In a previous post I detailed a trading plan based off of Cawabungas MA crossover system. I tried that system for a few weeks and it just wasn’t working for me and so I have created a brand new plan as follows.
[B]The Plan:[/B]
[B]Micro Account[/B] Starting Balance $150
[B]Risk/Reward[/B]; 1:1, max risk 2% of account balance per trade
[B]Risk :[/B]$2.00 pip max @$0.10/pip…max trade s/l is 20 pips.
Looking for 10 trades per day, 6 wins, 4 losses (0 loss if I can help it but we’ll see ) potential profit 6 wins @2.00 = $4 per day, $20 week for the first week and compounding the gains as I go along.
[B]compounding :[/B]
each week i will increase my risk in relation to my account balance in order to maintain a 2% risk up to a point where I can increase risk to 3%.
once I reach $1000 I’ll increase risk to 3%.
When I reach over $2000 account balance I will withdraw 10% as a way of paying myself for my hard work.
[B]
The Trades:[/B]
I will only be trading the trend pullbacks on the 5 min chart on various pairs provided the spread is under 3.0
[B]Rules[/B]
- Check News, no trades 15 min prior to or after new releases.
- Identify the trend
- locate support /resistance
- Trade Setup:
-10 sma set to median
-CCI of 8 ,50 and -50
- For uptrend- candle close touching or low within 2.4 pips of SMA. CCI over 50
- For downtrend - candle close touching SMA or high within 2.4 pips of SMA , CCi below 50
[B]
if setup is good :[/B]
enter on next candle
1 pip above (uptrend) previous candle high
1 pip below(downtrend) previous candle low
-
set s/l over the last swing high (downtrend) or under the last swing low (downtrend)
-
profit target is # of pips between entry and s/l + spread.
-
when trade is within 5 pips of target move s/l to break even.
[B]Discipline -[/B] this is the most difficult part for me.
[U][B]Trade with the trend !![/B][/U]
Follow Trade Rules to the letter, no grey areas. if it isnt there, don’t try and force it, no setup, no entry…[U]no exceptions![/U]
Capital Preservation , cut losses as soon as they develop, dont let it run in hopes of a turnaround.
Always know where Support and resistance levels are before committing to the trade. never buy just under resistance or sell just over support.
I’ve been burned by that a few times, took the trade only to realize that I was at the wrong spot in the trend and had to cut for a loss so I added an additional longer term sma to help verify the trend.
*** edited for balance and P/L calculation errors
