ICT Bread and Butter Sell-Setup — 4-Session Intraday Bearish Model with Offset & Re-Distribution

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The ICT Bread and Butter Sell-Setup is a powerful intraday model that aims to capitalize on bearish market moves, targeting 30 to 50 pips per trade. Built around two fundamental price dynamics — Offset-Distribution and Re-Distribution — it produces 2 to 3 quality short setups daily, one per major session.

This guide explains the sell-side mechanics of the Bread and Butter model. For the buy-side variant see my ICT Bread and Butter Buy-Setup guide.

In this guide I walk you through the sell-setup — the two engines (offset-distribution, re-distribution), the four session entries (London, NY, London Close, Asia), the realistic objectives, the risk-reward profile, the step-by-step trade flow, common mistakes and the FAQ.

You can jump to the section you are most interested in from below or continue reading the full article for a complete view.

What is ICT Bread and Butter Sell-Setup?

The ICT Bread and Butter Sell-Setup is an intraday model designed to capitalize on bearish trading days.

When the market is poised for lower prices based on higher-timeframe institutional order flow, anticipate the opening at or near the high of the daily range.

There may be a slight move above the opening price before the decline begins.

The London open typically sets the initial push lower, then stabilizes while awaiting the New York open.

The New York open often brings further downside momentum, driving prices lower until around 10:00 AM New York time.

Between 10:00 AM and 12:00 PM New York time, the low of the day is expected to form — followed by a retracement higher.

During this sell program, IPDA operates under one of two price-engine models.

(I) Offset-Distribution

IPDA will reprice the market above an old high — triggering buy stops from traders holding short positions.

This engineered move draws in buyers at a premium, setting the stage for a sell-off.

This setup occurs frequently in bearish market conditions when higher-timeframe institutional order flow signals lower prices ahead.

You can see the example of offset-distribution below.

(II) Re-Distribution

In a sell program, IPDA will reprice the market higher toward a fair-value price array — offering smart money an opportunity to enter short positions at a premium.

This temporary rally puts pressure on existing short sellers, forcing them to cover their positions and inducing buying activity. This provides the buy-side liquidity necessary for institutional traders to establish short positions.

This concept is illustrated in the diagram below, showing how Re-Distribution plays out in price action.

Realistic Objectives

Trade duration: typically 1 to 2 hours or less.

Pips per trade: 15 to 30 pips, or maximum 50 pips.

Timing chart interval: 5-minute.

Frequency of Setups

Per week: as many as 15 or more.

Per day: 2 to 3 setups typically.

Per session: 1 per session typically — London, New York, London Close and Asia.

Risk-to-Reward Ratio

Risk-reward ratio typically 1:1, but can be better.

Ideal risk per trade is 0.5% to 1%.

ICT Bread and Butter — London Open Sell-Setup

When higher-timeframe institutional order flow is bearish, anticipate the London session high of the day to form.

The market opens at 0 GMT (12:00 AM New York time) and may experience an expansion phase higher — creating a shorting opportunity from the open or just below it, before 10:00 AM New York time.

The classic London Judas Swing higher can offer an ideal scalp entry.

A market retracement between 5:00 AM and 7:00 AM New York time may provide another shorting opportunity — once a premium price array is reached.

Below is an example illustrating the ICT Bread and Butter — London Open Sell-Setup.

ICT Bread and Butter — The NY Sell-Setup

When the London session confirms institutional sponsorship on the short side and establishes the daily high, expect the New York open to continue lower — unless a higher-timeframe discount array has been reached intraday.

Identify intraday swings lower to determine a premium range for short entries within the New York open killzone.

Use 8:20 AM New York time (CME open) to anticipate the New York Judas Swing — a temporary rally that can be faded for a short entry.

The target will be the next higher-timeframe discount array, found on the 1-hour, 4-hour or daily chart.

Below is an example illustrating the ICT Bread and Butter — New York Sell-Setup.

ICT Bread and Butter — London Close Buy-Setup

When the New York and London sessions align in a bearish move, and a higher-timeframe discount array has been reached, expect a retracement of the day’s low between 10:30 AM and 1:00 PM New York time.

Look for a 5-minute chart failure swing at the low and a bullish order block to confirm the short-term retracement.

Risk only 10 pips below the day’s low, with a target of 20 to 30% of the total daily range on the retracement higher.

Be aware that this trade is not always easy to spot — and the daily range may extend beyond the higher-timeframe discount array.

Below is an example illustrating the ICT Bread and Butter — London Close setup.

ICT Bread and Butter — Asia Open Sell-Setup

When the higher-timeframe institutional order flow is bearish, a short entry can be taken at or just above the 0-GMT open price (7:00 PM New York time) — anticipating a 15 to 20 pip decline as the Asian range forms.

This setup targets a quick 15 to 20 pips, as the Asian session typically has a limited range.

Patience is key — price action during this session is often slower compared to London and New York sessions.

Below is an example illustrating the ICT Bread and Butter — Asia Open Sell-Setup.

Step-by-Step Bread and Butter Sell Flow

This is the exact sequence I run for any Bread and Butter sell setup, regardless of which session.

1. Confirm higher-timeframe bearish institutional order flow. 1-day and 4-hour structure plus the higher-timeframe PD array.
2. Set your chart to New York local time. Every session window in the model uses NY time.
3. Identify the active session. London (00:00 NY) / NY (07:00 NY) / London Close (10:30 NY) / Asia (19:00 NY).
4. Mark the premium PD array for that session. Premium FVG, order block or breaker above the opening price.
5. Wait for the IPDA price engine. Offset-distribution (sweep above an old high) or re-distribution (retrace to the PD array).
6. Drop to the 5-minute for the trigger. Wait for the lower-timeframe MSS at the premium level.
7. Enter on the post-MSS retest. At the post-MSS PD array, in the bearish direction.
8. Set the stop. Beyond the swept premium extreme, with a small buffer.
9. Take 15 to 30 pips on the position. Maximum 50 pips. Trail the runner only if the higher-timeframe discount array is still distant.
10. Risk 0.5% to 1% per trade. Multiple setups per day require strict per-trade risk.

Best Pairs for ICT Bread and Butter Sell

The model works on every major instrument that respects the four session windows — GBP/USD, EUR/USD, USD/CAD, USD/JPY plus metals.

For traders in the United States who follow the CFTC FIFO and no-hedge rules, the Bread and Butter framework maps cleanly onto NQ and ES futures (CME Group) plus regulated forex pairs through US-based brokers. The 09:50 NY-AM macro window is a particularly strong place to watch for the New York setup because the algorithmic delivery is most concentrated there.

Common Mistakes Around the Bread and Butter Sell

These are the recurring mistakes I see when traders first start trading the Bread and Butter sell.

1. Wrong timezone. Every session window is defined in New York local time. Using your broker’s server time or local time produces the wrong windows.
2. Trading without confirmed bearish bias. The sell-setup requires higher-timeframe bearish order flow. Without it, every premium looks like a setup.
3. Skipping the 5-minute MSS. The premium PD array is the zone — the entry trigger is the 5-minute MSS. Touching the premium alone is not an entry.
4. Ignoring the session boundaries. A ‘London’ trade taken at 06:00 AM NY is past the window. Stick to the session start times.
5. Greedy targets. 15 to 30 pips is the model target. Holding for 100 pips converts the scalp into a swing and breaks the model.
6. Trading the London Close every day. The London Close setup is the hardest — only take it when both London and NY have moved in tandem AND a higher-timeframe discount array has been reached.

FAQs about ICT Bread and Butter Sell-Setup

Brief answers to the questions readers ask most often about the Bread and Butter sell-setup.

What is the ICT Bread and Butter Sell-Setup?

An intraday bearish model that captures 30 to 50 pips per session, powered by two IPDA price engines — offset-distribution and re-distribution — across the London, NY, London Close and Asia sessions.

What is offset-distribution?

IPDA reprices the market above an old high to trigger buy stops from short holders, drawing in buyers at a premium before reversing lower.

What is re-distribution?

IPDA reprices the market higher to a fair-value premium PD array to provide smart money discount-of-shorts prices — inducing buying that pairs with the smart-money short entry.

How many setups per day?

2 to 3 setups typically — one per session across London, New York, London Close and Asia.

What is the realistic pip target?

15 to 30 pips per trade, with a maximum of 50 pips. Trade duration typically 1 to 2 hours.

What is the risk-reward ratio?

Typically 1:1 — but can be better. Risk 0.5% to 1% per trade.

What chart interval do I use?

5-minute for the execution. 1-hour or 4-hour for the higher-timeframe PD array.

When does the London Open setup trigger?

A market retracement between 5:00 AM and 7:00 AM NY time after the London Judas Swing — that retracement into a premium PD array is the short scalp entry.

When does the New York Open setup trigger?

08:20 AM New York time (CME open) — anticipate the New York Judas Swing to fade, then enter short at the intraday premium.

When does the London Close setup trigger?

Between 10:30 AM and 01:00 PM NY time — but only after London and NY have moved in tandem AND a higher-timeframe discount array has been reached. This trade is not always easy to spot.

When does the Asia Open setup trigger?

At or just above the 0 GMT open (07:00 PM NY time) — expect a 15 to 20 pip decline as the Asian range forms.

What is the difference between the sell-setup and the buy-setup?

The sell-setup focuses on bearish institutional order flow days. The buy-setup is the mirror image — see my ICT Bread and Butter Buy-Setup guide.

Does the Bread and Butter sell-setup work on indices and gold?

Yes — NQ, ES and XAU/USD all produce textbook Bread and Butter sell setups, especially during the New York AM session and around US economic releases.