The Best ICT Trading Strategy for Gold

[00:01] the best ICT trading strategy using gold. You'll learn everything you need to know to trade with this strategy, starting with the basics: what is ICT or what is gold, and progressing to the more advanced aspects:

[00:16] the strategy's characteristics and a step-by-step guide to this profitable trading strategy. I can tell you right now that it's to this profitable trading strategy. I can tell you right now that it's high success rate. So, at the end of the video, you can

[00:30] decide if you want me to do a complete backtest of this strategy to see if it's really as profitable on paper as it seems. That said, let's get to the strategy. I want to start with the basics, which is explaining what

[00:44] ICT is and how to trade with it. ICT trading is based on market analysis using the principles of institutional manipulation and liquidity. In other words, these traders believe that the market is constantly being manipulated and

[00:59] focus their entire analysis and trading approach on trying to find the traces that large institutions supposedly leave on the chart when they manipulate prices. Once they detect this manipulation, they

[01:13] trade it to try to make money. In this part of the In this video, I won't go into more detail about ICT. However, remember that below, in the first pinned comment and in the video description, you'll find other

[01:26] links of interest, such as, among other playlists, a specific playlist with ICT concepts explaining what ICT is, how to trade with ICT, how to learn ICT for beginners, and other

[01:40] profitable ICT trading strategies. Understanding what ICT is, I'm now going to explain what gold is, its characteristics, and why it's used for trading. Gold is a raw material, since raw materials are considered to be

[01:55] elements extracted from nature itself, and obviously there are different raw materials: oil, cotton, natural gas, palladium, and also gold. Both palladium and gold, as well as platinum, silver,

[02:10] copper, etc., are not only raw materials but also metals. Gold, as a metal, is usually traded under the ticker symbol CHA/USD and has

[02:22] several characteristics that make it a great asset for trading. First, it's a safe haven asset, which means it will have a lot of movement. Second, it's a... Gold is an asset closely tied to USD fluctuations, exhibiting

[02:36] closely tied to USD fluctuations, exhibiting due to these characteristics, it enjoys high volume, generating significant liquidity. These four elements make gold a

[02:50] preferred asset for virtually any trader. characteristics of ICT-based trading, they create a highly profitable trading strategy. Before explaining the step-by-step rules

[03:06] of this trading strategy and providing a graphical example for clarity, I want to briefly explain its philosophy. This will clarify what we aim to achieve in

[03:18] the market and the fundamental principles behind this approach. First, we will trade only one asset: gold, as previously discussed. Second, only one trade per day is executed. If the entry point is triggered, perfect; if not, no problem.

[03:33] Third, we will trade between 8 PM and 10 PM New York time. We will not trade before or after these hours, so we will focus on trading only one asset. Two hours a day—these three characteristics make this

[03:49] trading strategy that is not only profitable but also simple, perfect for beginner traders or for people who want to get into the concepts of Smart Money. However, I also want you to clearly see the

[04:04] more technical terms we'll be looking for with this trading strategy, since what we're going to do is, as I said, trade a specific time range. First, we'll have to, for

[04:18] example, detect a "pam pam pam" movement, and when we reach that range—let's imagine, for example, that at this point here for example, that at this point here we reach that range, between 8 PM and

[04:32] 10 PM, perfect, the 10 PM range ends here—what we're going to do is very clearly mark a point related to the last high and a point related to the

[04:44] last low to clearly define the trend, the swing points, and the direction. Based on this, we'll trade. For example, if the price, within this time range, goes up and breaks the

[04:59] upper line, we'll look for a very specific concept within this breakout to try to join the opposite direction, the reverse. If the price breaks the previous low, we'll do exactly the same thing.

[05:14] Why? Because what we understand is that within this specific range and that within this specific range and within the asset, Chau USD (i.e., gold), a manipulation will occur, either by attacking the previous high or the

[05:28] previous low. Once this manipulation occurs, we'll wait for certain things to happen within this hypothetical false breakout to enter in the opposite direction. If this set of rules I'll mention

[05:41] below doesn't happen, we'll execute a trade and see if it's a winner or a loser. If the set of rules I 'll mention below doesn't happen, we won't execute any trade, and nothing will happen. Having understood all the previous concepts, it's

[05:53] time to explain step by step the five steps of this trading strategy with a real, practical example, going little by little to understand practical example, going little by little to understand

[06:08] So, the first thing we have to do is understand that we're only going to execute do is understand that we're only going to execute between 8 PM and 10 PM. That is, something we could do is clearly mark this time on the

[06:21] chart so that we do n't have to go looking for which we can go to TradingView where it says " Indicators" and, for example, click on this

[06:33] indicator here called "Time Zone." We click here, and a band or several bands will automatically appear on the chart, marked in blue. These bands represent a specific time in

[06:48] New York time. So, we come up here and configure it. We click this point here, and here we have to put 20. Let's mark it. There it is until 22, because that's what

[07:03] There it is until 22, because that's what we discussed earlier, from 20 to 22. We accept, and notice that it looks a little strange. But if I change the time zone and put the New York time zone, which is -5, and we come back to this

[07:19] moment where the bands appear, you can see that they are from 20 to exactly 22. There we have it, perfect. I change the time zone again, I put it on change the time zone again, I put it on UTC +1 Madrid, and from here is the

[07:33] moment when we have to start. This would be step number one, perfect. And now we have to go to step number two. Step number two is just about marking the previous high and low before... This time zone starts

[07:51] perfectly. On the 15-minute chart, we mark the high at this point here. Very good, there it is marked. And we also mark the low, which is

[08:03] this point here. We have to have this marked before the time zone we're going to trade in begins. Why? Because what we need to see is what happens once that time zone starts. That is,

[08:19] step number one: we adjust the time zone. Very simple. Step number time zone. Very simple. Step number two: we mark the 15-minute high and low for Gold. Step number three: when the price breaks one of these

[08:32] marked levels, what we do is switch to the one-minute timeframe. That's what we have to do automatically. In this case, what happened is that the breakout formed immediately. That is, literally, the first candle on the

[08:46] previous high. There will be times when this doesn't happen. There will be times when it happen. There will be times when it develops a little more, and then at 8:20, 8:30, 9:00, develops a little more, and then at 8:20, 8:30, 9:00, or 9:00-something, a breakout will form.

[08:59] literally in minute one. So what do we have to do here? Wait. We need to find a structural change with an order block. We'll repeat this process because this is already on a one-minute chart. What we

[09:12] structural change. What is a structural change? It's a break of the previous low. Until a break of the previous low occurs, we don't interpret that a structural change has formed. And right here,

[09:25] that structural change begins. Notice that in this bearish movement, the previous low, which was around here, hadn't been broken. So, what we're going to do is wait for the first structural change. Here it is. We'll

[09:37] mark the previous low simply to have a look for an order block within this structural change. That is, step first because it requires the structural change, and second because it requires

[09:52] finding an order block. Let's zoom in a little more to see what I mean. Here we can see a set of candles where we could mark the order block. At this precise moment, at the close—

[10:07] I mean, at the open—of this candle here, this would be how we can mark the order block. So, we can also mark a kind of shading, and we have it, and we mark the order block like this. Okay, perfect.

[10:20] So we already have step number three. Step number four: there are two ways to market when the price closes below the previous low or high. In this case, it's the previous low on the one-minute chart.

[10:34] And obviously, we put the stop loss above the last high or the last low. How would it be? Well, this close has formed here. So, we would enter like this: we would enter here at market, we would put the

[10:47] stop loss here. This would be way number one to enter. Way number two to enter: What is it? Well, obviously, way number two to enter is waiting for the price to contact the order block and putting the stop loss at the

[11:01] same point. That is, we would enter at this precise moment here and we would put the stop loss at the same point above, in this case, the previous high. If we were looking for a buy position, we would put the stop loss

[11:13] below the previous low, obviously. This is the way you are going to execute. Now, this one... Here's how you'll be able to get a higher risk-reward ratio. Why? Because step number five is to execute the

[11:28] position at the moment you set a risk-reward ratio of 2 to 1. So we're going to go down. This is something that's variable and can be adjusted. The risk-reward ratio is 2 to 1; however, if we want to keep it as

[11:42] basic as possible and use a strategy more for beginners, we'll leave it at 2 to 1. And in the other one, we're going to put literally the same thing. Notice put literally the same thing. Notice that we set it perfectly; you reach

[11:56] risk-reward trade. In contrast, with the other one, we have to wait much longer. Within this step number five, we're going to set the breakeven point when the price reaches 11, and then we're not going to touch anything else. So

[12:10] execute this position. In one, we would already have it; in the other, we would have to wait. And exactly here, the position would be executed, and automatically, on the same candle, it would give us the take profit. In the other, you would

[12:25] execute it; the price would go up, but you would incur a loss, a loss, a loss, a loss. And then it would start giving those profits until finally... The price ends up hitting the Take Profit a little further ahead.

[12:40] So, very quickly, to review the steps and make sure we understand them perfectly: first, we adjust the chart to show the time frame between 8 PM and 10 PM New York time. Second, before

[12:56] that time frame starts, we mark the high and low on the 15- minute chart. Third, we wait for a breakout to the upside or downside of the high or low. Fourth, what we do is execute at market price the

[13:11] moment the previous low is broken with that structural change, with a stop loss above it, or the moment that, having formed that structural change, the price comes to attack the order block, which absolutely must

[13:24] exist in this pattern. And step number five, the stop loss is placed above the previous high or below the previous low, with a risk-reward ratio of 2 to 1. This has to be the minimum, although we can adjust it depending on

[13:37] each person's experience. We're also going to set the breakeven point when the price reaches an 11 risk-reward ratio. As you can see, it's a strategy. Quite basic. Take my word for it, quite basic and quite

[13:51] that aren't clear. For example, what is an order block? How to find order blocks? How to find a change in structure? More ICT topics, more gold topics. Remember that below, in the first pinned comment and in the

[14:04] video description, you'll find other links of interest with courses, tutorials, and training in general, as well as to ICT. All of this content is obviously 100% free so you

[14:19] can continue learning as a trader without having to invest your money. Also, remember that if you're interested, I'm going to do a complete backtest of this trading strategy that seems so idyllic to see if it

[14:32] 's really as good on paper as it's made out to be. You just have to reply in the comments: "Alex, I'm interested," "Alex, I want to see it," "Alex, yes, I want you to do the backtesting." Literally, if I see support, I'll do a backtest. If

[14:47] I see you're not interested, I'll leave it aside and won't do any here. I hope you liked it and that it was helpful. That's what's important. If so, like, subscribe, share

[14:59] with friends and family, and we'll see you in the next video. Goodbye!