The 4 Steps Behind My Trading Strategy (Bias to Entry)

In this video, I'm going to go over the four steps that I follow under every single trade that I place.

And this is something that is so important because it's a layered approach that covers every single aspect of what a system should have.

It keeps you out of the unnecessary losses. It controls your overall trading and gets you on side with high quality frameworks.

This is also a process that is repeatable in the market. So after you understand it from this video, you can go out on your own and seek these opportunities for yourself.

getting right into this we're gonna start with an overview of these steps

and the first one is going to be framework this is

where we're looking to use a higher time frame alignment to set

a bias and a idea that we think the market can

move directional on a certain day that's gonna start

with using the daily time frame I don't go above that to

the weekly or the monthly because I feel those are too high of a time frame in terms of short-term trading because we're looking to capture an intraday opportunity and when you think about the weekly or the monthly.

If you're trying to make an assumption on that time frame, you could be trading in the wrong direction or with the wrong bias for a week or for a month, and that is pretty damaging for an intraday approach.

So when we use the daily chart, that is the time frame that we're looking to focus on because we can go in and out each day as the market develops, take in new information, and adjust if needed.

I'm also not going to drop below the daily time frame because

then we're getting too much detail that's not giving us the full picture of what we should really be focusing on because the goal here is to capture expansion daily candles.

Once we're on the daily, I'll show you what I use to actually navigate that time frame and how I'm setting the direction and rules around which days and which side of the market I'm looking to trade.

The second step is confirmation. This is where we've set an idea previously from that daily chart.

Now we're looking to confirm it inside of the day we're potentially going to put on a trade.

Confirmation is one of the most important steps because it separates idea from execution.

And we all know that when it comes to your results, the execution and the actual decision you make on that idea is what truly matters.

So framework is setting the idea, not predicting the market, but saying this is in a framework that can deliver this move.

but I need a confirmation. If the market develops in this way and I use daily profiles as the confirmation, then that's saying the framework is being aligned.

The market wants to move in that direction and I will then consider executing on that trade. The third step is entry.

This means we have a framework off the daily that we know is confirmed by a daily profile.

So an idea has turned into something that is actionable because the market has confirmed and said, I'm going to move in this direction.

Because of that confirmation, I now want to seek an entry to position inside that market because the edge was presented to us.

The final step is management, and this is where a lot of people make mistakes. Your management is how you're making profit on your trades.

It has to be done in a way that allows your trades to work out, but also is protecting the downside in the cases that you are incorrect.

So I'll share with you exactly what I look for, a process to avoid

micromanaging trades because that is the number one mistake that

most traders make and show you how i'm bringing my trades

to a profit target to maximize the value here

we're going to walk through these steps with a real example of a trade that

i took from this past week and it's going to start with the

framework like i mentioned before that is step one framework is

going to be focused on the daily chart which is what we have here this is monday's daily candle and i personally let monday

go and allow that to provide context because what Monday does within the current week tells me about what Tuesday should do.

And this pairs alongside my approach with relevant swings.

Relevant swings are the understanding of which daily highs and lows in the market are meaningful.

And the idea around them is that we're looking

to pull from the extreme highs and lows on the daily to the point that where if price engages them, there is not another daily high or low in close proximity

that i have to be concerned with so i know that the reaction there

is truly meaningful and that is telling me about what

i should expect for price going forward so where are

the relevant swings on this chart looking left here from

monday we can see we have a relevant high that was engaged

and i can say this is a relevant swing because there is distance to this next high here and then off the lows we have that same idea of a daily swing point that has a large separation

from that next daily low. So when price engages here, that is relevant, that is meaningful in the market.

And what is it showing me? Because I can pull from these two ideas the two separate ways that the market and these daily candles engage with relevant swings.

And the first is going to be a manipulation. And that's what we're seeing in the previous week close.

This is Friday's daily candle from the previous week. We traded

down into that and you can see in the wick of that daily candle, that's reflection of a manipulation because we're closing aggressively back into the range after manipulating what is a relevant swing.