Strategies

Smart Money Concepts (SMC) Overview - Core idea: Follow the likely actions of large institutions by watching order‑block zones, liquidity pools, and market structure breaks. - Key elements: - Order blocks – the last bullish candle before a down move (or bearish before an up move) that often acts as a supply/demand zone. - Liquidity grabs – price spikes into obvious stop‑loss clusters (above recent highs or below recent lows) before reversing. - Break of structure (BoS) – a clear swing high/lower low that signals a shift in market bias. - Typical setup: 1. Identify the prevailing trend on a higher‑timeframe. 2. Mark the most recent order‑block on a lower‑timeframe. 3. Look for a liquidity grab that pushes price into the order‑block. 4. Enter on a reversal candle near the block with a tight stop just beyond the block edge. - Risk & position sizing: Keep risk per trade ≤1‑2 % of account equity. Use the prop‑firm daily loss limit (often 5 % of the funded account) as a hard stop for the day. - Limits: SMC works best in liquid markets (forex, major futures). It can generate false signals in low‑volatility or news‑driven periods, so respect the firm’s news‑trading rules.

How it fits prop‑firm trading - Consistency rules reward a high win‑rate, low‑drawdown approach – SMC’s precise entry/stop placement helps meet those metrics. - Daily loss limits force you to cut losing trades quickly; the tight stop at the order‑block aligns with that requirement.

Feel free to share how you apply SMC, what timeframes you prefer, or any tweaks you’ve found useful!