MY TRADING PLAN INCLUDING EXAMPLE
This is a very simplified version of my trading plan including an example of how the strategy works with a small trading account.
Komentar:
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Markets
+Major Markets: All major currencies, and their crosses.
Timeframe
+Daily charts used as the main time frame for basing trading decisions.
+Monthly or Weekly charts used for top down analysis to map any nearby major turning points in the market from a weekly perspective.
+Trading time frames can be daily chart to anywhere between 4-12 hour time frames.
Market Conditions
+Trending Conditions
+Clear Range-bound conditions allowing for a 2:1 reward to risk ratio trade.
+Mean reversion trades permitted from extreme prices allowing for a 3:1 reward to risk ratio.
+No trades to be taken inside consolidating markets.
Risk Management
+A maximum of 6% capital risk exposure is permitted at one time. Meaning, if all trades were stopped out, only a 6% loss would be observed. Any one trade is limited to 0.5% risk meaning it is possible to have up to 12 open positions at one time and not go over the maximum of 6% risk exposure.
+The trade must have a clear path to a minimum of a 2:1 reward to risk ration level without being obstructed by strong weekly S/R levels, or any other major technical turning point.
Trade Exits
+A set, forget, collect approach is used meaning I setup the trade and let the trade work without any other intervention.
+Counter trend positions from major monthly or weekly reversal points, or mean reversion must have 3:1 reward to risk ratio.
+Early exits are permitted if price action clearly communicates the trade idea is no longer valid, or the target is highly unlikely to be reached.
More detail to come...