---
title: 'I Reveal My Most Profitable Trading Strategy'
source: 'https://youtube.com/watch?v=fi7OxEzvhjw'
video_id: 'fi7OxEzvhjw'
date: 2026-08-19
duration_sec: 479
channel: 'TradingLab'
---

# I Reveal My Most Profitable Trading Strategy

> Source: [I Reveal My Most Profitable Trading Strategy](https://youtube.com/watch?v=fi7OxEzvhjw)

## Summary

This video presents a price action trading strategy focused on trading the previous day's high and low, leveraging liquidity grabs and fair value gaps. The creator outlines a three-step process for identifying high-probability trades and includes bonus tips for automation and risk management.

### Key Points

- **Strategy Overview** [00:02] — The strategy relies on pure price action without fancy indicators, focusing on specific behaviors at market open and close over the past three months.
- **Step 1: Mark Previous Day's Levels** [00:16] — On a charting platform, mark the previous trading day's high and low. These areas contain significant liquidity (stop losses and take profits) that algorithms target.
- **Liquidity Concept** [01:08] — Liquidity is areas with large open orders, stop losses, and buy orders. Successful trading involves trapping buyers or sellers and using their stop losses as fuel for price movement.
- **Trading Direction** [01:54] — If price breaks previous highs, look for short trades; if it breaks previous lows, look for long trades. The goal is to read price, not predict it.
- **Step 2: Timeframe Shift and Confirmation** [02:19] — After a break of the previous day's high or low, switch to the 5-minute timeframe. Wait for a break of structure (BOS) above (for longs) or below (for shorts) the liquidity level, with a candle closing beyond the previous high/low.
- **Sponsor Segment: Hankotrade** [03:40] — Promotes Hankotrade's mobile app with AI assistant for trading analytics, P&L calendar, and personalized insights. This is a sponsor break.
- **Step 3: Fair Value Gap Entry** [04:49] — After the BOS, a fair value gap (FVG) is often left behind. Wait for price to return to this gap for entry. Set stop loss below (for longs) or above (for shorts) the recent lows/highs, and take profit at the previous day's opposite level.
- **Bonus Tip 1: Automated Levels** [06:20] — Use a TradingView indicator to automatically plot previous day's high and low, saving manual effort.
- **Bonus Tip 2: Risk-Reward Rule** [07:00] — Only take trades with a risk-reward ratio of at least 2.5:1. This ensures small losses and large wins, enhancing the strategy's edge.

### Conclusion

The strategy is a systematic approach to trading liquidity grabs and fair value gaps, with a strict risk-reward filter to maintain a positive expectancy. The creator encourages viewers to test it and emphasizes the importance of discipline in following the rules.

## Transcript

in the past 3 months of trading and I didn't use any fancy indicators, no random trend lines, just pure price action, baby. You see, every single day something very specific happens at the open and close of the market. And if you
get good at spotting it, you can make a ton of money. Step one. First, you need to get on a charting platform. If you don't yet I'll leave a link in the description. Once you're on your charting platform,
you're going to mark out the previous trading day. On this chart, this whole area was yesterday's price action. Next, you're going to mark the previous day's low and the previous day's high. The reason why we're doing this is because
there's lots of liquidity resting above and below these areas. To understand liquidity, you can think of it as areas with large open orders in the market. It's basically just an area with a lot of stop losses and buy orders. In other
words, lots of money. There will naturally be a lot of stop losses right here at the previous day's low and there will naturally be a lot of take profits at the previous day's high. That's just a given. One of the greatest lessons
I've learned in my 10 years of trading is in order to be successful at trading, people are exiting. In essence, liquidity is just that. So, when trading, you basically want to try to trap buyers or sellers and use their
stop losses as fuel to drive the price in the opposite direction. All the algorithms in the market are doing just this, targeting highs and lows because wants to target the orders. It wants to target the money naturally sitting in
naturally want to trade in the opposite direction. So, often when price targets these highs and lows, this is where price will most likely reverse because of what I just taught you. So, if price ever breaks highs, you should look for
confluences to enter a short trade. If price ever breaks lows, you should look for confluences to enter long trade. So, going back to our example, we have our previous day's high and a previous day's low. And again, naturally lots of
resting liquidity will be above and below these areas. Price can do anything from here. We aren't trying to predict price, we're trying to read it. So, in this example, price breaks the previous day's low.
Which brings us to step number two. Once price has broken the previous day's high or low, you're going to go from the 1-hour time frame to the 5-minute time frame. If price broke the previous day's low, you would be looking for longs. If
price breaks the previous day's high, you would be looking for shorts. In this case, price broke the previous day's low, so we'll be looking for long trade. long trade just because it broke the low. We first want confirmation.
Once price breaks the previous day's low, you wanted to immediately do a break of structure to the upside, which is just a break of the previous high. But, an important step, you have to make sure this break of structure occurs
above the liquidity. If it did something like this, where it did a break of structure, but it was below the liquidity, this would not count. It has to do the break of structure above the liquidity. Another important note, when
it does this break of structure, a candle must close above the previous high. If it just wicks above it, like this, this would also not count. So, just to make it extremely clear, for step number two, you must get a break of
structure that not only occurs above the liquidity, but also a candle that closes above the previous high. Which in this case, it does both of those. Now, we need a place to enter the trade. Which brings us to step number three.
show you something. So, one of my biggest partners, Hanker Trade, just released a mobile app, and it's actually insane what you can do with it. The moment you you in, you see your balance, win rate, the amount of trades, profit
factor, and a lot of track trading analytics, which is cool, but nothing special. But, look how cool this is. They added an AI assistant right on your trading dashboard. You can ask it anything about your trading analytics.
For example, what patterns does it see in your daily P&L? It will then give you a complete breakdown of your trades and risk analysis from your own accounts data. So, you basically have your own personalized mentor in your broker. This
is huge because you're not using a generic AI like ChatGPT, you're using an AI that has access to all of your trades and analytics. They even added a P&L calendar, so you can see which specific days you were in profit and which days
you were red. If you're looking for a new broker and want to actually find ways to improve your trading, go check out Hankotrade and try their new AI amount of value you can get from it. I'll leave a link in the description.
Usually, when price does this break of structure, it'll leave behind a fair value gap. Now, I've explained what a fair value gap is like 72,000 times in previous videos. So, I'm going to assume you know what that is. If you don't know
what it is, simply just search on YouTube Trading Lab Fair Value Gap and you'll get a full in-depth explanation of what a fair value gap is in that video. But, for now, I'll just assume you know what it is. When price did the
break of structure, it left behind a bullish fair value gap. Wait for price to come down to this fair value gap. Once price gets here, we move to the next step. Enter the trade. Stop loss below the
lows, and you're going to set your take profit at the previous day's high we marked before. And just like that, we got a winning trade. So, here we have our one-hour price action. We mark out the previous day's low and the previous
day's high. We know there'll be lots of resting liquidity above and below these areas. Step two, we move from the one-hour time frame to the five-minute time frame. We wait for price to break in either direction. This time, we broke
above the previous day's high. So, this time, we'll look for shorts. Step number three, wait for a break of structure directly after the liquidity grab. In this case, the break of structure must happen below the liquidity, and again,
the candle must close below the break of structure. Next, we mark out our bearish fair value gap. Wait for price to come back up to it, set our stop loss above the highs, set our take profit at the previous day's low we marked out before.
And again, we got an easy winning trade. So, now that you guys understand the strategy, I'm going to show you some bonus tips to not only make the strategy easier, but also perform better. Bonus tip number one, remember how we marked
previous day's low? Well, what if I told you there's a way to do it automatically? Go on TradingView, go to the indicators, search previous day's highs and lows. I personally like this one by this guy. Now, instead of having
to mark out the previous day's high and lows manually, this indicator does it for you. The green line is the previous day's high, the red line is the previous day's low. Pretty neat. That's pretty neat. Bonus tip number two, one of the
reasons this strategy works so well is because every time you use it, the risk reward is normally pretty good, meaning your losses are super small when you do lose, but your wins are super big when you win. That's the entire edge. To make
this edge even greater, I have a rule. If the risk reward is not better than 2.5 to 1, I do not take the trade. Meaning, your take profit should be 2.5 times bigger than your stop loss every time. If it's anything less than that,
easily figure this out, go to the left-hand side, choose this icon, click long position, mark out your take profit and your stop loss. This risk reward and your stop loss. This risk reward ratio number should be bigger than 2.5.
If you got all the previous steps done right, but the risk reward is under 2.5, you do not take the trade. Well, that's the strategy. Go try it out and let me time. >> That's pretty neat.