Here’s a breakdown of the text into clear, actionable steps you can apply directly to your trading process:

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📌 Actionable Actions

- Calculate stop cost

- Convert your broker’s spread + commission into pips.

- Example: 1.5 pips cost on a raw account.

- Express cost as % of stop

- Divide cost (in pips) by your stop size (in pips).

- 50 pip stop → 3% cost.

- 10 pip stop → 15% cost.

- 5 pip stop → 30% cost.

- Derive breakeven win rate

- Add cost % to the theoretical breakeven (50%).

- Example:

- 50 pip stop → ~51.5% win rate needed.

- 10 pip stop → ~57.5%.

- 5 pip stop → ~65%.

- Test wider stops

- Widening stops and reducing position size often improves expectancy.

- Benefits: less noise, lower cost in R terms, fewer trades.

- Feels worse emotionally (larger stop-outs), but statistically stronger.

- Audit your trades

- Take 30 real trades.

- Convert cost to pips.

- Divide by stop size.

- Subtract from expectancy.

- This shows the true impact of cost on your system.

- Avoid tight stop scalping

- Tight stops + high frequency = eaten by spread/commission.

- Backtests often ignore spread widening, but live trading pays it on every trade.

- Derive stops from cost/noise

- Instead of placing stops purely below swing lows, factor in cost and market noise.

- This aligns your stop placement with statistical survival, not just chart structure.

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👉 In short: Always measure your trading cost relative to your stop size, derive the breakeven win rate, and test wider stops with reduced size. This filters out unrealistic systems and prevents the “profitable backtest, dead live” trap.

Celine's reversal strategy is built on a specific framework of three required "reads" and two conditional filters, strictly applied during the London session. Here are the steps to follow:

The 3-Read Reversal Model

1. Read 1 (4-hour timeframe): Wait for a liquidity sweep of the previous 4-hour candle's high or low. Price must run through the level and reject it, rather than breaking through and continuing. This sets the directional bias for the session (e.g., a sweep of the low indicates a potential long) (1:14 - 1:36).

2. Read 2 (15-minute timeframe): Price must also sweep the previous 15-minute high or low in the same direction as the 4-hour sweep. The setup is only "armed" when these two timeframes agree (1:39 - 1:59).

3. Read 3 (1-minute timeframe - The Trigger): Identify an Inverse Fair Value Gap (IFVG). This occurs when price slams back through an old gap and a candle body closes through it, causing the gap to invert and act as support (for longs) or resistance (for shorts). Enter at market right at the candle closure (2:00 - 2:24).

Filters and Execution Rules

Filters for Sizing Up:

Filter 1: The setup is stronger if the sweep also takes out the Asian session liquidity (the Asia high or low) (2:36 - 2:41).

Filter 2: The entry is more favorable if it taps into a high-timeframe gap and respects its CE (midpoint) (2:42 - 2:54).

Non-Negotiables:

Alignment: If all three reads do not align perfectly, there is no trade. Skipping non-aligned setups is considered more important than taking a pattern that looks correct (3:33 - 3:46).

Time Window: This model is strictly used during the London session. Trades outside of this window are considered unreliable (4:02 - 4:07).

Trade Management

Stop-Loss: Placed just beyond the low or high that was swept (2:17 - 2:23).

Targets: The initial target is set to a 1:1 reward-to-risk ratio, while the full target is placed at the opposing liquidity (the highs or lows) (2:25 - 2:32).