C.T.E SMC Strategy

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2. C.T.E SMART MONEY CONCEPTS


The Recipe
In C.T.E we use the same smart money concepts which you often see
everywhere everyday on YouTube. The secret recipe here is the pairs
that we trade using this system and why those pairs and not others.
Another secret lies in our entries, scaling in, out and exit analogy.
"They say 9 fields can be ploughed by the same tractor. But the real
magic is the person carrying the seed."
We back-tested SMC our own way and we found out on which pairs it
works out best on. In C.T.E we refine every system that has an
amazing edge to its "best capacity" and then we add our superb
entries, risk management and exits secret. That is why we have a very
high win rate.
The system:
Entry and the stop loss:
The system is a basic SMC. We cover the last opposite candle before
the impulse or a high momentum move. We cover such a candle with a
rectangular tool and create either our supply or demand zone
depending on the direction of the market. This last candle before the
move is referred to as an order block and the front of the zone is
always our entry while the rear is always our stop-loss area.
Take Profit:
The orders can be executed either as limit orders or market execution,
depending on opportunity available and traders preference. In C.T.E,
we set the risk to 3% of the account and target 4x the risk. Meaning we
set a 1:4 risk: reward ratio instead of targeting the major levels like
many other traders do. However if we get an opportunity to scale in,
the second entry we will target the lowest/ highest possible level
depending on the direction of the market.
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Liquidity, Inefficiency and Inducement:

 Lets look at the Nasdaq Chart below:

Please note that the term smart money refers to the large institutions
which basically make a significant move in the markets, these
institutions are hedge funds, investment banks, central banks e.t.c. so
The SMC is the strategy used to assist retail traders execute at the
same time the smart money enter the market to avoid or reduce the
risk of being liquidated.
There is a financial war between the smart money and the retail
traders, and the big fish (smart money in this context) seem to always
win the war due to the amount of effect they have on the market. The
smart money know exactly the strategies the retail traders use e.g
trendlines and support and resistance and so they target those areas
to wipe off stop losses of retail traders: this is called liquidation. As
such, a better plan to win this war is to swim with the big fish, that is
enter and exit exactly where the smart money does.
Definition of acronyms in the figure above:

 The areas (lines) marked with $$$ are called areas of liquidity: They
are basically the areas where retail traders who trade support and
resistance placed their entries and stop-losses. as such, They are
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the areas which big institutions like hedge funds, investment banks
e. t. c target to wipe of the stop-losses of the retail traders, as you
can see from above.
 The empty pink boxes are the order blocks or areas where we
wanna enter our trades at. Usually called the POI (Point Of
Interest).
 The areas (lines) labelled the BOS are called the Break Of Structure
confirming further the uptrend and therefore triggering us to mark
our point of interest.
 The pink boxes labelled INDUCEMENT ZONE are called the smart
money traps or areas where the smart money fool the SMC traders
into believing there is an order block there and then they wipe the
stop losses out, basically because there is some market imbalance
(sometimes called the fair-value gap or inefficiency.) below.
Sometimes the inducement may be created where there is an area
of liquidity or where there are some equal lows or highs. avoid
trading inducement zones at all the costs!
 The area labelled IMBALANCE is the area of fair value gaps where
the market is inefficient i.e has formed large marabuzo or
momentum candles which their large bodies never got
compensated by the retracement of the successive candles or by
their wicks. Therefore such regions still need to be compensated;
meaning the market still has to revisit such places, the reason why
our valid order blocks was refined right below that imbalance
zone in the chart above.
NOW LET US IMPROVE OUR UNDERSTANDING WITH MORE EXAMPLES:

 Consider the charts below

(P.T.O)
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The figure above is an AUDUSD (Aussie) chart on a 4H TF

The figure above is an US Dollar Index (DXY) chart on a 4H TF


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The figure above is a EURGBP chart on a 4H TF

With all due respect, that is all you need to succeed using this strategy.
However if you are a beginner watch a beginners video which comes
with this strategy then dive into the book after and start creating your
first true journey into the forex trading success. If you still have
further questions regarding this strategy, Feel free to contact us in our
free telegram or email provided below. Peace!
C.T.E Free Telegram signals Channel:
C.T.E Only Members Signal Channel (Premium): pay $100 lifetime
subscription to C.T.E PAYPAL: [email protected] and text us
your proof of payment screenshot to the same email account.
You will be added into the members channel within 24hours.
Signing Out,
Athro P Beats, CEO @ C.T.E

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