ICT Silver Bullet Strategy Explained: How to Identify and Trade It

The ICT Silver Bullet is a trading strategy using Inner Circle Trader (ICT) concepts. This strategy went viral after ICT said “in 90 days I’m quitting my fu****g job” referring to the Silver Bullet.

What is the ICT Silver Bullet?

The ICT Silver Bullet is a trading strategy that aims to predict price movements in any market, including stocks, crypto, forex, and futures. The strategy uses two concepts from ICT’s teachings: Fair Value Gaps (FVG) and Liquidity. FVGs are imbalances in the market that occur when price jumps up or down extremely fast. Liquidity levels are areas with high buying or selling activity, typically previous highs and lows. To properly understand and execute this strategy, you must understand these concepts.

Fair Value Gaps (FVG)

An FVG identifies an area where the fair price of an asset has recently changed. These areas are formed when price jumps up or down quickly, creating an imbalance between buyers and sellers. When price retraces to these zones, traders can use them as entry points in the market. This guide explains how to identify and trade fair value gaps.

Liquidity

There are two types of liquidity in the market: Buyside Liquidity (BSL) and Sellside Liquidity (SSL). BSL refers to the levels on the chart where short sellers have their stop losses set, while SSL refers to the levels where traders who are long have their stop losses set. These levels are typically found at highs/lows of ranges and are seen as areas where traders exit losing positions. This guide explains how to identify and trade buyside liquidity and sellside liquidity.

How To Identify and Trade the ICT Silver Bullet

To identify the ICT Silver Bullet setup, you must be watching one of the following three time periods (EST):

• The London Open (3 AM - 4 AM)

• The New York AM Session (10 AM - 11 AM)

• The New York PM Session (2 PM - 3 PM)

Now that you’ve identified the times to trade the Silver Bullet strategy, we need to mark our Buyside Liquidity (BSL) and Sellside Liquidity (SSL) levels. If you’re not sure how to identify liquidity, read this guide.

Once you’ve marked out BSL and SSL on your chart, wait for price to go below or above these areas and come back up or down. This is also known as a liquidity sweep. If SSL is swept, we will look for long trade opportunities or buys. If BSL is swept, we will look for short trade opportunities or sells.

After the liquidity sweep, wait for a quick price movement, forming a Fair Value Gap (FVG). If you are looking for long trades, it should be a bullish FVG. If you are looking for short trades, it should be a bearish FVG. Once price retraces to the FVG, you can take your entry.

Risk Management

There are two common ways to set your stop-loss and take-profit levels when trading the ICT Silver Bullet strategy.

For long trades:

1) Set your stop loss below the bullish FVG and take a 1:2 risk-to-reward trade

2) Set your stop loss at SSL and take profits at BSL

For short trades:

1) Set your stop loss above the bearish FVG and take a 1:2 risk-to-reward trade

2) Set your stop loss at BSL and take profits at SSL

Long Trade Example

For a bullish ICT Silver Bullet setup, watch your SSL levels. Once price sweeps SSL, you will wait for a bullish FVG to form. Once price retraces to the bullish FVG, take a long entry and set your stop loss and take-profit level using one of the methods described above.

Short Trade Example

For a bearish ICT Silver Bullet setup, watch your BSL levels. Once price sweeps BSL, you will wait for a bearish FVG to form. Once price retraces to the bearish FVG, take a short entry and set your stop loss and take-profit level using one of the methods described above.

ICT Silver Bullet Indicator

We developed and released an indicator that automates the entire ICT Silver Bullet strategy. The indicator shows you the silver bullet trading sessions, fair value gaps, buy signals, sell signals, take profit areas, stop losses, and much more. You can also back test everything with the built-in back testing dashboard. Try it out for free today on TradingView here.