00:00In this video, I will talk about most of the mistakes every trader gets
00:03when they practice trading with the smart money concept
00:07and how to improve it.
00:08And the second thing, I will talk about what is a successful system.
00:12So let's get started.
00:13The first thing, the normal mistake every trader will normally get
00:17when you use this method.
00:19The first thing, normally every trader will define the wrong structures.
00:23When you define the wrong structures,
00:25at this time, every POI and the imbalance or everything after that
00:29will be wrong.
00:31And at this time, the action we should do is check again about the pullback
00:35and break out by watching again my videos about these theories and examples as well.
00:42This is the most of the popular mistake when every trader applies smart money charges.
00:48And the next problem is the wrong POI at this time have two problems.
00:53The first one, you need to check again the imbalance and also check again about structures.
00:59That is a normal solution.
01:01And the third one is the take profit at wrong place.
01:05Here is another of the serious problem because at this time, even wrong play takes profit.
01:10But you also can chaining stop with structure in the 50 minutes time frame.
01:14Therefore, we will still have a profit.
01:16But reward break ratio at this time is not higher than we expected.
01:21Therefore, at this time, we can open the higher time frame to underline light or main time frame.
01:27For example, if you're trading in the one hour time frame, let's open the four hours time frame
01:33to underline light about structure, underline light about the place price might go to the
01:38discount zone or the POI to take profit above that place a little bit and chaining stop with
01:45the 50 minutes time frame to get as much as possible profit.
01:48And of course, you can backtest from 1 to 3 months for every new strategy to fully understand
01:56every aspect about these strategies before applying in the real trading.
02:02That is a very important action you need to do after this course.
02:07And the second thing, I will give you information about what is a successful system.
02:12When you talk about the successful system, have the two main factors you want to talk at this place.
02:19The first thing, this system should be suitable for you.
02:24And we have three factors, small factors to judge us about the suitables.
02:29The first thing, these strategies or this system can help you to control emotionals.
02:35It means that you should be select the right time frame to trade, right currency pairs and
02:42right number of currency pairs.
02:44For example, you as a person cannot get the high emotional, therefore you should choose
02:51the time frame, higher time frame, like the one hour, like the four hours to avoid emotional
02:56when you see the price move quite fast.
03:00And the second thing, you should choose the right currency pair.
03:03Because some of the currency pairs like gold, like PAL, USD or some of the crossing pairs
03:09have a high fluctuation, therefore they must be not suitable for your personalities.
03:15And number of the right currency pairs are also the same because that makes you stressed
03:19and makes you uncomfortable when you're trading and anonymization.
03:23And the second thing, that strategy or the successful system can help you confident or comfortable
03:30when you backtest and trading.
03:33When you see one of the sets are very beautiful but you're not confident to the trading, let's
03:38backtest gain.
03:39This is a pay on you because you should backtest to fully understand about this strategy, to
03:44understand about this point, gain entry or not, pay on the momentum, pay on the play.
03:51And that is the key to be successful because you're not confident you can lose a beautiful trade.
03:57After you lose a beautiful trade, you might entry at a really bad entry and lose the money.
04:02That is a very normal mistake of most of the new traders.
04:06And the third one, these strategies can help you to risk management by trading stops by the case
04:12we should keep.
04:13And about the trading stops, smart money concept can help you to trading with the structure
04:18in the 15 minutes timeframe.
04:21About the case we should skip, I already talked in the wildcard lessons.
04:26For example, at this time, when pride create the rain below our BOS green light.
04:32But at this time, pride not just break out CTS or break out our BOS.
04:37At this time, pride just create the rain and have a no more imbalance zone in this rain.
04:42and have a no more information you can trade, like our SMC theories.
04:47This time is the time we should skip to trade and just quit pride break out of the BOS or
04:53the CTS
04:53to follow our strategies.
04:55And that is the first factor.
04:58About the second factor, we're gonna talk about the profitable to judges.
05:02That is the successful system.
05:04When I talk about the profitable, we just talk about the first thing is the reward break ratio
05:10must be higher than 3 times.
05:12And the second thing is the win rate should be higher than 16%
05:16and drawdown must be less than 10% of your accounts.
05:22And about smart money concept,
05:24normally the reward break ratio at this time is 6 times.
05:28And the win rate at this time is 65%.
05:31That's my interview from the 5 to 10 smart money traders.
05:35And also based on my real account.
05:39And at this time, while reward break ratio is quite low, because we are training stops,
05:45some of the case we already have reward break ratio is really nice.
05:49But pride pull back again and hit to our training stop positions.
05:54Therefore, reward break ratio just half the 6 times.
05:57And to judges, that is a profitable strategy, you should use one formula.
06:04We should calculate the win rate to have the break even by these formulas.
06:091 divided 1 plus reward break ratio.
06:13And for this case, smart money concept will get the win rate to break even.
06:17At this time, it's 14.3%.
06:20It means that if you're trading with smart money concept and your win rate is 14%,
06:26it means that you have a no and it's a lose.
06:30And it means that you just break even.
06:32But in the case, you have the win rate is 65%.
06:36It means that you totally have a profit with smart money concept strategies.
06:41And that is a profitable strategies.
06:43And totally, here is the successful systems.
06:47You should choose everything is right before you apply in the real trading.
06:52And also, goodbye lesson today.
06:53Thank you and see you in the next videos.
