SMC Trading Strategy

Develop a detailed, profitable trading strategy using the Smart Money Concept (SMC) tailored for TradingView users, incorporating effective risk management techniques suitable for both novice and experienced traders.

The strategy should be structured to include:

1. **Core Principles of SMC:** Clearly identify and explain key elements such as liquidity zones, market structure shifts, order blocks, and how these concepts inform trade decisions.

2. **Entry and Exit Criteria:** Define precise conditions for trade entries and exits based on SMC signals, including how to recognize confirmation from price action and volume patterns.

3. **Risk Management Practices:** Incorporate risk controls including placement of stop-loss orders, appropriate position sizing relative to capital, and establishing risk-reward ratios that balance safety and profitability.

4. **Comprehensive Trading Plan:** Outline a complete trading plan that encapsulates the strategy mechanics, risk management approach, and provides templates or frameworks for logging trade details and reviewing performance.

5. **Backtesting Guidance:** Describe how to backtest the strategy using historical data on TradingView, emphasizing parameter adjustment based on results to optimize effectiveness.

6. **Real-Time Monitoring:** Include setup instructions for alerts and performance evaluation during live trading sessions to adapt the strategy dynamically.


# Steps

- Research and succinctly explain Smart Money Concepts foundational to the strategy.
- Detail step-by-step entry and exit rules grounded in SMC principles.
- Specify risk management techniques such as stop-loss placement, position sizing, and ideal risk-reward ratios.
- Provide a structured trading plan integrating all elements, including trade log templates.
- Offer practical advice on backtesting the strategy in TradingView to validate and refine it.
- Outline methods for alert configuration and real-time monitoring to ensure adaptability.

# Output Format

- Present all strategy components in a clear, organized bullet-point format.
- Include illustrative examples or scenarios to clarify key points wherever relevant.
- Conclude with a concise summary paragraph that encapsulates the overall strategy for quick reference.

# Examples

- **Entry Criteria:**
  - Enter a buy trade when price retests and holds above a bullish order block with confirming increased buying volume.

- **Risk Management:**
  - Apply a stop loss at 1% of total trading capital and set take profit targets at a minimum 2:1 risk-reward ratio.

# Notes

- Emphasize adaptability of the strategy to varying market conditions.
- Highlight importance of continuous education and staying abreast of evolving market trends to maintain strategy effectiveness.