xXTrizzleXx’s Trading Plans
Markets
Several currency pairs are chosen to increase the probability of detecting trades.
The currency pairs traded for both Trading Plans, are:
-EUR/USD - $10/pipStd.Lot
-GBP/USD - $10/pipStd.Lot
-AUD/USD -$10/pipStd.Lot
-GBP/JPY - $10.91/pipStd.Lot
-EUR/JPY - $10.91/pipStd.Lot
-USD/JPY - $10.91/pipStd.Lot
-USD/CHF - $8.70/pipStd.Lot
-USD/CAD - $9.69/pipStd.Lot
-EUR/GBP - $14.58/pipStd.Lot
-GBP/CHF – $9.02/pipStd.Lot
The DNA Method (High Win:Loss) - Version 2.4
Position Sizing
A strategy using 2 contracts will be used for all trades. Each contract will be no more than 1% of the account balance, as evaluated at the beginning of each trading period, which is 1 month.
Time Frame
The 4 Hour Timeframe will be traded.
Entries
[ul]
[li]Two Bollinger Bands are used, one with Standard Deviation set to 1.0 and the other set to 2.0.
[/li][li]Entries will be made employing a system which uses an Orthodox Count Back Line method.
[/li][li]Only begin drawing the CBL from candles which close between the Outer Bollinger Band and the Standard Deviation 1.0 Band. If the CBL extends too close to the Middle Bollinger Band, then cut it in half.
[/li][li]Bollinger Band bubbles and squeezes will not be traded, until Point P has been reached, as they reduce the Win : Loss ratio. Point P is the point where the retrace of Price Action hits the Outer Bollinger Band, as seen below.
[/li][/ul]
Images courtesy of Tymen!
Entries must be made IN THE APPROPRIATE DIRECTION. If you want to go long the price action must come up to your CBL, and if you want to go short the price action must come down to your CBL.
If you are unsure whether a Bubble or Sausage has not ended, sit the trade out!
Stops
[ul]
[li]At first, an emergency PCI Stop Loss is set which is exactly one candle length beneath (above) the Count Back Line extreme candle. It is exactly the same length as the extreme candle.
[/li][li]The low (or high) of the extreme Count Back Line candle is noted, and only when a candle CLOSES beneath the low (or above the high for short trades) is the trade canceled at that price. Thus the low (or high) acts as a dynamic, unofficial stop loss which takes precedence over the PCI Stop.
[/li][li]The candle which stops out the trade may be used as criteria for another CBL.
[/li][/ul]
Exits
[ul]
[li]The middle Bollinger Band will be the site of TP 1 and TP 2.
[/li][li]When initiating the trade, set the Take Profit target immediately at the present height of the desired target Bollinger Band. Monitor the trade, and if price hits the Bollinger Bands before the Take Profit lines, close the trade (since the Bollinger Bands are repainting indicators, and can move).
[/li][li]EXIT ALL TRADES BY THE MARKET CLOSE ON FRIDAY!
[/li][/ul]
The Macro Method (High Risk:Reward) - Version 1.0
Please note that this Trade Plan is still under construction!
Position Sizing
A strategy using 2 contracts will be used for all trades. Each contract will be no more than 1% of the account balance.
Time Frame
The Daily Time Frame will be traded as a reference time frame, with entries being made on the 6 Hour Time frame, as the home time frame. At least a year of the Daily Time Frame will be used to gather trade analysis information (in simple terms, determining the direction of the prevailing trend)
Entries
[ul]
[li]Two Bollinger Bands are used, one with Standard Deviation set to 1.0 and the other set to 2.0. The Zigzag indicator may be helpful here.
[/li][li]If the prevailing trend is down, only enter SHORT. If the prevailing trend is up, only enter LONG.
[/li][li]Entries will be made by drawing a 2 Candle CBL on the 6 Hour Time Frame, when a candle closes in the region between the Standard Deviation 1.0 and the Outer Bollinger Band. This may correspond to the present peak of the Zigzag indicator.
[/li][li]Bollinger Band bubbles and squeezes can be traded.
[/li][/ul]
Stops
[ul]
[li]The initial stop, is the usual high or low of the 2 Candle Count Back Line.
[/li][li]After the first major retracement, as on the 6 Hour Time Frame, the stop is shifted to the Fibonacci Ratios 76.4%, 61.8%, 50%, 38.2% and 23.6%, with each successive retracement. A candle must close above (or below) these Fibonacci Ratios to count for a stop. The technique for drawing the Fibonacci is presented beautifully by Tymen in this thread, here.
[/li][li]The Zigzag indicator may again be helpful in determining the major retracements (to assist in drawing the Fibonacci Lines).
[/li][li]The candle which stops out the trade may be used as criteria for another CBL.
[/li][/ul]
Exits
[ul]
[li]The exit of the first contract will be the touch of the opposite Outer Bollinger Band.
[/li][li]When initiating the trade, set the Take Profit target immediately at the present height of the opposite Outer Bollinger Band. Monitor the trade, and if price hits the Outer Bollinger Band before the Take Profit line, close the trade (since the Bollinger Bands are repainting indicators, and can move).
[/li][li]The next exit, for all other contracts will be at a significant breach of the appropriate Fibonacci ratio.
[/li][li]These trades will not be closed by the Market Close of Friday.
[/li][/ul]
Important Information
[ul]
[li]An uptrend is defined as a series of higher highs and higher lows, while a downtrend is defined as a series of lower highs and lower lows.
[/li][li]The Daily Time Frame is used to determine the direction of the prevailing trend, by drawing trend lines in conjunction with the Zigzag indicator.
[/li][li]The trend-line will have to be redrawn, when it is significantly broken.
[/li][/ul]
Significant breakage will occur when in:
A downtrend, a series of higher lows begins to form, eventually leading to a low closing above the trend-line.
An uptrend, a series of lower highs begins to form, eventually leading to a high closing below the trend-line.
[ul]
[li]When significant breakage occurs, stay out of the trades until you can determine the direction of the new trend.
[/li][li]In the event of a breach of the trend line, which does not satisfy the criteria of significant breakage, simply adjust your trend-line to incorporate the breached area. (I know this sounds vague, but perhaps when I give a few examples, it will become clearer).
[/li][/ul]