2025-09-03
Introduced by Michael Huddleston, also known as ICT (Inner Circle Trader), the ICT Silver Bullet is a Forex trading strategy that focuses on short-term setups within specific trading sessions.
It focuses on liquidity grabs, imbalances, and fair value gaps within a structured timeframe. For many traders, this method provides a rules-based approach to spotting precise entry and exit points.
This guide will explain the meaning, rules, timelines, examples, and tips of the ICT Silver Bullet, enabling both beginners and seasoned traders to utilise it effectively.
In simple terms, the ICT Silver Bullet aimed to capture quick market changes during high-likelihood trading scenarios.
Unlike random scalping or chasing trades, the Silver Bullet narrows down trading to three precise time windows, when institutional traders are expected to be active and liquidity changes happen. The strategy targets liquidity grabs, fair value gaps (FVGs), and displacement moves to capture momentum trades.
At its core, the Silver Bullet is about timing and precision, not trading all day, but striking during moments when the probability of success is highest.
Traders often confuse the Silver Bullet with ICT's Kill Zone concept, but they are slightly different:
Kill Zone: Refers to broader timeframes (London Open, New York Open, London Close) where volatility is high.
Silver Bullet: More refined, focusing on specific one-hour windows within those kill zones, with FVG-based entries.
In short, the Silver Bullet is a sharper, more structured version of ICT’s Kill Zone trading.
As mentioned above, the strategy revolves around three main trading windows in GMT/EST. These timeframes align with market overlaps when liquidity and volatility are strongest.
London Session Window: 10 AM – 11 AM GMT (5 AM – 6 AM EST)
New York AM Window: 2 PM – 3 PM GMT (9 AM – 10 AM EST)
New York PM Window: 6 PM – 7 PM GMT (1 PM – 2 PM EST)
These periods are significant because banks and major institutions frequently place orders during these times, leading to price fluctuations.
Moreover, traders applying the Silver Bullet strategy only focus on these periods, which prevents overtrading.
1) Wait for the Trading Window
Example: 2 PM – 3 PM GMT (New York AM Window).
2) Mark Previous Highs and Lows
These act as liquidity zones where stop-loss hunts often happen.
3) Watch for a Liquidity Sweep
Price may briefly break above a high or dip below a low to trap traders.
4) Identify the Fair Value Gap
If a displacement occurs, mark the FVG created in that move.
5) Enter Trade in FVG Zone
Wait for price to retrace into the FVG before entering (buy/sell).
6) Set Stop Loss and Take Profit
Stop Loss: Below/above the liquidity level.
Take Profit: Based on risk-reward (1:2 or higher).
This organised approach helps traders resist hasty trades and adhere to guidelines.
1. Focus Only on Silver Bullet Time Windows
Trading restricts itself to the three key windows. Outside these times, ignore the setups. It ensures discipline and avoids unnecessary risks.
2. Look for Liquidity Grabs
Price often sweeps liquidity above or below key levels (like previous highs/lows) before reversing. Traders wait for these false breakouts as entry signals.
3. Identify Fair Value Gaps (FVGs)
An FVG occurs when the price leaves a gap between candles, showing an imbalance. The Silver Bullet strategy identifies FVGs as areas where the price is expected to pull back.
4. Confirm Displacement Moves
A displacement is a strong price movement with momentum. It confirms institutional activity and validates the trade.
5. Risk Management First
Only risk a small portion of your account (1–2% per trade). ICT emphasises that even the best setups can fail, so money management is key.
| Advantages | Risks |
|---|---|
| Clear rules and structure | Requires discipline, not for impulsive traders |
| High-probability entries during liquidity times | Limited trading windows may feel restrictive |
| Works across Forex, indices, and commodities | False signals possible if misinterpreted |
| Reduces overtrading by limiting setups | Needs strong understanding of FVGs and liquidity |
| Focus on institutional price action | Not suitable for traders seeking constant trades |
1. Forex (EUR/USD)
Liquidity sweep below the Asian range → bullish FVG → New York AM entry → profit hit in minutes.
2. Gold (XAUUSD)
London session sweep of previous day’s low → strong bullish displacement → retrace to FVG → upward rally.
3. Indices (NASDAQ 100)
New York PM sweep → bearish FVG entry → momentum-driven downside move.
It shows that the strategy is versatile, not limited to Forex only.
Yes, but with caution. Beginners should first:
Learn liquidity and price action basics.
Practice on demo accounts.
Concentrate on a single trading window before progressing to the next.
Build consistency before scaling up.
While structured, the strategy requires patience, discipline, and understanding of the market.
The ICT Silver Bullet is a short-term trading strategy that focuses on specific trading windows to capture high-probability moves using liquidity sweeps, fair value gaps, and displacement.
The strategy is applied during three precise windows: the London session (10 to 11 AM GMT), New York AM session (2 to 3 PM GMT), and New York PM session (6 to 7 PM GMT), where liquidity and volatility are highest.
It works by waiting for a liquidity grab, confirming a displacement move, and entering trades when the price retraces into a fair value gap (FVG) within the designated time windows.
In conclusion, the ICT Silver Bullet is a short-term trading strategy designed for precision entries within specific timeframes. For traders who often feel lost in market noise, the Silver Bullet provides a structured, rules-based roadmap to consistent trading opportunities.
Its main strength lies in discipline and timing, focusing on trading less while enhancing quality. Nonetheless, it demands practice, patience, and risk management to excel.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
