In financial markets, price movements are not always driven by retail traders. Large institutions, hedge funds, and banks — often called Smart Money — control the majority of liquidity. Understanding how Smart Money operates helps traders align with the real flow of the market instead of being trapped by false breakouts and manipulative moves. The Fastpip Smart Money strategy is designed to decode these institutional footprints and turn them into actionable trading opportunities.
The Fastpip Smart Money strategy focuses on tracking liquidity, order blocks, and market structure shifts to identify high-probability trades. Instead of relying only on indicators, it observes how big players accumulate and distribute positions.
The structure of the strategy includes:
Entry zones: Based on liquidity grabs and order blocks created by institutions.
Stop loss: Placed just beyond liquidity zones to avoid false moves.
Take profits: Usually 2–3 targets depending on the strength of the move.
Risk-free setup: Once the first take profit (TP1) is reached, the stop loss moves to entry.
This approach allows traders to minimize risk and maximize returns by trading alongside institutional flows.
Look for clear higher highs and higher lows in uptrends, or lower highs and lower lows in downtrends. Market structure shifts often signal institutional positioning.
Smart Money often hunts liquidity near obvious support and resistance levels. Fake breakouts are common traps. Traders should mark these zones carefully.
When liquidity is swept and the market reverses from an institutional order block, an entry is triggered. Candlestick confirmation such as engulfing or pin bars can strengthen the signal.
Stop loss: Just above/below the liquidity sweep.
TP1: Nearest structural level.
TP2: Extension target aligned with the market trend.
TP3: Strong institutional target if momentum continues.
Move the stop loss to entry after TP1 to secure the trade.
Suppose GBP/USD is in a downtrend. Price pushes above a recent high (liquidity grab) and immediately drops back into the order block.
Entry: Sell after bearish engulfing confirms rejection.
Stop loss: Above liquidity sweep.
TP1: Previous low.
TP2: 161.8% extension.
TP3: Stronger target if momentum remains.
Once TP1 is hit, the trade becomes risk-free.
Trades in line with institutional flow.
Filters out false retail signals.
Multiple profit targets for flexibility.
Risk-free approach after TP1.
Requires practice to identify liquidity and order blocks.
Works best in trending or volatile markets.
At Fastpip, we use Smart Money concepts in our trading signals. Each signal highlights liquidity zones, stop loss, and multiple profit levels.
For traders who don’t have time to analyze, our copy trading service allows you to mirror professional trades automatically. By joining Fastpip copy trading, you benefit from Smart Money strategies like this one without manual effort.
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The Fastpip Smart Money strategy is a powerful way to align with institutional trading flows. By reading liquidity zones and order blocks, traders can avoid traps, secure risk-free setups, and maximize profits. Whether you trade independently or through Fastpip’s signals and copy trading, Smart Money trading gives you an edge in today’s competitive markets.
Smart Money refers to institutional traders like banks and hedge funds who move large volumes and influence price.
It helps traders align with real market flow instead of being caught in retail traps.
Yes, but it requires practice to correctly identify liquidity zones and order blocks.
You can follow Fastpip’s trading signals or use our copy trading service.
