When the Daily Bias in a higher time frame (HTF) is bullish, the ICT Bread and Butter Buy-Setup provides signals to enter buy positions.
The Bread and Butter Strategy is suitable for day trading and, by leveraging ICT style concepts, offers entry points for short-term trades during each trading session.
What Is the Bread and Butter Buy Trading Setup?
When, based on institutional order flow in the higher time frame (HTF), the daily bias is bullish, the market typically opens near the day's low.
In these cases, there's a high probability of a liquidity grab beneath the day's low to fuel an upward movement.
The Bullish Bread and Butter in the ICT Trading Style identifies optimal buy opportunities by tracking price movement during these conditions.
Pros and Cons of the Bread and Butter Trading Strategy
This Trading Strategy aligns with the daily bias, increasing the win rate. However, using this strategy to pinpoint precise entries requires a strong understanding of liquidity behavior and considerable experience.
Pros and Cons of the ICT Bread and Butter Buy-Setup:
Pros | Cons |
Multiple signals during the day | Lower risk-to-reward ratio |
Covers all 3 major trading sessions | Requires a deep understanding of liquidity behavior |
Aligns with daily trend | Relies on specific hours of the day |
Multi-timeframe analysis and market structure use | Each signal depends on the success of previous one |
IPDA Delivery Algorithm in the Bread and Butter Buy-Setup
In contrast to the bearish variant, the Interbank Price Delivery Algorithm (IPDA) in the Bread and Butter buy Setup operates in two forms:
- Offset Accumulation
- Re-Accumulation
Offset Accumulation
In this model, IPDA pushes the price below a key support level, activating old buy stop-losses. This action invites new buyers at lower prices.
Re-Accumulation
To create entry conditions for smart money, the Re-Accumulation model drives prices toward high-liquidity areas, such as Fair Value Gaps (FVGs).
This creates fear among high-price buyers and forces some to exit with losses.
Entry Signals in the ICT Bread and Butter Buy-Setup
This Bullish Bread and Butter Trading Setup issues signals during the London, Asia, and New York sessions.
London Session Entry
When the HTF trend is bullish, the Low of the Day (LOD) often forms during the London session. A short-term bearish move may also appear around 0:00 GMT (New York midnight).
Following this retracement, a London Judas Swing is expected below the previous low. Once formed, entering a buy trade targeting the next Premium Array is logical.
New York Session Entry
After confirming the LOD in London, American traders typically extend the bullish trend.
Note: If the price reaches a higher-timeframe premium zone, further upside during the New York session is less likely to occur.
To enter during this session, discount zones must be identified. As New York opens, the NY Judas Swing can be detected.
Once the price reaches one of the discount zones and forms a Judas Swing, a buy signal is generated targeting the premium zone.
Note: With the CME Commodity Market opening at 8:20 AM, volume and volatility increase.
Asia Session Entry
If the bullish trend is confirmed during the New York and London sessions, entering a buy trade just before the Asia session opens (7:00 PM New York time) is reasonable.
Due to low volume at this hour, the take profit should be limited to 15–20 pips, as the session typically ranges.
Key Characteristics of the ICT Bread and Butter Buy-Setup
The ICT Bread and Butter Buy-Setup is tailored for day trading. It utilizes ICT principles to identify short-term buy entries in the New York, London, and Asia sessions.
Key Characteristics:
- Trade duration: 1 to 2 hours
- Target per trade: 30 to 50 pips
- Analysis timeframe: 5-minute (M5)
- Number of trades per day: 1 to 3 setups
- Risk-to-reward ratio: varies based on market structure
- Capital risk per trade: 0.5% to 1%
Conclusion
To use the ICT Bread and Butter Buy-Setup, the bullish market direction must first be confirmed in higher time frames (1-hour and 4-hour).
For this reason, the Bullish Bread and Butter Trading Setup in the ICT trading style is suitable for day trading. Each trade in this setup typically targets a 30 to 50 pips price movement.
Key ICT concepts such as the Interbank Price Delivery Algorithm (IPDA), Judas Swing, and Fair Value Gap (FVG) are applied in this setup.
Additionally, this bullish Bread and Butter in the ICT Trading Style provides buy signals across the London, New York, and Asia trading sessions.
