This handsome Italian guy is Fabio Valentini, one of the best day traders or scalpers in the world. He has proven his trading skill in the most famous trading competition in the world, the Robins World Cup trading championships, where in a single quarter his return was 69% in the first competition, then almost 90% in a following competition, then 218% in the following competition, and then more than 160% in the latest competition. with this track record of more than 2,000 trades over 12 months, but also a trader who's generated multiple seven figures of generational wealth from trading alone.
So, I flew to Dubai to spend a day with him and recording his every move in the charts. But when we decided to shoot this video, I had no idea how much value he was about to share. So, after a quick coffee and a workout, we went to the Opus Tower in the trading floor of Burn Scorpinsky and start our trading session.
We use usually dynamic risk management. What does it means? That I classify my setup from A to C.
A setup, B setup, C setup. Not all the trades use the same risk. So if I get, for example, a C setup, I will risk €1,000, maximum€1,500 as a stop loss of risk.
If I get a B setup, it can go maximum €2,000. If I get a setup, that means that all my confluence step in. I have the most statistical hedge that I can find in the market in the NASDAQ.
So, I will risk maximum 2,500 to 3,000. We will use this risk management for today. And uh we will try to build the profit for the day to then increase the risk during the day.
So, we will start really low and chill. It seems to be starting to create an A setup. What I want to see it's absorption there and I already see that the market is developing really good because we have a bullish bias for the day and we start to see that the market is presenting some absorption here.
So the the sellers are pushing we are reaching our um point of interest but I want to see some kind of buyers to step in on this level that right now is not happening. We can only see the sellers pushing. This is the benefit of order flow.
You can see all this aggression in price. This for reference is the profile footprint. It's not the bid and ask.
So because I want to see exactly what is happening at each level and this is our platform deep charts. So this is the reason it's really important to have a trigger that is giving you some kind of edge in the level because this was an area of interest that I will use for searching for buy opportunities but the buyers didn't step in at this level. So I will just wait to see if there is some kind of absorption here.
But for the moment we just wait. This is the most important skill for a scalper. What's potential accumulation area just a level that I get from structure because you need to start the day with a narratives and here the narrative was bullish but from this level it seems that we are seeking continuation cell.
So this was my level of interest to continue higher. But for how the session is developing, we are not yet in New York session. I think we can search for one short opportunity when we will get back to this level here.
So again, now it's a waiting game. Yeah. So even the scalper needs to have a little bit of patience.
This is the difference between a trader that is finding an interesting area and building a narrative out of it and wait for the condition and the trader that just put limit orders. If I put limit orders directly here, I will get the black color for reference. If I get limit order only because this level is interesting for me, I will get liquidated in seconds.
Usually I don't trade pre-market open because I want to have a clear bias. But from what I can see here, the market is developing short. So I will for the day I will target this low.
I will wait for my opportunity to this low here. I will wait for my opportunity to step in at the right moment because right now it's really bad positioning of the the short. I need to have a little bit of premium and I don't mean premium in the concept of premium and discount of ICT.
I mean premium based on volume. So if we get the profile distribution of the starting of the session and we go here we can see that the chunk of volume the value area it's here. So I will just be patient enough to wait to reach one level that is interesting for me and from here search for short opportunities.
Again when we reach this level it will not be an execution. It will be a potential area to seek short position because we are in alignment with higher time frame. The price is going exactly start the retracement from here and is going exactly here.
The only thing that is not in my trading model is that we are before the opening of the New York session. So you will lower your risk. I will lower my risk.
I will only use €1,000 for this position. Let's check. We are we reach 196 and we are starting to absorb.
How do you know we're starting to absorb? I see from the candle behavior after watching the charts a lot. you start to see the relation of price and volume because I always use trading view and volume analysis platform.
So I already know that if I go here I will see some aggression that is being absorbed. You can see aggression that is being absorbed. This means those are trapped buyers.
Those are trapped buyers. And uh uh now the trap buyers is the least profitable setup that I have unfortunately because the most profitable setup I have is momentum. So in trapped buyers you are going contrarian to the trend and it's really risky.
As you can see the price is starting to go against us again. So I just want to see the sellers stepping in and I also use a lot of cumulative volume delta at the moment. As you can see there is no sell side aggression.
just can see the price up and up and up and up. You see, if someone takes a trade on trumpet trap buyers, it will be a stop. This is the reason I want to play it safe considering that I'm also outside my trading hours.
So, I will just wait for the sellers to show some kind of interest. Interest. Yes.
And as you can see, price is not stopping again. Price is going high. I think one good sell position that we can get from here is exactly from this level.
This refinement of my area. If I see sellers stepping in here, I will try to short. But I need to see buyers starting to remove their feet from the gas.
Again, this is about patience. Now we already saved three stop loss using order flow. Three stop loss that could have been taken only using price action or we're not taking I'm thinking about loading my first position.
It will be really low risk. We will start with two contracts. No, I just put it there.
Then I move it just to to be faster in execution. I didn't open anything yet because there is this that something alike. We are ready for the first position.
It's only €600 of stop- loss. So, we are going really conservative on the first one. And this look at the sellers.
So, I have a total risk of €1,000 for the position. We will fragment the orders. Yes, I fragment the orders.
One here, one here to get a better average positioning. And we will just cover ourself here. It's small profit, but we need to start somewhere.
I will target this low for the first one. It's only €300. No, I will not target this low.
I will target this area. This is the kind of momentum trade that uh I usually took with the highest win rate. It's around 50% win rate, but the riskto-reward is really good.
Now we didn't got the perfect execution because to get the perfect execution we need to see a little bit of retracement another distribution and then the drop down and this is what I hope will happen. I prefer to take a stop loss that to get a better execution. I think we had a retracement.
Yes, we are filled on two position. This anyway this is a B setup but it's considered a C setup only because it's outside my trading hours. So maybe the win rate for this is around 40%.
So checking from the order flow, we can see that the buyer starts still pushing and taking back the position and I cover my stop loss above this level. This is the level that it's holding the aggression of the sellers and also the cumulative delta for the first time is showing a little bit of sellers aggression. So the price was about to go here, here, here and down.
And we actually got here, here, here, and down. That's some experience right there. I want to point out that this is not a prop firm account.
It's real money. It's the first time for me trading out of the world trading cup of course, but with other people in the room because I'm used to put the headphone music and I have a little bit of ADHD. So adding voices around being recorded is stressing the [ __ ] out of me.
But it's a good experience. We need to check order flow. You see why order flow?
is useful because you can exactly see who is winning the battle. What I want to see is that the price will try to go up again, get rejected and see some kind of acceleration through the target, explosive moves really fast. And this is because the sellers will finally step in.
And what I'm seeing from the order flow, I'm pretty sure it's another distribution. It's a redistribution phase. Why I can say confidently this?
because I see that the cumulative volume delta is not having a followup. So the sellers are what do you mean follow up? a follow up in uh uh long follow up in upside more yeah resulting price like this is the concept that I took from volume spread analysis and uh um if you don't see a follow up on the cumulative volume delta on price it's a dis discrepancy is right yeah yeah discrep discrepancy exactly yes we are seeing some kind of aggression I expect more aggression and acceleration on this one [Laughter] pretty accurate.
Pretty accurate. Okay. So, uh the price follow up exactly on the narrative that I built for the sell position.
Now, I didn't went only to lower my stop loss. I went break even because I'm not liking at all what the price is doing here. And exactly, we are seeing buyers aggression.
So if I break again this level or if I reach this level again, I will lower even. I will go in a stopping profit because I don't like this pattern. I saw this 1,000 times and when I see this pattern, I go break even.
So I don't want to be against me, but you need also to be really objective and not only see your vision. What is happening here? Let's go on the order flow and let's create some narratives.
As you can see, the sellers are trying to push, but they are not having a follow-up. So, the price will likely retrace higher and higher. I want to see some aggression.
You see how much they are trying to push, but they are they are still here. So, if we reach again this level, my stop loss will go here. I need to be protected.
I'm already zero risk on this position. So, again, we are pushing. I will be really conservative on this position because I need to build the profit for the day.
So we are already risk- free but I feel more confident if we reach this level again to go risk not risk- free but stopping profit and I think the best level to protect my profit is above here but we need to go back because now let's check the volume what is happening here buyers are taking over lot of efforts on the sell side and buyers ers are retracing and retracing and they will take this high. I am pretty sure about this and now the buyers took this level as I told this is one kind of distribution that I notice in NASDAQ for redistribution phase as you can see now after this I'm pretty sure that we will try to recover the level so we will see some kind of aggression cell this will be the first moment where we see sellers pushing the price down and it will be a really explosive move let's check here the explosion you mentioned they reached the level. They went really near the level.
Let's check the volume. They had a really big explosion with low effort. So, this is a good sign for the sellers.
One position that can also be taken in this kind of environment is waiting for the closure of this candle and covering above this high. I know it's not a really big risk-to-reward, but it's 1 to2. 7.
So the candle closed here, still valid. So it's $85 of risk for a reward of almost 300. So it's a really profitable setup this one.
And I'm taking this setup with zero risk. No, it's stopping profit. So it's it's good buy imbalance in a sell aggression.
It's a really good confirmation. This is another sensible level that we have. We are pushing.
We are going. So this was like potential second entry there. Yeah.
And uh it get confirmed. We are already stopping profit and we'll just let it run. So we reached the level that I told you that is enough to bring our stop loss to break even from this level that we checked before that was the bull volume.
Let me check from the price what we are doing. We are still so one good exercise that I can advise to anyone is using the profile for the area that you are charting. What happened here?
We went outside of the value but we have a failed option. So the price didn't accepted lower lower value. So we are still not in trending.
We just broke out of this level and we are revisiting the value area. And at this moment if we want to see some sell aggression the only level where we can see sell aggression is the value area. So this is our last protection point of the trade.
And what I want to see here I still didn't check the volume analysis platform but what I really want to see here is trapped buyers. Because when you have a a a good reversal you have trapped buyers. At this moment, as you can see, huge buy volume buyers on the top of the of the candle, no follow up, really good delta on the top.
So, they are still, as I told you, we are in a consolidation phase, but we are protected. This is why the skill of understanding where to put your stop loss is so [ __ ] important in scalping. Now, the analysis is always the same.
Again if this level gets broken we again cover ourself here and we get small part of profit. We follow the market and we get small profit out of the market as it moves. So if we are proven wrong on this trade even if the market explodes up we still have some profit and we can compound this profit for the next position.
We can use this profit that we made to open position risk free in the next trade. This is really important as a sculper because if you want to have a really low draw down, you need to use this profits again to build the position. This is called position building and it's what all the good sculpers that I know are doing.
Uh also to lower the emotional the emotional pressure during the day because this for example now why we are relaxed. We are relaxed because in the worst case scenario we make 400 no $300 in the worst case scenario. And this is really good to do when we go around 2 or 2:30 3:30 Italian time because it's a European time because the market start to get really aggressive and it's not good to scalp.
It's not good to scalp at this time. So what I usually do, I wait for the 330 shake out of the market and then I start my session. Let's give a check to the volume.
Some kind of effort. Result is zero. So buyers took the upper end again.
Here we go. I think we got liquidated on this. So we made like $280.
Remember that if the candle is still developing, you can still see a a really fast absorption on it. So you need to be ready. You need to mark your level where you want to see price getting back inside value before executing.
For example, here it's pretty impossible that we will see an absorption in the candle because buyers are taking the position. Now, where we got out of the position here with stopping profits. So, we saved us all this stop-loss that was unnecessary.
This is why you need to follow up on the position. And in sculping it's really time consuming because you have to be in tune with the market. You cannot just go away.
Let me remove also the take profit. Okay. Now let's go again.
What we are seeing right now is that the price at the really important field the auction here on this level that is still holding. So my narrative is shifting. Now I want to target this high and I want to see from volume after this breakout if I have a good level to put back my buy position at this time because I don't want to be right.
I want to be with the right pressure in the market. I want to be where the market is most likely to go. I don't care about being right.
If I care about being right, I will take the most uh amount of uh monetary risk on this trade just to say, okay, if it reverse here, I'm still in profit. But it's not what we do as scalpers. We need to change our opinion really fast.
And this is the reason you need to keep your ego low. You cannot marry your trades clearly visible from the pressure that the market is really aggressive on the on the buy. Look really aggressive.
So it makes no sense to try another sell. This is what a lot of price action trader takes wrong. Oh, I got my stop loss gets taken here.
I will try again to short. Okay, maybe sometimes it can work. But what is volume telling you?
The volume is telling you that the buyers are really aggressive on the upside. So my probability of taking another stop-loss or stopping profit if I go sell is really high. The market is not balanced at this moment.
The buyers are really aggressive. So my idea for the day is developing and my idea for the day shifted from sell to buy at this moment. So what will I do?
What is my blueprint for the opening of the session? This time I will just wait for the price to revisit the accumulation area. And my accumulation area is pretty easy to understand is this one.
Why? Because the price was trying to break out of this area for a lot of time but it didn't add a follow through. So we are reaching again.
Let's check the volume. We exactly tested the breakout level and different world. Yeah.
But what is important is that we are using not different kind of data because if you think about what is the commitment of trader report it's actual positioning what I'm checking actual position actual execution and what we see here is not small execution this execution was huge on NASDAQ this one and the delta on the level so just if you the longer the bar the higher the I'm curious why would you not see like something like a high here when it comes back up here when it break it like this pivot and you look look at the time 2130 okay it was deep night in United Arab Emirates so it's out of my trading hours I usually trade New York session and all the afternoon kept on going like this with him calling in front of my eyes every single market movement freaking nuts he's not even used to trading the London session and he was still able to call most of market movements and capitalize on them. But before we documented some of his trade during the New York session, he had to go for an interview at the Titans of Tomorrow podcast, one of the biggest trading podcasts in the scene, which I strongly recommend you watch it. Together with the other podcast I've released on this channel, where he's given even more trading insights that you really don't want to miss.
After that, it was time to go back home and close the day scalping the last part of the New York session. Now, it's really interesting one reversal setup that is developing. And right now I'm just checking the behavior of the sellers on this level because I can see clearly a situation of exhaustion in the volume and the price is trying to auction down and we are in a long-term demand 15 minutes demand but as you can see the price is pushing really hard from the behavior of aggressive sellers but we are not having a followup.
So I think if we can break down this high I'm waiting I can search for a end of session reversal to take this high and it's a really good uh risk-to-reward ratio but I just need to some time to wait that to see some aggressive buyers with a good follow up on the the volume side. We are outside now because uh this view is really inspiring. It's the yacht club of Marina and uh it's a really calm area.
There is no a lot of noises outside so you can just chill, work. Now in United Arab Emirates there is the perfect weather. It's 25° so I really love this kind of uh uh period of the year because it's great because if you have a setup, if you have a statistical edge, you just need to wait.
Look at the stop- loss. They almost kissed them. Kiss it.
But the point is that the trapid sellers are protecting my stop loss at the moment. We are still in a consolidation. As you can see, no breakout long, no breakout short for the moment.
But I expect some kind of long acceleration on the price. Let's see some kind of explosion at the close of this candle. We can almost go to stop to break even maybe but I see still not a lot of confirmation.
We are floating 1,00 1 1,1 100 200 and we see some kind of really good movement. Price is pushing to the target. It should be around $2,000.
Target reached on the on the order flow part. I was a little bit greedy from the the charts trying to get the upper part of the profile distribution. I will just see.
But you need to consider that this is the first time exactly the first time we see buy aggression in all the session. So we took exactly the end of reversal setup. Now maybe it's time to trail the stop loss to profits.
But I still see a lot of aggression buyers. So I don't want to to close it yet. I use a lot volume.
If volume is still pushing high, as I can see from the cumulative volume delta, I'm holding the position. I want to see what the sellers will will show some good retracements and failed auction from the sellers part. This is the trap sellers.
So if this candle close like this and we have trapped sellers, we will again push high and is my confirmation to go stop in profits, not even stop loss to to break even. Let's see what they do. Anyway guys, this is our platform.
We worked a lot to bring this platform. This is a web platform. It's really convenient to you and this is kind of proprietary study that we are doing on the platform that is helping scalpers to get a real statistical advantage on the market.
The sellers are having a follow through. We are back to break even on the position and now we want to see if the sellers will win the battle or if the buyers will win the battle. Again, super aggression of the sellers.
I think this time we take the stop loss. The sellers are pushing with all the power that they have. We got liquidated on this position for a loss of $850.
And we just need to check if the buyers are again taking control of this because this is a failed breakout breakout. So if you get absorption from the price, we can try the last setup of the day that it's a 1,000 risk position again with a one to two one to three risk to reward to close uh in profits and uh uh we need a follow through from the the price. So we will just need to wait for the scandal to close and we see a completion of the auction.
This completion of the auction is showing a huge strength from sellers. So we leave the ego at home and we take a short position. Follow this is a trend following position with a stop loss above the auction.
Right. I need to put let me remove the position. I need to put a two contract risk because stop loss is too high.
Let me calculate it really fast. So 1,200 it's okay. Let's see if we got filled on the position.
[Music] So the seller as you can see what we are trying to understand is who is winning the battle at this moment the seller again are showing a huge amount of strength even if it's the closing of the session. So this was a really uncommon session because it's really hard to see an explosion and a continuation for all the day in the direction of the trend. The setup was correct.
Unfortunately we didn't got filled on the short after the breakout. This is what usually is called from price action trader the um price imbalance. I think we will revisit again this price.
And what I use usually on this is the VWAP. You can use from like platform like trading view or you can use from a professional platform. The important part is that we go back to the fair value.
We want to short from the fair value. So, we'll just have a little bit of patience to get this momentum short because we are protected from what? We are protected from this huge wall of orders that won the battle.
So, we want to be in at this moment and we want to be in with the strong sellers. But I don't want to be in from discount price. I want to at least retrace a little bit.
Go back inside the fair value. And to to do this you can also use the profile. So if you get the profile of the session as you can see can also stay here.
I want to stay short from fair value the value area low. Sorry value area low again. Buyers trying to stop in.
I think we will target for $2,500. If we can get back up. Let's see if we get filled.
The reason I'm searching for this position is because we have what's a wall here. We have a wall here. As you can see, the buyers are trying their best.
I will cover myself with really small incredible small stop-loss. I'm trying to get for this position. This is a really small scalp.
A one to three. It's a good risk-to-reward, but it's a small scalp. So, how much profit can we get from the market?
1,200 here. I think I can also let it run a little bit. Let's see how this movement behave.
This will be the complete recovery of the stop loss we took. So I think I will get I will be okay with this position and maybe we get another position using part of this profit if we go down. The volume is conf confirming our narratives except for the sellers but we are still pushing hard.
Check the precision on the entry guys. This is what you can do with volumes. getting the last tick up.
Why? Because it was protected from the volume. So I can already go break even on this position in some minute.
We are still pushing. We are almost to target. We are almost top to zero.
One tick up. And now we just need to be patient. Sell pressure is going really insanely high.
Look at the sellers. The cumulative volume delta they're really pushing the market is not showing any kind of buy aggression just collapsing credible collapse of the market. We are almost to take profit.
It was a not even a 5 minutes one to three risk-to-reward. Let's see if we have a reversal here. We are already risk- free.
Now if we get a breakout of the sell candle that created this movement. As you can see we have here this bulk of sell volume that is trying to hold the price. As you can see we have an exhaustion.
We are trying to hold the buy volume up. If this level hold and we break again low we can consider another position short. 15 second to the close of the candle.
1 minute. So, we took a really fast one to three risk to Ooh, look at this. That's a pretty sniper zone.
This This was a one to six. How much? One, two in not even 10 minutes.
Now guys, I took a lower risk on the second position. I took only $500. And not only I recovered the loss, but I got also profit on this one.
I think we will stop for the day because we are going to the end of the session. And I want you to study how the price is in the relationship to volume. Now I will just stop trading because I have a live session.
And with this other amazing trade, we closed. The trading day was over. This is how a real professional trades the market.
In this channel, my mission is to bring you real qualified professionals and advanced trading knowledge you normally don't found around in the retail space. So, if you like these videos, if you appreciate it and you want to see more of this, do subscribe to the channel and leave a like to this video. Give also a check to Fabio's YouTube channel where he where he's starting to release a lot of valuable stuff.
And I will see you in the next video. Now [ __ ] off.
