Rules
For trading, I will adhere to the following rules and set ups. Over time, I expect them to evolve and I will update them as they do.
Per Trade Rules
Trade 1 ES contract.
Trade only during specified time
from 9 am - 2:30 pm CT
don't trade +/- 10 minutes from major events which would be identified prior to the trading week.
Trade only predefined set ups
Execute trade within predefined risk targets
set predefined targets at: 8 ticks - profit, 5 ticks - loss.
Set trailing stop at 4.
The profit target can be adjusted based on the price. The trailing stop cannot be adjusted.
I can bail out from a trade that does not feel right.
Daily Rules
Don't trade if I didn't have time to update this blog prior to trading.
Don't execute more than 4 trades per day.
Stop trading after two consecutive losses for the day.
Simulated Trading
I will switch to simulated trading if:
I violate any of the rules above,
or have two days of consecutive losses
Setups
Of course, scenarios have two flavors, -short, and -long. In my notes, I will refer to them as 1-long/1-short and 2-long/2-short.