Module 9: Trade Plan Development

4 months ago
Trade Plan Development

Golden Trading Rules:

• Check for Stops and targets resting in the Market then update or remove them.
• Look left for previous structure.
• Always Set a Stop Loss. Always!
• Maintain Discipline.
• Avoid impulse trading. Trade with a plan and stand by the rules.
• Identify, Predict, Decide and Execute (IPDE).
• Do not enter a market within 15 minutes after a news event.
• Get S.E.T. (Stop, Entry, Targets) before every trade. (Know where and how to Exit…)
• If I lose my ISP then call my Broker immediately and go flat, then work on the technical challenges to get back online.
• Keep it simple.

Pre-Market Analysis
Understanding that 70% of the volatility occurs during the first 2 ½ hours of trading, this step is very important. The goal here is to recognize probable entry or exit points.

Set ups and the Rules of Engagement (ROE):

• I plan to train myself with Neuro-Associative Conditioning (NAC) to be proficient in 3-5 set ups. As I train through repetition and develop an absolute belief in the patterns and occurrences in the two markets then I will commit ROE’s for each scenario and include them herein.
• At all times I will be aware of what direction the trading markets are in and when I see one of my recognized set ups, I will ask myself these three questions in order; RSI OB / OS then
Where is Price relative to?

  • The days ATR using Globex numbers
  • Divergence Trade:
  • * Primarily traded in the ES using the 3 Minute Chart.
  • * A Unit is considered 4 contracts for a trade
  • * RSI is overbought (O/B)
  • * End of Move (bullish in this case) is likely
  • * Pullback begins with bearish candles.
  • * Identify a plan by getting S.E.T.; Stop will be 0.50 above recent High, Entry will be at close of the recent Lower Low (LL)
  • Target 1 will be 0.5 below, T2 will be 1.0 point and T3 will be 1.5 points but allow for a winner to run by managing and adjusting stops. Place a trade resting in the market anticipating at least
  • one or two retests of the recent high.
  • * When a double top is formed, it must be equal or a higher high, then…
  • * Bearish Divergence occurs in RSI;
  • * Possibly a Bearish engulfing candle is formed with LL, and LH.
  • * Be patient and as the “M” is formed the resting Sell Stop Order is ready to get me in the market as the trend goes into the planned entry point.
  • * Targets are plan “A” and the Stop is well above the recent high that be out of the Market Dynamics for a retest of the recent high or it is Plan “B” to exit in case the trade goes against my
  • plan.
  • * Trade should not take more that 4 bars or 9-12 minutes to complete.
  • Once the trade is done then immediately I CHECK FOR STOPS AND ORDERS RESTING IN THE MARKET AND GO FLAT

Leave a Comment

Your email address will not be published. Required fields are marked *