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· By Kohout Jan

3 setups used by the most successful prop traders

Today we’re going to look at 3 specific business setupsthat appear repeatedly with the most successful prop traders.

It’s not a holy grail, it’s a precise handling of simple situationsthat make sense in the context of the market.

Setup 1: Breakout + retest

A classic that never fails – if you know what you’re doing.

  • What we’re looking at: Price breaks an important level (e.g. resistance), then comes back for a “retest”.
  • Ideal use: In trending markets, when you expect a continuation of the movement.
  • What to watch out for: False breakthroughs – it is important to wait for confirmation of the reaction during the retest.

Setup 2: Liquidity grab

One of the popular setups among smart money traders.

  • What we’re looking at: Price creates liquidity (e.g. above the swing high), then shoots into it and quickly pulls back → entry against the direction of the false move.
  • Ideal use: In sideways market or when the trend is exhausted.
  • What to watch out for: Speed of reaction. You need to have clear rules about where you enter and where you put SL.

Setup 3: HTF + LTF confluence

Strength in consistency between the higher and lower time frame.

  • What we’re looking at: On a higher timeframe (e.g. H4) you identify the direction and context, on a lower timeframe (e.g. M15) you look for an entry pattern.
  • Ideal use: Whenever you want to increase the probability of a trade.
  • What to watch out for: Don’t try to “overcombine” – higher TF is direction, lower TF is accuracy.

Conclusion

Choose the setup that you understand in depthnot ten strategies you only know superficially.

Clear plan, regularity, feedback. These are the keys to success.

If you are interested in any of the setups, let us know – we will prepare detailed video with demos and backtest!

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