Trading Plan (in brief)

Why. It is a skill once learnt that gives energy. 

Task: (1) Do it right, (2) build financial resources for my family and investors, consistently.

Daily preparation. Start and maintain a calm, energy filled outlook.

Core trading mechanics:

Instruments: Forex, global indices, Commodities, stock’s and ETF’s

Timeframes: 5min, 1hr, 4hr, Daily, Weekly. (The 1hr or 4hr are my anchor timeframes).

Risk profile: 1.0% – trade max, 0.5% for split positions, 5% – day, 9.9% -month

Trading analytics:

  1. Weekly: all trades opened/closed within that week
  2. Monthly: all trades opened or closed within that month/overall monthly performance
  3. Quarterly: quarterly trading plan review/performance

Strategies: Execute context price action setups: (see below for screenshot setup examples)

Pre-breakout (PBO).

The USD/JPY example below supports a PBO build-up. The box below shows on the 1hr chart; however, in this trade, I referred to the lower (5min) chart for the PBO entry long.

USD/JPY PBO setup on the 1hr chart. Stop 12 pips, target 55 pips providing a 4.6R trade.
USD/JPY the same trade but now on the 5min chart for entry.

EUR/USD below is a suitable example of a diagonal PBO and from within a box pattern. Stop placement above the prior high or more conservatively above the high of the box pattern.

EUR/USD 1hr chart PBO short from diagonal support within a box pattern.

Roll reversal level (RRL).

The example below of USD/JPY is counter-trend on the 1hr entry chart but is near the top of a range on the 4hr chart; this is a 2R opportunity, but countertrend makes us more watchful.

USD/JPY counter-trend RRL short 1hr chart. Stop is 21 pips and target 41 pips making nearly a 2R trade if successful.

False break (FB).

Breakout pullback (BOPB).

XAU/USD below is a trade in waiting short from a possible BOPB short CT. The CT is a concern as an engulfing close long would signal a FB and therefore reverse the trade too long. The conservative stop is above the box pattern drawn. About a 2.7R potential.

Waiting for the activation of a possible BOPB entry short in Gold.

Pure momentum breakout (PMB)

Usually a PMB shows on a higher timeframe chart.

The skill of interpreting between higher to lower timeframe charts is most prevalent in the PMB entry.

GBP/EUR a PMB on the 1hr chart, with the entry being a RRL setup (see below) on the 5min chart. Stop at 10 pips with a 31 pip target providing a comfortable 3R trade.
The 5min chart RRL entry of the PMB from the 1hr chart shown above.

Limit level trade (LLT).

The example below is a 1hr chart. On the higher timeframe price is in a downtrend. A short entry via an LLT with the target established on the 4hr chart. (The LLT must show on a higher timeframe chart to that of the entry chart)

AUD/JPY LLT 1hr chart short 15 pip stop, 78 pip target 5.2R trade.

3P

The chart below is an example of a 3P entry short from the 1hr chart USD/CAD. The 3P setup also provided a double top entry with a 28 pip stop (stop above the middle high) and a potential 178 pip target or 6R.

A 3P entry short 1hr chart USD/CAD.