Decoding the Market

Maker Algo
(Time, Fractals, Range Theory )
The mystery unsolved…

We know the answer is liquidity. That's what the market needs to take out to get its main moves.

The problem is, it's an open-ended word.. People will understand what it is, but never understand how solve it.

The market is delivered by an algorithm, computers run the game. Until everyone is liquidated, then the market will run; remember,
inducement = fuel. The secrets are intelligently hidden, and the ‘strategies’ are revealed: SMC, Support and Resistance, Trendlines,
Breakouts, EQHs. Why do we hear about these things, because they create the liquidity the market takes out! Without them, banks
wouldn't be making the money they do.

Now we know why, let's break down the Market Maker’s Algorithm and how to use it in full advantage, as if we are the computers
running the market.

● System - the market runs on ‘instructions’ being an algo, so we can copy this by creating our own set of instructions
● Time - the algorithm delivers in a fractal, clearly divided mathematical way called quarter-based cycles. Lets use this to find exactly
when the algorithm is building liquidity, manipulating it, mitigating it and repeating.
● Institutional Orderblocks - where do we truly react from and not get trapped into guessing what's correct?
● Algorithmic Range Theory - why do we follow our set of range rules and how do we avoid SMTs?
● Liquidating the Masses FIRST - how can we identify retail liquidity and what to avoid/what to use?
 Time will guide us to when we enter,
and price will guide us from where we enter

1. TIME (and price)

The Arrow of Time: The arrow of time is a concept related to the nature of the universe, existing in a single direction of how events
occur. Trading has a X and Y axis, Y being price and X being time. We can think of this as space and time (without a dimension that
we have). X moves in a single direction (right) while Y moves up and down. This means:

- No such thing as irreversibility

- Time moves in one fixed way, while price can constantly vary - we can relate this to everyday life
- Time can be vertically ‘controlled’ while price can be horizontally ‘controlled’ - this is what the market does to know where
to react from and what to do at certain times of delivery
TIME (Objective Analysis)

If we were creating a trillion-dollar-a-day algorithm, how could

we use time systematically?

● Divide times fractally into equal parts all the way from
the HTF (highest) to the LTF (lowest) - next slide

● Use vertical time slots to delivery different functions to

create the ‘main moves’:

Build liquidity and trap, manipulate as inducement, create

mitigation-continuations, reset cycle until next objective.

[REPEAT]

The crazy thing about the fractal market is that what happens
on the HTF is the exact same on the LTF.. this is why!

We will go further into this in 3 slides

 One Year

Dividing Time Equally

(Quarterly Cycles)

- How many Months in a year - 12 (3 months x 4)

- Weeks in a Month - 4
- Trading Days in a month - 4 + Friday (seperate
function)
- Hours in a day - 24 (6hours x 4 - daily cycle);
Session in a day - 4 (4x90m each session)
One Month
- Yes this can even go further all the way to the
seconds…

= 90m cycles breakdown the timing delivery of price on an

intraday level

Whats the consistent number here? 4 - What was a,b,c,d

before; the functions that time uses to deliver in the
market?
A (1) B (2) C (3) D (4)
 One Week

Dividing Time Equally

(Quarterly Cycles)

- How many Months in a year - 12 (3 months x 4)

- Weeks in a Month - 4
- Trading Days in a week- 4 + Friday (seperate
function)
- Hours in a day - 24 (6hours x 4 - daily cycle);
Session in a day - 4 (4x90m each session)
One Day
- Yes this can even go further all the way to the
seconds…

= 90m cycles breakdown the timing delivery of price on an

intraday level

Whats the consistent number here? 4 - What was a,b,c,d

before; the functions that time uses to deliver in the
market?
A (1) B (2) C (3) D (4)
 Applying Algo Delivery to Our Timings (Quarterly Functions)

‘A b c d’ are actually:

- L: Liquidity - Build up + inducements before Key Area

- M: Manipulations (Of ‘L’) into our Key Area
- C: Continuation (Of ‘M’)
- X: Continuation or Reversal of previous cycle (finalise cycle
objective)

These elicit their function in time. Just because ‘L’ sweeps

but creates LQ for M, it doesnt mean its not ‘L’

The left to right order of events are either:

XLMC or LMCX

When do we want to use Quarterly Cycles?

HTF (for HTF Objectives) and LDN + NY 90m Cycles

- We want to look for our intraday inducement

setups within L.
- We can trade within M, C and X
 DON’T FORGET
Applying Algo Delivery to Our Timings (Quarterly Functions) TO LOOK TO
THE LEFT

Lets Link Time with the Daily Cycle (+ Asia Type)

Type 1
(Adds to an
Inducement)
Applying our XLMC / LMCX

l
x m

l m c
x

m c
l x c
x

l
m
EXAMPLES
EXAMPLES
EXAMPLES - Lets do it
 Big Ah Ha
MMM (Magic Minute Mitigation) Correlation + Session Open Impulses Moment??

MMM is 90m (+/- 30m buffer) after the Open…

coincidence?? (LDN Open is 3rd cycle, NY Open is
2nd Cycle)

When we open, we have a huge spike of momentum,

often manipulating (Cycle M). What follows after M?
C.. what is C, continuation! The MMM is a magic
mitigation of M (the open)...

-> XLMC (LDN) and LMCX (NY) = MMM as C

-> LMCX (LDN) and XLMC (NY) = Second MMM to
either be X or C

We have 2 potential MMM times to correlate a

continuation from our Manipulation. Use this as more
of an understanding addition if it seems too
complicated.

The exact same goes for NY. We are just applying the
objective ruling.
 Time will guide us to when we enter,
and price will guide us from where we enter

Summarising Time

Take Advantage of Time:

- Let's use our 90m for LDN (+FF) and NY - tutorial + timing + example
- LDN Open is 3rd cycle, NY Open is 2nd Cycle
- We can use current and previous time cycles to see what the delivery purpose is live in the market.
- We MUST look to the left and follow our range rules to link to out key areas (orderblocks), traps etc.
- Use it on the HTF to find overall objectives, and the LTF for entry and intraday objectives to align with HTF picture. Eg. HTF
we may be in ‘C’ and LTF we are moving towards our Manipulation. This mean our LTF objective is reaching the
manipulation, but our HTF objective is creating the continuation after reaching it.
- Time comes first with analysis -> helps to link inducement concepts to where and why (htf creates purpose)
- Links directly to our daily cycle with Asia
- Time comes first in our analysis

NOTE: We have already had a 90m cycle Webinar about WHY we have them at certain times, but the times given in that webinar for the
cycles will be replaced by this presentation due to being more effective.

I must give credit, that even though I developed the objective understanding to these fractal cycles, I have heard about quarterly cycles from
others too.
2. The Story Behind Structure

The highs and lows are the truth: Candles can be deceiving, the market maker truly cares about highs and lows (eg line chart) due
to these holding the most liquidity. We need to view structure from end to end rather than get caught in the middle.

- Price only goes up and down, but if everyone could trade like that, the markets wouldn't work as there is no targeting
liquidity
- Price develops as continuations, htf POI, reversal, continuations, repeat
- We have more continuations then reversals - trade with the manipulations!

Stop trying to just

catch the reversal
Applying Algo Concepts within Structure
3. Working Ranges (Algo Range Theory)

We know how to trade our ranges, but why do they work and how can we use them for effectively?

- ERO are part of our higher timeframe orderflow. We want to use external inducement orders rather than internal if we are
looking to trade out of a current working range
- This is fractal and can occur on every timeframe, even the m1

Range Rules:

[Can trade ER orderflow until our

opposing ER inducement until
faceoff]

[Internal Strong h/ls can be traded

back to the ER orderflow - IPB]
 Working Ranges (Label)

We know how to trade our ranges, but why do they

work and how can we use them for effectively?

- Ensure Strong H/L are matched to the opposing

of the SAME timeframe
- Use predeterminism within our ranges - did we
purposely leave ER orders or are we trapping
traders?
- Premium and discount is needed for every range,
except Minor IPBs! Minor is often a fake
reaction and will not always come to the 50%,
ensure the strong h/l is reacting from a valid
area.
- When we leave both our supply and demand ER
orders, the one we induce into first (most recent
range) often makes the other side a trap when
we are following HTF momentum.
- Always identify the RMI (range-made
inducement) - this is the inducement that creates
your range. This will create the answer to the
range winner (IPB or Phase 1 Reversal)
POD - Point of Decision

For a range strong high/low to be confirmed, we need to displace past the break. The market often uses this level of decision (to
either displace or not) as a form of inducement. Rather, it is a manipulation.
Reversal Range Stacking

Range stacking is when we enter a POI (usually HTF) and mitigate out LTF ranges to continually move higher/lower.

- Use this as a tool to understand how we mitigate out ranges

- Our range winner means we can now be in a higher TF working range
4. Liquidating the Masses

We have all been there: The first thing you type up when you search ‘learn to trade’ is the abundance of retail concepts we all know
(and hate). We have all been there, the deeper down the rabbit hole you may find SMC and ICT. Thats where everything tends to cut
off… it is up to us to study exactly how the market works, because the rest of the real knowledge is hidden, and everyone behind us
has given up. Rather than throwing away the idea that these traders are useless, we can use them to our advantage to detect our
inducements.

The idea is that we liquidate all these traders before we take our entry! -> use retail traps to locate inducements + MC into IFC
SH/SL orderflow

Let’s jump into the charts and use Asia as a framework!

Liquidating the Masses
Liquidating the Masses - the ONE setup
5. System Refinements

Orderblocks:

- what took out the liquidity! -> false move orders in drawdown (IFC)
- Orderblocks are formed from impulsive rush of BFI orders, creating imbalance -> think of us needing to come back and grab into that price, all other fake ob's don't have this
condition
- LQ sweep into key level vs non key level = Minor vs Med/Phase 1
- the obvious one will never work
- inducement should be same tf as the Orderblock
- m1 for entry and refinements ONLY, seconds for m1 mitigations only
System Refinements (2)

Finalising your risk and technical system:

- Your goal should be that your system only fails due to human error

- If you do not have a risk and technical system, you cannot trade like the MM Algorithm

- If you haven't backtested following your system like a set of instructions, you don’t know whether it will work or not.

- Add time and what you learnt today into your system!
Algo Trading Tips

● We can use manual inducements (+ mitigation cycle), meaning we mark certain areas of high liquidity as inducement points
for a reaction - ipb or reversal. These include: Daily (+ Wk and Monthly) highs and lows (all the days liquidity), session highs
and lows (session LQ), range highs and lows (all range’s LQ)

● SL placement goes where price should not return. Breaking it would mean the flow/idea is not longer valid

● Don’t get a mitigation confused with an inducement (human error)

● Trade away from inducements

● Use the 3 Asia Types with what we went through today