Trading Plan

INDICATORS CRITERIA
Before every trade:

 Analyze 5, 15 and 1HR timeframe and check:
o Indicators – DMI, TRIX, STOCH, DIDI
o Support and resistance zones, trendlines.
RULES TO OPEN POSITION!

1- Bandas do bollinger estão abrindo e o movimento direcional
está sinalizando uma tendência” ou “prestes a entrar se as
aberturas do bollinger forem fortes”. (abrir posição).
2- Esperar pelo momento em que a tendência começa a
enfraquecer, o bollinger começa a fechar as bandas, e Trix
virando (fechar posição).
3- OLHE O CONTEXTO! SIGA ANALISE TECNICA
(SUPORTE/TOPOS/TREND LINES)
Sempre que um movimento de mercado não for suficientemente
grande para fincar tendência em um determinado tempo gráfico,
poderá sê-lo em seu filho ou neto. E estes indicadores de “com
tendência” nos tempos menores, estarão andando junto com os de
“sem tendência” em tempos maiores.
Be precise, plan every trade, and do not be caught on a bad

setup just because you want to make money. Spend time finding
the best setup.
The market tells everything; make sure you listen to him and not
to the greedy thoughts I have.
$ Money Management $
Profit Objectives:
 Weekly Cumulative Target: $60,00
 Daily Cumulative Target: $15,00
Obs: after hitting the goals, decide whether or not continue
trading.
When Will I stop after losing money?

 Max Daily loss: $30,00
 Max Weekly Loss: $60,00
What percentage will be risked each trade?

 0.5-1%
 Calculate position size based on stop loss.
PROTECTIVE STOPS
 The point I have Pre-determined the probability of the trade
working no longer exists, I exit the trade. Usually the 100%
takeover of the signal bar.
 Use Trailing Stops during times of increase momentum.
 Trail Stops under Pivot High/Low once it has been established.
 STOPS CANNOT BE ADJUSTED ONCE HIT. THEY ARE THERE TO

SAVE MY CAPITAL FROM A POTENTIAL BIGGER LOSS.
 After my entry, I will only focus on the chart and the market
environment, not the P&L.
 Always have at least two scenarios, no matter how bullish or

bearish. Be open to possibilities. Anything can happen!
Overcome the temptation of:
 To act prior to gaining information needed out of fear of missing

the trade. I must avoid Impulse Trades.
 To sell out of fear that prices will move against my position, rather
than managing the way I previously set.
Trading Day Preparation
 Review day’s trades/charts and complete Trading Diary.
 Analyze on multiple time frames: Trend, Support and Resistance

of my universe of currency pairs to serve as a bias for the day.
 Check key economic reports that may increase volatility on that

day at WPI Terminal and realize the hours they will take place in
order to be safe.
 Doing my homework will ensure faster development!!

Support and
Resistance analysis
 Pivots or V-Reversals: one to three price reversal points within a

trend.
 They are focal points. The Supply and Demand on those points
are not that significant.
 Multiple bar reversal points are significant areas of Supply and
Demand. They form rounding or square formations within a
trend.
Moving Average Analysis
 60-Minute- 20-200 – Define the intra-day trend/bias.
 15-5-Minute – Use them both for intra-day entry points.
-----------------------------------------------------------------------------------------------
Tight Trends
 The new bar moves in the same direction of the prior bar’s
direction. 3-Bar rule.
 Open and closes together, fluent movements open and down.
Small tails.
 Few tails, engulfing, giving a picture of certainty.
 Pullbacks often reverse in the area of mSupport and mResistance
-----------------------------------------------------------------------------------------------
Whippy Trends
 Overlapping bars. Alternation between bear and bull bars.
 Long tails and NB, showing a picture of uncertainty.
 Pullbacks often break through areas of minor support and
resistance.
Trend Summary
 Attributes of trend include:
 Angle of trend
 Angle of correction
 Trend quality (no overlapping bars, bars closing near high,
small tails)
 Distance between major pivots
 Time vs price correction
 Pivots give us the market’s reference points in shifts between

supply and demand.
 Without a clear void, there is no trade.
 The deeper the move into S-D, the greater the odds of moving
through it.
 Every deep move into S-D creates an opposing void to be
considered (Climatic move and magnets)
 Breaking a major pivot will break a Trend Line by definition.
 Trend analysis is key to high probability trades!
My objectives
 How much capital do you have?
- I currently have about $1230 under management.’
 How much money do you need to live on each year?
- About $30,000
 How much of that must come out of your trading profits?
-None of it. I get a salary through my job and my parents help
me
 How much time during the day do you have to devote to
trading?
I have about 4 hours each day, but that time is mostly
affected by school classes and work, so it is sometimes divided
into morning and evening.
 What are your psychological strengths and weaknesses,
especially in terms of trading system development?
I believe that, if I set myself to be patient and strategic, I can
set good trades. However, after I am in it, I really get emotional,
or over analyze what is happening, trying not to let my profits
become losses, that ultimately make me close trades too early.
My weakness is not being patient after I am in the trade, and trust
my analysis.
 How about your strengths and weaknesses in terms of personal
discipline? Based on my journal, I close my trades too early,
which my indicate that I over analyze after I am in a trade, and
fear that I will become a loser. Or my analysis on a lower
timeframe does not match a higher one, which makes me not
very confident and gives me the feeling that my entry was too
impulsive.
 What is your advantage or edge in trading? What is the
particular concept that you are trading that gives you an
advantage?
-Recognizing areas of support and resistance, defining a
trend, and staying objective with my criteria to give the high
probability setups.
 How much of that money could you afford to lose? For example,
most funds stop trading at 50 percent. How about you? How
much risk can you afford to take on a given trade?
- I am willing to lose 50%, which is around $700. On
any given trade, I risk about 0.5-1% of my capital, which is around
$5-$13.
 How much money do you need to make each year? Do you need
to live off that money? What if you don’t make enough to live
off? Can you make more than you need to live off so that your
trading capital can grow? Can you stand regular withdrawals
from your trading capital to pay your monthly bills?
-At this point is time, my capital is only for growth and
knowledge. Since it is such a small amount, I will use it to learn
from my trades and make it grow until I become consistently
profitable.
 Do you have the time to trade short term?

- I believe that I do. I do not plan to trade for several hours a
day, but I believe I can find good setups intra-day that will not
require much of my time. In addition, I can constantly check my
trades even at work, or at class.
 In summary, what do you expect to make each year as a
percentage of your trading capital?
About 40 percent to 100 percent. 5-10% a month, 1-2% a
week.
 What risk level are you willing to tolerate in order to achieve

that?
About half the potential gain, so the maximum loss would be
50 percent in a year.
 What is the largest peak-to-trough drawdown you are willing to

tolerate? About 50 percent.
 How will you know your plan is working, and how will you know
when it is not working? What do you expect from your system in
various kinds of markets? Trending? Consolidating? Highly
volatile? I will always be sure that my position sizing is within my
risk parameters. In addition, my plan allows me to trade setups
that are congruent with any type of market environment, as long
as it matches the criteria.

Trading Plan

Uploaded by

Copyright:

Available Formats

Trading Plan

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Trading Plan

Uploaded by

Copyright:

Available Formats

INDICATORS CRITERIA

Before every trade:

RULES TO OPEN POSITION!

Be precise, plan every trade, and do not be caught on a bad

When Will I stop after losing money?

What percentage will be risked each trade?

 Use Trailing Stops during times of increase momentum.

 Trail Stops under Pivot High/Low once it has been established.

 STOPS CANNOT BE ADJUSTED ONCE HIT. THEY ARE THERE TO

 Always have at least two scenarios, no matter how bullish or

Overcome the temptation of:

 To act prior to gaining information needed out of fear of missing

 Review day’s trades/charts and complete Trading Diary.

 Analyze on multiple time frames: Trend, Support and Resistance

 Check key economic reports that may increase volatility on that

 Doing my homework will ensure faster development!!

 Pivots or V-Reversals: one to three price reversal points within a

 60-Minute- 20-200 – Define the intra-day trend/bias.

 15-5-Minute – Use them both for intra-day entry points.

 Pivots give us the market’s reference points in shifts between

 Do you have the time to trade short term?

 What risk level are you willing to tolerate in order to achieve

 What is the largest peak-to-trough drawdown you are willing to

You might also like