⚡️The Katana Model⚡️
The simplest way to trade ICT concepts
A full breakdown
(THREAD)
The Katana model is designed to exploit the high probability that price delivers to 50% of any range.
The goal is to find institutional displacement (FVG) on the 15min timeframe and enter a scalp style trade using OTE (optimal trade entry).
In a bullish context this translates to buying in a "discount"
In a bearish context this is selling in a "premium"
The goal is to find institutional displacement (FVG) on the 15min timeframe and enter a scalp style trade using OTE (optimal trade entry).
In a bullish context this translates to buying in a "discount"
In a bearish context this is selling in a "premium"
Step 1: Find institutional displacement on the 15min timeframe
We look for this in the form of a FVG
We look for this in the form of a FVG
Step 2: Set the range
To set the range, you first need to identify where the move began.
This is done by locating the lowest low or highest high before displacement.
Anchor your fib to this low/high
Terminate the fib at the highest high/low after the FVG is formed
At times this will be simple and the range is just the three candle bars that form the FVG. Other times its the entire leg that contains the FVG(s). Below ive posted a screenshot of the latter.
Here is a real example from NQ as well as the fibonacci settings you will use
To set the range, you first need to identify where the move began.
This is done by locating the lowest low or highest high before displacement.
Anchor your fib to this low/high
Terminate the fib at the highest high/low after the FVG is formed
At times this will be simple and the range is just the three candle bars that form the FVG. Other times its the entire leg that contains the FVG(s). Below ive posted a screenshot of the latter.
Here is a real example from NQ as well as the fibonacci settings you will use
Step 3: Set Limit entry, Stop loss, and TP
Entry is at the 50% price level of the target range
Stop loss is at the .75
TP is at the .25
This yields a simple 1:1 RR
Entry is at the 50% price level of the target range
Stop loss is at the .75
TP is at the .25
This yields a simple 1:1 RR
Step 4: Let the trade play out
You dont move your stop to BE or in profit
You dont cut the trade early if you're in drawdown
Ive backtested over 200 trades manually and the win rate averaged at around 73%
You dont move your stop to BE or in profit
You dont cut the trade early if you're in drawdown
Ive backtested over 200 trades manually and the win rate averaged at around 73%
And thats literally it 🎯
I will be posting more trade breakdowns and additional related content, so make sure to follow along as I continue to expand and build upon the model.
A YouTube channel is also dropping soon! 🎊
I'll be covering the exact market mechanics behind why this works and the real reason institutional flow moves the way it does.
If you've been following me for a a bit, you know I love trading psychology - so I will be sure to post videos breaking down: patience, risk management, and the mental tools that separate traders who survive from those who don't.
Whether you trade the Katana or something else entirely, my goal is to provide you some solid value on how to become a better trader.
So stay tuned and good luck out there fam 🤘🏼🔥
I will be posting more trade breakdowns and additional related content, so make sure to follow along as I continue to expand and build upon the model.
A YouTube channel is also dropping soon! 🎊
I'll be covering the exact market mechanics behind why this works and the real reason institutional flow moves the way it does.
If you've been following me for a a bit, you know I love trading psychology - so I will be sure to post videos breaking down: patience, risk management, and the mental tools that separate traders who survive from those who don't.
Whether you trade the Katana or something else entirely, my goal is to provide you some solid value on how to become a better trader.
So stay tuned and good luck out there fam 🤘🏼🔥
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