Price manipulation by trading programs of large institutional investors (SMC) applied to individual trading
The inventor is ICT (Inner Circle Trader) = Michael J. Huddleston.
A British day trader.
On X, with over 600,000 followers and more than 2 million YouTube subscribers, he is one of the most talked-about figures in the trading community.
About Smart Money Concept (SMC).
Among Western traders, it is popular as a reliable analytical method.
Why is SMC a superior method? ICT explains it in various places, but here is a brief introduction.
SMC views charts on the premise that “all price movements are manipulated by AI = algorithms.”
Smart money is, in other words, AI.
Even though we call it AI, ultimately it is a program written by humans, so a logic must exist.
With that logic, where is it designed to buy and where to sell?
Interpret that price movement from the chart and apply it to individual traders—that is SMC.
That is how it works.
ICT states that he is the developer of that trading program himself.
I am the Engineer ofIPDA※
※According to Midium’s article
The financial world is constantly evolving and changing, and one of the most significant recent advances is the emergence of “Interbank Price Display Algorithm (IPDA).”
This innovative computer program is transforming the way financial institutions, including banks, conduct trades in markets such as the foreign exchange market.
The Interbank Price Display Algorithm is designed to consider multiple factors—market conditions, price trends, past data, and more—when determining the most favorable price and quantity for a trade.
\It is designed to operate in a way that
can be customized to meet the specific needs of the institutions, such as risk tolerance and trading strategies.
Because this advanced algorithm runs via computer programs or software, it can execute trades automatically and with very high precision.
This eliminates the need for human intervention, significantly reducing error risk and speeding up trade execution.
However, its benefits go beyond speed and accuracy.
It also includes important risk management features such as stop-loss orders to limit potential losses during trading.
This is particularly important in the highly volatile foreign exchange market where currency prices can swing rapidly.
The AI-translated Japanese is a bit dense, but
in short,
★ All price movements are controlled by this trading program (the program can push prices up or down in the direction it decides)
★ And this program has characteristic price movements
As a result, traders read those movements from the chart and apply them to individual traders
That is the idea.
Although institutions move the market, the premise of SMC analysis is that those institutions trade using AI-based algorithms.
Therefore, you can anticipate and wait for the “next move.”
As you pursue this SMC, you will no longer wonder, “why did it bounce here?”
Because you will understand.
Therefore, ICT says, “Once you learn the concept of SMC, you can no longer view charts in the same way as before.”
He even says that.
Those receiving feedback are surprised that they can analyze this far without using oscillators,
and oddly feel this is the landscape of institutional investors.
For institutional investors and individual investors, what they see on the same chart is entirely different.
In this three-month review course, we teach the entire flow from mastering SMC to putting it into practice.
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