Most Paid Prop Firm Simple Trading Strategy with 65% Win Rate ($5+ Million Payouts)

This trader has achieved over $5 million in payouts in his career so far, $3 million of which was just last year.

And today we're going to go through his exact strategy that has allowed him to do that.

I couldn't use order flow, I couldn't use indicators, so I had to adapt to using just what I see. This is something that I kind of got together over the years, and this is how I developed my edge.

This trader has a 70% win rate and over $5 million in payouts, all while trading from his phone. On this episode of Chart Fanatics, we introduce you to Okala, a world-class prop firm trader.

My strategy is called the 80/20 strategy, and it's based off the NASDAQ. Over the years, that's what I've noticed is 680, 620, and there's levels in between, but the big ones are going to be 80 and 20. So I'm looking at the levels and I'm looking at market structure. So what does that— what does that mean? What is market structure? Well, I have two separate forms of looking at market structure.

So in this episode of Chart Fanatics, we break down the exact strategy by Ocala. This strategy allows you to trade multiple times a day, trading straight from your phone, as simple yet precise 80/20 levels strategy.

The next one I wanted to really show the audience is kind of the same one I showed the first time, where you combine all of these together to get your, your entry with no risk. Well, 10 points of risk.

Carlo in this episode goes step by step through his exact process, 3 separate variations of entry criteria that allows you to get funded and to get consistent payouts from futures prop firms.

The next setup, and this is my favorite setup because I love, I love short, I hate an uptrend. It's called the repair entry. What that is, very simple. It's basically—

let's take it one step further, some live trading segments.

Reason why I'm putting my order right here at 48 is because we have all this and so much more in this episode on Chart Fanatics.

Welcome everyone back to Chart Fanatics, the go-to channel for all of the very best strategy and concept breakdowns of some of the very traders in the world. Talking of which, today a very, very special episode. This trader has achieved over $5 million in payouts in his career so far, $3 million of which was just last year, $200,000 of which was just last month, January 2026. And he's done all of that trading just off his phone. And today we're going to go through his exact strategy that has allowed him to do that. It's the one and only Ocala. Thanks, Riz.

Nice to meet you.

Thank you. Nice to meet you. It's a pleasure to have you here. Thank you for flying in for this as well. I know it's been a very heavy stacked week for you, um, so we're very, very honored to have you with us today. And what a phenomenal, you know, trading career so far. And the crazy bit obviously being that you've done all of that from your phone, which we'll get into later. I know we got words of wisdom as well, um, but where should we begin?

Uh, well, let's just get right into the meat and potatoes of the strategy. So You know, I would love to educate everybody. You know, it's a pleasure. So my strategy is called the 80/20 strategy, and it's based off the NASDAQ. But with the concepts, you can use them on any instrument, but primarily it's for the NASDAQ because these levels, I, over the years, they have worked only on the NASDAQ.

Gotcha.

So 80/20, what does it mean? Well, the NASDAQ moves in, uh, quarter points. So, but at the very end, we're not talking quarters, we're talking— so let's say it's trading at 25,680. So I would be looking at these two numbers, 80, and if it was trading at 25,620, I'd be looking at this number. That's where 80 and 20 comes from.

Gotcha.

Okay, so let's say the chart is looking like this. It's, it's the New York open. It just opened and we're going into 25,680. Okay, I'm a reversion trader, so I'm looking at the levels and I'm looking at market structure. So what does that, what does that mean? What is market structure? Well, I have two separate forms of looking at market structure. So I would look if it's trending up or I would look if it's more of a choppy market. So let's say, let's say it's a choppy market. Great. That's what I want. I want a choppy market. I make all my money doing that. So let's say it's opening like this. So you have a candle here, you have a candle here, you have a candle here, and it's going into 680. Last two ones, last two numbers, 680. Okay. Great. Now I'm looking to see if it taps 680, what is it going to do? It taps it, boom, and I see an instant reaction. So you have an instant reaction higher. Okay, I, I see that this level is being respected over the years, you know, that's, that's what I've noticed is 680, 620, and there's levels in between, but most— but the big ones are going to be 80 and 20. So I see that it's respected. Great. That means that I can get in and I don't look for 100, 200, 300 points. I'm just looking to get 15, 30 points. So, so as soon as this is tapped and I see that, that it's giving a reaction, I'll take that entry long into, let's say, 695, 703. Depends how many contracts I put on. So 695. Okay. I take one contract off here. 703. I take another contract off here. I see that it's slowing down, okay, I'll set my stop to break even back here at 680 and I'll see where it goes. You know, if I, if I can get 100 points out of it, great. If not, then it heads, you know, it heads back down to break even. I get stopped out and that trade is done. Wow.

And what timeframe are you looking at when doing this?

So I look at two timeframes and not a lot of people really use these. Usually you see guys use like a 5-minute and a 15. I use a 10-minute and a 200-second chart.

Interesting.

Yeah.

So why 200-second? 200-second because primarily the 10-minute chart, I'll look for the overall structure and the 200-second breaks down that 10-minute chart into 3 equal parts.

Okay.

So you know how you would have a 15-minute chart and a 5-minute?

Yeah.

Same concept.

Understood. And when it came to sort of developing this and putting this together, you know, what was it that allowed you to do that? Was it going through the charts over and over and sort of picking up on its nuances?

That's exactly what it was. So it's, so it's a constant, uh, constant screen time. I, I would put 6, 8, 12 hours a day in the mornings, um, while I was working, you know, I would always be looking at the charts anyway. And then at night, I would also take time during that to go over the session, do market replay. And that's how I really got, you know, these levels and the levels in between.

Amazing. And if we just— I'm just going to draw, wipe out some of this. So let's break it down into just the steps once again. So if we draw out just some price action here, Okay, great.

Let's do it.

Yeah. And then we had, you said 10-minute and 200 seconds, right?

Yep.

So I'm guessing the entries will be on the 200-second chart.

Correct.

And then the 10-minute would be your overall sort of bigger picture.

Yep.

Marking out those levels.

So there you go.

So let's say same thing. It doesn't have to be. You know, it doesn't have to be 80s only long or 20s only short. So, so let's say you missed this, this 80, 80 buy for whatever reason. You didn't like it, you missed it. Now it's going, it's going higher, it's going to, it's going to 20. So boom, it tapped 20. This is your 20 level. And again, you're looking for that reaction. So it taps it, then it closes under and you see that reaction. Okay, this is going to be your entry short and I always use a 10-point stop.

Always.

Yeah. That's how I keep my risk under control. Because if I'm wrong by 10, most likely I'm probably wrong by 50 or 100.

You know, I understand.

Yeah.

So, so this would be my entry short and I would have, you know, my first take profit, you know, at 15 points, cover my risk.

Mm-hmm.

And then always 15 points at the first initial one. Yeah. It's going to be a 15-point take profit just, just so I cover my risk. Because I don't trade a single contract, I trade multiple contracts.

Okay.

So I would have, you know, my initial risk covered, and then I'm going to see how much I can squeeze out of this move. And, and more likely than not, you know, sometimes if it's a, if it's a capitulatory move down, and then you see that, that, you know, that sellers got trapped or buyers got trapped and you're moving back up, well, you can squeeze, you know, 40, 50, 60 points just because you get all that, all those, uh, late longs or late shorts trapped into that move.

So in this case then, so we're, we're, let's say, short. Once you take that first TP, is that when you move to break even?

Yeah.

Okay. And then do you have a fixed sort of TP too, or is that where you just kind of—

No, I kind of, I, I let it play out because, because again, you're, you're taking that capitulatory move, right? So you want to squeeze as many points as you can, but you also want your risks to be covered. You don't, you don't want to see— I know a lot of guys, uh, don't do the breakeven stop, you know, they let their stop be static. But for me personally, as far as a mental edge, it makes more sense to take that breakeven stop. And, and because my model and my entry model allows me to take multiple entries in a day, I'm not worried about this is the only entry of the day.

Well, that was the question I was going to ask. When do you look for this? Is it Essentially whenever the levels are being reached, or is there particular time windows that you'll focus on?

I don't have time windows. Let me rephrase that. I have windows where there's volatility, and that's the New York open. I try to avoid the lunch hour because usually at that time, the really the edge is in volatility and having variance swing your way. And having, you know, that statistical edge that once it taps this, it'll do that.

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So New York open primarily, avoid the lunch hours.

Yeah, avoid the lunch hour. You know, do your best to stay out of slow choppy conditions or slow trending conditions.

Got you. And then when it comes to this, you say you take multiple entries. Is there ever a case where I think when it comes to prop firms, it's probably not allowed, but are you always kind of fully out of a trade before you get into the next one? So let's say if you're in a short and then it reaches the 80 level and you still have a partial there.

Well, that's where you kind of have to make your own judgment call. You know, you would, take the, you know, you would take the short into 80, and that's when you would have your breakeven stop. And most of your position at that point is probably off already, so why not let that last or two, two contracts, you know, ride? And, and if it does, let's say if it does bounce off there, you can always take, you know, 30 or 20 points if it goes back your way.

Perfect. And what would you say, you know, this is more of a sort of scalping, you know, very quick moves. I imagine you have to react quickly as well. You know, would— do you have to, in terms of a rule, does price have to— once it's gone to the 20 level in this example, does it have to close below?

No, no, no, no. And honestly, it doesn't even have to fully tap it because the market isn't waiting for a specific level to react off of. You know, if there's sellers piling into, into it before it actually goes, you're not gonna wait for it to hit 20 after it does 18 and does a 100-point move down, you know what I mean? So, so here's, here's a good example. Let's say, let's say you, you have a market that is going up, up, up, and it's— and you have a strong candle right into 20, right? Have a strong candle right into 20, but it doesn't quite get there. It stops right— it stops at like 19.75.

Okay.

Okay, $19.75, and, and, and you miss your entry. You miss your entry, uh, short. Well, you're not going to keep this limit order here waiting for it to go back to $20 because you already got that reaction off of, off of, you know, basically $20. You know, it doesn't have to reach $20 and you missed it, so you're not gonna leave your limit order there.

So do you normally have limit orders then?

Yeah, I do.

Okay, and then when it misses, what do you do?

You just wait for the next entry.

Understood. Okay, so when it doesn't reach there, it's not a case where you go sort of like kind of trying to chase it, correct? You will just wait until it hits one of those limits accordingly. Okay, so literally you'll have a limit at 20 with a 10-point stop already in. Yeah, based on the limit.

Now, now there, this is where, you know, you have, you have your mental edge to play because let's say, let's say it doesn't have to be 20 on the dot, right? It doesn't have to be 20 on the dot. It could be 23, for example, if it's a strong move and you anticipated going, you know, right past 20 to 23, you can take it there. And, you know, that's, that's kind of where you have to have your own, uh, sort of style and edge and, and kind of take it, take it as the market is moving.

Is there anything kind of to help factor that in? Is there anything that you look at to the left, for example, or generally on the day to sort of help understand when you might look for that, like the extra room?

Uh, as far as that goes, I don't have indicators. I don't have, you know, I'm not looking at order flow or anything. I'm just very comfortable with, uh, reading the actual price and the movement and the speed of which it happens. Um, and that's, that's kind of where, uh, you know, as a trader, you get to grow into your strategy. You know, you get to grow into the instrument and kind of learn exactly when you are right and when you are wrong and when you need to just stay out.

No, definitely. I think, you know, to your point then, what you're saying is over time, as you— well, two points. One, you can backtest, obviously go through these levels and see how the price is reacting to them and how often it takes place, etc. But most of all, when you're live testing as well, you'll start to get more of a gauge of, you know, certain factors that would allow price to hit these levels either dead on and then react, or where they may surpass slightly. So, you know, with an uptick of vola— daily volatility, or the average daily range expanding slightly higher because of volatility, those are probably moments, as you said, with the speed where you might go, okay, we might want to go above 20 slightly, versus when maybe the markets are slightly more choppy or slower, you could probably trust to go to that 20 directly and have a reaction off.

Correct. So, so, and that's this part is all levels. So, you know, you'll have this is, this is where you would have the levels part of the strategy. The next part is going to be the actual structure of the market, you know, and I have, I have 3 pieces of structure that I would like to share with the audience.

I appreciate it. Yeah, no, definitely.

And let's, let's get into it. The first one I would like to share. So 80/20 in general is a reversion trading strategy. So you're not, you're not chasing the trend, you're looking for a reaction to go back into the mean.

Gotcha.

So it's a mean reversion strategy. So the very first one I would like to show the audience is the fork setup, is what I call it. So this is, this is going to be the fork. So the fork is, uh, when you are when you have a strong move down. So let's say you have a strong move down. I mean, off the New York open, you're putting 100, 150 points down. And now you, you know, you have that capitulatory move. And then you have something like this where you have a wick, you know, and it looks like this. You're putting in that, that long wick, short body. Right. So now you can kind of see that, that, you know, maybe sellers are getting— are stepping off the gas and buyers are starting to step back in. So this is, this is where you kind of look for that mean reversion to kind of take care of these late shorts that maybe got caught like right here or maybe right here. So this, so this is where the fork comes in. So you have that strong, the strong candle You know, that's strong move down. And then you have this, you know, I call this the, the initiation candle, if you, if you will. So you would look for, for this type of setup, and then this is where your entry would be. So your entry would be this candle here, the very next one after, you know, this is, let's say this is a 200-second chart. Yeah, this is where your entry would be. You're looking for this candle to test this low right here, but not break it and then end up looking something like this. So, so boom, now you're making a higher high. You, you couldn't break this low. And then this is where you would take an entry. Maybe, maybe here. Let's say this is, let's say this level is, is 23, right? You bounced off 23. And then your entry would be after you couldn't break 23, you can break this low. Your entry would be, let's say, 27. Your stop is at 17, for instance. Uh, 17 is the, the just slightly lower. And then you, you start making that reversion high, start cleaning up all of this, uh, all of these late shorts.

And the first TP would be essentially 15, 15 points. So yeah, so you'll be looking at Uh, if I do my math, 42.

Great.

Yeah, testing myself. 42 is TP1. Uh, once that's done, you'll break even. The rest can then either run, or is there a particular length of time where you'll let that run? Or if you see the market not really continuing with that momentum, do you just look to cut then?

Yeah, I, I, I would cover my position at that point. You know, if it's, if it's starting to do, if it's starting to do this and then and then you have another move like this, and then you have a move like this, and then it's not really going anywhere. And then you're starting to make— and that would be a great example.

So before we go into the next setup, just before we move on, so as you mentioned, which was my mistake, to be fair, which was the first section we went through with the actual levels themselves, this is actually now your entry criteria at those levels.

Yes.

Amazing. Okay, so this was the fork. And then you said we're going to go into the next one. Let me, uh, let me wipe this out for you. Okay, cool. So which is the next setup we'll go into?

So the next setup, and this is my favorite setup because I love, I love shorts. I love, I love short. I hate, uh, an uptrend. So this is kind of like a, a continuation into a, a short-term downtrend.

Gotcha.

So you would have, let's say you have this. So that first setup, the fork, is a mean reversion back into, you know, it's a, it's a long setup. Yeah, this is a short setup. So let's say you have this, you have a strong move lower, strong move lower, strong move lower, and then you're getting that, that, you know, the buy-up, right? But it's not really going anywhere, you know what I mean? So then, so then if you're biased short you would look for something like this. So you bounced off of 20, you bounced off of 20. Great, you missed this entry, you missed it, you couldn't get it, you were too biased short. Now you have something like this where you have a strong move down, you have a slightly, you know, an uptick, and you're going into, into 80, you're going into 80. And then you have something like this where you have this kind of a, a huge— not a huge, but a stronger move, like a capitulatory move higher into 80. And then that candle starts doing something like this, where it puts like this, a, a bottom, a, a long wick with a small body on the other side, kind of like the fork but on the other side. Well, then you have a move like this, and now you're kind of building, you know, you went into 80 And now you're kind of building this H pattern. You see, it's like a lowercase h like this.

Boom.

Yeah.

Uh-huh.

So now you're building that lowercase h and you, you couldn't really get into shorts here off of 80 because, because you don't want to just blindly, you know, short 80. You don't want to do that.

Of course.

But now you have this rollover and this, you can combine these two things together. Where, uh, we'll do, we'll do an H into my third setup, which is the cross section.

Okay.

Cross section entry. Section entry.

So with the H, would, is that something you would enter off or is just a pattern?

It's a pattern. It's a, it's kind of, it's a market structure pattern.

Okay.

The actual entry is which, which would, that would be the cross section.

Gotcha.

So then, then you have this H forming and now you're, you're still biased short because you have this long move. You didn't make a higher high. Off of the initial open. And now you have something like this. You have a rollover coming in, and then you have this candle. Okay, you have this candle, and then it opens and it goes back into the cross section of these two candles. Do you see that? Yeah, see how it, how it tests the cross section of the breakdown pattern? And then it closes, and then it touches that, that little cross off of— let's say it's off of 80. Off of 80 would be amazing, right?

Of course.

Yeah, you know, that's, that's your level. You want to, you want to mix all of these concepts together to get this precise entry so you can keep your 10-point stop. And then it closes something like this. Okay, and, and it closes like this with, with a long wick. It touched that, that cross And then your entry would have been— your entry would have been off of 80 on the initial, um, on the initial tap and rejection. Okay, so this would be your entry right here. You, you, you mapped out the cross-section, it touched it, it reversed. That would be your entry short. And now you have a 10-point stop. Let's say it's at whatever, let's say it's at 87 now and your entry's at 77. Okay, and ideally what happens is this candle closes, the next one goes back, and now you're back into a trending market and you built out that lowercase h and you're ready to go down more.

Yes, so in this case, is this one which would be a market execution, or would you still look to try and—

yeah, it would— you would mark it in onto this.

Yeah, perfect.

And then you, same principles 15 points, TP1, and then you would let this ride continue, especially on H setups where, where the, the move can be so exaggerated. You definitely want to have, you know, uh, a more, more meat on the bone. Definitely.

I know we're going to go into some charts and examples of trades, but how easy is this to do on your phone? There isn't a lot of all the different elements that you need to be tracking, but how easy is this to actually do from your phone?

Extremely easy, extremely easy. And the reason why, you know, why this kind of all developed was because I needed to trade on my phone because I was at work. I was an electrician for 7 years. So I didn't really have time to, you know, I wasn't at a desk, I wasn't at a computer, I was working, I was doing stuff with my tools and stuff. But at the same time, you know, while I was working, I had my phone. So I needed something that was quick. I couldn't use order flow, I couldn't use indicators. So I had to adapt to using just what I see. And this is something that I kind of got together over the years, and this is how I developed my edge.

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Just before we move on to the chart examples then, is there anything that really stands out to you when you were developing this or really putting this together, or have seen from others who try to implement this, that is one of the biggest sort of challenges they have to get used to or be aware of, or Honestly, it would just be identifying entries.

And that's where you have to take every single concept. You would take the levels. You have the levels. You would take the entry criteria, which is, you know, you couldn't break that fork low, right? You couldn't break this and then you started going back higher or you, you didn't or identifying, you know, an H setup where you can find like a cross-section entry short. And really mixing everything together to make sure you have low risk, a great entry, and a high probability of success on your trade.

So I'm making, making sure every element is there and following the rules accordingly.

Correct.

And would you say as well, like being able to execute with discipline and not overtrade? I can imagine in the beginning maybe people falsely identifying maybe entry signals or even criteria for a trade and then maybe overtrading.

That's probably—

is that something that happens, you think?

Yeah, that's probably the worst culprit that I've seen is, and myself included, because this model gives you so many entries in the day and the Nasdaq, it's trading at 26,000, you're going to have a lot of entries. People sometimes start overthinking and start overtrading, myself included. Um, you know, over the years you get a lot better with that and discipline and knowing your model. But as far as that goes, you know, because this gives you more than one entry a day, you're tempted to start taking, uh, subpar entries. Let's say it didn't tap 80 and you still have an H setup, or let's say it didn't tap 20 and you have a fork going into, let's say, 46. I mean, can it work out? Absolutely, because market structure is market structure. But the best model, the best entry will always be off of just the core principles and mixing everything together into one great entry where you can have that 10-point stop and you can really utilize the low risk and make your reward, you know, 3 or 4 or 5 times your risk.

Absolutely incredible. Would you say as well that, as you mentioned, like the overtrading can become a thing, and especially taking multiple entries a day? Do you have specific rules of a number of trades you're willing to take in a day?

Honestly, I don't. And this is going to sound a little crazy because guys, you know, they'll have a 3 trades a day rule or 5 trades a day. And if I lose, I'm out. Well, for me, what I like to say is if you're hot, step on the gas, you know, because, because if the market is hot and, and the model gives you so many entries and ability to take so many entries and you're seeing it clearly, step on the gas, make, you know, make your money. But, um, but saying that, you know, you have to be able to identify when you're not hot, when, when, you know, and the market is chopping around, it's not really moving, it's not giving you all the criterias, it's not giving you that structure that you need to build out your edge on that day, that's when you have to be careful and know when you might be overanalyzing and start taking bad entries and start taking entries that, that, that would not fit every criteria and start kind of forcing the, the trade to work. And that's when you get into that dangerous territory of overtrading and giving back your day or, or just starting the day off with, uh, with losses.

So with this, do you use, uh, the static risk, like the same risk on every trade because of the frequency? Or to your point, when you are hot and you're getting multiple entries, is there a criteria where if you've had, uh, you're up a certain amount on the day and you're still feeling the market, do you look to step on the gas risk-wise as well?

Uh, risk-wise, my risk would always go instead of a point value. My point value stays static. I would just put on more contracts.

Okay. Yeah, but that would be based on again, that feeling and sort of how you're doing on that day.

Yeah, correct.

Got you. And what would you say average win rate that you've experienced with this strategy so far?

Uh, it would be safe to say that it's, it's mid to low 70s. Wow.

Yeah.

The final, uh, kind of concept I would like to go over with you, Riz, is my, uh, as far as, uh, entry goes, it's one of my favorites, and it's called the repair, the repair entry. What that is, very simple. It's basically a candle with— when it starts, it doesn't have a wick on it. Okay, so a regular market, you know, when it's moving, it'll have something like this. You know, you have, you have a candle like this, and then you have a candle like like this, but it's, it's moving down. And, and let's say you have a strong move. I would use something like this, actually. Let's say you have a strong move down with a, with a long wick and, and, and a body like this. And the very next candle, you are just going to have a body, and it started with a body and no wick. On the top.

You know, it was like pure selling in that.

Yes, correct. It, it had nothing there. Okay. And then you, you had something like this.

Boom.

And all of these examples that we've talked about so far, all 200-second chart.

200-second, it can— I mean, a 200-second is a third of a 10-minute. So if that 200-second candle started, it would be the same as the start of a of a 10-minute candle. It was the first third of it. Yeah.

Have you noticed anyone using, say, different timeframes, or have you really predominantly said stick to these timeframes?

For me and my group of traders, we all use the 200-second and 12-minute.

Now I'm asking because in case anyone tries their own thing, be careful. You all just follow what is set out.

But saying that, what works for me. But as far as market structure goes, I mean, the structure, like H setups or forks, they are— they can be on any time frame. It doesn't really have to be a 200-second or 10-minute. That's just how I developed my edge. But you, you can see, you know, this same pattern form on a 4-hour or a 1-hour or a 30-minute. I mean, it's structure is structure. It doesn't really matter the exact time frame.

Got you.

Back to repairs, you know, this. So, so you had that strong move down. Yeah, you had this candle with no wick on it. Well, for me, I see this as a magnet. That's a magnet for price to revert back into, because if you think about it, this no wick, you had no participants that were able to enter on prices above. So you have all their limit orders that are staying here, here, here. You know, and, and they were, they were never filled. So there's no participation there. So then, you know, now you have a beautiful fork setup happening. You had that low that, that didn't break. And now you have this magnet here. Now you have a lot of confluence to take this entry long and maybe even squeeze out more than 15 points on your first initial entry.

Got you.

You keep your 10-point stop, but maybe you take you take more risk because you have such a strong magnet. You know that these orders are going to get hit. You know that late shorts are offside. And you can take more meat off the bone on your initial entry.

So this is almost the repair is almost like a target.

Correct.

Element. And then you would use your fork setup or your long setup in order to get there. Or with this, I guess, you know, in A short example, would it be the exact same just the other way around?

Correct. So in that example, it would be an H setup to the downside to, you know, to— let's say, let's say it's, it's putting that same move. You missed this, this, uh, you know, you got this and then, and then now you're making that, that H setup higher and now you're rolling over and this candle here, this candle here had no bottom wick.

Got you, right?

So now you're— you got this, this, you're making that rollover, you got your cross section, this is your cross right here, you had a candle that goes into it, right? Touch that cross and you're making that H, you got your entry, this was your entry short, it was off an 80 level, great. And now you have that boom, now, now you're using this as your magnet You got that, that first thing, that's your TP, and now you can ride it to 20 or whatever. You know, it's an— it's a continuation model. So you have that rollover, you had that repair, and you also, you know, you had— you come— the, the main point that I'm trying to make is you have a lot. You have these 4 things that we talked about, and if you mix them all together, you have a lot of potential entries and you have a lot of potential magnets where you can make your own judgment call to where, you know, price will revert back into.

No, I love that. I think it's a step-by-step process, simple, effective. And what I would say is sometimes you get these strategies which are, you know, sort of scalping in nature and, uh, you know, simple in nature as well, but then sometimes they lack substance, right? But with this one as you just explained right here as well, as well as previous stuff. But this one in particular, you really showcase how, yes, this is simple. Yes, this can be done on your phone. Yes, it still has substance there because you're understanding or trying to understand from the price action, from the entries and the patterns set out of what the psychology of the market is doing, the psychology of the buyers and sellers. So, you know, just to this exact, you know, the repair entry here. Well, the Magnet really highlights that. You know, it may be simple, yes, but we have the substance and the understanding of the market that what's going on behind those candles is really the foundation of the whole strategy, which is incredible to see. Amazing. Cool. So should we go through the chart examples now?

Sure. So, uh, first step, okay, you have your Magnets, right? So if you can, if you zoom in You can see we have that repair right there. You see that? No wick.

Yep.

Great. That wick never— that candle never got touched. It got attempted, but it never touched, right?

As long as it doesn't touch, it's still valid.

It's still valid, correct? Because you still have those orders sitting right below, ready to go, that never got tapped. The participants never entered. So this never entered. So now you're kind of waiting. You have this rollover that failed. And then you have that move higher. And then if you can see above here, it, you know, it's kind of cut off, but, but it went right to 720 and did that rejection. Yeah, right, did that rejection. And then what do you have next? You have this candle, but overall it's an uptrend, right? You're trend— you're kind of trending higher. So you have this candle here which is our repair candle. It's a magnet.

Yeah.

And you have this candle here that's also a magnet. Price is kind of reverting back. So what's next? So at that repair is at, uh, 6:15 or so, or 6:10.

Interesting. Yeah.

So look, next, next, next up we have that repair still right here, right? Our magnet. We have a candle low that goes into it. Yep. Swipes it, takes that, takes those orders. And then what's next? We have that strong candle, long wick, low body, swipe that repair. And then we have the next candle that couldn't break that low.

Yeah.

We have a fork setup forming, and that's where our entry is. So we have that 620, we're above 620, we got that repair, we have that fork entry. What would be our target? Our target—

would be our magnet, right?

Correct, the magnet we didn't clean up. So next, what do we see? We had that strong move lower, we had that fork, We took out this, this repair. We got our long entry. We have our stop set under the low, right? Or 10-point stop. And now we're targeting this. And on the chart, you can kind of see what happened. We, we shot up right through it and into that, into that repair.

Amazing. And with the EMAs, an EMA, or is it a Yeah, it just—

it happened to be on the chart and I couldn't figure out how to take it off, but I don't actually use it.

No, no.

Yeah, so that, that would be, you know, kind of everything together in one, uh, setup. Okay, Riz, now let's, let's go over kind of my H pattern setup. So this is, I believe, off New York open. You had that strong move down, you had this candle down into 20s. You bounced off the 20s. You kind of see you bounced right off of 20. Mm-hmm. And now you missed this long. You didn't take this long for whatever reason. You didn't take it. Maybe all the setups weren't there. Maybe you just weren't feeling it. Well, now you kind of have two options. You can either stay out of the market, wait for price to form another structure, or you can, uh, kind of look for a continuation back into— so you can either go for a reversal back, you know, take out these, these, uh, these late, late shorts on a reverse— on a reversal off the 20s. You missed it. Well, now what's next? Well, what's next is you can kind of see as the market is, is forming another structure, right? You kind of see that rollover pattern. You had that sharp move higher with it, with a wick into it, uh, into, into these 80s. And now you'll— you're building out that, that H into a continuation, uh, of the lows. And that's what the H is, it's just a continuation of a short-term downtrend.

So where would you look to execute on the— on this trade?

So for this one, I would look to execute— so, so you had that uh, wick high. You broke below 80s, right? So you had those sellers come in, and then you had a retest with this candle, a retest of these 80s. So, so this is— this would be like a level setup, and using, uh, this market structure to take this entry, uh, short off the 80s. This would be your entry short right here off the retest, and then, you know, continuation, you take your 15 points. And obviously this one was good for 100 points.

Yeah. And so if you're getting in off the 80, would you have the, the stop at the 190?

Yeah.

Yeah.

And, and you can see, you know, off, off the retest, you never, you never saw 190. You know, you saw like 185 at max. Perfect.

Yeah.

And the next, the next setup, you know, one, one of the, the key setups that we had is the cross-section entry. So on the cross-section, it doesn't always have to be an H to enter off the cross. It's just a continuation of either a trend or reversion. It's just an entry model that you can look for. So what you can see here is we had this wick low, we couldn't break that low, and now you're putting in these candles higher, right? You have these two strong candles higher. and you have that cross-section between them. It's also a 20 level, right?

Yeah.

So you have these two candles and you have the 20 level that, you know, you're stacking, you're stacking those two things together. So my entry would be at this cross-section and 20. So let's see what happens next. What happens next is we had that move. You know, we had the, the move into the cross-section. It tapped 20, 23,520. And what happens is you had your, your entry, you entered in and you never even saw like 3 points of drawdown. You know, you never even saw your 10 points. It didn't go against you more than, more than 5, I would say here. And you had that, you know, sharp move higher, a continuation of the trend. So, you know, uh, the next, the next one I wanted to really show the, uh, the audience is kind of the same one I showed the first time where you combine all of these together to get your, you know, your entry with, uh, no risk.

Well, 10 points.

So here, what do we have? We have an 80 level, we have a cross-section here of these two breakdown candles. And you're going right back into it. So remember, this is a reversion model, right? So you're going back into like this, uh, you know, you want to see a continuation lower. So you have reversion back and then reversion back and etc. So what happens? Well, we have kind of this H that played out, right? We have this H that played out. Now you're going back and you have the two things we talked about with the cross-section and 80. So what, so what do we do? Let's zoom in. So you have this here, your entry would be at the cross-section and at 80, it taps it, it's right at 180, right? It taps it and you're instantly in profit. You know, your first TP hit already. You never got close to your 10 points. Your first TP hit And, you know, you have a continuation down into, uh, I wouldn't call this a repair, but, you know, definitely a small wick. And, you know, you grabbed 100 points off of that.

And with that, in terms of, uh, the number of contracts you will take, obviously I guess it would depend on the account size and how much profit you might be in already. But let's say if you have, I don't know, 3 contracts and you've hit TP1, are you taking one off or are you taking sort of a bulk or majority off and leaving just one smaller runner?

I go like this. So, so if it, if it is 3, I would do— I would take 2 off at 15, cover my risk completely. So no matter what, I'm a winner on that trade. And one, I would, I would kind of trail out. But if it's in multiples of 2, let's say, yeah, like 2, 4, 6, let's say it's, it's 4 contracts on that trade, I would take 2 off initially, so half the position, then a quarter off, then the last one, you know, you would, you know, that the quarter would be at, let's say, 30 points.

Yeah.

And then the last quarter would be at 60 or whatever.

Gotcha.

So it all depends how much you're sizing into it. Again, I don't trade just a single contract, I trade multiple. You know, if it's 2, I would take, you know, that first, that first one off at 15 or 12.5. I mean, it, it all depends on exactly how strong that move is, but and then the other one I would set to break even no matter what. It's a winning trade. And, and just that. So at the end of the day, the, the prop firm game and live trading, it's, it's similar, but you have to play on by different rules. So, you know, while live trading rewards having those humongous runners, prop trading with consistency rules does not. So you, you're, you have to be okay with these base hits that stack up consistency and, uh, and getting to that payout.

That's an interesting one actually, because the nature of this is that you'll be in the move with a nice tight stop, and you should be able to, you know, especially if you're hitting that sort of 15, 12.5 to 15 point, uh, target, you're able to get out and be break even. And do you still, even in that scenario, have to be mindful of if it runs quite nicely, and even if it's a partial, if the drawdown amount the trailing drawdown amount could start to shift where even then if it was to pull back, so then you start to scale out more or make your decisions accordingly.

Well, luckily, you know, a lot of firms have kind of went away from that trailing drawdown. It's more end of day where you can have those runners and make that money. But as far as the consistency rule, I mean, that's up to the trader. If you can, you know, look at your own stats, on average per day you make $400, $600, $300, whatever, and you have a $3,000 day, well, chances are you blew out your consistency and it's going to be very difficult to make that profit target and reach the payout. So you have to be mindful of the consistency rule of every single prop firm if they offer one. If they don't offer one, I mean, if they don't have one, then yeah, sure, let those runners go, you know, squeeze as much as you can out of that move.

Definitely. Thank you for going through those chart examples. You know, it's amazing to see obviously what we went over on the whiteboard now from actual charts. But to take it one step further, Akal has actually gracefully provided some live trading segments that he's done trading live these exact concepts. So you're going to see those right now.

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Now let's get back to the episode.

So first things first, I'm just going to pull up, um, the live view of my screen onto the computer so I can show you guys exactly what I'm looking at. The very first thing that I see is this repair right here. This repair right here, it doesn't have a wick, so I'm looking at all the orders, uh, that might be above and looking to get short down into the previous point of interest, which is 20. Um, I just woke up, so sorry if my, uh, explanations aren't thorough, but Yeah, that's what, uh, that's what I'm looking at right now is, is the, um, this repair right here. I'm looking to get short at this repair, so I'm looking to put a limit order right above this previous high, looking to see if we can capture some of those trapped buyers or sellers with a limit order here. So risking 10 points to make potentially 28 points. Um, so the reason being— reason why I'm putting my order right, right here at 48 is because we have again this previous repair.

Uh, and I want to take this short back into the point of interest.

We're also kind of building out that H pattern. What I want to see is, um, I tap into, into here, uh, and hopefully instant rejection. But if not, then I will take another short right here at 60 at the previous cross. So let's see how it plays out. To. We're about 30 minutes from New York open. Usually I don't really trade these hours, but, um, sometimes if the opportunity is there or I'm awake, uh, got up early today, hopefully I do this um, this episode for Riz and send it to him because he's been waiting for a little bit. A little bit slow right now, but that's okay. Patience pays. This is not an ideal entry, uh, stop for, for this order because it's right at the previous cross. So if I do get stopped out, I'm looking at the reaction here, um, for another entry short. But I'm keeping— I'm gonna keep my 10-point stop just in case this, this does that pre-market squeeze. I don't want to get stuck in it. What I want to see play out initially is, is since we have this move down, I want to see, um, this lowercase h play out and hopefully take out these triple wick lows. This to me is a huge magnet to the downside. Um, you have stop losses right under here. Um, so possibly if we get a runner. Um, if I add to this— if, if I add to this position and it's a winner, um, maybe have my take profit right at, right at under these lows and this previous cross section that hasn't been tested yet. Lots of great opportunities for, um, for cross-section entries and exits. This could be a good long here. This could be a good long right at like 20, like right here. I'm actually going to join the bid here. I think this This could possibly be a good long entry, um, just for a scalp because we have a cross-section here, we have 20, so we have 2 confluences here and I always try to take as many confluences as possible. So we have cross-section entry long and then we also have 20, uh, so I'm going to see if I can take 15 out of this position before it runs to, um, my original idea. So you can kind of see there, uh, I entered on the bid. I didn't put a limit order, I just entered on the bid because I like that reaction right at, right at the idea. So it wasn't the lowest possible entry, um, but I did like the reaction. That's why I entered. I used, I used the bid to enter. Stacking up confidence, we're up 5.7 points. At this point, I kind of want to set my break-even stop in. Let's see if we can get, if we can get up to 10 points. If we're up at 10 points, uh, might set my break-even stop in. Oh great, hell yeah. Okay, we got out of that, didn't even need to set a break-even stop. So we got our first 15 points. Okay, great, we're in our second position. Just got this repair, just took out this repair. Ran previous high, took out the repair. So let's see if we can get that 20 tab. Might get stopped out here at the, at the previous cross, down 5 points. Yeah, I think we might get stopped out here. But that's okay, running a 10-point stop and we have some buffer on the day. No reason to overanalyze. If we get stopped out, we get stopped out. It's not a big deal. So again, reason I took this short was this repair, uh, repair candle. Um, regardless if this trade plays out or not, I want you guys to know the reasoning behind it. Uh, we had no wick on this candle. Um, so to me, we just picked up, picked up all these orders that were above that couldn't participate in previous price. Um, so we picked those up. We're up nice. We're up 10, 20, 15 points. Uh, at this point, I would probably be putting my break-even stop in. Um, and the whole idea here is, so we have a triple confluence of ideas. Uh, we have this move down and I want to see this H setup play out where we have, uh, possibly on the next 10-minute open, um, maybe a retest of this section of this area. Uh, and then, and then put like a, a lower low in. And then you see that H setup play out with, uh, this being the ultimate target for the break. And if I do— if I am fortunate enough to get a runner in, um, then I will put the take profit at this previous untested, uh, cross-section entry. Might even take a long off of 80, um, but let's see how it plays out. Normally my, my head would be on the phone like this, but, um, just trying to show you guys exactly what I'm saying right now. Only doing 1 contract right now. I don't want to put too much risk on before New York open. I'll go up to 2 contracts, but no putting more than, more than 2 on. Um, second one, let's see. I mean, see if we have an opportunity to put the second one on. Here, why my take profit is at 20, it's just previous point of interest. I mean, you can see how many times we bounce off 20. 1, 2, 3, uh, 4, couple times. So this, to me, 20 is a magnet for price to revert into. So my take profit is at 20. Um, just want to see if we get kind of a bigger move, because this, this is, this is ultimately what I'm looking at is these triple wick lows. This is a huge, I mean, point of interest to me. Um, this is more of a safer exit, but if I wanted to be more aggressive, which is why I'm hoping we get that, um, we get that runner, we get an opportunity for a runner. Um, then I want to see the runner go for, um, like a break of these lows. This candle started with a repair. Let's see if this gets repaired real quick. This is kind of the perfect opportunity to to get another entry short, actually, like right here at previous, uh, previous repair. Let's see if we get that entry short. Okay, we're in. We have our, we have our 2 contracts. I'm gonna put both at the same stop loss. So both at the same stop loss. So I mean If that previous high gets ran, then, then both stop losses would have gotten ran anyway. And this gives us kind of an opportunity to take, uh, take that there right at the previous cross.

So hope—

I'm, I'm hoping that, you know, right now we're risking 9 points total. On the 2 posit— on the 2 contracts. So first, my first take profit, I want it to be here. Hopefully we get that flush through these lows. Um, because this is the first point of interest I'm looking at that I think price will revert back into. And this is the second point of interest I think price will revert back into. Reason being is it's an untested cross and it's right under— it's an— it's 80 level right under these triple wick lows. And also you have a, uh, untested cross here. So two confluences 3 confluences actually. So that's what you want to see with the 80/20 system is how many confluences can you put together being structure, structure-wise as well as, as well as levels-wise. So here this entry short was a structure-based setup, but our exits are level and structure-based. So again, you want to stack, stack as much as you can in your favor. Reason I took this short also was, um, like, like we were talking about, I want to see this, uh, H play out. So you have this sharp drop, like imagine a lowercase h right now. A lowercase h is like this, right? Like that. So I want to see, so this is the leg and then you have the actual like, like reverse U, I guess. So the H part. Um, so that's the, the, the big setup in play right now is that H and also, uh, couldn't run this previous high. So it's a, it's a lot of things are working our way for the short side. Retesting this previous repair, reverse— like a reverse fork setup. Looks like our first TP is going to get hit here at 20. Okay, first TP is out. Beautiful. Getting out of that first one is great. At this point, we can move our stop to break even. Like so, a point, point under, just, you know, to cover, to cover the commission cost. But I don't know, this, this, we, we ended up getting 25 or 20, 20 points out of it anyway, or 25. So if it, even if it does go break even, we're net 25 on this. I want to see sellers continue pushing right here. I want to see sellers continue pushing, um I want to see a break of that low. There we go, break of that low. Continue. I want sellers to continue. Keep going, keep going. Another break, and I'm— and I'll take, I'll take a momentum short. Okay, taking a short here. Uh, both TPs at the same spot. I want sellers to keep pushing. Sellers need to keep pushing through these lows. Sellers need to keep pushing through these lows. Step on the gas, sellers. So this is just a classic case of, of adding into a winning trade. So let's see, because if the trade idea is playing, you gotta play into it. Just barely missed. There we go, we're out. Okay, might actually take a long here at 80. Dang, just missed me. Kind of want to take a long here at 80. Reason being is that confluence again, you know, you're stacking that confluence. Okay, we're in, we're in, we're in a long from 80s at the confluence being, uh, the level and the cross. Oh, might be, might just get stopped. That might have been a little greedy to double dip. Might have been a little, little bit greedy to double dip there, but we'll see. We'll see. Again, we're running a 10-point stop, so I'm not too worried about it. We're taking, we're taking the Primo setups as they present themselves. So we're first tap of 80 into a previous cross. Come on, fill me out. Got close. Got close to filling me out. We're like 2.5 points away. Hopefully, you know, at this point I kind of want to put a break-even stop in, but we'll let the 10-point stop stay. Ah, beautiful. Great. Excellent, excellent, excellent. Happy with that. So again, got our Casio off the 81. Uh, the reason behind that setup was again stack, stack the confluence, right? So you have the first untest. Wow, what a bounce. Beautiful. No drawdown on that. On that 81. So you had a previous test of this cross section and then you had the level right there. So structure plus level. That's what you want to see.

And there you have it, everyone. Not only have you seen this exact strategy that has achieved over $5 million in payouts, $200,000 just last month. But now you've seen it in its entirety, you've seen chart examples, and now you've seen it live traded as well. Thanks to Akala for being here today and showcasing this all for us. Links for him are in the description below, so make sure you check those out. Any questions or comments about this episode, drop them in the comment section below. Let us know your thoughts if you want to see this again. Uh, or if there's anything you feel we missed, this is your opportunity to ask in the comments. But like, hit subscribe. Other episodes are on screen right now. This has been Chart Fanatics. Until next time, take care.