Lesson 14Building your ICT model as written rules

Building your ICT model as written rules

Lesson 14 · 6 min read · By DT Terminal

The 2022 mentorship sequence (sweep, displacement, MSS, entry at the gap) written as one checklist, with stop, target, size and no-trade rules, mapped onto a strategy's Rulebook and Trading Rules.

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Chapter 1 of 5

One model, written so it can be tested

Earlier lessons gave you the parts; this one fixes their order, with numbers. Most ICT content today uses the order from ICT's free 2022 YouTube mentorship: a sweep of liquidity, a displacement that shifts structure, then an entry at the fair value gap that move left.

It is a definition you can test, not a proven edge: no peer-reviewed study has tested it. The writing rule: every adjective needs a number or a yes or no test.

VagueTestable
A clean sweepA wick beyond the pool, and the same candle closes back inside
Strong displacementThe candles of the shift leave a fair value gap
A quick shiftA body closes beyond the last short-term high within 6 candles
In the killzoneThe sweep and the gap form 02:00 to 05:00 New York time
A good targetThe pool your written draw names, at least 2R away
Go deeper

It is the checklist idea from Day 16, The entry model, filled in with ICT parts.

Chapter 2 of 5

The 2022 model as a checklist

One way to write it, long version. A short flips every step. Your numbers come from testing.

  1. Draw written. Before the session, write down the pool price is more likely to reach next.
  2. Inside the window. Sweep and gap both form 02:00 to 05:00 New York time.
  3. Sweep. A wick beyond a marked pool closes back inside.
  4. Shift. Within 6 candles, a body closes beyond the last short-term high.
  5. Gap. The shift leaves a fair value gap. No gap, no trade.
  6. Entry at CE. A buy limit at the gap's 50%, cancelled at 05:00 if unfilled.

The 2022 model

All steps, and the three near misses

  • The pool
  • Shift level
  • Gap from the shift

Long

sweep below a low, shift up

Short

sweep above a high, shift down

All steps

sweep, shift, then a gap from the shift

SweepSSLMSS
SweepBSLMSS

No shift

the bounce never closes beyond the high

SweepNo shiftSSLLast STH
SweepNo shiftBSLLast STL

No sweep

a break with a gap, but no liquidity sweep first

No sweepSSLMSS
No sweepBSLMSS

No gap

it shifts in small overlapping candles

SweepNo gapSSLMSS
SweepNo gapBSLMSS
Read down a column. Each faded row is missing one step, and one missing step means no trade.
Schematic candles, not market data.
Each step in full
  1. Draw written. Before the session you write down the pool price is more likely to reach next, and its price. Only trades toward it count.
  2. Inside the window. The sweep and the gap both form between 02:00 and 05:00 New York time.
  3. Sweep. A wick trades beyond a pool you marked before the session, and the same candle closes back inside.
  4. Shift. Within 6 candles of the sweep, a body closes beyond the last short-term high: the MSS.
  5. Gap. The shift leaves a fair value gap (candle 1 high below candle 3 low). No gap means no displacement.
  6. Entry at CE. A buy limit at the gap's 50%, its consequent encroachment, cancelled at 05:00 if unfilled.

Times are New York time. New York changes its clocks on 8 March 2026, so 02:00 New York is 07:00 UTC before that date and 06:00 UTC after it.

Chapter 3 of 5

Stop, target and size

The setup gives the entry. Four more lines finish the trade, and none is left to the moment.

  • Stop: 2 pips beyond the sweep's wick. Back through the sweep means the idea was wrong.
  • Target: the pool your draw names, at least 2R away, or no trade.
  • Size: the same 1% every time, as in Day 4 and Day 19.
  • Management: decided in advance, from Day 18. The entry is a buy limit (Day 3).

Worked example

Example 01: Every step, one trade

The worked example, with every number walked through, is in the app.

Chapter 4 of 5

When the model says no

Most of a model is the list of times it says no. Write these before you need them.

What you seeWhat the model says
No draw written before the sessionNo trade Nothing to trade toward
The setup forms outside 02:00 to 05:00No trade Different sample
A high-impact release within 30 minutesNo entry Spreads widen, stops slip
A shift that leaves no gapNo trade No entry level
The setup points against your drawNo trade Step 1 fails
The pool is closer than 2RNo trade Never stretch the target
2 trades already this sessionDone Stop for the day

Worked example

Example 02: A sweep and a shift, but no gap

The worked example, with every number walked through, is in the app.

The news line is your choice of number; the reason is in Day 6, Key news events.

Chapter 5 of 5

Put it in your Rulebook

A model in your head drifts: the sweep gets smaller and the window gets wider. Written into DT Terminal, every trade is checked against the same lines.

Checklist lineWhere it goes
Window, sweep, shift, gap, entry at CEStrategy Rulebook: Before the trade, as entry criteria. Mark each one Critical
Trades only toward the written drawStrategy Rulebook: Before the trade
Stop beyond the sweep, target at the poolStrategy Rulebook: In the trade, as stop / target rows
How you manage it once inStrategy Rulebook: In the trade, as management
Write the draw; the news windowTrading Rules: Before Trading
Fixed 1% risk; 2 trades a sessionTrading Rules: During Trading

Write the model as a strategy

Create a strategy for this model and add each checklist line to its Rulebook in the phase the table names. Link the trades you take to it, so the model's results can be read on their own.

Replay it with the checklist on screen

Link the strategy when you create a backtest session. Before each entry the backtester shows its entry criteria, and Proceed only unlocks once every box is ticked. Override is there too, and it tags the trade Broke rules.
Quick review

Check yourself

Quick review · 0 of 0

Five questions, one for each part of the model. If one trips you up, reread that section.

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