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This strategy has made my trading unbelievably simple, and now I'll tell you exactly why. I trade only NQ, only using one time frame, and taking only one trade per day. And the cherry on top, it's purely mechanical. After
Daxton Trades reveals a simple, mechanical NQ trading strategy using one timeframe and one trade per day, consistently earning $4,000+ daily.
Key Takeaways
- Using a single timeframe and one trade per day simplifies decision-making and reduces overtrading.
- High timeframe EMAs on a lower timeframe chart effectively define market bias.
- Fair value gaps provide clear entry signals during pullbacks against the bias.
- Strict risk management with logical stop loss placement and defined profit targets is crucial.
- Consistency and patience are key; if a trade is lost or no setup occurs, wait for the next day.
What the video covers
- The strategy focuses exclusively on trading the Nasdaq 100 (NQ) futures using a single 5-minute timeframe during the New York session.
- Only one trade is taken per day, making the approach simple and mechanical.
- The first step is to define market bias using high timeframe EMAs on the 5-minute chart to determine bullish or bearish conditions.
- Trades are only taken in the direction of the bias, avoiding flat or overlapping EMAs.
- The second step involves identifying fair value gaps (FVGs) formed during pullbacks opposite to the bias.
- Entry occurs when price inverses the fair value gap, confirmed by a candle close beyond the FVG on the 5-minute chart.
- Stop loss placement depends on market conditions, typically below the FVG, inversion point, or swing low.
- Profit targets are set at previous liquidity zones or a 2-hour timeframe if no liquidity is available.
- Daxton shares real consecutive trade examples with detailed analysis and results, emphasizing no cherry-picking.
- The strategy has a historical 73% win rate over five months and is designed to be easy to learn and apply.
Chapters
- 00:00Introduction and Strategy Overview
- 00:45Strategy Benefits and Setup Preview
- 01:24Trading Parameters and Session Details
- 02:06Step 1: Defining Market Bias with EMAs
- 02:52Nuances About EMA Interpretation
- 03:33Step 2: Identifying Fair Value Gaps on Pullbacks
- 04:17Fair Value Gap Setup Types and Trade Frequency
- 05:02Step 3: Entry, Stop Loss, and Take Profit Rules
- 05:54Live Trade Examples and Performance Review
- 10:18Trade Examples Continued and Risk Management
Full Transcript — Download SRT & Markdown
Speaker A
trading this for years and teaching it to hundreds of traders, I can confidently say it's changing the way people trade and making them believe again in trading. And if you don't believe me, just take a look at the
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comments below from people already trading this strategy. And the beauty of it, it's stupidly simple. And in today's video, I'll explain this strategy in three simple steps, give you two nuances that most people miss, then I'll show you the last five consecutive trades, so
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you can see both the perfect setups and also the tricky ones. And by the end of this video, you will know exactly how to apply it. My name is Daxton. I've been trading for the last 9 years, and this
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is the strategy I've been using to make at least $4,000 every single winning day. But before we start, let me show you my last 5 months of data.
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This is May, April, March, and February, and finally January with 73% win rate. And let me say it again, taking only one trade per day. This is linked to my Trade O Eight. Let me refresh quickly the screen, so
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you can see it's not another screenshot. And now, let's go back to the chart. And like I said at the beginning, I trade only NQ, only using the 5-minute time frame, and only at the New York session.
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And also, I take only one trade per day. Step one of the strategy. Before market open and before doing anything, you need to define your bias. And we do that using this indicator. I will leave a link in the description down below on
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how to set it up completely for free. These are simply high time frame EMAs at the 5-minute chart. And trust me, if you use only this indicator, it will make a huge difference in your trading. So, if the price is at least above the 1 hour
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EMA, the three are pointing up, we will be only looking for buys. If the price is below at least the 1 hour EMA and the three are pointing down, we will be only looking for sells. If price keeps going
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through the EMAs, they are flat like you see here, too close to each other and overlapping, we will not be trading at all. This is the first step and before we go to the second step, let me explain
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something about the EMAs that many people keep getting wrong. For example, in this day, you can see clearly that the EMAs look flat at the moment when market open. And some people would not take trades, but you should
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keep an eye on the EMA since the beginning of the Asian session. You can see here that the EMAs are still pointing up. This is the first nuance that I want to speak about in this video and I will give you another one at the
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end, too. Just make sure to pay attention to every single word I say because it makes a big difference. Now, let's go to the second step. As I said, we can clearly see that we are bullish this day. Now, we want to find the fair
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value gap inside a pullback in the opposite of our bias. Our bias is bullish, we want to find a bearish pullback, as you can see here. Let me zoom in.
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Market open with this candle. We can see clearly that we are pulling back in the opposite of the direction of our bias. A fair value gap was formed right here.
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This is the second step. We simply need to draw all the fair value gaps that were created in the pullback in the opposite of the market direction. We can watch for fair value gaps that were created after market open. These are the
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A+ setups, but for other days market open with a green candle like this, we can use fair value gaps formed before market open. This will always be a lower probability setup than a fair value gap that was formed after market open, but
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it works really good when we have directional days. If I lose, for example, a trade like this, I simply close my charts and wait for tomorrow for another trade because, like I said, only one trade per day. Now, into the
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next step. Step three, if we inverse the fair value gap, we enter. That means we have here a bearish fair value gap. The close of the first candle is higher than the close of the last candle. This is what
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a bearish fair value gap means. If price inverse this fair value gap, that means if price breaks this fair value gap and closes above, always wait for the 5-minute candle to be over. Don't go in in the middle of the candle. If price
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closes above the FVG, we enter. We put our stop loss at the most logical place when the trade is not valid anymore, either at the inversion fair value gap, at the previous candle, at the swing low. That depends solely on
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market conditions. I placed my stop loss right below the FVG, under this green EMA, and also under the inversion fair value gap. And for the TP, you target the previous liquidity. If it's under 2 hours, like you see here, we target the
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previous one. If we have no liquidity, we simply target 2 hours. If you can see here, we have 2.2 hours. This is what our TP will be. This is the whole strategy. As I said, super simple. If you have any questions, drop them in the
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comment below. Now, let's go to the examples. And as I said, I will give you my last five trades with this strategy.
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No cherry-picking, no picking one trade from every week just to show you that the strategy is profitable. I will take five consecutive days to show you the power of this strategy. First example.
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And like I said, we zoom out. You can clearly see that the EMAs are looking bullish. Price opened right here at the market open. We are above the EMAs. That means we will be bullish for the day. If
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we can zoom in right here, we can see no clear fair value gap in this pullback in the opposite of the market direction. We waited. We can see clearly a bearish fair value gap right here. I waited, did
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nothing. After we broke this fair value gap right here, I entered, placed my TP at the previous liquidity, and my stop loss right below the FVG, below the 1-hour EMA. This trade was on Thursday, 21st of May. Let's jump into my
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TradeZella and check it out. And here it is. 6.5k. Now, let's check the next day.
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As you can see here, this is the market open. EMAs are clearly bullish. Price is over the EMAs. I would be only looking for buys. Here you can see that the opening candle inverses the small fair value gap that we have right here. But
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the problem with this FVG, it was right at the all-time high. This is the first criteria. The second thing is I already told you that the FVGs formed before market open will always have a lower probability. That's why I didn't
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enter the trade because it has two weaknesses. Price started to go down. In this pullback right here, we have only one fair value gap. We did inverse it with this candle. I did go in, placed my stop loss under the white EMA, the
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inversion fair value gap, the fair value gap. So, I have three layers of protection. I targeted simply previous liquidity. You can see here, 2.47 R's.
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This trade from the Friday is 5.12 K. Now, let's jump to the next day.
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Here, on Monday, 25th of May, it was Memorial Day. It was a bank holiday. I don't trade when US banks have holidays.
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Let's go to the next day. Let's zoom out. We can clearly see that the 1-hour EMA is still bullish. We have a problem with these two EMAs, but like I said, the strongest EMA is still bullish. Price is above all the EMAs,
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especially the red one, which is the strongest. That's why I was only looking for buys that day.
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Market open, right here. We formed a bearish fair value gap between these three candles. Then, we immediately inverse the FVG with this big momentum candle. I did go in, placed my stop loss right below the FVG. And since I don't
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have a previous liquidity right here at the left, I simply targeted two R's. This trade was from Tuesday, 26th of May. You can see here, 4K. This is simply a textbook setup. That's why I keep telling you this is stupidly
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simple. Now, let's jump to the next day. Just igno
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Then, we formed a fair value gap right here. We broke it with this green candle. I did go in, placed my stop loss below this green candle, and below the 1-hour EMA, but it was a losing trade.
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This is a textbook setup. Everything was looking great. I did go in. My stop loss was hit. End of the day. I don't go in another time. We wait for the next day.
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And let me add the second nuance that I told you at the beginning. You can clearly see here we have multiple FVG's in this downtrend. And I keep getting messages from you on Instagram, which FVG should I take? You simply take the
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first FVG that was inversed. Simply as that. This was Wednesday, 27th of May. You can see here minus 2K. Now, let's jump to the next day and the most tricky one.
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And real quick, if you want me to work with you one-on-one every single day making sure that you master this, working with you on bias, on entry, on stop loss, on everything, watching your trades every single day, correcting your
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mistakes, handling psychology with you. I only work with a small number of people. Apply to my one-on-one mentorship link down below. Let's go back to the chart. Man, this is a tricky day. You can clearly see that the EMAs
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are honestly being flat. Price keeps going through them all, but I took a trade and made money. I will explain my logic behind it. If we zoom out, we can clearly see that the NASDAQ is trending up for 6 days. That's why my bias stayed
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bullish for this day. For all of you, when you see EMAs like this, please don't enter. I would have never sold NASDAQ at this level, although we were at the all-time high, but I kept believing that it will keep pushing up
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more and more. That's why you can clearly see that we inversed this bullish fair value gap right here with this candle. I didn't go in. I waited for this bearish fair value gap to be inversed by this green candle, entered
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it right here, put my stop loss at the previous candle under the white EMA, the blue EMA, and the green EMA, and simply target at this previous liquidity. The RR on this trade was 4.05. This was the trade on the 28th of May. For all of you
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that kept sending me messages on Instagram on this should be no trade day, you are 100% correct. Big up to you. Maybe I had the formal entry. I'm not the perfect trader. I will not say I have more experience than you, or I'm
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the best trader in the world. Maybe this was a formal entry or something, or I kept believing. I don't know. I just wanted to be 100% transparent with you.
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Make sure to subscribe, like, and leave all your questions in the comment down below. Also, follow me on Instagram.
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Let's meet on the next one.
Topics:NQ trading strategyNasdaq 100 futuresfair value gapmechanical trading5-minute charttrading EMAsone trade per dayday trading strategyTradeZellaDaxton Trades
