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This will always be my latest trading plan.
My trade plan:
1. Why am I trading?
- I trade to be financially free
- I trade to have enough money to retire
- I trade to provide for my loved ones
- I trade because I love to be fully responsible for my actions and there is no one bothering me like bosses, colleagues and/or customers
- I trade to live the great life of my dreams
2. What is my Approach?
I take trades solely based on technical analysis. Decisions are made based on price action and volume indicators.
3. What are my Goals?
To be financially free, to live the great life of my dreams, to be independent.
4. What Markets will I trade?
I will trade the ES in the afternoon (GMT)
5. What Timeframes will I trade:
1500 tick chart for ES
These will be the main trading chart for the respective instruments. To find levels where "institutions" switch from buying to selling and v.v. I will use a 6 range bar chart for ES. This will be based on cumulative delta.
Furthermore I will use a 6 tick renko for ES to get the big picture and market state.
6. What Setups will I trade?
Turning points in CD and price trading at S/R levels. Furthermore there must be divergence in the Buy/Sell pressure.
7. Entry rules:
It is not a black out time:
- Cash open
- Important news report is coming out
When at a transition point in CD price is at a S/R level as well I will enter the market when there is a divergence in the BSP. When the market state is bullish I will be more inclined to enter long at support, and when it is bearish to enter short at resistance. In a neutral/indecisive market I can enter either way.
8. Exit take profit (and/or) trail-stop rules:
Stops will be below/above the identified S/R levels, but not bigger than 8 ticks.
Exit at the next S/R level or when CD shows signs of turning around.
9. Risk Management rules:
The risk including commission should never be more than 1% of the account size
I will stop trading after a net loss of 20 ticks.
I will stop trading after a net win of 40 ticks.
10. Pre-market activities, or routine:
1. Check whether you are fit to trade
2. Read and view the mindset enhancers
3. Check what news is due the coming trading session
11. Post-market activities, or routine:
1. Make a screen shot of all trades (preferably already before/during the trade)
2. Log all trades in trading journal and also take notes about how you felt about the trade before entering
3. Check whether trades are taken according to trade plan
12. Review process:
1. continuoulsy check whether profit and draw down are OK. When they are not consistently showing a profit refine the trade plan
2. After 500 trades decide whether system is tradable and suitable for me
13. Continuing Education:
Keep back testing system on continuous basis
Keep checking whether the time frames are still optimal for the instrument
Read psychological articles and books
Visit forums for interesting ideas