AI Summary
This video explains the four-step ICT trading strategy for 2025, which founder Michael Huddlestone claims is the easiest and always works. The presenter breaks down the ABC pattern and rules for entry, then offers a critical reflection on trading marketing and the importance of long-term learning.
Chapters
The best ICT trading strategy for 2025 is presented, claimed to be easy and always profitable.
ICT is based on understanding market structure, price behavior, and liquidity driven by large institutional participants.
Trading is simple: find a repeating technical pattern and apply rules. The pattern is ABC; the strategy defines the rules.
Identify the ABC pattern where B forms a higher low (for longs) or lower high (for shorts).
Price must break above the upper liquidity zone, and the next candle on 15-min must be bearish.
After the 15-min candle closes, switch to 1-min and wait for a change of structure (lower highs and lower lows).
Enter at the first Fair Value Gap (FVG) on the 1-min chart. Stop loss above the high of the first candle of the FVG. Take profit at 2:1 risk-reward or at the beginning of wave B/C.
The presenter warns against the 'best strategy' marketing, noting that strategies are updated to sell courses, not because they are better.
Advises viewers to stay on their path, invest minimally in training, and avoid being hooked by constant marketing updates.
The ICT strategy is a simple four-step method based on the ABC pattern and liquidity grabs, but the presenter emphasizes that no strategy is inherently superior and warns against marketing hype. Long-term learning and discipline are key to profitability.
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Study Flashcards (7)
What is the core philosophy behind ICT trading?
easy
Click to reveal answer
What is the core philosophy behind ICT trading?
It is based on understanding market structure, price behavior, and liquidity driven by large institutional participants.
01:22
What pattern does the ICT strategy use to find liquidity?
easy
Click to reveal answer
What pattern does the ICT strategy use to find liquidity?
An ABC pattern where B forms a higher low (for longs) or lower high (for shorts).
03:54
What condition must the 15-minute candle after the breakout meet in step 2?
medium
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What condition must the 15-minute candle after the breakout meet in step 2?
The next candle after the liquidity take must be bearish.
06:50
What is a Fair Value Gap (FVG)?
medium
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What is a Fair Value Gap (FVG)?
An incomplete space within a three-candle pattern.
10:07
Where is the stop loss placed in this strategy?
medium
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Where is the stop loss placed in this strategy?
Above the high of the first candle of the Fair Value Gap.
10:50
What are the two take profit options mentioned?
hard
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What are the two take profit options mentioned?
Option 1: 2:1 risk-reward ratio. Option 2: At the beginning of wave B or C.
11:05
What does the presenter say about the 'best strategy' marketing?
easy
Click to reveal answer
What does the presenter say about the 'best strategy' marketing?
It is a marketing product to confuse traders and keep them consuming courses.
12:57
💡 Key Takeaways
Pattern vs Strategy
Clarifies that trading is based on repeating patterns, not strategies, which are just rule sets.
03:00Marketing Critique
Exposes how trading strategies are marketed to sell courses, not to improve profitability.
12:57Long-Term Process
Emphasizes that trading is a long-term learning process, not a quick fix.
15:13Full Transcript
[00:01] step the best ICT trading strategy for 2025. It's a very profitable trading strategy, and ICT founder Michael Huddlestone himself has stated that it's the easiest trading strategy to
[00:17] use and that it always works. This has obviously led to YouTube being flooded with hundreds of videos talking about this trading strategy, calling it the best, the most profitable, the one that
[00:29] always works, or the one that never loses. First, I'll explain the four steps of the strategy, and then, in the final part of the video, I'll not only reflect on it but also offer a general reflection on the world of trading,
[00:42] which I highly recommend you listen to, as it's honestly the most important part of the video. Very quickly, I'd like to redirect you to the first pinned comment and the description of this video, since each and every
[00:56] concept we'll cover in this video to explain the trading strategy will be defined in other videos, such as tutorial courses and training related to ICT and Smart Money, which, as I mentioned,
[01:09] pinned comment and in the description. The video description: So, if anything is unclear during this strategy explanation, you can consult that information in other videos located there. Starting with
[01:22] the basics, since I want you to correctly understand what ICT does so you can then make sense of what the strategy seeks, I'm going to explain what trading with ICT is based on. In the end, ICT is quite
[01:37] similar to Smart Money, and what this trading philosophy seeks is to understand the market as a set of movements made by large institutional participants, that is, made by large institutional participants, that is,
[01:52] asset managers, etc. These institutions have enough capital and influence to significantly move the prices of any asset in the market. So, this ICT trading philosophy is
[02:06] based on understanding market structure, price behavior, and liquidity. In short, we could identify this philosophy as one
[02:31] react, using that liquidity as fuel for the next movement. The third step is to wait for that reaction to form and then look for entries in the direction of that reaction, executing positions. And making
[02:47] money with them, in the end, the crux of the matter is finding liquidity, and we have to find it through a pattern that we can trade profitably and in the long term. Having already understood what ICT is based on, I'm
[03:00] going to explain what that pattern is that we'll be looking for in this trading strategy. So, in the end, trading is both simple and complex. Why is it simple? It's simple because trading is based on, first,
[03:14] finding a technical pattern that, second, repeats itself over time, and third, applying certain rules, allowing us to make money. This is trading. So, the crux of the matter is understanding that there are many patterns. A pattern isn't the
[03:29] set of rules; that's the strategy. But you can trade the same pattern, for example, an impulse, a pullback, and a continuation, in many ways. The ways determine the strategy, and each strategy
[03:42] will be more or less profitable, but the pattern can be the same: an impulse, a pullback, and a continuation. So, we understand that what we want to do with this ICT trading strategy is find that liquidity because by
[03:54] finding liquidity, we'll be able to apply a strategy that is pattern we're going to use to find that liquidity is the following, and it's an ABC pattern. The first branch is 'a', the
[04:11] second branch is 'b', and the third branch is ' c'. This is what we're going to look for; the upper zone will be that liquidity zone. So we're going to try to find patterns of this style that take this liquidity zone so that
[04:25] the price then completely reverses, and we can apply a trading strategy on a branch we could call 'dd'. This pattern will be like this; it wo n't be exactly like this. The structure will be ABC, but we can find the first zone.
[04:41] In any case, the second zone simply has to form either a higher low relative to the previous point or a lower high if we're looking for a short trade. Then, we have to find the third zone
[04:54] slow way so that when that liquidity breaks, all the stop losses above this zone are triggered, and people are buying, signifying a bullish breakout or a false breakout. Then we
[05:10] can wait for certain patterns or specific rules that pattern will be this, but we won't trade within this pattern. We'll trade the last part, which we could even exclude
[05:25] from the pattern itself, but as such, this is the pattern. Now, the point is to set some rules for this pattern to turn it into a profitable trading strategy. Well, the first of the four steps in this
[05:38] trading strategy is to find the ABC pattern. It's very simple. We understand that what we're looking for is a specific pattern that generates certain liquidity points, and the first step is to find that pattern. Here we would have what could
[05:51] represent arm A. We would have to wait for arm B, which initially generates a higher low. If this arm, or hypothetical arm B, keeps falling and goes to the previous low and doesn't form a higher low, we discard the
[06:06] trade. So we're going to repeat this to see what's forming. The price is falling, the price keeps falling. In this case, it seems to be starting to slow down, and here we would have found that first step, ABC.
[06:21] We would leave aside the first two arms because we already have the first part determined, and we would have to move on to... Let's focus on arm number c, but for that, we need to go to the second step of the trading strategy.
[06:34] So, first step a c: We already have that. Second step: What do we want to happen on arm number c? Well, we want the price to break above the upper liquidity zone, to break above this level that I'm going to draw and
[06:50] mark on the chart because it will be very important for the following steps. So, we have certain characteristics. First, that it breaks out—it has already happened. Second, that the next candle after the breakout goes
[07:03] down. That is, we don't want the price to break out and for the next candle to also be bullish. We want the next candle after the liquidity take to be bearish on this 15- minute timeframe. So you can understand. Hey, why
[07:18] minute timeframe. So you can understand. Hey, why is this aBC and not aBC? Well, we took this liquidity above the previous high, what happened was that the price continued to rise. Hey, and why isn't it aBC? Well,
[07:33] moment we took the liquidity, the price continued Going up then in the same way that conditions are set for the point of arm number B. That is, a higher low has to form, for example, we have discussed
[07:47] for arm number c, certain conditions are also set that in some way allow us to mark and discard certain entries that you wouldn't discard otherwise. So that's the first and second steps. Let's go for
[08:00] the third step and for this we are going to go down to the one-minute timeframe. And in this third step what we are looking for is to wait for a "chch" to form, that is, a change of character, by the literal translation from English, or a change of
[08:16] structure in this one- minute timeframe. Once the 15-minute candle the close has formed in 15 minutes, we have automatically gone down to one minute and here what we are looking for is that change of structure. What does change of
[08:30] structure mean? It means that the price stops making higher highs and higher lows to start making lower highs and lower lows. Notice that as we mentioned, the price in arm number c breaks, but it does so in a
[08:44] decelerated way in this one- minute timeframe, something that In this case, it's not as noticeable on the 15-minute chart, but it is noticeable on the one-minute chart. So, regardless, where is the turning point? Where is the structural change point,
[08:57] or the point of departure? Well, it would be at this level here. This zone would signify that important change and point to consider. Not just any breakout will do; we need a real structural change that forms through
[09:11] the close of the one-minute candle. In this case, it has broken, but the rise, so we wouldn't be doing anything new. And right here, that breakout has already formed below that previous low on a perfect one-minute chart.
[09:26] continued to fall and formed a close below certain lows, like this zone here with this large candle or long shadow that the liquidity takes. Well, with this, step number three would end, and we would
[09:41] directly consider step number four. What would step number four be? Step number four would be the entry step, the execution step. For this, what do we have to do? Enter at the first fire value gap that
[09:54] has formed within all of this. This bearish movement, or entering the order block, what we're going to do, and what I recommend in these types of cases, and in fact, what I've seen happen most often in all these videos that
[10:07] also talk about this strategy, is to use the Fire Value Gap. So, here a Fire Value Gap has formed. Remember, a Fire Value Gap is simply an incomplete space within a three-candle pattern. Here we have the low of one candle;
[10:22] let's adjust it a little more. There we have the low. Here we have the high of another candle, and all of this is a completely incomplete space within this one-, two-, and three-candle pattern. What 's the modus operandi for executing the
[10:36] position? Well, we're going to enter a limit trade exactly here at the beginning of the Fire Value Gap. Right here, well, sorry, in this case, it would be the end of the Fire Value Gap. At this precise moment, we'll place a stop loss above the
[10:50] high of the first candle of the Fire Value Gap. Here we have the high of that candle; clearly. The stop loss goes above that level, and now, pay attention to where the take profit goes—option number one. Putting it at a 2:1
[11:05] risk-reward ratio in this case would mean putting it in this area here without thinking. Two:1 risk-reward ratio, point number two: putting it at the beginning of the wave arm, we could call it number B, or number C. Sorry, at this
[11:20] point here there are these two options. There's no talk of risk management, no talk of break-even points, no talk of anything here. You either win or you lose. Whatever management strategy you want to apply, let option B test it on its own.
[11:34] But in principle, there's no structure or point to consider in this sense, so that's very important. In this case, you would execute the position automatically at this precise moment, and from here on out, you
[11:48] would simply wait for the price to do what it has to do. In this case, it would come very close to hitting that Take Profit and then So these would be the four steps you can verify. They are four
[12:04] quite simple steps, typical of any profitable trading strategy and very similar to the four steps we can find in any of the hundreds of ICT and Smart Money strategies.
[12:16] Having explained these four simple steps, I want to offer a brief reflection, not only on this trading strategy but on trading in general. First and foremost, remember that below,
[12:28] video description, you'll find courses, tutorials, training, and other profitable trading strategies, all completely free, so you can continue developing your trading skills without investing
[12:43] that you shouldn't view trading as a strategy competition. There are no strategies that are inherently better than others, more profitable than others, or that will make you lose money, etc. Understanding a strategy as what it is—
[12:57] a set of profitable rules that offer a long-term gain—they are all equally valid. Some are simply better suited to certain individuals, while others are better suited to different people. But the
[13:10] reality is that this competition of "Which is the best strategy?", "Which is the most profitable?", "Which is the best method?", "Which is the best philosophy?", and so on, is imposed upon you by individuals, entities, platforms, and brokers. who
[13:24] sell courses or have any kind of relationship with the world of trading, and for them you are a product, whether because you are going to buy a course, because subscribe, because you are going to pay commissions for whatever reason. But the
[13:37] fact of confusing you with "What is the best trading strategy?" is simply a marketing product that tries to take advantage of you and tries to confuse you so that you never end up being profitable with anything. Trading is different than it was 5
[13:50] watching this video don't know this because you haven't been in it that long, but I, who have been in the world of trading for 10 years now, not being profitable, but being profitable, only seven of them, have realized that it is or has
[14:04] been completely different. 5 years ago it was one thing, now it is another, and in 2030, in another 5 years, it will be something completely different. But be careful, not because the forms, methods, or strategies become obsolete, but
[14:18] simply because the marketing products have to be renewed, that person who They've already bought other things. If the message is always the same— the message I use— a person who follows my message and
[14:32] isn't profitable in a year won't buy another product, another training program, or another mentorship. However, if that marketing message is constantly being updated, they'll buy another, and then another, and another, and
[14:45] so on. And you have that person hooked, constantly trying to be profitable. Furthermore, with different marketing messages, you not only professionalize the marketing but also attract new people to
[14:58] competitor's. What I mean is that trading doesn't change; rather, trading changes so that you try to adapt to these supposed new trends and stay within the cycle of consumption. It's the same way that
[15:13] football teams constantly change their jerseys annually because change is necessary. If the colors are the same, it's not necessary, but if you update the kit, you keep that fan, that fanatic, hooked on the
[15:27] change, the jersey, the marketing, and those purchases are constantly being renewed. ICT and Smart Money are... Just as valid as any other form of trading used to be. If you look at trading books from 20, 30, or 40
[15:42] years ago, you'll see what was used for trading: indicators, commodities, swing trading, value investing. Now, they talk about completely different things. Does that mean that what came before wasn't profitable? It doesn't mean that what's selling now is better and is the new
[15:54] opportunity. YCT and Smart Money are just as valid as the methods from 30 and 40 years ago, and they will be just as valid as the methods that will emerge in 40 and 50 years because new ones will appear. The only thing you have to keep in mind is
[16:07] that we've reached a point where it seems that anything goes. Any title, any phrase, any thumbnail, any video is valid, and we've reached a point where it doesn't matter what you post. The easiest strategy, the
[16:19] simplest one, the one that never fails, the one that always works, is absolute madness. And there's no filter whatsoever, and we're reaching a truly dangerous point where trading will enter a dynamic in which what
[16:31] seems crazy today, like all these kinds of phrases, will seem crazy in a few years. Something quite obvious, because other concepts and marketing methods will emerge that are far more aggressive than those available today, just as
[16:44] today's methods are much more aggressive than those of years past. It's stay on your path, that you invest the minimum in training, understanding that you will have to learn, and that why not? You don't have to buy one or two courses, you
[16:57] can buy three, four, or five, but let it be because you not because they've sold you on the idea that this training is what will make you profitable, or that this method is the new one and the old one is obsolete, and they have
[17:10] a magic formula. Stay on your path, understand that this is a long- term process, and forget about these products and these powerful pinned comment and in the video description, you will find links of
[17:24] learning as a trader without having to to ICT and Smart Money, but also about indicators, which are just as profitable, and about price action, which is just as profitable.
[17:36] of algorithmic TR which is just as profitable, etc., etc., all so you can continue learning without needing to invest your money. I'm going to leave this video useful, which is the important thing. If so, like,
[17:49] subscribe, share it with friends and family, and I'll see you in the next video. family, and I'll see you in the next video. Goodbye.