Hello traders today i want to show you a back test for a trading strategy and methods that are created by ict ict stands for the inner circle trader the link to his channel and mentorship playlist is added to the description below i found 100 setups that matchedThe strategy and back tested these with the app trader edge that i can highly recommend for back testing strategies for the initial account size i used 10k the link to the app can be found in the description there's also a 7 day free trial available check it out it's greatI added the backtest for the ict strategy to my library there in which i stored the results my stop loss is always 2 of the current account size which means for every winning trade i multiply the risk to reward of the trade by two but we will see this in a momentOkay so let's go to the chart this is euro usd the 15 minutes time frame and i'm going to explain by this example how to take the trades using this strategy i like to enable this sessions indicator because my preferred session to trade this strategy is londonIt has a green background and when i open the preferences of this indicator you can see the different times for the sessions i enabled the session london and new york london is green and new york is red okay the first thing that we want to seeIn this strategy is a level of liquidity this means i'm searching for equal lows or highs which are zones where retail traders place their orders so a retail trader would see okay this is a zone of resistance i could place my order here and the stop loss just a tiny bit aboveBecause price doesn't want to go higher but then comes a stop hunt of the institutions they are grabbing the liquidity you see this here they stop out the retail traders before they bring down the price to see this liquidity grab before entering a trade is one of the core things of the strategyOkay but before i place my order i want to see where i can take profit for this i want to see a pretty good move to the upside in this case because we want to sell and in this prior move to the upside i'm searching for levels to tradeInto for example this one can be seen as an order block for which we mark the last red candle before the lag to the upside another way to search for take profits is to use imbalances that i explain in a moment by an example okay but now for the entry after theLiquidity grab for this i go down to the two minutes time frame and if you like you can use an indicator called fractal break imbalance fair value gap and you can use it to see a shift of market structure and as ict calls it the fair value gap and imbalance to enter theTrade so we see here on the two minutes time frame a low that has to be broken which happens here and then price comes back to these boxes here these yellow and red rectangles that mark imbalances of course the higher the price comes the better it is for the risk to reward ratioSo wait for the price to come up to this zone again i don't know if it will if not okay there's no trade but if it does then we have a pretty good risk to revolt ratio because the stop loss are set to the previous highOkay now price comes into this zone now i can enter the trade at the close of the candle another way is to use a limit order for example at 50 percent of the zone the stop loss as i said to the previous high and the take profit here at the zoneThat we already identified and you see the risk to reward is amazing even if we would enter somewhere like here then it would be a 10r trade okay so i played out here on the 15 minutes and you see we are reaching the take profit another more safe way to define the takeProfit is to use an imbalance for example at this candle you see a large imbalance and for this strategy i will plan the take profit to 50 of this imbalanced zone these are levels that are reached pretty often alright so let's go ahead and find 100 trades for a back test soOkay now you see the win rate is not that high but the profit because of the high risk to reward ratios is extreme but i also found out that the losses i got most of the time because i was wrong by identifying the liquidity grab using the line chart can help spottingEqual lows or highs and what's also important is the levels of liquidity should be significant what does it mean in this example we have two equal highs that are also session highs of london and new york then we see the clear liquidity grab the level is broken but price comes downImmediately and then i switch to the two minutes time frame and the candlesticks and use again the indicator to see the shift of the market structure and the fair value gap the imbalance where i place my entry so see here this low is broken a fair value gap is createdWith this relatively large red candle and then i'll go short inside this imbalance stop loss to the previous high and the take profit at 50 percent of the imbalance candle to the upside so guys i hope you found this interesting and useful if you do then 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