listen...10k$ per months with just fair value gaps and liquidity... (80% WINRATE STRATERGY)

Louis, trading as Kai Davis, shows how to make $10k monthly using fair value gaps and liquidity zones. He trades 0.5% risk per setup on funded accounts, takes only high-probability setups on 1-5 minute charts, and emphasizes waiting for clear displacement candles and strong ES correlation before entering.
Chapters
It's time to get you profitable, and you need to be using fair value gaps and liquidity because trading really should be simple. And if you keep trading simple, the results that you can get are amazing. Now, this is going to be a full trade breakdown on today's market, Monday the 27th, 27th of October. Now, it's actually a very interesting day because I know some people who are trading my model actually took a loss today. For me personally, I took zero trades today. Zero trades. I did not take a win, I did not take a loss. Now a lot of people, you're instantly seeing that and you're like, oh well, that's boring. But guess what? If you want to become a profitable trader, then you need to start taking— and you need to go into every single trading day not expecting to take a trade. The most profitable traders in this world, do you really think they are taking trades every single day? No, the answer is no. Listen, if you're using funded accounts and you're taking one win, one win a week, so let's say you take 4 wins every single month. Now this is on the complete extreme opposite end of the scale because of course when you are trading, I'm going to expect you to take, make more than 4 wins in a month. But let's just say one win a week only. This is bare minimum. If you do this with 20 funded accounts and you link them all together, so this is what you can aim for, you are going to be making— so 4 wins, 1 win is 4, 8, 12— so you're making $16,000. Okay, that is if you are risking 0.5%. If you're only risking 0.5% on a $50K account and you have 20 of them, you're making $16,000 per month with 1 winning trade a week. Okay. That should be your goal. Your goal shouldn't be to take 10 trades to make that money. You want to make as much money as possible with keeping everything as simple as possible, and that's how it should be. Now, of course, you're going to take more than 4 trades a month— 4 winning trades a month. That is just on the extreme end of things. So let's take a look on today's price action, and let's start off with our daily bias. So let's jump to the daily time frame, because of course when you are trading, you need the higher time frame narrative. And guess what? We are at all-time highs. And let's keep it simple: whenever we are trading at all-time highs, your daily bias should be bullish, okay? Full stop. To keep it simple, for you to be bearish, you need a good reason to be bearish. Now you might be wondering, what on earth is this massive gap in the markets? And if we drop to lower time frames, I can actually show you. Oh, don't do this again, TradingView. So yeah, if we drop to lower time frames, let's look at the 1-minute right now. If we go to that— so right now we're trading on the electronic trading hours, right? If you switch to the regular trading hours, you'll see this massive gap in the market. And all this gap is, is simply from the close from Friday to the open on Monday. Now this is called the new week opening gap. Now in my opinion, the way that you can look at this, the way that you can look at this massive, massive gap is simply as a big higher time frame unmitigated fair value gap. Because the way that this gap works is most of the time, statistically talking, this gap will get tapped into and it will get filled. And most of the time it will get tapped into and filled to 50% of this range. So it's the same as a fair value gap. That's why I say you can refer to it as a fair value gap, because they work very, very hand in hand. Most of the time it will get filled, and 50% is a good target. So over this week, I am extremely confident and I am all almost certain that price action will come and tap back into this range. So yeah, that could be useful later in the week if you want to look for some short positions, and we are close to that, that point. So going back to today, now at open, this is what the price action looked like. We had this big candle, and guess what? This candle just swept all-time highs as well as this. This candle also created a big bearish SMT because we did not take the highs on ES, and we then also created a nice big bullish fair value gap. Now I know some traders were actually interested in this. Now this is actually a very good start to the day, let's say. So we made this big bullish fair value gap, and as you can see on this next candle, we end up inversing this fair value gap with very strong displacement. Would I take a trade from this fair value gap? Absolutely not. It's Monday morning, Yes, we swap liquidity. Yes, we have an SMT. Should we go for this low in the market? Absolutely. With this displacement inversing this singular 1-minute bullish fair value gap— it's not a 2-minute— the chances that we go for these lows are extremely high. And I said that on the stream. But just because I'm extremely confident that we are going to go for these lows, does that mean that I'm going to enter into a trade? No, it's just not enough good— it's just not a good enough setup personally for me to be entering into the markets here. But these are the type of trade— well, not trades, but these are the type of moves that you want to see work. So I would have been a bit concerned if this did not go for this low, and I wouldn't have really liked price action from that. But as you can see, we instantly displaced straight through that low exactly like we should have. And yeah, I mean, no trades there. What's also interesting about this point right here is we also tap into this fair value gap. We tap into this fair value gap with these equal lows below. Now people ask, is this an LFG? It's hard to find the very clean LFGs when we're at all-time highs because you really want to be finding the ultimate last fair value gap of the leg. So when we have this leg and we have this leg right next to each other, yes, technically this is an LFG, but it's not as strong as if it was an extremely obvious LFG. Um, so yeah, just to answer your questions there about the LFG. So what would we do? We come down, we tap into this fair value gap, and then we obviously have this bearish fair value gap. Now this bearish fair value gap was on the 1-minute and it was on the 2-minute time frame. Now remember, we've already swept the highs, all-time highs here on NASDAQ. We have the bearish SMT. We are also correlated with ES at this point as well. And on this next candle, or in a few candles, we end up inverting this 1-minute. So you might be wondering, okay, we just inverses 1-minute, Louis, did you take this long position? And the answer is no. For me here, well, obviously I would not take this 1-minute because it didn't inverse the 2-minute, right? So the 1-minute inverts, the 2-minute didn't. And then on the next candle, the 2-minute did inverse. So the 2-minute then inverse on that candle. So the 2-minute embossed right here at 9:40. So the answer is now, did I enter this trade? And again, the answer is no. For me, the two things that I'm looking for, especially on a Monday morning, is nice displacements and a nice breakeven point. If I have these two things, especially on a Monday morning, when there's no red folder news. The reason why I'm saying that, by the way, is because statistically Monday with no red folder news, they're just not the greatest days in the world. So yeah, we get this nice move, we get, um, we get this, we get this nice move up, we get this nice reaction, we invest the 1-minute, now we invest 2-minute. But again, we're missing a nice displacement candle. This wick, this candle here has too much of a wick on it. And then look at these 2 candles, so it just doesn't give me enough confidence. We don't really have a nice break-even point. and this trade ends up coming to— coming and failing. Now, for the rest of the session, basically nothing interesting really happens, to put it bluntly. But what I do want to show you is a trade that happens towards the end of the session, which is, in my opinion, the best trade that we've seen. But the only reason I did not take this trade is because ES was extremely uncorrelated. But if we're looking at this market right here, as we can see, what does price do? Price comes down, taps into this bullish fair value gap, which is also a 5-minute fair value gap, which was a 5-minute unmitigated fair value gap, I believe. So yeah, we came down, tapped into that 5-minute unmitigated fair value gap there. We now have this singular 1-minute bearish fair value gap in the market. Now what do we have here, which we didn't have on this, this trade before at 9:30? Look how obvious this breakeven point is. So with this breakeven point being obvious Boom! What else do we have? Look at that displacement candle. Do you see how clean this displacement candle is and how obvious this breakeven point is? Now these are the type of things that's harder— if this didn't happen, then it was— it's harder for me to explain why this necessarily wasn't as good as a trade that a lot of people thought. But now we compare that trade to this trade. Look at the difference. Obvious breakeven point, nice displacement. Not an obvious breakeven point, not nice displacement. Why should this market price action— I go at least to this high. The only reason I did not take this trade is simply because ES was just extremely uncorrelated. We failed to inverse a fair value gap on ES, and it also hits 11 AM. And yeah, therefore I didn't take this trade. If ES was correlated with this market right here, I would have took this long position on NASDAQ because again, my daily bias is bullish, nice risk to reward, obvious breakeven point. So that would have been the way that I would have played it. Break-even point right here, an aggressive break-even point, but that's what it's got to be like. And then I believe this trade works. Yeah, so we hit the break-even point and then price ends up coming up. Um, but again, I did not take this trade. It's just these type of things, in my opinion, are good to look for in the future because if we get this trade with correlation on ES, then you know you should be taking it. So make sure journaling. If you guys have any questions whatsoever, please do let me know. If you want to join the mentorship then the link, then message me on Instagram. If you want to watch me trade live completely for free, then click the first link in the bio, and I will see you on tomorrow's live stream. Let's go!
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