About this video

• Video Title: PB Trading Premium Whop - Blake's Mechanical Model
• Channel: zack
• Speakers: Blake (implied from context)
• Duration: 45:29

Overview

This video explains a simple, high-win-rate mechanical trading model focused on identifying trading opportunities at all-time highs. The presenter, Blake, details the entry criteria, trade execution, target setting, and risk management for this strategy, emphasizing its ease of use and effectiveness for traders seeking funding.

Key takeaways

• High Win Rate Model: The core of the strategy is a mechanical model with a claimed win rate over 80%, effective even at all-time highs where traditional bias can be unclear.
• Liquidity Sweeps and Rebalancing: The model relies on the concept of sweeping liquidity (e.g., previous day highs/lows, AM highs) and the subsequent market need to rebalance price by filling inefficiencies like fair value gaps.
• Entry Criteria: A valid setup requires a swing low, swing high, lower low, and a sweep of liquidity. The entry is triggered by an "inversion" (a specific pattern indicating a reversal) within the highest timeframe leg of the move.
• Targeting and Risk Management: Targets include unfilled fair value gaps (internal draws) and external liquidity pools. The strategy promotes moving to break-even early to manage risk, allowing for runners to capture larger moves if the bias is correct.
• Simplicity for Funding: The model is presented as highly mechanical and easy to execute, making it suitable for traders aiming to pass funding evaluations quickly.

The speaker means that when applying this specific trading model, you don't need to pre-determine whether the market is generally bullish or bearish based on higher timeframes (like daily or weekly charts). The model is designed to provide clear entry signals based on immediate price action, liquidity sweeps, and inefficiencies, regardless of the broader market trend. This allows traders to take both long and short positions based solely on the pattern's formation, even in situations like all-time highs where a strong directional bias might not be apparent.

Here is a checklist for Blake's Mechanical Model, based on the transcript:

Entry Conditions:

• Liquidity Sweep: Has the market swept a significant liquidity pool (e.g., previous day highs/lows, AM highs, equal highs/lows)?
• Market Structure:
  • For Longs: Swing low -> Swing high -> Lower low (that sweeps liquidity).
  • For Shorts: Swing high -> Swing low -> Higher high (that sweeps liquidity).
• Inversion: Is there an "inversion" (specific pattern indicating a reversal) within the highest timeframe leg of this move?
• Unfilled Fair Value Gap (FVG): Is there an unfilled FVG (from the highest possible timeframe, e.g., 3-minute, 5-minute, 15-minute) that can be targeted? This gap must not have been traded to or mitigated previously.
• No Counter-Bias SMT: Is there an SMT (Smart Money Technique) forming against the intended trade direction? (Generally, avoid taking trades if SMT is against your bias, unless there's a very strong higher timeframe narrative.)

Trade Execution:

• Entry: Enter the trade upon confirmation of the inversion and the presence of an unfilled FVG.
• Stop Loss: Place stop loss below the low of the inversion (for longs) or above the high of the inversion (for shorts), or at a relevant order block.
• Initial Target (1:1): Set an initial target for a 1:1 risk-to-reward ratio.
• Move to Break-Even: Once the 1:1 target is hit or based on specific price action (e.g., reaching an internal FVG), move the stop loss to break-even.

Targeting:

• Internal Target: Unfilled fair value gap(s) on lower timeframes (e.g., 3-min, 5-min).
• External Target: Significant liquidity pools (e.g., equal lows, previous highs/lows) identified on higher timeframes.

Risk Management:

• Consistent Risk: Risk the same percentage of capital on every trade, adjusting contract size based on stop loss distance.
• Break-Even: Secure break-even as soon as possible (often after the 1:1 target is met or at an internal target).
• Runners: Allow trades to run towards external targets after reaching break-even.

Time Constraints (Macros):

• Avoid trading during lunch hour.
• Focus trades within specific session macros (e.g., 9:30 AM - 11:00 AM, 1:00 PM - 3:00 PM).

Important Considerations:

• Highest Timeframe Inversion: Prioritize the inversion on the highest possible timeframe for the setup.
• Unfilled/Unmitigated FVGs: Ensure target FVGs are still valid (have not been traded into).
• Higher Timeframe Confluence: While the model doesn't strictly require higher timeframe bias, its effectiveness and probability increase significantly when aligned with a higher timeframe narrative (e.g., bullish structure, significant PD array).