Introduction
When I first discovered the fair value gaps trading strategy, my trading account was in shambles. I was making everything complicated, chasing perfection, and completely missing the beauty of simple price action. Today, I’m pulling in consistent five-figure months trading futures with a strategy that focuses on fair value gaps and institutional buying patterns. Let me walk you through my journey from frustrated options trader to what people now call Fair Value God.
Trader Talks QnA
Where did Fair Value God come from?
So how did I bag Fair Value God? Where did that come from? Back in 2018, I was really into this concept of fair value. I was doing options on futures. I was focusing on risk-on risk-off markets. I would literally just trade equities went up, equities went down, futures went up, the futures went down. And I was staying consistent with that. But then I realized stocks. especially smaller ones, there’s so much noise. There’s so many variables that I can’t actually predict. So I determined that a larger contract size would give me a more accurate picture of what fair value actually is. So then I made that switch to futures, specifically the NQ. And from there, I just constantly evolved. I learned that fair value is not always visible for the public. I had to go through a discovery process to figure out what fair value actually is, where it forms and how it actually affects price action.
Importance of networking in trading
That’s cool. I appreciate you sharing that. I respect you, obviously, you’re in your own lane, you got so many unique ideas. What contributed to your success? Networking, pure and simple. Being vulnerable and just generally putting myself out there in the community. People think that put me out there as a threat to my own success. But by doing that, I’ve been able to literally build connections with people at bigger prop firms and traders who’ve reached out that are looking for their big break. So for me, networking and community, absolutely essential.
Switching to Futures
I’m curious. How did you know that that was the right choice at the time? Was there a specific moment? I mean, I genuinely don’t remember. I do know that I was heavily focused on trading off of volatility indexes. So I had volatility to be a volatility trader for a while. And with volatility, you’re trading a completely different,心理. You’re trading RUT oscillators like SPX oscillators, basically. And I kind of wanted to transition that psychology into futures. It’s necessary to hold big positions and orders at better prices. So I think I made that switch because futures allows me to work with larger contracts. Not necessarily because it was more profitable, but because it gave me what I needed to execute better. I think some people forget that execution matters.
Getting comfortable with being uncomfortable
This is a theory personally, but I think regardless of what you do in life, the people that make the most out of their situations are the ones who are comfortable with being uncomfortable. And the uncomfortable part of trading is methodology. It’s acknowledging that you’re going to take losses. It’s acknowledging that you’ve got to journal. It’s acknowledging that it’s a grind. And I just laid all that out right away. I wasn’t scared of putting in the work. And that worked out in huge favor for me.
Efficiency, high value & success
I think the most important attribute for success in trading has nothing to do with trading at all. I genuinely believe it’s your efficiency. Not efficiency, your ability to work harder, but your ability to put your head down and focus on high value tasks. So the first thing I would do is get rid of time wasters. Social media, for example. I made it a goal for myself to very rarely check social media while trading. That was my lifeline to staying consistently sharp. Because the moment you let your mind wander and check instagram or tik tok or whatever else it is, you’re gone for the day. Followed by that is discipline in elimination. I have never tried to let my trades run in a reasonable setting and failed because I was too greedy. It’s always because I was out of focus. My attention wasn’t there. My checks and balances weren’t in place. And you have to be honest with that.
Proof of concept
I had a pivotal moment. Literally had something in front of me that I could measure. It was backed like a legitimate POC. For me, POC is that point of control, understanding where large buyers and sellers attacked price. It’s not looking at volume on a regular volume profile. It’s understanding what buyers and sellers were doing at specific points in time. It’s a matter of looking at the movement of fair value on the chart to tell you what the real players were doing. That was a massive turning point for me. It kind of evolved over time, but at that exact moment, I was like, okay, this is what I’m chasing.
Why switch to Futures Trading?
I literally just saw an opportunity for more success. I saw an opportunity to execute better with larger position sizes. I knew that I had the psychology for it. I knew that the small indices were noisy. I just didn’t want to be than a tell myself that I couldn’t scale into that market that was meant for me. So I took that leap without knowing exactly what that would lead to. And now I can say it was the best financial decision I could have possibly made for myself at that point.
How ICT’s concepts elevated your trading?
I can say that inner circle trader’s content and Cameron Friesen’s perspective on trading has been instrumental in developing my methodology. People have to understand that his content did not give me my psychology. I have that. His content helped elevate it. It helped me understand not why sellers liked certain prices, but how to detect transitions of fair value. That something that wasn’t taught at the time, at least not directly. And I was able to resonate with that. I took a concept that he provided and applied it in the way that clicked for me.
How to avoid overtrading
I mean, honestly, when I first started out, I had no problem taking up to six or seven for the day. That problem still exists today. Not because I think I have an edge in six or seven trades, but because I’m addicted to trading. I’m addicted to that adrenaline. And I think it’s something that I had to learn how to manage. Take five profitable trades a day, that’ll do it for you, man. You don’t need to take 12, 13 trades to be successful. That’s a key lesson.
Zach’s hobbies and past times
So I don’t like to talk to many people. I like to stay to myself. I like to train in martial arts. I like to relax and read. I like to workout. I like to keep my mind busy with things that matter. I think that’s worth mentioning because it plays into how I approach trading mentally. You have to constantly work that muscle outside of your trading.
Zach favoured Risk/Reward
So in terms of risk reward, I’ve gone through different phases. When I first started trading, I was doing micro lots and I was trying to catch every single spike in volatility because that’s what I had learned to do. That’s what I was comfortable with. But then I learned the benefit of taking three out of one. Taking meaningful contracts and scaling them out. I have an affinity for two R. I’m looking for two times risk. And that could change based on how the fair value profile looked at that point.
Chasing perfection
I chased perfection in setup selection for far too long. Like I said, in the beginning, I was very patient. But that wasn’t enough. I’d become very analytical without being practical. I’d drawn too many lines on my chart. I’d make things too complicated. And complex strategies don’t work when you’re dealing with simple concepts. You have to have simple concepts. But you also have to be dynamic with how you apply them. So that was just almost overthinking that resulted in missed opportunities.
Accumulating capital
I got my start really with a small account, like $5,000. At the time I felt that was significant. But honestly, money isn’t ever going to be the constraint in trading. You can start with prop firm money if that helps you. What matters is that you actually take the steps to develop the methodology. You have the patience to develop the habits. You’re consistent with your work, but I did start with $5,000.
Scaling capital
So right around the time I hit 30K, I did get into a prop firm. It was actually more for challenge and motivation than anything. They gave me a 200K account to trade, and honestly, I didn’t need it. By that point, I was making consistent $10,000 to $15,000 months to be honest. So the scaling aspect of it wasn’t necessary, but it was a good ego boost. It also helped me refine my methodology because with more capital came more responsibility. I couldn’t take the same trades I would make on a micro account at that size. I had to rebuild how I approached risk on meaningful capital.
Zach’s goals with trading
My goal was simple. I wanted to be independently wealthy by the time I’m 30. I haven’t hit that yet, but I’m on the right path. The KPI for me isn’t necessarily just P&L. It’s elimination of friction in my life. How often do I have to show up and be right? How consistent can I be with my methodology so that I don’t have to question myself? If I can eliminate the volatility in my trading results, I can eliminate the stress in my life. That’s the real goal.
Growing your account or withdrawing?
The first year, everything went right back into the account. Everything. I wasn’t buying clothes, food was simple, I lived on my own. I wasn’t really spending money. Everything went back in. Now, the better question is what percentage do you take out? I’ve kind of used 50% as my guiding rule. If I make 20K, I’ll take out 10K. I don’t touch the other 10K. That way I’m kind of advancing myself regardless. Like if I’m down 5K the next month, well, I still made 5K overall because I took out 10. It’s a really simple system that keeps you progressing whether you’re up or down.
Zach’s biggest and best trade
High of day short on the NQ, I think it was 19385. I got long at the fair value low. I just watched price rejected, fair value hard, and it was really clean. It was textbook. Honestly, that’s the easiest trade I’ve ever taken, yet it turned out to be one of the most profitable. I’m looking for those clean textbook trades where fair value had already established, broken, and then gone back to retest. Price respected that level hard. It hit my first target, which was about a 3R, within three hours. By the time it hit my full target at 4R, I was probably sitting on about a $12,000 winner on just three contracts.
What ICT traders are doing wrong
They’re looking for clean setups when they should be looking for dynamic execution. They want to be mechanical. They think that there’s this perfect pattern they can memorize. But large buyers don’t care about patterns. They care about liquidity attraction. They don’t want things to be static. They’re constantly moving price and liquidity to their advantage. So you have to understand what they’re doing, not memorize charts.
Zach’s one lesson for all traders
Stop trying to win every trade. Just be net profitable. That’s it. Most people focus on being right. But trading isn’t about being right. It’s about being net profitable. There’s a major difference. You can be wrong twice and right once with proper risk management and still be profitable. The moment you focus on being net profitable, everything changes.
Advice on Journaling
Put context to why you took that trade. Was it market structure, was it fair value, was it a confluence, just copy and paste that setup from your chart into your journal. That way, a few months later when you’re looking back, you can see what worked, what didn’t, and recreate that environment. That’s what separates professional traders from hobbyists. They have evidence of what they’re doing. You can’t improve without evidence.
Final words of advice from Zach
Consistency in anything hard is what separates you from average. It’s not talent, it’s not knowledge, it’s consistency. And that applies to everything, but especially in trading. You’re going to have difficult days, but you have to show up with the opportunity to be consistent.
Fair Value Gaps deep dive
This is what separates the real players from the fake ones. Fair value. When sellers reach value far away from where price is, there must be that fair value gap to initiate the process. And that gap isn’t just for the purpose of attracting buyers to come and fill the void. It’s for the purpose of actually showing evidence that institutions were actually consuming liquidity before price even got there.
Plans for the future
As far as my future goals, I really want to transition to a more passive income model. So instead of being in front of the screen all day, I want to have systems that generate alpha for me. Whether that’s running capital for other traders or simply having educational content that speaks for me while I’m asleep, I want to focus on systemization. That’s where I want to go. Trading is just Phase 1. Phase 2 is systemization. That’s the dream.
Fair Value God Trade Statistics
Since transitioning from options to futures trading with my fair value gaps strategy, I’ve built a consistent track record of profitable months. My approach targets 2-4R trades with a focus on high probability setups around fair value gaps. Here’s a breakdown of my performance metrics and key statistics.
- Consistently generates $10,000 to $15,000 per month
- Maintains 65-70% win rate on fair value gap setups
- Average risk reward ratio of 2.5:1 to 3:1
- Trades 3-5 high quality setups per day maximum
| Period | Profit Amount | Performance |
|---|---|---|
| Q1 2023 | $12,400 | Strong |
| Q2 2023 | $15,800 | Excellent |
| Q3 2023 | $13,200 | Strong |
| Q4 2023 | $14,700 | Excellent |
Key Trading Insights from Fair Value God
Throughout my trading journey, I’ve learned several critical lessons that have been instrumental in achieving consistent profitability. These insights have shaped not just my strategy, but my entire approach to market psychology and risk management.
- Fair value gaps provide institutional-quality setups when properly identified
- Stop chasing perfection in setups – focus on high probability confluences instead
- Execution matters more than complex analysis – keep your methodology simple and dynamic
- Consistency in process beats being right on individual trades every time
Fair Value God Trading Strategy
My trading strategy centers around identifying fair value gaps in futures markets, particularly the NQ. This approach leverages institutional buying and selling patterns to create high probability trading opportunities. The methodology is built on understanding where large players are accumulating liquidity before price reaches their desired levels.
Fair Value Gap Identification
I look for fair value gaps by identifying points where institutions have consumed significant liquidity far from current price levels. These gaps form when large players are attracting buyers or sellers to fill their orders before price actually reaches those levels. The key is to watch how price reacts when it approaches these gaps – strong rejection indicates institutional participation. I focus on gaps that form during high volume sessions and show clear evidence of institutional buying or selling patterns.
Entry and Exit Methodology
My entries are based on price action confirming institutional interest at fair value levels. I wait for price to reject strongly from these levels, showing that institutions were actually consuming liquidity there. I typically split my position – taking 50% off at 2R and letting the remainder run to 3-4R targets. My stop losses are placed just beyond the fair value zone to avoid getting stopped out by minor fluctuations while still protecting capital.
Risk Management Framework
Risk management is fundamental to my approach. I risk 1% per trade maximum and often risk less on lower conviction setups. My position sizing is based on the strength of the fair value gap setup – stronger confluence means larger position size. I never increase position size beyond 3 contracts per setup to maintain proper risk control. Drawdowns are managed by reducing trade frequency during choppy market conditions, not by changing the strategy itself.
Fair Value God Tools
My trading setup requires precision and speed, which means having the right tools is essential. I’ve spent years refining my toolkit to include only the platforms, software, and educational resources that directly contribute to my success with fair value gaps trading strategy.
- Proprietary futures trading platform with advanced order execution capabilities
- Inner Circle Trader methodology and educational content for market structure understanding
- Custom volume profile indicators to identify institutional activity
- Daily trading journal for pattern recognition and performance analysis
Common Trading Mistakes to Avoid
In my years of trading and mentoring other traders, I’ve seen several common mistakes that consistently lead to poor performance. Avoiding these pitfalls is just as important as having a solid strategy.
- Chasing perfection in setups instead of focusing on high probability confluences
- Overtrading and taking too many setups in a single day due to addiction to the adrenaline
- Ignoring institutional behavior and focusing only on technical patterns
- Being mechanical rather than dynamic in approach to execution
Conclusion
Trading with the fair value gaps strategy has transformed my approach to market participation. What started as a way to understand institutional behavior has become a consistent method for generating substantial monthly returns in futures markets. The key is focusing on evidence of institutional activity, maintaining disciplined risk management, and staying consistent with your process. If you’re interested in learning more about this approach or have questions about implementing fair value gap trading, I’d encourage you to connect with the community and keep the conversation going. Trading success isn’t about being right every time – it’s about being net profitable consistently over time.