Original subtitles

Hey, guys. Welcome back to the course series. In today's

video, we're going to be talking about entry types and

the first one of this three-part series is the risk

entry. This is the most basic entry style of this strategy.

So, it's the first one we're going to go over. Um so, I've

done a little draw I've drawn a little diagram here and also

had some notes beside it. So, let's briefly go over that. Um

I'm not going to make this video too long. I want it to be

more bite-sized digestible content. It's a very simple

strategy so we're going to make it sort of brief or as brief as

possible. So, To explain the diagram here basically the

criteria for entry is the same with with any of the entry

types within this strategy. The risk entry the confirmation

entry the only thing where it's different is supply and demand

flip zones which we've already went over in previous videos

right? But for the risk entry and the confirmation entry. The

criteria is the same right? This is what's taught in the

Ebook as well. We have a solidified low point in in a

short scenario right? In a selling scenario. We have a

solidified low a solidified high we have a clear break of

structure creating imbalance very impulsively breaking

structure right and then we have a retracement back to the

point of origin or the POI point of interest OB order

block there's a lot of different names you can call it

refined supply and demand whatever you want to call it

right we have a retracement back to our POI to mitigate

orders and price drops off from there that's where our entry is

okay so with the risk entry and the confirmation entry both

both have the exact same entry criteria. It's just how we how

we enter the trade is very different. So with the risk

entry after the break of structure we locate our order

block or POI. Very simple. It's usually at the top the point of

the point of origin that cause the break of structure and we

simply set and forget an order right? We set a limit order at

either the open of the POI or the 50% of the POI or order

block and the stop loss rests just above and then of course

we target either the next order block or you know equal lows

equal highs whatever the case may be imbalance supply and

demand areas whatever the the target may be that's not the

point of this but basically that's that's the risk entry

you set a limit order and just wait and see what happens right

so of course it has a much lower strike rate than than the

confirmation entry example which we'll go over in the next

video but this still has its benefits and it's you know

there's a time and place for everything right so I still

utilize risk entries from time to time it just depends on my

day and so you know before I dive too much into that let's

let's go over the benefits of risk entries that I have listed

here so risk entries are useful if you don't have a time if you

don't have time to sit at the charts for lower time frame

confirmation entries right because as you know the

confirmation entries that we utilize are typically based on

the minute or 5 minute. I know some people like to go even

lower than that on the second charts not me personally but

yeah so it's useful if you don't have the time to sit on

the charts for lower time frame confirmation entries right you

can stick to higher time frames like the one hour for example

and set an order set a limit order at a point of interest

and then forget about it right as long as the the entry

criteria is there and you've checked all the boxes then it's

still a high probability trade there's just not as much

confirmation as of course the confirmation entry so risk

entries are useful if you work a job and you won't be

available to place instant execution orders right often

times when I'm sitting at my charts in the morning I don't

even place limit orders sometimes I just wait for price

to reach my point of interest create the confirmation entry

and then I'll actually enter the order manually so instant

execution but I know that not everybody is able to do that in

fact most people most people don't have the time to do that

right so risk entries are very good for that. Now another one

is if you're not comfortable yet with lower time frames and

you prefer to stick to higher time frames. So it took me a

long time to actually get comfortable with like the one

minute and five minute entries. Um I never used to be like

that. I actually used to be more of like a swing trader

utilizing like four hour time frames and up right? I used to

spend a lot less time on the charts. But you know my style

has developed more towards intra day trading. And I've

really grown to love it. But Like I said, it takes some time

to to get comfortable with the all the noise that's that's on

the one minute time frame for example. There's a lot more

candles to look at. There's a lot of there's a lot of things

that you you think might might be valid but they actually

aren't because it's on such a low time frame, right? There's

a lot of noise. So, it it takes some time to get comfortable

with that and risk entries are very beneficial if you're not

comfortable with it yet and you just want to stick to the

higher time frames. For example, you could utilize the

daily, the 4 hour, and the 1 hour, maybe even the minute if

you're comfortable with it. Um but most risk entries can be

taken on the one hour time frame. Uh which we're going to

go over an example on Euro USD on the one hour time frame

shortly. Um but yeah you can stick to higher time frames.

You don't have to go down to the five minute or one minute

to locate confirmation entries. So if that's what makes you

more comfortable then this might be the entry style that

best suits you. So let's go over how to best utilize risk

entries. Okay? And after this we're going to go over and

chart example. So number one ensure that price is

approaching the POI correctively rather than

impulsively. This is number one because this is literally the

most important factor to having high probability risk entries.

If you want to increase your win rate with risk entries.

It's very important that you ensure that price is

approaching the POI correctively rather than

impulsively. So what does that mean? That means in a short

scenario if we were just pushing up with massive

momentum full body huge candles that would not be safe that's

kind of like moving in front of a you know stepping in front of

a moving train right like you don't you don't want to do that

there's just so much momentum there'd be so much buying

momentum that that sorry getting a bunch of messages

there there'd be so much buy momentum that you wouldn't

want to step in front of that right so it's really important

that price is approaching the POI very correctively very

small body candles very low momentum right very

indecisional candles because then when it mitigates this POI

it's very likely that it's just going to drop off from that

point and head towards your take profit so that's a very

very important thing to remember ensure that price is

approaching the POI correctively rather than

impulsively, okay? If it's approaching impulsively, that's

when it's best to utilize a confirmation entry which will

go over the next video. You go on the one minute and five

minutes to see if that auto block is actually going to be

respected or if price is just going to push right through it

and invalidate it, okay? So, number two, use less risk. Very

simple. If you're concerned about your trades getting

stopped out because there's no confirmation yet. Simply, you

know, for example, if you typically risk 1% of capital,

just simply drop that down to 0. 5%, right? Half a percent.

It's no big deal because then if you take more losses, it's

it's as bad right? If you're if you have a losing streak of 1%

that can add up. Um if you're only utilizing 0. 5% of your

capital you know a losing streak is just much less

impactful on your overall capital right? So these are

just little things that can that can improve the risk

entries. So number three one of my favourites. Set the entry

for 50% of the order block slash POI to achieve better

risk reward ratio. So basically you. Instead of setting your

entry for the the open of the POI right in this scenario that

bottom of the rectangle tool would be the open of the the

order block slash POI and the entry is set for there right so

instead of doing that you could simply drag the Fibonacci tool

across the POI it's going to be hard to see there so I'm

actually just going to do it away from it you drag your

Fibonacci tool across the whole order block slash POI and then

you simply set your entry parameter for the 50% the

equilibrium right and then stop loss just above let's just

arbitrarily put the target somewhere 5% let's say right so

let's say you've got a a potential 5 R trade here right

if you were to target the open of the order block that risk

reward ratio drops to less than 2 1/ 2% right so it's it's very

drastic it's a very drastic difference when you just target

50% your risk reward ratio increases insanely like that's

more than double right so it's a big deal I basically only

target the 50% unless it's like such a refined like one minute

order block that you know the the stop loss amount of pips

would be like you know just like one 1/ 2 to two pips then

I then I would target the the open of the candle right but if

we're talking about an actual like higher time frame point of

interest that you're targeting for risk entries go for the 50%

gives you a way better risk reward ratio you just have you

have much better odds like that

and number four on the list the last thing I have listed here

manage the trade aggressively okay this means a few different

things one one of the examples I put here move your stop loss

to break even like as soon as possible so let's say you

achieve a 1 to one risk reward ratio right which means you've

basically covered your your initial risk. Maybe at that

point, you can move your stop loss to break even so it's a

risk-free trade, right? Be aggressive with it or maybe

once you reach two R, right? You've achieved two times your

risk then move your stop loss to break even and then secure

partial profits okay because if you do that let's say once you

achieve two R you remove 50% of your position well then you've

actually already banked what you initially risked for the

position right so you've profited that much guaranteed

and then moved stop loss to break even so now if price

decides to reverse on you and trigger your stop loss to break

even you not only didn't lose your capital but you actually

walked away with let's say if you're risking 1000 sorry 1% on

100K account you've already banked $1, 000, which was your

initial risk and then it just takes you out for no loss right

so it's it ends up being a win a very small win but better

than a loss right so that's very important secure partial

profits put your stop loss to break even and then as the

trade progresses you can trail your stop loss right so as

price makes new structural highs and lows you can move

your stop loss above each structure point okay because if

our order block concept remains valid then price Shouldn't be

breaking above these levels, right? It shouldn't be going

above those levels. So, it's a safe place to put your stop

loss because if we're going to continue order flow, it should

mitigate a POI here, drop off, come back up, mitigate a POI

here, drop off, come back up, etcetera, etcetera, etcetera.

So, you can continuously move your stop loss just above these

these areas, right? So, that's trailing your stop loss and

then eventually, when order flow chain you get you get

triggered out and your stop loss gets hit but you walk away

with significant profit okay so these are all things that can

make the risk entry much more favorable for you if you truly

can't utilize the confirmation entries right like I know a lot

of people can't so gotta go over this right it makes a lot

of sense for people who who can't be at the charts all day

or who have very little time to spend on the charts in life in

general the risk entry can be very well I've used it in the

past very well so I continue to just depends on my day like if

I have a lot of meetings and stuff I will certainly utilize

a risk entry so now that we've gone over that I don't want to

drag it on too long so let's head down here this is Euro USD

and we're currently on the one hour time frame okay so we're

going to look at a real chart example here so as you can see

clear bearish order flow right we have continuous breaks of

structure to the downside lots of imbalance being created in

these very impulsive bearish moves okay clear bearish order

flow so in most recent price action we have another clear

break of structure right price created a double bottom here

which adds you know resting liquidity here these are equal

lows we trade back up a little higher and then impulsively

break through it so of course I label that as a break of

structure now where is the order block here well it's the

point of origin for the break of structure right so what

happened right before this huge bearish move can identify that

this little indecisional pinbar candle was the point of origin

for that break of structure okay so for just utilizing the

risk entry here it's very simple we can set the short

position parameters at either the open of the order block

which is right at the bottom there or sorry not the open but

the low of the order block right so we set our entry at

the low again you can set it at the 50% as well for this

example I'm just going to go ahead and set it right here

it's a very small candle anyways stop loss just above

you know what let's just make it ten pips just to be nice and

even and if we zoom out a little bit I've already marked

the line down here because we have a daily low okay so in

this scenario I'm not targeting the nearest order block or

nearest zone of imbalance or anything like that I'm simply

targeting equal lows because I believe that price has enough

bearish momentum and healthy order flow to reach that level

okay so here's the daily low here we have a ten pip stop

loss let's drag our profit zone all the way down to that daily

low

which leaves us at 9. 43 Rokay that's pretty significant very

healthy now you could technically you could shrink

the stop loss even more 8. 5 you know even even eight pips

if our analysis is valid then price should not trade above

this level if it does then we're entering bullish order

flow right so we don't want to see that so technically we

could place our stop loss just above at eight pips But I'm

going to go ahead and keep it at ten. It's just an example.

It doesn't really matter. So let's see if this trade gets

triggered and how it performs.

Okay we're retracing. And there we go. Okay. That happened

really quickly. It was just a wick entry. So price tapped in.

And it actually did tap into the 50percent. So we we

certainly could have targeted the 50percent and increased our

risk reward ratio drastically. But again this is just an

example. I just decided to go for the open. Doesn't really

matter. Um still wonderful risk reward ratio overall. Now let's

play it out. See how it goes.

Consolidating but we're still triggered in. There we go. So

as soon as that happens we have another clear break of

structure.

Right clear break of structure solidified low lower high clear

break of structure creating a new lower low let's continue to

play price forward happens again new break of structure

huge momentum to the downside and of course it hits the take

profit eventually so as you can see the analysis and the the

entry parameters everything was executed on the one hour time

frame didn't have to drop down to the five minute or the one

minute of course I had a a level here to target which was

from the daily time frame of course so that is top down

analysis daily to four hour to one hour, but the point of the

risk entry is that you don't have to go to the very low time

frames you can stick to the higher time frames and maybe

use the 1 hour or 15-minute as your entry time frame rather

than the 5minute or one minute okay so the only thing we

didn't utilize here was setting the entry for 50% of the order

block which we could have but just for the example I didn't

now we manage the trade aggressively too. Again this is

just an example so I didn't really go through management

techniques. Um but for example as soon as price broke

structure here you could have moved your stop loss not even

just to break even but you could have moved your stop loss

above the recent high okay right here to lock in profits.

Right? So then if price decides to reverse from here for some

for some reason you'd be tapped out of the trade but you'd be

left with profit and you know especially more importantly not

a loss right? You'd be left with profit. So that's a big

deal and then you know in this in this specific scenario price

took off really quickly to the downsides there wasn't much

structure created to manage the trade further but you certainly

could've protected yourself by putting your stop loss here

which means it's impossible to take a loss at that point okay

so this was just a brief rundown of the the risk entry I

don't want to elaborate too much on it because it's

actually pretty straight forward you literally set an

order set your stop loss just above the order block we all

know what order blocks are we've gone over them it's in

the Ebook as well you ever need that for reference it's very

simple now again this entry type has a much lower win rate

then the confirmation entry for example but it also depends on

the trader because some traders get confused by the lower time

frames which means they could have a lower win rate using the

confirmation entry if the one minute time frame confuses the

hell out of you then the confirmation entry might not

work out for you very well right if you're comfortable

with the low time frames the 1 minute 5 minute then you can

really utilize confirmation entries to get a very high win

rate but if you're not comfortable then risk entries

are the way to go and as long as you utilize these tips here

you can really have a a highly probable strategy right and

again the entry criteria is the same it's just simply how we

structure the trade that is different okay so that was that

was the risk entry stay tuned for the next video on

confirmation entries