The 3-Step Process Breakdown by Scrim
To note: ‘R’ is known as risk and this is the amount you are prepared to risk depending on your
position. Some traders use 0.5% and others use 1%. These percentages will all have different
monetary values which are personal to you and your risk appetite.
Edge Overview:
The edge demonstrated in this PDF will focus on helping traders become consistent in the
market by aiming for a target of 10R per month. In order to do this the edge has been made
extremely systematic and it is encouraged to follow a strict plan to ensure consistent results.
There is a lot of fancy terminology in smart money concepts as of lately which I believe is used
by mentors to get people to buy into their knowledge. Trading does not have to be this complex
and with a systematic approach you erase all the guesswork and focus on raw price action in
front of you.
It’s simple. If the trade does not fit the plan - Do not take the trade. The next opportunity is
always a session or two away.
At first you may run into losses using this edge but it is crucial that you are journaling these
trades and reflecting back at the end of the day, or week and understanding why the trade
failed. How else will you develop as a trader? If you truly want trading to be your full time job, or
even part time for that matter you need to get serious about collecting data and paying close
attention to your performance.
Focusing on more consistent, realistic returns over time will allow you to compound your
accounts and pass funded challenges but developing a deeper understanding of this strategy
and price action will take time. I strongly believe if you keep showing up for the next 3-6 months
consistently using this strategy I can show you how simple and effective it can be in securing
you fast and consistent returns. I can teach you guys a profitable edge, but without the same
level of effort on your side it will never happen. I can not teach you market experience and the
longer you spend inside the market the more seasoned you become as a trader.
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The 3 Step Process Breakdown Checklist
Step 1: A break of structure (BOS) in any direction (B1)
Step 2: A 50% mitigation of the OB or OBR that created the first break of structure
Step 3: A new break of structure in the same direction as Step 1 (B2)
Step 1 - The First Break (B1):
The First Step is a clear break of structure (BOS) in any given direction - this will show us
where price intends to go during the session we are trading (London/New York).
Once we get this BOS we will label this as our B1 and this will begin our trade story. If you do
not understand the structure rules please refer to the content inside the Full PDF or Discord and
take your time to learn it before rushing into live markets.
Ideally we want large trade volume and inefficient pricing to make it clear to us that Banks
and Financial Institutions were involved in the market at this point in price.
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Step 2 - The Mitigation (50% of OB/OBR):
The Second Step is a clear mitigation at the 50% level of the order block (OB) OR order block
range (OBR) that caused the First BOS (B1). The mitigation will confirm that order flow is in the
market and all we need to do now is wait for our second break (B2). This step is the piece that
holds the trade puzzle together.
There is a reason why price returns back up like this and if a mitigation is completed correctly
price should go on to break structure again thus creating our textbook trade set up. Mitigations
can vary in how they look but it is important that you make clear sense of them as trading is of
course a personal journey. Refer to my examples in the FAQ and Discord for reference.
*A Buy to sell range (B2S) or Sell to buy range (S2B) usually consists of 2-3 candles (more
examples of this will feature in the Full PDF and Discord content)
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Step 3 - The Second Break (B2):
The Third Step is the exact same as step one which is a new break of structure in the same
direction as the first. It is invalid if there is not a clear mitigation at the 50% of the ‘B1 OB/OBR’
so pay close attention and do not rush into this. When I am confident with a mitigation I will
simply mark it with a green line to show it’s confirmed. The second break confirms our LTF trend
is in our desired trade direction and we are ready to go.
The entry will be taken at the order block or order block range that caused the new break of
structure. Refinement is key for our Entry POIs and there will be multiple examples inside the
discord with tips and tricks on this. I personally like my POI to be less than 2.5 pips.
Try not to complicate this strategy as it can be made extremely effortless with adequate practice
and experience over time. I will include some more examples at the end of the Full PDF to
review.
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The 3 Step Process - Full Setup
This is how the desired set up would be using The 3 Step Process and this will create a very
high probability trade setup if the steps are followed correctly and with discipline. Make sure to
pay close attention to Step 2 which will likely be a new concept to a lot of traders reading this
but it is quickly becoming apparent that it’s a game changer and providing traders with a whole
new set of eyes when viewing the market.
Remove the guesswork and understand the WHY in the market and you will progress very
quickly. Pair this with a systematic approach and persistence and you will be unstoppable.
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Trade Plan Template:
1. I come to the charts at 08:00 (GMT) every morning and start on the M1
2. I follow price along and see what direction the session volume is heading
3. When I get my first clear BOS (B1) I will locate the OB/OBR that created the BOS
4. I will wait for price to mitigate at least 50% of the OB or OB range
5. I will wait for a new BOS (B2) in the same direction as the first
6. Once complete I have my desired trade set up and I will locate my Entry POI
7. I will then look to enter using a limit order on the Entry POI
8. Set to BE following the next major BOS
9. Trade executed and target (hopefully) smashed!
This is the most simple and effective lower time frame SMC strategy you will find and it is also
the most consistent. I have tried a range of strategies and put together the best pieces to
develop this model. Give it time and trust the process - I am confident you will never look back.
Final Notes:
1. I always start on the M1 at the session open
2. I move up to M2 or M3 after 3 x bos on M1
3. My highest time frame is M5 for the session I am trading
4. Don’t keep chasing price higher and higher - think ranges
5. I use a sessions indicator to ensure I am trading the correct price action
6. Practice structure regularly (it is often overlooked or rushed)
7. There will be some weeks with 0 trades
8. Less is always more
9. Give it time! A new strategy takes a few months to fully click
10. Have fun and most importantly - try to enjoy the process.
Note: If something does not make sense it will more than likely be explained in detail inside the
FAQ PDF or Discord Server.
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Fibonacci Retracement Tool (Mitigation Tool)
You will notice I use this Fibonacci Retracement tool on every one of my setups and this is
something I have tried and tested for a long period of time and noticed it works extremely well
and adds confidence in my trade setups. In order to increase the trade probability you want to
see the B2S range mitigated by at least 50% to confirm this is a complete mitigation.
If price taps the fib tool and pushes away I will always be more cautious but for me I still use the
seconds time frame inside my POI which protects me from incomplete mitigations.
For the fib settings you just need to un-tick every box except the 0, 0.5 and the 1. You can
adjust the background and your color settings to fit your personal charts. If you want your fib to
extend across your screen just tick the ‘extend lines right’ box and you will have that feature
unlocked. Make sure to use a magnet to capture the OBs and B2S/S2B ranges accurately.
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Live Price Examples
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The Trade Result
Trade Summary:
A simple, easy to follow textbook trade which secured a quick 7R in just 21 minutes using a 2
pip stop loss. The SL comfortably covered the B2S range high and we had confidence knowing
we had already mitigated 50% of the range. This is a prime example of order flow and
something we need to be trading time and time again.
If you have any questions please do not hesitate to contact me in the discord but I am confident
you will find the answers you are looking for inside the FAQ section and within the content
already uploaded.
Time to make it happen. Let’s get to work!
Scrim
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