Backtesting Trader Kane's NQ Strategy | The Lab Model

In this video, we break down one of the most consistent models used by Trader Kane — the Lab Model — built around low time frame setups on NQ. The strategy combines key concepts like premium/discount zones, SMT divergence between ES and NQ, inverse fair value gaps, and logical liquidity targets (LLTs) for both reversals and continuations. Trader Kane is one of the highest paid prop firm traders of all time, earning approximately $3M from prop and live trading accounts in the last year. If you're looking for a promising scalping strategy for futures, this video will give you a complete breakdown of how you can test and apply it in your own trading. Backtest the strategy for free on FX Replay here: https://www.fxreplay.com/?aff=youtube... Access Trader Kane's NQ Strategy The Lab Model PDF: https://www.fxreplay.com/strategies/t... Backtesting feedback form: https://fxreplay.typeform.com/sessions Let us know in the comments what strategy you'd like to see next! Timestamps 00:00 – Intro 00:48 – Trader Kane's Strategy 01:09 – Premium vs Discount Zones Explained 01:26 – Logical Liquidity Targets 01:53 – Rebalances visualized 02:29 – SMT Divergence & iFVGs 02:57 – Structure: Overlapping Candles Analysis 03:08 – Specific Strategy Details 03:34 – Best Session Window: 10am–1pm ET (NY) 04:04 – Reversal trades explained 04:49 – Continuation trades explained 05:53 – Stop Loss, Take Profit, and Trade management 07:09 – Trader Kane actual chart example 07:30 – Other Rules & Considerations 08:39 – Example #1 (Reversal): Short to LTF Rebalance 09:45 – Example #2 (Continuation): Short towards HTF Rebalance 10:54 – Live Backtest Setup (Dates & Session) 11:16 – Layout & Indicators (FVG indicator, NY Session Lines) 12:14 – Fibonacci Retracement Settings to visualize P/D 13:01 – Analyzing charts for trade direction 14:00 – 5m Range Rebalanced ➜ Continuation Plan 14:17 – Entry Checklist review 15:28 – 1m Inversion short: 17:00 – Placing the trade in FX Replay 17:45 – SMT Invalidation: Both Make New Highs 18:00 – Fresh SMT & 3m iFVG 19:11 – 2nd short attempt: breakeven trade 20:27 – Review of a potential win (not recorded) 21:58 – Continuation Plan 23:32 – SMT but no inversion: no trade 26:30 – iFVG ➜ SMT: Short trade (breakeven) 28:48 – 2nd attempt Short trade +3.48R 30:06 – Trailing stop loss consideration 30:42 – HTF Divergence: Consideration to increase win rate 33:16 – Correct Bias but no trade due to news 34:30 – Every rebalance does not mean continuation 37:10 – HTF range rebalanced ➜ look for next likely rebalance 40:13 – Using PO3 fib retracement for continuation TP 41:34 – Loss review & potential filter to improve win rate 43:04 – SMT + iFVG, Long Trade +3.29R 44:38 – Live Backtesting Recap 45:00 – Analytics review 45:51 – Reversal vs. Continuation analytics 47:08 – FX Replay RR Simulator Insights 48:41 – Final thoughts FX Replay is the top backtesting platform that helps traders start—and stay—profitable. Test smarter, learn faster, and refine your strategy in real market conditions—risk-free. Resources: Access free trading strategies: https://www.fxreplay.com/strategies Support Center: https://support.fxreplay.com/ Blog articles: https://www.fxreplay.com/company/blogs Feature requests/enhancements: https://fx-replay.notion.site/2159db2... Report a bug: https://fx-replay.notion.site/21a9db2... Join our Discord:   / discord   Follow us on socials! Instagram:   / fx_replay   TikTok:   / fx_replay   X: https://x.com/fx_replay Facebook:   / fx.replay1   For more trading insights from Trader Kane visit his: IG:   / traderkane   X: https://x.com/traderkane YT:    / @traderkane   #fxreplay #Backtesting #tradingstrategy #strategies #forextrading #nq