Lesson 1 Introduction

Category: Trading Education

Tags: ICTmarketmodelstrategytrading

Entities: Ali KhanICTmarket maker model

Transcript

00:00

00:15

Hello and welcome to the advanced market maker series. In this lesson, I'm going to start with a brief introduction to the market maker model and who I am.

If you don't know me, I'm just going to give you a brief introduction about my journey here with ICT concepts and

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essentially who you're learning from. All right, so let's get into it.

Firstly, my name is Ali Khan. Uh I am a chartered private student of ICT.

I have been trading since 2017 and I started with retail concepts and indicators that

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were plastered all over my screen. At the time I was working as a pharmacist.

uh was my day job and uh I did that job for nearly a decade. As I'm sure many of you are in a situation where you are trying to replace your job and this has inspired me to really create these

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courses. I ended up discovering ICT in 2018 through a friend of mine who was already a private student of his and it's been a very very very long journey.

Right? I'm not going to sugarcoat this for any of you.

This is going to require

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a lot of work on your part. I'm going to help simplify some of these concepts and really put it together in a way where it's digestible and it's easier to understand.

Those of you who have spent time with ICT's work, you will know that

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it's extremely dense and everything he is trying to talk about in the core content, the market maker model is essentially what he's trying to teach us. He just does it in a very very very long- winded and disjointed manner.

So I'm going to do my best to fix that here

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in this series. Now I am not ICT and by no means am I trying to pretend that I can replace ICT.

Right? This material is to supplement his work.

Once you go through this, I promise you, you will see the market maker model in a whole

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different light. It's still going to require you to go through your own charts, back test, forward test, collect the data.

But I have designed this and structured this course in a way that if I went 5 years back, I wish that I would have had this material, right? It's

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taken me a long time to get everything together. And um hope you guys can really find some insight and value out of this.

So just a little bit about my journey here with ICT. So I discovered ICT like I said in 2018.

I did very

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little trading in that year. Most of it was just really learning theory.

My second year was a very difficult year. Tried to find my own model.

It was very hit and miss and I actually quit for a couple of months because as you know how overwhelming ICT's material can be.

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There was just a lot of it. It was very overwhelming.

And I understand cuz many of you are going to be in that position at the minute where you have a massive amount of information to digest and well that's what I'm here to help you with. Uh 2020 it started clicking for me.

Uh

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this is my third year in but I still couldn't find consistency. Although I did have a break even year.

I found a model that worked for me which was the market maker model. not in the detail that I now know it, but it was the foundations for me to find consistency a

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little bit more in my trading. In 2021, this is when things really started to click with me.

And this is when I really started to understand that I don't need everything that ICT teaches. I picked the things that resonated with me and I ended up creating my own sort of unique

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model from his teachings. This was my first profitable year.

Forward on to 2022. uh again refined on my model by journaling and collecting data.

I really really honed in on my risk management and my psychology and this was a very

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profitable year for me. When you really understand how your model works and what you're looking for and you learn from the mistakes that you've made, trading becomes much more relaxed, right?

You're not rushing into your trades. You're not overtrading.

You're not overleveraging.

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You're not fomoing into a trade. Even though in this series I'm going to give you something that's very very powerful for you to use as a model, you are still going to need chart time and experience using this model.

Right? Just because you watch the videos, like many of you

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are probably aware by now, watching videos and actually getting experience and chart time are two different things, right? Just because you've watched a video does not mean you're going to be entitled to profitability.

With the tools that ICT has given us, we now have an insight into how the markets really

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work and we can use that information to carve out an actual income for ourselves. Right?

So, what is the market maker model? Now just before we begin, if you haven't

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already gone through the academy and you are new to ICT concepts, this is going to be a little bit more difficult for you to follow. So I strongly advise you to go through the academy if you haven't done so.

If you have a decent amount of experience with ICT concepts, then

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you're going to be able to follow this much much better. So what is the market maker model?

Well, the market maker models are a series of buy and sell programs. They are essentially the underpinnings of the market and how the algorithm moves price.

The algorithm is

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limited in how it can move. Right?

So essentially we can only do one of four things. We can have consolidation, we can have expansion, we can have a retracement and we can have a reversal.

There are two types of reversals. There

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is a type one where we create a higher high and then there is a type two where we create a lower high. We're going to be focusing on the type one since that is the preferred reversal that ICT himself favors, but we're going to get into a lot more detail in the coming

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lessons. So everything starts with a consolidation.

So the consolidation is the beginning point of any market maker model. So we start with consolidation and then from consolidation we go to an expansion.

From an expansion, we go to

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either a retracement or we go to a reversal. After a retracement or a reversal, we can go back into an expansion leg.

We can't go from consolidation to retracement because we haven't moved out of the consolidation. There is nothing to retrace from.

And we

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can't go from consolidation to a reversal because again, we haven't moved out of the consolidation. We will always have consolidation and then an expansion leg out of the consolidation.

But we can go retracement to consolidation and we

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can go from reversal back to a consolidation and then from consolidation we can go back to an expansion and this is essentially how the market maker models move. So there are very few moving parts and just this alone will serve you well going forward.

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There are two types of market maker model. We have a market maker buy model and a market maker sell model.

The market maker sell model essentially looks like this. This is a very crude depiction.

In the final lesson, I'm

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going to go through real chart data and I'm going to show you how this works in an actual chart setting. So bear with me as I try to break it down in a simpler form.

Not every single market maker model is going to look this perfect,

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right? So there's going to be many many many variations and it's about training your eyes.

But essentially this is the basis of a market maker sell model. So we have a buy program to a sell program.

Right? So this is our buy side of the

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curve and this is our sell side of the curve. Its purpose is to engineer retail buying.

So as the market moves higher, retail are going to be fomoing into the price leg higher. Right?

Its purpose is to engineer liquidity below the lows.

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This is going to be in the form of sellside liquidity. We look for this model in higher time frame bearish conditions.

So essentially the market maker sell model is a retracement higher. This is our buy program just so that we can go back

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lower and we aim to target the sellside liquidity below the initial consolidation lows. The market maker buy model is obviously the reverse of the market maker sell model.

So we have our sell program in

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order to go back higher with our buy program. Its purpose is to engineer retail liquidity in the form of buy stops above these short-term highs.

As the market retraces lower, we look for the market make a buy model when the

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higher time frame draw is bullish. We are retracing lower to go back higher.

We aim to target the buy side liquidity above the initial consolidation highs. This is obviously a basic overview.

We will be going into a lot more detail in

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the coming lessons. For now, you know how to distinguish between a market maker buy model and a market maker sell model.

The purposes of these models is to manipulate the human psychology where when the market drops one way, retail flood the market with sell orders as the

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market retraces only for the market to turn around and repric higher and target their stops. So, thank you for watching and I will see you again in the next lesson.