, it’ hits the stop fully loaded (or worse, loser’s ADD to it OR move it further away from entry)
Let me show you the most basic way of using “space” without using “space”.
Start with a comfortable for you stop size first, one you can actually win 2-3 trades in a row. Lets say that it’s 30 pips.
Now, all we are going to do is trade 1:1
$1k account and risk is 2% ($20) on initial trade with a lot size of 0.67 a pip.
We win. (with ICT’s sniper like accuracy)
Ok, Now we take our $20 profit and add it to our initial $20 risk(2%) and take a 2nd trade.
You were willing to lose $20 to make $20 so now you should be willing to risk $20 of your starting account balance to make $40, shouldn’t you? Lot size on this trade is now $1.33 (or double initial size).
$20 +$20 =$40/30sl= 1.33 per pip.
Easily, we win again!.. $40 But now we just made 2:1 [B]WITHOUT[/B] having to go a greater distance in the market.(no 60 pip move here)
So we have initial risk of $20 +$20 +40 to risk on our 3rd trade.
Trade 3 we will be using a lot value of $2.66 with an opportunity to make $80
I can hear you saying, I"m not going to risk $80 of MY $$ on this trade to make $80.
Well, it’s not YOUR money until the dealing is done.
And again, we have 4 confluence’s on this trade and NAIL the daily candle low using a reflection or OTE.
Bingo, $80 in pocket. Maybe your freaking out now as lot value is too big for your comfort but you just made 4:1 on your $$. $20 risk of hard earned cash for $80.
Your account is now up 14% and the only risk to your [U]original[/U] account value was $20…
Maybe your a true gambler and want to be DONE FOR THE WEEK. so you decide to take another trade…well, you cant use that big of lot value with 50:1 margin ($5+ a pip), so you’ll be using MAX lot size of your account and not risking ONE FRIGGIN PENNEY of your hard earned cash. $4.66 a pip without risking anything. Cant do it. you will have to actually move some from your ledger/risk side to your equity side of account which means if you blow up on the 4th trade you’ll still have a little change above your original account size to buy some coffee…or you can call it a week and be happy with 14%.
If you decide to take a 4th trade maybe this one you will move stop to b/e at +20 to 30 and try to LET IT RIDE…hey, it’s all gravy now!!!
Use a paltry $3 a pip and bang out 50 for a gain of $150, if it stops you at b/e oh well, you can say you tried.
lets see, $20, +40, +80, +$150,?? That’s a
29% account increase for the week on 4 trades. And the fourth trade you used NONE of your OWN $$.
The 4th trade was also closed with a 7.5:1 Reward to Risk of original 2%, but hold on, you didn’t risk anything so it’s actually infinite return.
Was the suffering of having to DELAY gratification to attain your goal worth it?
A wise trader once said:
MORE RISK IS MORE RISK
MORE PROFIT IS MORE PROFIT
$100 gained risking nothing is worth more than $100 gained risking every thing!
Some times less is more… MightyOne (SwordofManagement)
If you had taken the 4 trades risking 2% each trade WITHOUT (which makes winners smaller) funding your trade and closing ALL at your target you’d have made $82.43. OR 8.2% on your account. Oh joy. If you stopped after the 3rd trade you’d have made a little over 60 bucks or 6.x%.
See above after 3rd trade. 14%!!!
Another snippet from said wise trader from 3yrs ago:
8th and final step,
Mightyone wrote:
8. You either reach your goal and make 7, 15, 26, 52, or 80%+ on your account or you lose 2%.
By reinvesting profit, having an unwillingness to let price trade to your stop while you are were in profit at some point, and by sticking to a goal knowing that PRICE DOES MOVE HUNDREDS OF PIPS EVERY DAY (just about) then you will reach the goals you set out to attain and [B]your losses
will cause you great laughter[/B].
Think and grow rich PRO
Here is something I wrote about being a LOSER on another board recently.
See if any of you can relate to something written within.
2012-02-16_2128 - prochargedmopar’s library
All I’m saying is that with ICT as your mentor/teacher and making a bigger PUSH in the market’s then many habitual loser’s will realize it [I]IS POSSIBLE[/I] to make more on your winners than you lose on your losers.
This in turn will FIX the psychological ills that most fight daily with their battle of FEAR/GREED/LOSS
There are MANY more tricks to trading with “space” than I’ve shown here.
so really what you’re doing is risking what you’ve won. So it’s like a parlay gamble.
If you won your first bet now you have 1020. It’s not your money, it’s the house’s money. But it is your’s if you want it to be. All you have to do is close up shop and walk away with it. So then if you bet the 40 you’re really risking 3.9% instead of 2%
It’s all a matter of perception. Whether you perceive the gains to be your’s or someone else’s. You can call a spade a daisy but it’s still just a spade.
"Your account is now up 14%"
But it’s not your money so your account isn’t up 14%, you haven’t made anything until you say it’s yours. So is it your’s or not?
The key to this working is having a trading method that has a high win rate. It would work well if you have multiple winners in a row.
Every time a trade doesn’t hit the stop loss it’s infinite reward to risk. I like those.
For you.
Read the last line I posted again.
For current losers, they will only see/hear what charlie browns mom says…blah, blah blah, blah.
Fact is fact.
I guess you would rather risk ALL your last trades winnings (+ a little bit) for another weak/paltry gain in profit.
If that is your goal,
So be it.
This wise trader I speak of said one time…
We are NOT here trying to make babypips,there is another site for that, we are here to drain all the money out of the pockets of the Illuminati!!! LOL
We take partial profits and move our stop to B/E to both Pay ourselves FIRST, and remove risk from the trade. This creates, in the PROFESSIONAL trader, a feeling of “indifference” to the outcome of the trade, and allows him/her to reach for much loftier targets with minimal stress.
When we are winning, we continue to place our Max bet. When we are losing, we proceed to cut risk. This effectively prevents the market from gaining a [B]psychological[/B] edge over us when we are experiencing a losing streak.
I personally see this “Space” method of risk management as inferior, because it does not take the realities of trading psychology into account
Tomorrow I will make one more post on this subject as I see there is no more need to continue confusing ourselves with facts when our minds are already made up. 
Hi folks, I’m a newbie and I’m going throughout this thread, so I decided to post here rather than on the new one… hoping you “veterans” could give me some help with my issue. I’m currently struggling with OI and for the data I refer to barchart.com: here’s the link to the daily chart I’m tring to analyse
… barchart.com/charts/futures/E6H12 (I can’t post the complete link yet of course)
The OI indicator is shown by default, but… in the mask “Set your chart preferences” there is the item “frequency”: by default this parameter is set on “Daily Contract”… is it good? Because if I change it to “Daily Nearest” or “Daily Continuation” I get a different result and the OI line shows a recent drop that (if I’ve understood well the explanation given by ICT in the relative video) seems to agree with the last Euro strenghtness, doesn’t it? Or am I just trying to make the things to match, when they don’t?
So, to recap, my questions are:
- is the chart I refer to the right one? (march ending EU futures contract)
- what is the right setting for the item “frequency”?
- elseways, is there maybe any other better free source I could refer to for the OI data?
Hope my post is clear: english is not my first language and this is my best… sorry! 
By the way, thanks Michael for sharing your knowledge, as everybody says: by the start of my forex journey few months ago I had never been profitable… till I stumbled in this thread. But also let me thank you all guys: I think that sharing your experiences, successes and even your mistakes you’re really giving all the noobs like me a huge helping hand… you’re a fantastic community and a real inspiration!! You rock!!
Well…as you say GLGT! 
prochargedmopar, I might have this wrong so correct me if I am…
If you are risking all of your winnings each time you trade wouldn’t you have to have a 100% success rate or if you lose just once you would be back to breakeven and have to start all over again?
I think I might be missing something in your concept?
I personally like ICT’s method because once you bag 30 pips you move stop to breakeven and don’t have to worry about price and just try to shot for ADR. If you take 30% off at 30 pips and shot to take off the other 70% at ADR, the times you reach ADR will make up for the times you lose plus make 30% and get stopped out.
I shouldn’t continue this but it really is an interesting idea. Not to speak for mopar but I don’t think you would actually risk loosing all your gains and need a 100% win rate. If price starts going against you would reduce trade size of the equation and increase the equity side of the equation… if you’re smart. Did I get that part right mopar? All this reminds me a lot of a hedging strategy that I have except this would represent only one half of the strategy and I can’t trade it because we aren’t allowed to hedge and I don’t have deep enough pockets anyway. It reminds me of the big commercials who build large positions.
Funny how challenging it is to say something without being judgmental. Better to say nothing
Like your man said: it is what it is, and everything is perfect.
Isn’t this about being profitable instead of being right ?
There seems to be more to it than meets the eye, so I’m looking forward to PCM’s post tomorrow.
I suggest we use a random generator (e.g. on random.org) to generate a string of wins and losses of say 100. Alternatively, use a spreadsheet to generate a string with several win %.
Use it on both methods and compare them.
This may not be useful since both methods will have a different psychological impact, so one may end up finding out that one prefers one method over the other, which then in turn would point back to the question “Isn’t this about being profitable instead of being right ?” or, in other words, you are right if you are profitable (constantly that is).
Thanks everyone for the efforts so far. Let’s get to the bottom of this rabbit hole :44:
Hello everyone. Another newb here. Switching over from equities trading into the FX arena. Quickly trying to catch up on this thread and videos. Very informative and thorough forum. Thanks ICT and everyone for the insight!
ICT’s betting strategy may be slower but the steadiness definitely makes up for it. This whole time ICT’s been stressing patience and good habits. If you treat this like a business where you go to work put in your high probability trades day in and day out, you WILL become a millionaire even if it is 30 pips at a time. Why would you ramp up your risk allowing yourself to lose ~76% of your winnings over a string of ~5 losses? That’s at any given time in your career, pretty stressful if you ask me. IMO you should be trading for the enjoyment of it and not seeing how much $ you can get per trade. The money comes with good trading.
I’d easily take a steady 10% return monthly return over a risky 50% return where you could lose it all back with a string of bad luck. Risk management is at least 50% of trading if not more so choose wisely fellas!
GLGT
Edit: Neither strategy is “superior”. Both are probably viable. It just depends on whether you’re looking for long-term gains or short-term gains. I see where PCM is coming from. All in the name of discussion
“Whoever loves money never has enough; whoever loves wealth is never satisfied with their income. This too is meaningless.”
“Do not wear yourself out to get rich; do not trust your own cleverness. Cast but a glance at riches, and they are gone, for they will surely sprout wings and fly off to the sky like an eagle.”
Well I’ve been learning ICT concepts for years yes, but there was a HUGE HUGE release of information in December 2011, and the months preceding that. So IMO, I haven’t even had 3 months with the full array of tools and concepts. Concepts like Judas Swing, and the Drawdown technique which I find so important now, weren’t known just a few short months ago.
So I would ask that those looking in from the outside, to give us a few years from [B]December 2011[/B] to start achieving our true potential as students of ICT.
If you want to know true frustration, go on over to kreslik (no, please don’t actually), and try and learn something from TRO or MO or any of their followers. You’ll be pulling your hair out in minutes trying to decipher the riddles they string out, and man oh man will you be thankful for clarity of Michael’s videos 
Hi folks! Sorry if this has been repeated before, but i tried loading forex ltd mt4 and i couldnt find the USDX.
Could someone here guide me, thanks.
in the Market Watch window where it shows all the currency pairs, if you put your cursor in the gray area where it says Symbol, bid, Ask and then right click and then click on Show All and then you should see it
Oh thank you so much!
I deleted my mt4 wondering that it doesn’t work.
haha thank you once again!
I look at the Weekly Nearest, I’ve never really gained any insight from Dailys but I’m no expert with IO either.
The only other IO source I know of is the one thats on the CoT charts from cotpricecharts.
Wally
Well I’m sure that if you guys have anything worth presenting, you will do that in the near future, and then people that find it interesting can follow you back to wherever you came from
yea?