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Inner Circle Trader Pdf 65

Inner Circle Trader PDF 65

The Inner Circle Trader (ICT) is a popular online trading mentor who claims to have over 30 years of experience in the financial markets. He offers various courses, videos, and PDFs that teach his trading methods and strategies. One of his PDFs, titled "Trading Secrets of the Inner Circle", is a 65-page document that covers topics such as market wizard filter, market breadth filter, intermarket analysis, optimal trade entry, and more.


This article will provide a brief overview of some of the main concepts and techniques that ICT teaches in his PDF 65. However, this article is not a substitute for reading the original document, which can be found on his website or on other online platforms.

Market Wizard Filter

The market wizard filter is a method that uses interest rate and market breadth models to filter a simple S&P oscillator system. The idea is to only enter the market when the conditions are favorable for an advance or a decline, and to exit the trade before the oscillator signals a reversal. The market wizard filter is based on the approach of a successful S&P trader who was profiled in Jack Schwager's book "Market Wizards".

The market wizard filter consists of three components: the RSI oscillator, the interest rate model, and the market breadth model. The RSI oscillator is a technical indicator that measures the strength of price movements. It ranges from 0 to 100, with values below 30 indicating oversold conditions and values above 70 indicating overbought conditions. The interest rate model is a comparison of the yield on the 10-year Treasury note and the yield on the 3-month Treasury bill. The market breadth model is a comparison of the number of advancing issues and declining issues on the NYSE.

The rules for using the market wizard filter are as follows:

  • Calculate the 8-day RSI of the S&P futures contract.

  • Calculate the 10-day simple moving average (SMA) of the yield spread between the 10-year Treasury note and the 3-month Treasury bill.

  • Calculate the 10-day SMA of the net advances on the NYSE (advancing issues minus declining issues).

  • Buy when the RSI turns up from below 30 and both the interest rate model and the market breadth model are positive (above zero).

  • Sell when the RSI turns down from above 70 and both the interest rate model and the market breadth model are negative (below zero).