Start day trading in 2025​

Aliebro

This document outlines my structured approach to trading in 2025, focusing on institutional

market concepts, strategy execution, and risk management. It serves as a reference for
refining my trading process, utilizing backtesting, journaling, and continuous learning to
improve performance.

By leveraging key market principles, PO3 strategy, and confluence-based trade setups,
I aim to build a disciplined and profitable trading system while maintaining strong risk
management practices.

Learning Resources

To enhance knowledge and skill development, the following resources will be used:

●​ YouTube: Educational videos covering trading concepts, strategies, and live trade
analysis.
●​ TradingView: Advanced charting and analysis platform for technical studies and
backtesting strategies.

Programs & Platforms Needed

The following platforms are essential for executing trades, backtesting strategies, and
tracking performance:

●​ TradingView (+ Paper Trading): Market analysis, trade simulations, and strategy

testing.
●​ Trading Economics: Macroeconomic data, news releases, and market-impacting
events.
○​ Filters to select:
■​ 3 stars impact
■​ Countries: United States
●​ FX Replay: Historical market playback tool for in-depth backtesting.
●​ Notion: Trading journal for documenting insights, trade plans, and performance
reviews.
○​ I made a template for you to duplicate so you can put in your own trades.
●​ Topstep (+ Tradovate): Funded trading program for futures markets.
●​ Own Capital: Personal funds allocated for live trading.
Trading Sessions
The global trading day is divided into three primary sessions, each corresponding to major
financial centers:

1.​ Asian Session (Tokyo):

○​ CST: 6:30 p.m. – 2:00 a.m.
○​ CET: 1:30 a.m. – 9:00 a.m.
2.​ European Session (London):
○​ CST: 2:00 a.m. – 6:00 a.m.
○​ CET: 9:00 a.m. – 1:00 p.m.
3.​ U.S. Session (New York):
○​ CST: 8:30 a.m. – 3:00 p.m.
○​ CET: 3:30 p.m. – 10:00 p.m.

Note: These times can vary slightly depending on daylight saving time changes.

Trading hours shift due to daylight saving time (DST).

●​ Standard Time (Winter) - CET (UTC+1)

○​ Asian Session: 1:30 a.m. – 9:00 a.m. CET
○​ European Session: 9:00 a.m. – 1:00 p.m. CET
○​ U.S. Session: 3:30 p.m. – 10:00 p.m. CET
●​ Daylight Saving Time (Summer) - CEST (UTC+2)
○​ Asian Session: 2:30 a.m. – 10:00 a.m. CEST
○​ European Session: 10:00 a.m. – 2:00 p.m. CEST
○​ U.S. Session: 4:30 p.m. – 11:00 p.m. CEST

Europe switches to CEST (UTC+2) on the last Sunday of March and back to CET (UTC+1)
on the last Sunday of October. Meanwhile, the U.S. shifts its time earlier in March and
later in November, causing temporary misalignment for about two weeks.

Being aware of these trading sessions and their overlap is essential, as periods of overlap
often exhibit increased volatility and liquidity. For instance:

●​ Asian-European Overlap: 9:00 a.m. – 9:30 a.m. CET

●​ European-U.S. Overlap: 3:30 p.m. – 7:00 p.m. CET

These overlaps can present more trading opportunities due to heightened market activity.

By aligning your trading activities with these sessions, especially during overlap periods, you
can capitalize on increased market movements and liquidity.
Key Concepts & Market Fundamentals
Before implementing strategies, mastering fundamental trading principles is crucial.

1. Candlesticks & OHLC (Open-High-Low-Close)

Candlestick formations provide insights into price movements within a specific timeframe.
Understanding the four key price points helps in assessing sentiment and potential future
moves:

●​ Open: The initial price when the candle starts.

●​ High: The peak price reached during the period.
●​ Low: The lowest price reached within the timeframe.
●​ Close: The final price when the candle completes.

Additional Considerations:

●​ Bullish Candles (up): Close price is higher than the open price (buyers in control).
●​ Bearish Candles (Down): Close price is lower than the open price (sellers in
control).
●​ Wicks: Indicate price rejections, liquidity grabs, and potential reversals.

Market Movement & Structure

Trends, Continuations, and Reversals

Recognizing market phases is essential for trade execution and risk management.

●​ Trends: Price consistently moves in a single direction (Bullish = Uptrend, Bearish =

Downtrend).
●​ Continuations: A temporary pullback before resuming the original trend.
●​ Reversals: A shift in market structure indicating a change in trend direction.
Aligned Timeframes
Using multiple timeframes refines trade setups and improves accuracy:

●​ Higher Timeframes (HTF): Define overall trend and market bias.

○​ Daily (D1)
○​ 4H (H4)
○​ 1H (H1)
●​ Lower Timeframes (LTF): Execute and fine-tune trade entries.
○​ 15m (M15)
○​ 5m (M5)
○​ 1m (M1)

Timeframe Combinations:

●​ 4H Bias > 15m Execution

●​ 1H Bias > 5m Execution
●​ 15m Bias > 1m Execution

Confluences: Factors Supporting a Trade

Combining multiple confirmations increases trade probability and reduces risk.

●​ Fair Value Gaps (FVGs): Price imbalances that price revisits before continuation.
●​ Order Blocks (OBs): Institutional accumulation/distribution zones acting as
support/resistance.
●​ SMT Divergence: Discrepancy between correlated markets (e.g., Nasdaq vs. S&P
500 futures) signaling reversals.
●​ Buy/Sell side Liquidity: Stop-loss orders and pending buy orders above the market
price/stop-loss orders and pending sell orders below the market price.
●​ Draw on liquidity: Stops getting hit before price reverses in the intended direction.
●​ CISD (Change in State of Delivery): Market structure shift indicating a potential
reversal.
●​ Market Structure Shift: Indicates a change in the overall trend or pattern of price
movements in a market.
●​ External vs. Internal Liquidity:
○​ External Liquidity: Major highs/lows where liquidity pools exist.
○​ Internal Liquidity: Consolidation zones within a range.
●​ Equilibrium: The 50% level of a price range, serving as a key level for reversals or
continuations.
Accumulation, Manipulation, and Distribution (AMD Model)
Institutional traders (smart money) manipulate price to create liquidity before making
significant moves.

1.​ Accumulation: Sideways price action building liquidity within a range.

2.​ Manipulation: False breakouts or liquidity grabs before the true move.
3.​ Distribution: Price expands towards external liquidity pools, completing the cycle.

Trading Strategy: 4H PO3 (Power of 3)

The PO3 strategy is based on institutional price movement patterns combining
accumulation, manipulation, and distribution.

Steps to Identify a 4H PO3 Setup:

1.​ Accumulation: Price consolidates, building liquidity.

2.​ Manipulation: Price moves into a key Price Delivery Array (PDA) such as:
○​ Fair Value Gaps (FVGs)
○​ Order Blocks (OBs)
○​ Key support/resistance levels
3.​ Distribution: Price moves toward external liquidity as a take-profit target.

Trade Execution Guidelines:

●​ Entry: After manipulation, when price reacts at a key level (OB, FVG, liquidity
sweep).
●​ Stop Loss (SL): Placed on or slightly above a protected high.
●​ Take Profit (TP): External liquidity or key support/resistance zones.

Risk Management & Trading Psychology

Maintaining discipline and managing risk is critical for long-term profitability.

Risk Management Principles:

●​ Risk per Trade: 0.01 – 0.25% of account balance.

●​ Risk-Reward Ratio (RRR): Minimum 1:2 or higher.
●​ Maximum Drawdown: Avoid exceeding 1% loss per day or 4% per week. Set a daily
limit of max loss. This is good if you want to go funded.

Psychological Discipline:

●​ Stick to the trading plan and avoid emotional decision-making.

●​ Accept losses without revenge trading.
●​ Maintain a trading journal for continuous improvement.
Extra important information:
This is NOT a get rich quick scheme, the more you put in work the more you get out of it.

A few extra things to note:

- Do NOT go strategy hopping, meaning you stay with ONE strategy and one
only (in this case 4h po3) and just continue practicing on this one.

If you switch to a new one its like relearning from 0. Sure you know the
confluences but you have experience with your model already. Do not switch.

- Learn when NOT to trade. If there isn’t an entry for your model, do simply not
take it. Maybe take it on a practice account or paper trading.

- Put a limit on trades per day, this should be 1 to 3 trades a day for our
model. Since we can trade every 4H candle we can take maximum of 6 trades in
a day, realistically you can only take 4 because 2 of them you are probably
sleeping.
My Tradingview Color Settings:

If you want ES1! to check for smt this is how you do it:

Now go make hella bandz 🤑‼️​

Legal Disclaimer

This document is for informational and educational purposes only. I am not a licensed
financial advisor. Trading involves significant risk, including potential capital loss.

Regulatory References:

●​ U.S.: Investment Advisers Act of 1940 (15 U.S.C. § 80b-1), CFTC Rule 4.41.
●​ U.K.: Financial Services and Markets Act 2000 (FSMA 2000).
●​ E.U.: Markets in Financial Instruments Directive II (MiFID II) (Directive 2014/65/EU).

Always consult a licensed professional before making financial decisions.

Copyright Notice

© 2025 Aliebro. All rights reserved.

This document and its contents are the intellectual property of Aliebro. Unauthorized
reproduction, distribution, or modification of any part of this document without express
written permission is strictly prohibited. Any use of this material must credit the original
author. Legal action may be taken against those who violate these rights.