Kosta Ouzas breaks down the Wyckoff cycle: how large traders move through phases of building, pushing, distributing, and resetting. Instead of predicting direction, systems adapt to what the market is actually doing right now. A client's four-hour system trades rarely but consistently wins.
Now, the Wyckoff cycle is a first principle because it describes something structural about markets. It's not a trading strategy or an indicator. And markets move the way they do because large participants can't buy or sell all at once without moving price against themselves. So they're forced to operate in these phases, building positions, quietly pushing price when liquidity allows, distributing risk into strength, and eventually allowing price to reset. This process repeats at every time frame and in every market, which is why systems built for serious capital don't try to predict direction, but instead they adapt to whichever phase that the market market is in. So the algorithm responds to volatility, liquidity, and price behavior as it unfolds. And that's why when he does trade, the outcomes tend to be more meaningful. As the client said himself, the four hour system doesn't trade often, but when he does, it brings home the bacon.
