Smart Money: The Secret of Top Traders
45sThe opening promises insider knowledge about a mysterious strategy used by top traders, instantly grabbing attention of aspiring traders.
▶ Play ClipThis video explains the Smart Money concept, a trading strategy used by institutional traders to manipulate markets. The presenter, Sergey, breaks down key terminology like Change of Character (CHoCH) and Break of Structure (BOS), and demonstrates how to identify entry points using higher and lower timeframes. He also shares real trade examples and risk management rules.
Smart Money consists of major players (banks, funds, institutions) who manage the market, not guess. They mislead the crowd with false breakouts, take out stops, then enter at better prices.
An uptrend is defined by higher highs and higher lows. A break of the previous higher high forms a BOS (Break of Structure), signaling trend continuation or strengthening.
A downtrend consists of lower lows and lower highs. A break of a lower low forms a BOS in the opposite direction.
Quasimodo is a price pattern where the market forms a false peak or trough before a strong reversal, named after the hunchback character who appears weak but is strong inside.
CHoCH occurs when the last higher low in an uptrend breaks downwards, indicating a potential trend change. It is considered underdeveloped until new opposite extremes form.
After CHoCH forms and a new BOS in the opposite direction is confirmed, traders enter on the candle that breaks and closes beyond the BOS level.
Smart Money traders typically use a 1:2 risk-reward ratio, risking one unit to gain two.
Primary structure is on higher timeframes (daily, 4H), secondary on lower (1H, 15M). Trades are taken in the direction of the primary trend.
On 4H, primary uptrend. On 15M, downtrend formed CHoCH then BOS. Entry at BOS breakout, stop below nearest low, target 1:2.
4H uptrend, 15M downtrend with CHoCH and BOS. Entry at BOS, stop below knee, target 1:2.
1) Place stop loss based on structure, not randomly. 2) Position size max 1-2% of deposit per trade. 3) Keep a trading diary to analyze emotions and mistakes.
The Smart Money strategy is a mindset that helps traders align with institutional players by identifying structural changes and entering at optimal points. Consistent application of risk management and trade analysis is key to long-term success.
"Title promises best strategy for beginners and delivers a solid introduction to Smart Money concepts with examples."
What is Smart Money in trading?
Major players like banks, funds, and institutional traders who manage the market, not guess.
00:41
What defines an uptrend structure?
Higher highs and higher lows.
01:09
What is a Break of Structure (BOS)?
A break of the previous higher high in an uptrend or lower low in a downtrend, signaling trend continuation or change.
01:24
What is a Quasimodo pattern?
A price pattern where the market forms a false peak or trough before a strong reversal.
02:05
What does CHoCH stand for and what does it indicate?
Change of Character; it indicates a potential trend change when the last swing point in the current trend is broken.
02:21
When is a CHoCH considered fully developed?
When new extremes of the opposite trend (lower low and lower high in an uptrend) have formed.
02:49
What is the typical risk-reward ratio used by Smart Money traders?
1:2 (risk one to gain two).
04:39
What is the primary structure?
The trend visible on higher timeframes like daily and 4-hour charts.
04:53
What is the secondary structure?
The trend on lower timeframes like 1-hour and 15-minute charts.
04:53
What is the recommended maximum position size per trade?
1-2% of the deposit, or even 0.5% for beginners.
10:10
Smart Money Definition
Clearly defines the core concept of the video: institutional players manage the market, not guess.
00:41Quasimodo Pattern
Introduces a unique pattern name that helps traders identify potential reversals.
02:05Reliable Entry Point
Provides a clear, step-by-step entry method after CHoCH and BOS confirmation.
03:45Primary and Secondary Structures
Explains how to align trades with higher timeframe trends for higher probability.
04:53Risk Management Rules
Emphasizes the importance of stop loss placement, position sizing, and trade journaling.
09:11[00:01] what cTanyone is and why all top traders are tracking its movements. Let's talk not just about theory, but about the clear logic of how traders trade using the Smart Money strategy. Everything is as clear and to the point as possible. And at the end, I will analyze
[00:15] my trades, where I entered, where I placed a stop, and how I fixed my profit using this system. My name is Sergey. I am the author of the skrippttrayer channel and an investor with twenty years of experience. Let's go. Please remember that I do not provide financial advice in my videos
[00:28] . Everyone is responsible for their own decisions. So be vigilant. SmartMoney is made up of major players, banks, funds, and institutional traders. They don't guess or catch candles, they manage the market. Their goal is to
[00:41] load up at the best price and take money from the crowd. How? First they mislead, create a false breakout, take out stops, then enter themselves when the price has already moved, and drag the market along with them. The smartmanyoney concept is not an
[00:55] indicator or a strategy. It's a mindset, it's the ability to see where they're working and move with them, not against them. So, let's start with the terminology and basic principles of trading using the SmartManyoney strategy. First, schematically,
[01:09] then, of course, we’ll analyze everything on a graph. Our ascending structure is constructed as follows. We are updating our highs and we are updating our barks. It is called a higher high, higher low in an ascending structure. Where we have a
[01:24] breakthrough of the previous haerhai, we have a boss formed. This is a breakthrough in the structure, which symbolizes a change in trend or its strengthening. The top-down structure is constructed as follows. We have a new lower low, then a
[01:37] lower high, then a new lower low, then a lower high, and so a downward structure develops. Here we also have levels formed, which are called SmartMoney Boss. This is the basic terminology used by
[01:50] traders trading with SmartMoney. And then traders look for where the trend changes, that is, the bearish quasimodo and the bullish quasimodo. Quasimodo is a metaphorical name for a price pattern where the market forms a mountain peak or
[02:05] trough. Before the strong turn, the title refers to the character from the novel, Gyugorbun, who is outwardly weak but innerly strong. In trading, this means the price rises or falls, forms a false peak or bottom, and then suddenly changes
[02:21] direction, like a reversal after a hump. Here we are already looking for the level of cho. In simple terms, we had a bottom-up structure. Our highs and barks were updated. And at a certain point we see that the last high low breaks downwards, that
[02:37] is, the structure does not develop further, it is already starting to move in the opposite direction. Here we have a level called CHGч. It is important to understand here that until we have formed new extremes of the opposite
[02:49] trend, that is, as in this situation, lower low and lower high, chch is considered underdeveloped. That is, if a breakthrough has just begun here, we don’t consider it anything, but simply a new boss. The point is that until something is
[03:04] formed here, the price can still easily roll back, knock out stop-losses, collect liquidity and only then move in the desired direction. This is the basis of the smartmoney concept: to avoid
[03:17] these stop-losses, that is, the collection of liquidity. Where a upward trend. Here we found some local level. We're trying to enter into a deal with him. We are knocked out by stop loss. Smartmanyoney. Just a
[03:31] breakthrough of the trend. This is not yet considered a breakdown of the structure. And here we come to the essence of the strategy itself, where specifically there will be a more reliable entry point. First we have formed CHч, we have a new Lyer Low, Lowyer High.
[03:45] Then the price broke lower and a new boss formed in the opposite direction. That is, we have already become convinced that yes, indeed, the structure has changed. And only after this do we have an entry point. In the
[03:58] opposite direction, everything works exactly the same. There was a downward structure, a exactly the same. There was a downward structure, a new high low was formed. Everything that has been formed. Then a new boss was formed . And here is our entry point. On the graph
[04:11] it looks like this. We have a descending structure, it is clearly visible where our lows and highs are decreasing, and at a certain point there is a breakdown, a ch is formed and then a boss is formed , after which at this point we already
[04:25] enter into a deal. That is, when the breakout of the new boss has already begun, and a candle is fixed behind this level, we enter into a trade. Often, traders who trade using SmartMan set a risk-reward ratio of one to two. That
[04:39] earn two. And, of course, the smartman concept uses older and younger trends. Here it is called the primary structure, which is visible on the daily and four-hour timeframes, and the secondary structure,
[04:53] which is visible on the hourly fifteen-minute timeframe. That is, we have a major upward trend, a correction has begun , and already understanding the general daily, four-hour, fifteen-minute timeframe, for example,
[05:08] we find the very entry point, that is, chodч, boss and our entry point. This way, we don't move against the higher timeframe, against the higher trend, and we have a higher probability of the trade working out. Naturally, the smartmoney strategy
[05:23] does not predict the future. Here we also need to understand that there is a negative transactions. Here, as always, we earn money over time. As always, don't forget to like, comment,
[05:36] get lost, and also subscribe to my Telegram channel; the link will be in the description below the video. Well, we continue. In an example it looks like this . That is, we have a four-hour time frame, there is a primary structure,
[05:49] we have a high-low, higher-high update. Again higher low, higher high. Bosses are formed here. And here we already find a secondary structure, which we time frame, the fifteen-minute one. The direction of the senior trend is
[06:03] upward, that is, the primary structure. There is a secondary structure. Next we form chч, then boss. That is, we have a breakout, fixed by a candle. On the next candle, we already get an entry point, a stop-loss under the nearest knee to the
[06:19] level, and a take-profit according to the one to two strategy. Now let's see how this works in practice, using my transactions as an example. I also use the Bybit crypto exchange for my trading. This is the top crypto exchange in the world. It features a user-friendly
[06:33] trading terminal, spot futures trading, a variety of earning tools, Spot X, a pre-market, trading, copy trading, and trading bots. In the Banking section of Eorn you can open a crypto deposit. You can also open a
[06:48] payment card for yourself, just like a bank card. Only here you can pay for purchases with cryptocurrency. After registration, we complete verification in the "Buy Cryptocurrency, P2P Trading" section. You can
[07:01] top up your balance using a bank card or any other payment system. I'll leave a registration link with maximum welcome bonuses in the description below the video. Don't miss our chance. And if you don’t understand something,
[07:14] go to the playlists channel. There's a whole Bybit learning playlist here. Bybit for beginners. In this playlist, you'll find answers to virtually all your questions about the Bybit crypto exchange, as well as a wealth of ways to
[07:29] earn money on it. First deal, BC coin. Here we have, as we can see, a clearly defined primary ascending structure on the higher time frame. Further on the fifteen-minute long time frame
[07:42] we see a downward structure. Cho was formed, then the boss was formed. And here we see a green bird for entry, a red one for exit, a stop immediately behind the nearest extreme, behind the nearest knee, and a potential profit of one to two. That is, I
[07:57] just trade, then at any moment I can come back, look at a certain transaction, see what the volumes were. For those who haven't registered, I'll also leave a link to the trading diary in the description below the video. Next deal is the SADS coin. The
[08:11] four-hour chart clearly shows an upward structure. That is, we look for the entry point according to the trend. And at fifteen minutes we have a descending structure. Here we have first a choch, then a boss, a green birdie - entry, a red one -
[08:26] exit, a stop as reliable as possible behind the nearest knee and a profit potential of 1:2. Next deal coin render. We also have an ascending structure for 4 hours. And the barks are updated. It seems like a breakdown has occurred here, but we don’t have a
[08:42] new boss or anything new, so naturally we continue to search for an ascending primary structure. And then, on the fifteen-minute mark, we see first a descending structure, then chodч, boss at a short distance.
[08:57] The stop here was on the edge, but still not enough. The deal worked out one to two. Even SmartMoney makes mistakes sometimes, and it's important for us to protect our capital. Don't be afraid, just remember, or better yet, write down the following rules.
[09:11] I have also been using the Dragonfly trading robot to date, a whole line of Dragonfly algorithms has been developed. Conservative ones bring 5-8% per month to the deposit. Moderate 8-12%
[09:27] monthly. Aggressive - 1220. There are also semi-automatic algorithms. Users achieve profitability of up to 150% per day, but this requires active participation. I'll leave a link to a detailed video and step-by-step instructions for installing it on a
[09:42] real or demo account in the description below this video. First: description below this video. First: a deal, then we figure out where to put the stop, and start shoving it
[09:54] wherever we want. Don't be afraid of being late; it's better to skip a deal if you're short on time and enter according to specific, planned rules. Second. We select the position size based on risk management. No more than 1-2% of the deposit per transaction. At
[10:10] the start, even half a percent of the deposit per transaction is better. Third. Emotions are the enemy of a trader. It is important to record your transactions, analyze them and work on your mistakes. The life hack is to keep a diary of your SmartMoney transactions. chart,
[10:23] reason for entry and results. Be sure to like, comment, subscribe to the channel so you don't get lost, and also the link will be in the description below the video. That's all from me. All the best and successful
[10:36] me. All the best and successful trading.
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