Income-Based Trading (ICT Style)

Definition

Income-Based Trading is a disciplined approach where the trader sets a realistic profit target and stops trading once it is hit. ICT teaches several specific models for this: the One Shot One Kill (OSOK) model targets 50-75 pips per week with a single trade per day; the 20 Pips a Day model captures a minimum 20 pips per session; and the Silver Bullet model targets a minimum 10 handles (40 ticks) on ES/NQ futures or 15 pips on forex. The core principle across all models is quality over quantity — one high-probability trade, hit the target, walk away. Consistent small gains compounded over time build wealth faster than sporadic large wins mixed with losses.

Why It Matters

Most retail traders fail because they overtrade, chase large moves, and have no defined profit target. Income-Based Trading flips this by treating each day as a business day with a specific earnings goal. Once the goal is met, the trader is done — this eliminates revenge trading, FOMO, and emotional decision-making. Over time, consistent daily income compounds significantly.

How to Identify

1. Define your daily income target based on account size (e.g., $200/day on a $20,000 account = 1% daily target).
2. Identify the killzone session you will trade (London, New York AM, or New York PM) — pick ONE session to specialize in.
3. Wait for your setup criteria within that session (e.g., Silver Bullet, OTE into FVG, liquidity sweep + MSS).
4. Execute the trade with proper risk management (1-2% risk per trade, defined stop loss and take profit).
5. Once your daily target is hit (even if it takes just one trade), close the platform and stop trading for the day.

How to Trade

1. Set a realistic daily target. ICT suggests starting small — even $50-$100/day — and scaling up as consistency proves itself over weeks/months.
2. Choose your session. Focus on ONE killzone (e.g., NY AM 9:30-11:00 EST) where you have demonstrated edge in backtesting.
3. Apply your model within the session. Use ICT entry models (Silver Bullet, OTE, Breaker retest) with proper PD array confluence.
4. Risk no more than 1-2% per trade. If the first trade is a loss, you may take ONE more setup if it meets all criteria. If the second trade also loses, stop for the day (daily loss limit = 2-4%).
5. Once the daily target is reached, close all charts and walk away. Do not give back profits by continuing to trade.
6. Track every day in a journal. Review weekly to ensure you are hitting target at least 3-4 days out of 5.
7. Scale up the target gradually as your account grows (compounding). A 1% daily return compounds to massive annual growth.

Common Confusions

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