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MMXM
By: Alextlaz
Mentor & Concept Credits: Michael J Huddleston
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In this paper I will be covering all of the phases and characteristics of the two Market
Maker models. Not only will I define each phase and its respective mechanic, but I will
also try to bring forth my interpretation.
It is Important to note that rather than focusing on the visual development of the models,
the mechanic of each phase tells the story. Not all mmxm models will look the same, or
be completed the same.
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Price Delivery
Sell-Side Curve
(Net short)
Delivery by Sell Program. Sell Program utilizes two Engine Models:
1. Offset Distribution
a. Engineers Buyers at Premium Prices
i. Accumulate Buy-Side Liquidity by repricing over an Old High
b. Offsets Current short holders
i. Stop Hunt
2. Re-Distribution
a. Provides Smart Money Premium Pricing for Short Positions
b. Retracements higher to make current short position holders net negative
on the short positions
c. Fair Value in Retracements higher at Premium Arrays
d. Induce Buyers
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Price Delivery
Buy-Side Curve
(Net Long)
Delivery by Buy Program. Buy Program utilizes two Engine Models:
1. Offset Accumulation
a. Engineers Sellers at Discount Prices
i. Accumulate Sell-Side Liquidity by repricing under an Old Low
b. Offset Current Long Holders
i. Stop Hunt
2. Re-Accumulation
a. Provide Smart Money Discount Prices for Long Positions
b. Retracements lower to make current Long position holders net negative on
the long positions
c. Fair Value in retracements lower at Discount Arrays
d. Induce Sellers
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Buy Model
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Phases
1. Sell Program = Net short
a. Original Consolidation = Engineers Pending BSL > Pending SSL
b. Distribution = Sell Orders (Through Accumulation at Premium Market) >
Buy Orders
2. Smart Money Reversal = Institutional Reference Point utilized for one or multiple
of the following:
a. Mitigation of short positions
b. Rebalancing an Old Imbalance - Buy-Side Imbalance Sell-Side Inefficiency
c. Sell-Side Liquidity Raid where:
i. Limit Orders in the form of Sell stops (protecting short positions) are
paired with Institutional long orders / Short exit liquidity
ii. Limit Orders in the form of Sell orders (interest of selling below a
specific level) are paired with Institutional long orders / Short exit
liquidity
Once at Reference Point, Expect a Market Structure Shift / Market Structure Break =
Change in the State of Delivery | Sell Program -> Buy Program
3. Buy Program = Net long
a. Accumulation (1st leg) = Buy Orders > Sell Orders
b. Re-Accumulation (2nd leg) = Buy Orders > Sell Orders
c. Terminus / Completion = Orders added to Institutional Positions during
Hedging and SMR are now paired with the Original Consolidation Liquidity
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Buy Model - Understanding
Identify the Following:
- HTF IOF = Bullish
- DOL = Higher
- Initial Curve = Sell Program with Distribution / Redistribution
If we are in HTF Bullish IOF, the expectation is that Price will respect HTF Bullish PDAs.
Once we have identified our draw, we would want to see a major Institutional Interest
for them to make “business” at that level.
The Buy Model’s purpose is to deliver Price efficiently to our HTF Draw, while also
generating Liquidity Pools Above the Market Place (during Sell Curve, generating
protective sell stops over old highs) that would later be used to pair Institutional Orders
post - SMR. The Idea would be for us to be in alignment with IOF in order to capture
part(s) of the move.
Once the Smart Money Reversal has been Identified (MSS / MSB), we would look to
apply one of the Entry Models:
- 2022 Model
- IOFED
- Breaker + Fair Value Gap
- etcetera
SMR will provide us with a Low-Risk Buy
Accumulation and Re-Accumulation will also provide us with Long Entry opportunities
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Sell Model
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Phases
4. Buy Program = Net Long
a. Original Consolidation = Engineers Pending SSL > Pending BSL
b. Accumulation = Buy Orders (Through Accumulation at Discount Market) >
Sell Orders
5. Smart Money Reversal = Institutional Reference Point utilized for one or multiple
of the following:
a. Mitigation of Long positions
b. Rebalancing an Old Imbalance - Sell-Side Imbalance Buy-Side Inefficiency
c. Buy-Side Liquidity Raid where:
i. Limit Orders in the form of Buy stops (protecting long positions) are
paired with Institutional Short orders / Long exit liquidity
ii. Limit Orders in the form of Buy orders (interest of selling below a
specific level) are paired with Institutional Short orders / Long exit
liquidity
Once at Reference Point, Expect a Market Structure Shift / Market Structure Break =
Change in the State of Delivery | Buy Program -> Sell Program
6. Sell Program = Net Short
a. Distribution (1st leg) = Sell Orders > Buy Orders
b. Redistribution (2nd leg) = Sell Orders > Buy Orders
c. Terminus / Completion = Orders added to Institutional Positions during
Hedging and SMR are now paired with the Original Consolidation Liquidity
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Sell Model - Understanding
Identify the Following:
- HTF IOF = Bearish
- DOL = Lower
- Initial Curve = Buy Program with Accumulation / Re-Accumulation
If we are in HTF Bearish IOF, the expectation is that Price will respect HTF Bearish
PDAs. Once we have identified our draw, we would want to see a major Institutional
Interest for them to make “business” at that level.
The Sell Model’s purpose is to deliver Price efficiently to our HTF Draw, while also
generating Liquidity Pools Below the Market Place (during Buy Curve, generating
protective sell stops under old lows) that would later be used to pair Institutional Orders
post - SMR. The Idea would be for us to be in alignment with IOF in order to capture
part(s) of the move.
Once the Smart Money Reversal has been Identified (MSS / MSB), we would look to
apply one of the Entry Models:
- 2022 Model
- IOFED
- Breaker + Fair Value Gap
- etcetera
SMR will provide us with a Low-Risk Sell
Distribution and redistribution will also provide us with Short Entry opportunities
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Thank you for reading
