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The SMC Trading Cheat Sheet: 7 Rules That Turned $5,000 Into $15,000

Originally published on TebotechSignals. Republished here with permission.

If you trade Smart Money Concepts, you need a checklist. Not a 50-page course — a single-page reference you glance at before every trade.

I've been trading SMC for years. After 500+ backtested setups, I distilled everything into 7 rules. These same 7 rules took a $5,000 account to $15,021 over 110 trades — a 200% return in 4.5 months.

No hype. No "secret strategy." Just rules.

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Rule 1: Higher Timeframe Bias Is Non-Negotiable

Before you look at H4 or H1, check D1. Is the daily trend bullish or bearish?

• BOS on D1 = trend continuation
• CHoCH on D1 = potential reversal
• If D1 is ranging, reduce position size by 50%

Data: HTF-aligned trades win 62% of the time vs 41% for counter-trend.

If D1 says bearish, you only look for sell setups. Period.

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Rule 2: Wait for the Order Block

An order block is the last opposite-color candle before a strong impulsive move. It's where institutions placed their orders.

• H4 order blocks have 76% mitigation rate (price returns to them)
• BOS-confirmed order blocks: 77% mitigation
• If price hasn't returned within 3 days, the setup is stale

Don't chase the impulse. Wait for price to come back to the OB.

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Rule 3: Find the Fair Value Gap

A Fair Value Gap (FVG) is a 3-candle imbalance where price moved too fast. The market fills these gaps 74.3% of the time.

• H4 FVGs fill 81% of the time
• London Kill Zone FVGs fill 84.4% of the time
• FVG + order block confluence = 69% win rate

When an FVG overlaps with an order block, that's your entry zone.

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Rule 4: Never Enter Before the Liquidity Sweep

68.5% of major moves are preceded by a liquidity sweep — price spikes beyond a key level (equal highs/lows, PDH/PDL) to trigger stop losses, then reverses.

If you enter before the sweep, you ARE the liquidity. Wait for:

1. Price to sweep a key level
2. Sharp reversal candle
3. THEN enter at the order block

The sweep + CHoCH + FVG combination is the highest-probability SMC setup (67% win rate).

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Rule 5: Only Trade During Kill Zones

Kill zones are when institutions trade. These are:

• London Kill Zone: 2:00–5:00 AM EST
• New York Kill Zone: 7:00–10:00 AM EST
• London/NY Overlap: 7:00–11:00 AM EST (highest volume)

Data: Win rate at 9-10 AM EST is 65%. Win rate at 12-1 PM EST is 37.5%. Same strategy. Same pairs. Only timing changes.

Kill zone filtering increases expected value by 63%.

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Rule 6: Risk No More Than 1% Per Trade

Position size formula:

Lots = (Account × 1%) / (Stop Loss in pips × Pip Value)

Example: $10,000 account, 1% risk = $100. EUR/USD, 40-pip SL:

$100 / (40 × $10) = 0.25 lots

At 1% risk, a 4-trade losing streak costs you 4%. At 5% risk, that same streak costs 20%. The 1% rule is the difference between surviving and blowing your account.

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Rule 7: Risk:Reward Minimum 1:2, Target 1:3

At our verified 42.9% win rate:

• 1:2 R:R → +14R per 100 trades (barely profitable)
• 1:3 R:R → +72R per 100 trades (72% account growth)
• 1:5 R:R → +157R per 100 trades (but lower win rate)

1:3 is the sweet spot. Set TP1 at 1:1.5, TP2 at 1:2.5, TP3 at 1:3+.

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The Results

Over 110 trades following these 7 rules:

• Starting balance: $5,000
• Final balance: $15,021
• Win rate: 51.8%
• Net: +100R
• Worst losing streak: 4 trades
• Time: 4.5 months

You don't need 85% win rate. You don't need $10,000. You don't need 15 currency pairs. You need 7 rules, 1% risk, and patience.

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Position Sizing Quick Reference

| Account | 1% Risk | 30-pip SL | 40-pip SL | 50-pip SL | |---------|---------|-----------|-----------|-----------| | $1,000 | $10 | 0.03 lots | 0.02 lots | 0.02 lots | | $5,000 | $50 | 0.17 lots | 0.12 lots | 0.10 lots | | $10,000 | $100 | 0.33 lots | 0.25 lots | 0.20 lots | | $50,000 | $500 | 1.67 lots | 1.25 lots | 1.00 lots | | $100,000 | $1,000 | 3.33 lots | 2.50 lots | 2.00 lots |

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⚠️ Trading involves substantial risk. This article is for educational purposes only. Past performance does not guarantee future results. Never risk more than you can afford to lose.

This article was originally published on TebotechSignals. Visit for live SMC signals starting at $5/month.

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About the author: TebotechSignals is an institutional-grade ICT/SMC forex signals platform with a verified 42.9% win rate. We publish our full track record — including losses. No inflated claims, no deleted signals. Just honest, data-driven SMC analysis.

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