The Illusion of a Successful Trader

“Fuck all gurus. Fuck all ‘trading is easy, just buy my signal group’
scammers. We’re here to talk truth about trading. Yes, this truth might
hurt but embracing it is the only way to achieve something in trading”

How did we all once imagine a successful trader? Champagne for

breakfast, 3 monitors, beautiful room lighting, maybe mesmerizing charts,
or an expensive trip to Dubai? What if I told you that this is just an illusion,
created by various trading courses or self-proclaimed gurus? Even if it was
true, this isn't success. It's just a consequence. What is the real success of a
trader?

It's the countless hours spent watching charts, the dozens of burnouts,
the hundreds of stop losses, the day-after-day dedication to learning. It's
when you question yourself for the hundredth time, "Why can't I do it?" It's
when you force yourself to give all you have. It's when you have almost no

support, when every second person tries to discourage you, and every third
person explains to you why trading is a scam. It's refusing to give up despite
months or years of effort. It's sleepless nights. It’s being scared and unsure
after you open a position. It’s consuming countless cups of coffee and energy
drinks. It's discipline at the level of a soldier – this is success, not a
glamorous lifestyle.

But why does no one talk about this? Because trading is often shown as
effortlessly easy, accessible to everyone, with incredible prospects and no
hard work. So why would they tell you the whole truth? It’s much more easy
to post a photo from a beautiful beach with the hashtag #TradingCool?

So, my friend. Do you still want to be a trader? Do you really need it? Think
about it carefully before you continue reading
 “The logic of SMC. Time and Price Algorythms”

CLS Algorithm

What is it?

The Continuous Linked Settlement (CLS) is a multinational system

established in 2002 to process banking and currency transactions.

Example:

In the event of a transaction between two banks or market

participants, the time zone difference creates a risk that the transaction's
terms may not be fulfilled correctly. This is one of the reasons why banking
operations stop on bank holidays (doesn’t apply to retailers). The CLS
algorithm's structure ensures that transactions between participants are
executed accurately and only if both parties are guaranteed to receive
funds.

This algorithm's popularity comes from its security and guarantees. It

processes 90% of global currency transactions, while the remaining 10% are
directly conducted between banks or institutions without affecting asset or
currency prices.

The algorithm's role extends beyond control and processing. It shapes

the market and influences overall market dynamics.

Another Example:
 For instance, a bank needs to execute orders as required (medium or
long term) without causing significant market fluctuations, to avoid Bitcoin's

scenario. The CLS algorithm fulfills these requirements by ensuring timely,

accurate, and proportionate price formation.

And the best part is that

Block, FVG, BSL/SSL, CERR Theory, Time & Price and other tools,
which are all designed to deliver and rebalance prices, exist thanks to this
algorithm.

There is one thing to mention though. The algorithm operates on long

timeframes. So on the 1,5,15М/1,2,4Н charts, it builds order flows (OFs).
Basically it’s like constructing castles from individual bricks.

Does the algorithm hunt for stop losses?

It’s a total cap. Banks and the CLS algorithm don’t need your or
someone else's transactions of $100, $500, $5,000, $25,000, $150,000, or
even $1,000,000 as they deal with daily volumes of $2-6 trillion. The
algorithm's task is to execute bank orders. And we, as traders, can predict
and analyze them using known tools and theories.

● The CLS algorithm doesn’t control anything. It executes the

bank orders and that’s it
 ● 18 primary banks and 30,000 additional participants (funds,
etc.) relate to CLS. However, lower-level market participants,
such as funds, institutions, and private banks, send their orders
to the World Bank, which are then executed by the CLS
algorithm

● Suppose you have a company and need to make a payment from

one currency to another (for example paying in euros and
receiving dollars). In this case, you or your client would take the
money to one of their local banks. Next, a SWIFT payment will
be initiated, and the funds will be transferred to a main bank
for processing by an algorithm. Once processed, the main bank
will send the funds to your local bank, where you or your client
will receive the desired currency

Liquidity is bank money, not the stop losses of retailers!

However, there are many pitfalls that often go unnoticed. But let’s go
step by step.

Banks consist of loans and deposits. Loans provide funding to

customers, while deposits represent funds that customers invest in banks.
Banks “lose” money because of deposit repayments but “earn” from loans.
So how do banks make profit? Individual’s interest rates on loans
always exceed the amount an individual would receive as repayments of
deposits.
Banks often use deposit funds for their investments or to grant
withdrawal requests. Based on it, we can conclude that banks are 90% out of
money. Meaning that if all depositors want to withdraw all funds
simultaneously, banks simply wouldn’t be able to complete this request. In
this case banks initiate bankruptcy and that’s it.
So in order to ensure internal liquidity, banks may seek loans from the
World Bank. The CLS algorithm processes this operation immediately. That’s
why banks have an endless cycle of borrowing and repayment. But that’s
already the topic of economics.

What does it mean?

 It means that banks receive funds every day and mostly repay them
on the same day. It happens at specific timeframes, such as 10:00, 11:00 and
16:00. That’s why this timing is so important.

Time

There is a lot of information about this, so it will be much easier to

show you on a graphic and give you clear figures on when and what is
happening:

● time zone: CET (Central European Time)

● 7:00/8:00 - the algorithm starts working
● 8:00/9:00 - first tranche
● 9:00/10:00 - second tranche
● 10:00/11:00 - third tranche
● 11:00/12:00 - fourth tranche
● 12:00/13:00 - fifth tranche

That's why the movement we see at 08:00 is not the opening of the
Frankfurt session, but the launch of the algorithm.
During the period 01:00-07:00, algorithm forms needed instructions
and necessary goals.

● time zone: CET

● 00:00/01:00 - submission of the necessary instructions by the
banks
● 1:15/2:15 - banks clarify payments (and other) details
● 6:30/7:30 - confirmation or cancellation of instructions (from
both sides)
● 7:00/8:00 - start of the algorithm

Start of payments

● 9:00/10:00 - completion of regulations, continuation of

payments
● 10:00/11:00 - completion of payments to the Pacific region
● 10:25/12:25 - closing of operations in Asian currency
 ● 12:00/13:00 - completion of payments to Europe and the United
States
● 13:00/14:00 - closing of operations and algorithm process

Example:

DTCC is another American algorithm, but I don't take it into account

because the principle of operation is almost the same.

17:00 - payment to the Swiss bank.

 Price Delivery (CERR Theory)

What?

CERR stands for consolidation, expansion, retracement, reversal. It

represents the phases within the market where the price is situated. There
are four types of it, each carrying specific goals/tasks to guide the price
toward the required values. Understanding the current phase of the price
provides an ability to predict the direction of the chart’s future movements.

● Consolidation - the consolidation phase involves the accumulation of

positions by the algorithm. A phenomenon when the price cannot
update the high/low of the formed price corridor. One of the most
important cycles for us

● Expansion - the expansion phase involves rapid movement in the

market (price increases or decreases) in a short period of time. This
phase commonly follows consolidation and leaves the FVG.

● Retracement - the retracement phase is a correction stage in the

market. Its function is to rebalance the price for a genuine reversal.
Retracement typically extends to the initial zone of interest or
instrument.

● Reversal - the reversal phase marks the final stage in the price
delivery cycle, specifically the reversal of the price after retracement
towards the final target.

Note: Price movement doesn't always follow a strict order. Sometimes it

ignores certain cycles. For example, CECE (consolidation - expansion -
consolidation - expansion).

Patterns and How It Works:

To continue reading, get the full version here

E-Book “SMC. Funding. Psychology”

Also see the full content of the book below

 Book content:
Chapter I - “What is SMC”
- Why smart money?
- General idea behind the concept
- Connection with Central Banks
- Market Makers Manipulations
- Why do you need to know it?
Chapter II - “Before we even start…”
- Why you need it?
- Basic terminology
- My Background
- Prop firms. Truth
- The illusion of successful traders
Chapter III -
“The logic of SMC. Time. Price”
- CLS Algorithm
- How time influences Forex
- KillZones
- Sessions
- Price Delivery Theory (CERR
Theory)
- Patterns and how they work
- Time Price
- Liquidity. Re-balanced and
building
Chapter IV - “Fundamentals”
- FVG, OB, Breaker, DR
- Rules of handling each tool
- DO, WO, MO, NYM - OPEN
Chapter V - “Instruments”
- BIAS
- Projection (Judas Swing)
Chapter VI - “Truth” (monologue)
- Distance
- Emotions
- War
- Victory
Chapter VII - “Banks”
- Banking system
- Invisible hand of government
- Psychology of manipulations
Chapter VII - “Secret Information”
- Who are Freemsons?
- Now you understand my power,
Winston.
Chapter IX - “Wasted”
- How to deal with losses
- What if you lose prop challenge
Chapter X - “News”
- How to use
- Which news to consider
- Why??
Chapter XI - “Magic Week”
- Structure of each day
- how to build a trading throughout
the week
- Classic Sell/Buy day
Chapter XII - “Manipulation”
- Time Manipulation
- Swings
- Asia Sweep
- Frankfurt magic
- Stop Hunt
Chapter XIII - “Trading System”
- Rules and Personal Management
- Tools
- Schedule
- Psychological Aspects
- Journal
- Analysis algorithm
Chapter XIV - “Extras”
- IPDA
- CoT (Commitments of Traders)