"Sample Trading Plan - PDF"
Sample Trading Plan MY PHILOSOPHY Utilizing candlestick patterns, I will attempt daily to capture 1 to 2 points per trade intra day on 4 to 7 trades with the goal of 10 points per day. I will be aware at all times that each trade is unique and there is no expectation that any particular trade will be a winner. I will use strict entry and exit points based on sound trading guidelines stated in the paragraphs below and I will employ strict stops to prevent emotional involvement in the outcome of each and every trade. My initial trading practice will be conducted on a trade execution simulator using 2 contracts as my planned lot size for when I go live. When I go live and begin to trade real money, my Initial trades will be one contract only in the beginning, until such time as I’m consistent at daily profitability. My weekly goal will to be at least 3 of 5 profitable days resulting in at least 3 profitable weeks each month resulting in the month being profitable to the point that I may withdraw earned profits shortly after month end. ENTRY POINTS Candlestick reversal patterns on an 89 TICK chart followed by analysis of the 144 TICK and the 233 TICK charts will be utilized as entry. A vision of at least 1.25 points gained will be minimum requirement for each trade entry. 1. Both Double Stochastic Indicators on turning in direction indicated. 2. If CCI is not in the proper direction, no trade will be made. 3. The $TICK must support each entry. 4. Exit any trade that does not start working in two minutes of entry. 5. Risk / Reward Ratio will always be AT LEAST 2:1 and preferably 3:1. 6. STOP LOSSES Stop losses will be entered immediately upon entry prior to turning my attention from the trade… even for an instant. Stop losses will be normally 1 point, but may be stretched to 2 points when trade involves awaiting market moving news. Sample Trading Plan WIN LIMITS Win limits will be initially set at 3 points . In trades based on market moving news, win limits may not be set and trailing stops used instead, or they may be set after the trade starts to slow down. In a fast moving trade, win limits may be moved to take advantage of greater momentum. In such a case, trailing stops will be utilized to prevent loss of profit, and win limits again will be set as trades slow down. It is understood that 3 points is an excellent profit, and in no circumstances will a trade be allowed to retrace to less than a 3 point profit when it has exceeded the 3 point limit. EXIT POINTS Exit points will fall under several categories. A reversal pattern that is confirmed by a CCI reversal will result in immediate exit. Consistent trends will have trailing stops as indicated by the steepness of the trend. TICK and TRIN will be monitored closely to decide if retracement only before resumption of trend. LOSS LIMITS Trading will be conducted in two sessions during each trading day. In each session if losses exceed $100, that session will be immediately terminated. Trading will be halted for remainder of the day any time 3 successive trades fail. DAILY GOAL Goal for each session during a day will be $150. At any time income exceeds $500 during a session that session will be ended immediately at the end of the trade in progress. OVERALL GOAL With the aim of eventually replacing salary with trading and to be a professional trader, the goal is to learn and practice with persistence until trading is consistently successful.. Maximizing profits while minimizing losses by practicing with focus on fundamentals will lead to a profitable career to be maintained far into the future. Most of all, the project must be done with a sense of fun and enjoyment of the process providing a sense of fulfillment and giving. I can perform from anywhere allowing me to travel the world and still maintain a stream of income to enabling freedom in every day life.