Table of Contents
In this interview, I sit down with trader Nick Bencino—the mind behind years of price-action education—to dig into how he actually trades and why his approach fits a real life outside the screens. Recorded for a YouTube audience, this chat gets into his higher-timeframe focus (12-hour and daily), the practical edge of clean support/resistance, and why he prefers freedom over staring at five-minute charts all day.
You’ll learn the core of Nick’s strategy: start with obvious support/resistance, read candlesticks in context, and only use the 200 SMA as a moving zone when it aligns with structure. He explains why higher timeframes reduce stress and mistakes, how to think about retrace entries and fixed risk-to-reward exits (often 1.5R–2R), and why journaling every trade is the fastest path to real improvement. Expect clear, beginner-friendly takeaways on avoiding overtrading, picking better FX pairs (majors over messy crosses), and building a process that keeps your capital—and your sanity—intact.
Nick Bencino Playbook & Strategy: How He Actually Trades
Core Market Bias & Instruments
Nick keeps things simple: clean majors, clear structure, and higher timeframes so decisions aren’t rushed. This section lays out how he picks markets and builds a directional bias without prediction—just reading structure and momentum.
- Trade mostly FX majors and top liquid indices; avoid thin or exotic pairs that chop.
- Build bias on the daily and 12-hour; only drop to 4-hour for timing.
- Mark the most obvious swing highs/lows of the last 3–6 months; trade in line with the last break and close beyond those levels.
- If price is between major levels with no clear momentum, stand aside—no bias is a position.
- Skip fresh, one-direction weeks after huge news candles until a pullback confirms acceptance (body closes near mid-range of the impulse).
Chart Mark-Up: Structure First, Then Tools
Nick’s charts are light: horizontal levels, a moving average for context, and space to see the price. Here you’ll define support/resistance and when to use the 200-period as a “zone” rather than a signal.
- Draw 2–4 key horizontal levels per chart: prior month high/low, quarterly swing, and most-traded range boundary.
- Treat the 200-SMA on the daily as a zone of value; a level is “in play” when price respects it with two or more rejections or a decisive close through it.
- Never stack indicators; if a tool doesn’t change a decision, remove it.
- Mark imbalance/void candles (large, one-bar drives). Expect fills to the midpoint before continuation and plan entries around that retrace.
- Color-code: trend levels (continuation) vs. reversal levels (mean-reversion) to avoid mixed logic.
A+ Setup Criteria
Great trades share the same DNA: location, context, and a clean trigger. Use this checklist so you only take the best.
- Location: price touches a pre-marked level that aligns with a higher-timeframe bias.
- Context: the prior 3–5 candles show compression or a pullback into the level (lower wicks for longs, upper wicks for shorts).
- Confluence: 200-SMA zone overlapping the level of a prior imbalance midpoint.
- Trigger: strong rejection candle (engulfing or pin) that closes back inside the range; no trade if the trigger closes directly into nearby trouble (next level within 0.8R).
- Disqualifiers: overlapping news in the next session, inside-bar clusters with no range expansion, or multi-wick “indecision soup.”
Entry Playbook: Retrace > Chase
Nick prefers entering on a retrace to the trigger candle, not chasing the close. That keeps risk tight and headspace calm.
- Place a limit at 25–50% retrace of the trigger candle; if not filled in two bars, cancel.
- Aggressive alternative: stop-entry 1–2 pips beyond the trigger with a “no slippage” cap; skip if the spread widens.
- Stop goes a few pips beyond the signal wick or beyond the structural swing—whichever is cleaner and yields ≤1R distance.
- If the first bar after entry flips against you and closes beyond the prior bar’s wick, exit—don’t negotiate.
- Maximum two attempts per level; if both fail, mark the level “burned” and move on.
Risk Sizing & Portfolio Heat
Survival comes from small, consistent risk and capped heat across correlated pairs. Here’s how to size sensibly.
- Risk 0.5% per trade by default; 1% only for A+ setups that pass all filters.
- Cap total open risk (“portfolio heat”) at 2%; if two positions are positively correlated (e.g., EURUSD long and DXY short), count them cumulatively.
- Reduce size by 50% if the setup fires within 24 hours of a major macro print you’re not explicitly trading.
- If price gaps through your stop on open, accept the slip—no widening after the fact.
- No martingale, no add-to-losers—ever.
Take-Profit Logic: Fixed R First, Then Trail
Nick keeps exiting mechanically: lock a base win, then let the structure decide if there’s extra. These rules protect equity and reduce second-guessing.
- Primary target at +1.8R to +2R; bank at least 70% there.
- Move stop to breakeven only after a full bar closes beyond the entry structure, not just a wick poke.
- Optional runner: trail behind swing lows/highs on the 4-hour; if swing spacing is tiny, switch to a simple ATR(14) stop.
- If the price reaches a target at a major opposing level, flatten the runner—respect the map.
- Never widen a stop to “save” a trade; exits can tighten, not loosen.
Session Timing & News Filters
Time filters keep you out of messy liquidity and news whips. This section ensures you trade when your edge actually shows up.
- Focus on London and early New York overlaps for FX; avoid late NY drift.
- 30 minutes before and after tier-one releases (CPI, NFP, central bank): no new entries unless that news is the setup catalyst.
- Mondays: half-size until weekly range establishes; Fridays: no fresh swing entries after NY lunch.
- If spread > average by 50% at entry time, skip—poor conditions void the signal.
Trade Management: What To Do After You’re In
Plans fail when emotions take over. Use these in-trade rules to stay systematic.
- If price stalls for three consecutive bars with shrinking ranges, scratch at −0.2R to −0.4R.
- If momentum expands in your favor (large close away from entry), don’t scale in unless a brand-new A+ signal forms; otherwise, you’re just adding euphoria.
- Record reasons to hold or exit in one sentence before clicking anything; if you can’t sentence it, don’t do it.
- If a runner survives to the next session open, reassess bias on the higher timeframe; if conflict emerges, take profits and reset.
Weekly Routine & Journaling
Edge compounds with repetition and honest review. This is how Nick keeps the feedback loop tight.
- Sunday: mark two to three priority pairs with levels, bias, and invalidation; hide everything else for the week.
- Midweek: quick audit—are you trading the plan pairs or wandering? If wandering, reduce size to 0.25% for the next two trades.
- Journal every trade with a screenshot at entry, at +1R, and at exit; tag with setup name and A/B/C grade.
- Each weekend, rewrite one rule you broke into a simpler sentence; if you break it again, automate it (alerts, order presets) so it’s harder to ignore.
Play Names & Checklists
Naming patterns help you act faster and review cleaner. Use these labels and their go/no-go checks.
- SR Rejection Continuation
- Go: trend intact, pullback into prior SR + 200-SMA zone, clear rejection close.
- No-Go: counter-trend or next level < 1R away.
- Imbalance Fill Fade
- Go: drive candle left a void; price returns to 50% and rejects.
- No-Go: news-driven spike with unresolved volatility.
- Range Break-Retest
- Go: daily close outside range, retest top/bottom, trigger on rejection.
- No-Go: wick break without close or retest into immediate supply/demand.
Personal Risk Guardrails
These are the safety rails that keep drawdowns shallow and confidence intact.
- Daily loss limit: −2R; hit it and stop for the day—review, don’t revenge.
- Weekly loss limit: −6R; switch to sim until you log three consecutive green sessions.
- After any oversized win (>3R), enforce a one-trade cooldown to avoid euphoria errors.
- If you break a rule, halve size for the next three trades; earn size back with compliance, not P&L.
Execution Toolkit & Hygiene
You don’t need more tools—just clean ones you actually use. Keep execution smooth with these habits.
- Use pending orders (limit/stop) for all entries; disable one-click market entries to reduce impulsive clicks.
- Pre-set order templates: default risk %, stop placement logic, and TP at +1.8R to +2R.
- Alert at level touch, not just pattern completion; be early to watch candle behavior.
- Keep spreads and swap in view; if costs lift expected R multiple below 1.5, pass.
Scaling the Account (Only When Deserved)
Growth happens when the process is consistent at the current size. Scale by rules, not vibes.
- After 30 trades with expectancy ≥ +0.3R and drawdown < 5R, increase risk from 0.5% to 0.6%; reassess every 30 trades.
- Withdraw a fixed % of profits monthly to keep psychological pressure low and anchor to real gains.
- If equity drawdown reaches 8R from peak, drop back to 0.25% risk until a fresh equity high is printed.
Common Mistakes Nick Avoids
Cutting errors is free alpha. Here are the traps to sidestep.
- Trading mid-range with no level and no momentum—lowest edge zone.
- Forcing confirmation on lower timeframes that contradict the daily story.
- Moving stops to breakeven too early; let structure, not fear, justify the shift.
- Taking second-best pairs because the “favorite” pair is quiet; no signal means no trade.
Size Risk Small, Cap Portfolio Heat, Survive Every Rough Patch
Nick Bencino keeps his edge by never letting a single trade or cluster of trades threaten the account. He risks a fraction of a percent on most ideas, knowing the job is to collect repeatable R, not swing for fences. When markets speed up, he cuts size rather than pretending his read got better. The goal is simple: stay in the game long enough for the math to work.
He also caps “portfolio heat,” so correlated positions don’t quietly balloon total exposure. If EUR-heavy longs stack, Nick treats them as one bet and trims until the combined risk is sane. Daily and weekly loss limits serve as circuit breakers, forcing a pause before mistakes compound. That discipline turns rough patches into speed bumps instead of blowups.
Trade Higher Timeframes, Let Structure Lead, Skip Prediction Games
Nick Bencino builds his read from the daily and 12-hour, where noise fades and structure speaks. He maps swing highs and lows first, then decides if the market is trending or ranging before thinking about entries. If the chart is mid-range with no clear momentum, he simply waits instead of forcing a call. The higher timeframe gives him fewer, cleaner decisions and far fewer fakeouts.
Once the map is set, Nick drops to the 4-hour only to time a trigger that aligns with the bigger story. He doesn’t predict; he reacts to closes beyond levels, rejection candles, or a clean retest. When price action contradicts the higher-timeframe bias, he stands down rather than negotiate with the chart. That restraint—structure first, timing second—keeps him consistent while others chase headlines.
Enter On Retrace At Key Levels, Not Chasing Breakouts
Nick Bencino waits for the price to pull back into his premarked level instead of buying the candle that just ran. He’ll place a limit around the 25–50% retrace of the trigger bar so risk stays tight and the stop can live beyond a clean swing. If the retrace never comes within two bars, he cancels and moves on—no fear of missing out. This keeps slippage low and entries aligned with location, not adrenaline.
On the 4-hour, Nick wants a rejection or engulfing candle that matches his daily bias, then a measured pullback into that candle’s body. He avoids chasing breakouts into nearby trouble; if the next level is less than 1R away, he passes. When a retrace fills and immediately closes beyond the signal’s wick, he cuts fast rather than “hoping” it comes back. The habit is simple: plan the level, let price come to you, and protect the R multiple.
Diversify By Pair And Setup, Avoid Correlated Exposure Stacks
Nick Bencino spreads risk across uncorrelated pairs and distinct setup types so one theme can’t sink the week. If EUR and GBP are moving off the same dollar driver, he treats them as a single idea, not two. He’ll choose the cleaner chart and drop the rest, keeping total exposure sane. Diversification means different engines—trend continuation on one pair, range break-retest on another—not the same pattern cloned everywhere.
When correlations spike, Nick reduces the size or skips the add-on entirely to prevent hidden doubles. He tracks pair clusters and tags each trade by setup, so his journal surfaces concentration fast. If three charts depend on the same macro impulse, he caps combined risk and waits for fresh drivers. That way, wins still compound, but losses hit as a tap—not a hammer.
Fixed Targets, then Trailing Stops, Journal Everything For Discipline
Nick Bencino takes most profits at a fixed multiple—usually around 1.8R to 2R—so winners actually book instead of evaporating. Once that base is secured, he lets a smaller runner trail behind structure, not emotion. Hs stops only after a full body close beyond the entry structure, never on a wick poke. If the runner walks back into a key opposing level, he flattens and logs the reason—clean, repeatable, done.
The second half is his journal, which Nick treats like an edge amplifier. Every trade gets screenshots at entry, +1R, and exit, plus a one-sentence reason to hold or fold. He tags by setup name and market condition so patterns—good and bad—stand out quickly. When a rule gets broken twice, he rewrites it simply and automates an alert so compliance becomes automatic.
Nick Bencino’s core lesson is to keep trading brutally simple: read price action through candlesticks and obvious support/resistance, and only treat the 200-SMA as a moving “zone” when it aligns with structure. That framing focuses you on what large players are doing, not on naming patterns, and it explains why confluence at the 200-SMA can spark stronger reactions—while still refusing to rely on any indicator by itself.
He builds decisions on higher timeframes—mainly 12-hour and daily—because they provide cleaner signals and time to think, pushing scalping to the side (especially for newer traders who can’t yet handle the speed and stress). That’s also why Nick prefers waiting for ppricesto return to levels rather than chasing initial breaks: more context, less noise, better R. The final non-negotiable: track every trade. Nick’s one-sentence advice is to use a trade tracker, because consistent journaling turns scattered experiences into repeatable edges.
