LCE Model, Level-to-Level Trading, Cloud

Explore the LCE Model, a level-to-level Price Action strategy for ES futures. Learn to identify market bias using a 'Cloud' on 1-hour charts and execute breakou

Published · Updated · Methodology: Price Action

Part of: Algorithmic & Automated Trading

  • Methodology: Price Action
  • Content type: strategy
  • Timeframes: 1 hour (overall market direction, bias assessment), 5 minute (execution timeframe)
  • Markets: ES futures

Indicators used

  • Cloud

Source video

Decoded from: Backtesting my "unfair" institutional trading system by Tradewriter — watch the original

Key timestamps:

  • 0:00 - Intro
  • 1:00 - Ground rules for backtest
  • 1:21 - Monday's analysis and trades
  • 3:28 - Tuesday's analysis and trades
  • 7:05 - Wednesday's analysis and trades
  • 8:56 - Thursday's analysis and trades
  • 11:17 - Friday's analysis and trades
  • 1:00 - 'Every trade must follow the LCE model'
  • 1:07 - 'I'm only taking leveltolevel trades'
  • 1:18 - 'I'm only trading during regular market hours or the New York session'
  • 1:22 - 'I'm only taking breakout trades and nothing else. No pullbacks and no mean reversion'
  • 1:29 - 'Risk is the same on every trade'
  • 1:45 - 'start with the 1 hour time frame as usual because that's where we assess the overall market direction'
  • 1:52 - 'pay close attention to how the 1 hour cloud is positioned because that'll tell us exactly how to trade and how not to trade'
  • 2:50 - 'If we hit the upper level, then the move is in full swing and we can enter the bullish breakout here'
  • 3:00 - 'If we hit the lower level, then we might consider a short depending on whether the cloud is starting to tilt down and all the clouds are starting to reverse'
  • 5:00 - 'The price has broken into the upper level. So, we'd enter long here, then set our stop under market structure and our target at the next level'
  • 7:58 - 'We enter short here as soon as our alert gets hit, then place our stop above market structure. That would be above this candle right here near where the cloud is'
  • 12:20 - 'we go short and target the next level. We'll set our stop just above this candle near the high and set our target at the next level as usual'
  • 13:20 - 'The LCE model tells you to stop at one trade a day if that trade is a win because you want to secure that win and grow incrementally'

Strategy overview

Level-to-level trading is the practice of taking price from one identified reference level to the next, letting structure on the chart define where a move is expected to end rather than a fixed profit target. This entry decodes a video from Tradewriter that applies that idea through the "LCE" model together with a Cloud reference, using the hourly chart to establish overall market direction and bias and dropping to the 5-minute chart for execution.

What makes this source distinctive is its format. "Backtesting my 'unfair' institutional trading system" is not a rules lecture — it is a session-by-session review. The video opens by laying out the ground rules for the backtest and then walks through Monday, Tuesday, Wednesday and Thursday one day at a time, showing the analysis first and the trades that followed. That structure puts the emphasis on judgment: how the bias was read before the session, which levels were marked as meaningful, and what happened when the day did not cooperate.

Watching a discretionary model applied day by day is useful precisely because it exposes the gap between a clean description and a live chart. It also comes with a caveat worth stating plainly: a hand-reviewed week is a demonstration of process, not statistical evidence, and the sample is far too small to say anything about expectancy. This page covers the concept and the context of the source; the day-by-day reasoning is presented in the video itself.

Topics

lce model strategy · level to level trading · price action strategy · es futures strategy · cloud indicator strategy · 1 hour strategy · 5 minute strategy · breakout trading · trading strategy · pine script · tradingview strategy · scalping strategy · intraday trading · es futures breakout

Frequently asked questions

What does level-to-level trading mean?

It means managing a trade between structural reference points on the chart — entering near one level and targeting the next — so that the market's own structure determines where a position is closed, rather than a fixed reward multiple.

What does the Tradewriter video actually show?

It is a backtest walkthrough rather than a tutorial. After stating the ground rules for the test, it reviews four consecutive sessions — Monday through Thursday — showing the pre-session analysis and the trades taken on each day.

Why combine a 1-hour and a 5-minute chart?

This is a standard top-down workflow: the higher timeframe is used to judge overall direction and bias, while the lower timeframe is where entries are timed. The intent is to avoid taking execution-level signals that conflict with the broader picture.

Is a four-day backtest enough to evaluate a system like this?

No. A short manual review shows how a method is applied but cannot establish whether it has an edge — that requires a much larger sample and consistent rules. Strategy Decoder extracts the structure of strategies from video sources so you can evaluate and test them properly on TradingView.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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