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Along with price action techniques, ICT Trading Method equally focus on time-sensitivity in trading. ICT Silver Bullet Trading Strategy is a focused and a time-sensitive approach developed by Micheal J, Huddleston, the Inner Circle Trader. This strategy focuses on intraday trading. Specific time windows are used for precision trading by taking advantage of liquidity grab and efficient price delivery.
This article explores understanding of Silver Bullet Trading Strategy, Key components of Silver Bullet, steps in ICT Silver Bullet Strategy, and types of liquidity for silver bullet.
Understanding of ICT Silver Bullet Strategy
The ICT Silver Bullet Trading Strategy is a Time-based algorithmic trading model developed by Michael J. Huddleston. Micheal always emphasizes the importance of time-sensitivity in trading. This trading strategy revolves around liquidity sweep and the concepts of Fair Value Gaps. This Strategy is used to capture small intraday moves during one-hour time window that occurs three times a day. These time periods have heightened institutional activity.
Silver Bullet strategy works best during three times a day in two ICT Sessions. This aligns traders with institutional trading activity. In London Session Open, 03:00 AM to 04:00 AM in New York time is the time window for silver bullet. The second time window starts from 10:00 AM to 11:00 AM in New York time. This is the New York AM Session. Lastly, 02:00 PM to 03:00 PM is the last time window of Silver Bullet in New York PM Session.
This strategy eliminates the need to monitor markets all day. It is advised to focus on these high-probabilities time windows. This will help us in reducing screen time and decision fatigue. Using this strategy, traders target short-term liquidity grab. Price sweeps liquidity of key levels like swing highs or lows before retracing into fair value gaps.
Michael Huddleston famously said, “To quit your job, you need something that repeats every day and yields five handles.” ICT Silver Bullet incorporates this philosophy. This repeatable structure is capable of delivering 20-30 pips per session. This allows us to capitalize on predictable liquidity movements.
Key Components of Silver Bullet Strategy
The following are the components of ICT silver bullet trading strategy:
- Your time window should be accurate. It occurs in London and New York Session.
- For silver bullet, you must have an understanding of market structure. In bullish market, price creates higher highs and higher lows. In Bearish market, price creates lower lows and lower highs.
- Mark the liquidity levels in your pre-defined market structure. Price often attracts towards areas of liquidity like recent swing highs and lows, equal highs or lows.
- Trade entry in silver bullet entry typically aligns with a Fair Value Gap or Order Block after a liquidity sweep.
- Last component is setting of stoploss and take profit targets.
Implementation Steps in Silver Bullet
Step 1: Time-Based Session
According to ICT, Silver Bullet trading strategy is designed to focus on three specific one-hour time-windows where market activity is typically predictable. Look at the following time windows:
- London Session Open: 03:00 AM – 04:00 AM
- New York AM Session: 10:00 AM – 11:00 AM
- New York PM Session: 02:00 PM – 03:00 PM
These are the New York timings. Do not get yourself confused with times. Set your time zone to New York in you chart setting. These sessions are chosen because they align with institutional liquidity injections. Price during these time windows produce significant movements.
Step 2: Identification of Key Liquidity Level
Before the start of the session, it is important to identify Buy-side and Sell-side Liquidity on 15 min timeframe chart. Align your timeframes accordingly and avoid confusion in timeframe alignment. These liquidity zones appear at swing highs and lows, and Equal highs and lows
Swing highs and swing lows are areas where stop-loss orders are gathered in huge numbers. On the other hand, Equal highs and lows are areas where there is a probability that market sweep liquidity above these highs and lows.
Price often moves towards these levels during silver bullet time windows. If the price sweeps liquidity on one side, it may reverse and target liquidity on the opposite side.
Step 3: Watch for a Liquidity Sweep
Once the session begins, monitor price movement closely. If the price sweeps liquidity on either the buy-side or sell side, it signals a potential trade setup.
After a liquidity sweep price may reverse and target the opposite liquidity zone. On the other hand, if price breaks above or below a liquidity zone, there is a possibility that price may continue in the same direction until it grabs the next liquidity.
Step 4: Market Structure Shift (MSS)
After the liquidity sweep above or below the highs or lows, shift in lower timeframe like 3-min or 1-min and wait for Market Structure Shift. The MSS confirms the change in price direction.
Bullish market structure shift indicates reversal to upside. On the other hand, Bearish market structure shift signals a potential downside move.
Step 5: Locate Fair Value Gaps (FVGs)
Once the MSS occurs in smaller timeframes, look for a FVG. This represents inefficiencies in price delivery. It is expected that price will visit the FVG. This is because market often seeks to rebalance. Premium and discount levels are used to identify best FVG.
For Bullish price movement, mark a discounted FVG. Conversely, for a Bearish price movement, mark a premium FVG.
Step 6: Trade Execution
Once the price retraces into the identified FVG, it is advised to execute your trade. Place your stoploss just above or below the liquidity sweep. For take profit, target the next liquidity pool. It can be swing high or low or another FVG.
This strategy provides high-probability trade setups. By using predefined time windows, it offers high-probability trade setups. Like other ICT trading strategies and models, this strategy requires discipline, patience and practice.
Timeframes and ICT Silver Bullet
ICT silver bullet trading strategy is designed for scalpers. By using Silver Bullet, we can capture short-term trading opportunities. Like other factors, it is important for us to focus on selecting timeframes. In timeframe selection, it is advised to select three timeframes in each type of trading.
In Silver Bullet, 15 min timeframe chart is used for crafting overall directional bias for scalping. It gives us clearer view of recent price action. ICT traders can use this timeframe to identify general market direction. We mark market structure on this timeframe. This timeframe allows us to locate important liquidity zones like previous days highs and lows or swing highs or lows. Look at the chart below:
As far as trade execution is concerned, traders switch to lower timeframes like 1-min, 3-min, and 5-min to observe price action in real timeframe. It is advised to mark MSS and FVG on these timeframe charts. This multi-timeframe approach enhances the accuracy of trade entries. Look at the same chart on 1 minute:
Liquidity to Target
Liquidity is a broad concept in ICT Trading. There are multiple types of liquidity that we must consider in silver bullet.
High and low of previous trading day. Liquidity often accumulates near these levels. Sweep of these levels can signal potential price reversals or continuation.
Another type of liquidity is sessions highs and lows. In this trading strategy, the high and low of the most recent trading session represent key liquidity zones.
In this strategy, 15-min chart is used for overall directional bias. That is the reason we have to mark established swing high and lows on 15-min chart. These established levels often mark local liquidity pools. Price often moves towards them before trend reversal or continuation.
The most common is the relative equal highs and lows. These are the areas where the price has previously failed to break and results in a similar highs or lows at certain points. These levels attract liquidity due to their repeated significance.
Lastly, the recent swing highs and lows can be used as liquidity zones. This is because institutional liquidity often resides at key swing high or swing low. These levels act as significant liquidity pools and price often reaches towards these level during the session.
Final Note
ICT Silver Bullet Strategy is a combination of ICT time and price action combination. It is a high-scalping method designed for traders with a solid understanding of market structure, liquidity, and price action. This method provides consistent opportunities during specific trading windows. Success of this strategy is highly dependent upon patience, discipline, and practice.
Trading involves significant risk. Past performance does not guarantee future results. Seek professional’s advice before investing or trading.
Frequently Asked Questions (FAQs)
What is the ICT Silver Bullet Trading Strategy?
ICT Silver Bullet Trading strategy is a time-based scalping method developed by Inner Circle Trader. This strategy focuses on liquidity sweeps and fair value gaps during specific one-hour trading time period.
When does the ICT Silver Bullet Strategy work best?
The strategy works during three specific trading windows: London Session: 03:00 AM – 04:00 AM (New York time), New York AM Session: 10:00 AM – 11:00 AM (New York time), and New York PM Session: 02:00 PM – 03:00 PM (New York time).
What timeframes are ideal for this strategy?
Use the 15-minute chart as a parent timeframe to identify the market bias and liquidity zones. For execution, switch to 1-minute, 3-minute, or 5-minute charts to identify market structure shifts (MSS) and fair value gaps.
What is the risk involved with this strategy?
The strategy involves trading on lower timeframes, which can be highly volatile. Tight stop losses are required, and strict risk management is essential to minimize potential losses.
I’m Abdullah Shah, a content writer with three years of experience in crafting engaging and informative content. My background in market analysis complements my work, allowing me to create content that resonates with audiences. I’m also a seasoned practitioner in the forex and crypto markets, with a strong foundation and deep interest in finance. My passion for the financial world drives me to produce content that is both insightful and valuable for those interested in understanding market trends and financial strategies.
