(Revision 1 - WIP) TRADER 27 - PRESENTS,
featuring the #itsimpossible Indicator,
THE GRINDER
THE GRINDER - A Trading Strategy…
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(Not Financial Advice. I am NOT a Financial Advisor!)
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That utilizes Liquidity Raids in the form of #itsimpossible signals as an Entry Reason
and a Change in State of Delivery (CISD) as an Entry Method. Best defined as a 5
Minute Timeframe Rapid DEMO Scalping Strategy. Special thanks go to The Inner Circle
Trader, the itsimpossible team, and various Content Providers in the Trading space.
THE GRINDER LOGIC - Think about it…When “The Algorithm” prints what we call
a “Change In State of Delivery (CISD), it is LITERALLY telling us that it is going in the
opposite direction at least temporarily. After a CISD, we know that price will either
retrace for a continuation or is part of a Market Structure Shift. By paying attention to
what the Algo is telling us it is going to do, we can join price on its journey of Liquidity
Engineering and Collection.
THE GRINDER STRATEGY.
Theory - The Algorithm that delivers price was designed to Engineer and Collect
Liquidity. The Aglo indicates when it is changing direction after Collecting Liquidity by
printing a Change In State of Delivery (CISD). The Algo prints this signature AFTER it
either collects Liquidity from an Old High or Old Low, OR it collects Liquidity during a
pullback from Liquidity located inside the most recently created range. This concept is
known as External Liquidity (ERL) to Internal Liquidity (IRL). This strategy employs the
concept of Market Structure to place DEMO orders accurately WITH or AGAINST the
presiding trend.
Although this strategy enables a trader to place orders WITH the Trend as well
as COUNTER Trend opportunities, the more favorable approach will always be to trade
WITH the trend.
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As you continue to implement The Grinder you will start to notice things you’ve
already learned like Fair Value Gaps, Order Blocks, Market Maker Models, Inversions,
Optimal Trade Entries, Equal Highs and Lows. And learning how to rely on things like the
Premium and Discount Sections of the current Range and Market Structure Shifts, the
Grinder will open your eyes to the rest of the market.
THE GRINDER PRE-REQUISITE KNOWLEDGE.
PRACTICE
GOOGLE IT!
Discord ONLY
INFORMATION
INFORMATION
INFORMATION
INFORMATION
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Mandatory Knowledge:
PATIENCE
ENGULFING CANDLE
#itsimpossible INDICATOR
CHANGE IN STATE OF DELIVERY (CISD)
MARKET STRUCTURE
PREMIUM / DISCOUNT
OPTIMAL TRADE ENTRY (OTE)
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It is important to be proficient in the following in order to be efficient with The
Grinder. Educational material has been provided at the links next to each concept.
Special Thanks to @TTRADES on Twitter for his excellent Educational Content.
Helpful Knowledge:
MARKET STRUCTURE SHIFTS
MARKET MAKER MODELS (MMxM)
ORDER BLOCKS
INFORMATION
INFORMATION
INFORMATION
THE GRINDER RISK EXAMPLES.
This strategy utilizes frequent executions and requires a good deal of practice and
refining to gain precision. Even a very small % of Risk can be very satisfying when
employed efficiently and effectively.
Risk Per Trade 2.00% ($5000 acct = $100/rpt) - You’re Gambling.
Risk Per Trade 1.50% ($5000 acct = $75/rpt) - You’re Nearly Gambling.
Risk Per Trade 1.00% ($5000 acct = $50/rpt) - Consider with A+ Setups.
Risk Per Trade 0.75% ($5,000 acct = $38/rpt) - Sweet Spot.
Risk Per Trade 0.50% ($5,000 acct = $25/rpt) - For More Frequent Trades.
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THE GRINDER CHART SETUP.
-
On 5 Minute TF use a Horizontal Ray to mark the DAILY CANDLE Open Price.
- This is NOT the IPDA Open Price. This is 17:00 EST. (UTC - 5)
On 1 Hour TF use a vertical line to separate Days (Black Line) (only visible on
1 Hour TF and below) (Every Sunday @ 17:00) EXAMPLE A Below.
On 4 Hour TF use a vertical line to separate Weeks (Blue Line) (only visible on
4 Hour TF and below)
On Daily TF use a vertical line to separate Months (Any Color) (only visible on
Daily TF)
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EXAMPLE A: Vertical Lines Separating Each Day (Clarity of Daily Levels)
THE GRINDER + #itsimpossible INDICATOR SETUP.
Chart Timeframe
Indicator Setting
5 Minute
1 Minute
THE GRINDER ENTRY CRITERIA.
All of
1)
2)
3)
the following should be TRUE before Entry.
Liquidity Raid with an X denoted by an #itsimpossible Signal
Change in State of Delivery following #itsimpossible Signal
For a Bullish Entry - Engulfing Candle BODY Must Close Above Previous Candle
or Consecutive Downclose Candles (Bullish Order Block)
4) For a Bearish Entry - Engulfing Candle BODY Must Close Below Previous Candle
or Consecutive Upclose Candles (Bearish Order Block)
5) Shorts in Premium (top 50% of range) or Longs from Discount (lower 50% of
range)
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BULLISH ENTRY EXAMPLE: ITSIMPOSSIBLE Signal -> CISD -> Entry
BEARISH ENTRY EXAMPLE: ITSIMPOSSIBLE Signal -> CISD -> ENTRY
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THE GRINDER EXAMPLE ORDER SIZING.
SL (PIPS)
Lot Size (0.75%)
4
0.94
6
0.63
10
0.36
________________
__________
/JPY
4
1.38
6
0.92
10
0.55
________________ __________
/CAD
4
1.27
6
0.84
10
0.51
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/USD
THE GRINDER ORDER PLACEMENT.
-
-
For the purpose of having a repeatable and profitable approach, trading WITH
THE TREND is the only recommended application of the method.
- Counter trend trades require a robust knowledge of Premium and
Discount Zones, PD Arrays and where to expect continuations to happen.
As Soon As Engulfing Candle Closes Place Entry on DEMO
- We aim to execute at the close of the CISD Candle.
Engulfing Candles can Overtake 1 or 2 Previous Candles.
- Test Each Type to find what fits your style.
THE GRINDER STOP LOSS PLACEMENT.
-
Upon Entry Stop Loss is placed above Previous Swing
Stop Loss is Moved to BREAK EVEN after 1R is achieved
- We do NOT give our money to the market.
- Break Even Trades WILL HAPPEN
- No one ever went broke taking Profits, so if Price has made a CISD
against you, take profit and wait for more information to be printed, or
simply move on to another asset with more favorable Price Action.
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THE GRINDER TAKE PROFIT TARGETS.
-
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-
Target Liquidity in the Form of Old Highs and Lows, Imbalances, Equal Highs
and Lows, or Daily Candle Open Price
Collapse Trade IMMEDIATELY…
- After CISD Engulfing Candle Close in Opposite Direction OR
- This can happen immediately if you are forcing entries against the
trend. As soon as you see a CISD in the opposing direction, you are
about to be offside and get stopped out.
- If Target is Buyside or Sellside Liquidity, Collapse Trade AT TARGET and
await another CISD in opposite Direction OR
- Target the next Liquidity Sweep as indicated by #itsimpossible
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Example of Stop Loss Placement and Take Profit Target Array
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THE GRINDER OPTIONAL STRATEGY RULES.
The following rules are added to give you more options in devising your exact plan to fit
your Risk appetites and trade Duration. These are just ideas and more will be added
with each new revision. You are currently viewing Version A Revision 1
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Structure Based Rules Examples:
Rules to keep the Grinder ONSIDE and with FLOW.
- In Bearish Structure - Take Shorts ONLY from OTE Zone upon Retracement.
- In Bullish Structure - Take Longs ONLY from OTE Zone upon Retracement.
- IF 1 HOUR Structure is Bullish, ONLY Take Long Orders
- IF 1 HOUR Structure is Bearish, ONLY Take Short Orders
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Stop Loss Specific Rule Examples:
Rules to maximize R and to fit the Risk appetite of the Trader.
- Only take Trades with an SL of < 10 PIPS
- Instead of Above/Below Swing, Place SL above high of the immediately previous
candle. (Subject to your own testing and analysis)
- Move SL to BE after 0.5R, 1R, or 2R
- Move SL to 0.5R after 1.5R, 2R, etc.
- Move SL to 1R after breaching the 2R price level.
- Take a partial every 2R and keep SL at BE to catch Daily Range Expansion
- The Options are limited only by your imagination
Take Profit Specific Rule Examples:
Rules to maximize R and to fit the Risk appetite of the Trader.
- Only take Trades with a RR > 2
- Always take Partials at 2R, and leave 10% on for Range Expansion
- Collapse trade upon opposing #itsimpossible signal
- Collapse trade upon opposing CISD
- NO Closing Trades unless there is a clear Market Structure Shift, SL to BE
You get the picture. The options are limited only by your imagination and the scope of
your understanding.
This is Version A Revision 1 (A.1) and so it is vastly incomplete. A strictly mechanical
methodology has yet to have been significantly datamined so I do not feel compelled
to describe such a method. It will be added to future Versions.
Now enjoy some examples and descriptions. I suggest backtesting (full markups) 5
assets of your choice for 2 weeks in historic price action each. This should take about 10
hours of chart time. 10 hours of chart time is roughly 3 university lecture periods.
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Enough to grasp the concept and begin a forward testing/ tape reading period of 50
trades, specific asset(s) irrelevant.
Before engaging Price with this tool, you should know that this method greatly reduces
the possible R(eward) from taking a trade at the #itsimpossible Signal. However, in
contrast my personal winrate is nearly 98% adnd that is not exaggerating, The Grinder
was designed to show respect to price action and follow it’s lead, whilst being
responsible speculators and risk managers alike. The added confirmation of a CISD
was the psychological edge I needed to execute.
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THE GRINDER - EXAMPLES & ANNOTATIONS
This is really a textbook example. It isn’t cherry picked either, these types of trades happen
constantly.
27 - As shown in the image above, Price Raided Liquidity once, then made a failure
swing which gave an #itsimpossible signal. We immediately get a CISD and upon
Engulfing Candle Close a DEMO Short Order is placed at Market. Price retests the CISD,
which is simultaneously a bearish Order Block and then expands quickly away towards
Liquidity resting below, Visualized as Equal Lows confluent with Daily Open Price.
An internal BOS is formed giving us confidence to hold at least until we see an
opposing Market Structure Shift or Hit our Main Target. Target hit. Booked.
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This example an excellent case study.
27 - This bullish trade was signaled by a Significant Rejection AND Subsequent
Rejection providing an #itsimpossible signal followed by a CISD and Entry taken at
close of Engulfing Candle. We immediately get Bullish Expansion. We are watching for
Engulfing Candles after a Signal so the bearish candle is not a reason to close our trade
as it did not close overtaking the previous bullish candle, and then price expands once
again. Our target was Liquidity resting at Daily Open Price, once seeing momentum
significantly diminish so close to our target. I take Profit and let the market show me
what it is going to do next. And as shown here, we get another CISD after an
#itsimpossible Signal, and Enter a DEMO Short Trade according to Entry Criteria. Since
we are OVERALL in BULLISH Structure, our first Target for a Short Trade is respectably
50% of the previous Range. The Lower 50% of the Range is the Discount. It’s always
better to buy things at a DISCOUNT; and likewise be SELLERS in the Upper 50% of the
Previous Range. It’s always better to SELL things at a PREMIUM. BOOKED.
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This example features a period of consolidation. Perfect conditions for Scalping with
#itsimpossible and ICT’s CISD concept.
27 - The first Short shows price rebalancing an FVG formed during the Bearish Impulse
to the Left. We test Premium and then create a CISD and we Enter based on Bearish
Market Structure, Targeting the Low of the Long Wick, which is usually a Liquidity draw
for the Algo in Consolidation, and we Book it. Trade Closed. The Algo gives us a CISD
entry which we were LATE for and ended up with a Better Entry on the retest wick, so
we go Long and Target the opposing CISD from just before which we know is now an
Order Block and can expect resistance there. The Algo prints a reversal candle and we
TP there, BOOKED. The Algo moves lower but doesn’t give us an indication by CISD
until a few candles later. We get a Bullish Signal and Enter Long according to our
Criteria. We are intending to test the opposing #itsimpossible Ray…. and we hit it, TP
and BOOK IT. The Algo then prints a textbook CISD so we enter Short on DEMO again
and target the opposing #itsimpossible Ray, or simply wait for price to tell us where it is
going next. That is what we respond to, not our desire for price to take the Target
WE’VE chosen.
As ICT says. GOOD TRADING and GOOD LUCK - 27
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