Thanks guys for the explain!
Appreciate it!
So i have been reading for awhile and currently on the 50 page (40 post per page) which is 1/4 of the whole thread.
Now i feel like its time to do a trading rule for my PA trading.
So here it goes.
[B][U]A++ PA Signal Trading Plan[/U][/B]
[B]1. Trend[/B]
[ul]
[li]Always Trade [B]WITH[/B] the Trend, however, you may also trade in [B]Ranges[/B] and against the trend ONLY if the PA is BIG ENOUGH and OBVIOUS enough. E.g. Super Big and Obvious PIN BAR.
[/li][/ul]
[ul]
[li]Trade [B]SHORT Swing high[/B] or [B]LONG Swing Low[/B] after [B]SIGNIFICANT[/B] Support or Resistant is broken. However, after the price has broken a significant S/R, it has to go deep enough before a swing high or swing low occurs. I DO NOT want to trade a shallow retrace as it may indicate that a fake out has happened.
[/li][/ul]
[B]2. Time Frame
[/B]I will [B]ONLY[/B] be trading [B]Daily[/B] and [B]4HR[/B] Time Frame for Now.
[B]
3. Price Action[/B]
[ul]
[li][B]Trade Pin Bar or inverse Pin Bar[/B]
[/li][/ul]
[ol]
[li]Is the Shadow 3 times longer than body? (Yes/No)
[/li][li]Is the Body moved into the body of the previous PA? (Yes/No)
[/li][li]Is the [B]size[/B] of the Pin bar [B]Large/Obvious[/B] enough comparing to previous Candles? (Yes/No)
[/li][/ol]
[ul]
[li][B]Trade Engulfing Bar[/B]
[/li][/ul]
[ol]
[li]Did the Shadow and Body of the Current Candle stick Engulf the Whole Body and shadow of the previous Candle? (Yes/No)
[/li][li]Is the [B]size[/B] of the Engulfing Bar [B]Large/Obvious[/B] enough comparing to previous Candles? (Yes/No)
[/li][/ol]
[ul]
[li][B]Trade 2 Bar Reversal[/B]
[/li][/ul]
[B]All Price action Stated above are only to be traded at significant S/R level.[/B]
[B]4.Trading Environment[/B]
[ul]
[li]Are you trading into [B]BRN[/B]? (Yes/No)
[/li][li]Are you trading into [B]many S/R Areas[/B]? (Yes/No) [B]*Many = 3 and More[/B][B] close to each other[/B]
[/li][li]Is there [B]Room[/B] for price to run? By saying that, is there a [B]MINIMUM 1:1 RR[/B] for [B]1st Take Profit[/B]? (Yes/No)
[/li][/ul]
[B]5. Entry and Exit[/B]
[ul]
[li][B]Entry:[/B] Pending Order [B]5 Pips[/B] ahead of the [B]BODY[/B] of the closed Candle.
[/li][li][B]Entry: [/B]There will be [B]3 Pending Orders[/B]. [B]50%/B , [B]35%/B and [B]15%(winner run)[/B] respectively.
[/li][/ul]
[ul]
[li][B]Exit: 10 Pips[/B] Below the Wick or Body(if No Wick) of the Candle Stick.
[/li][/ul]
[ul]
[li][B]Exit:[/B] Let the price hit your [B]Stop Loss[/B].
[/li][li][B]Exit:[/B] [B]Do not EVER[/B] change your [B]Stop Loss[/B] after its set.
[/li][li][B]Exit:[/B] Once [B]TP1[/B] is hit, Move the SL to [B]Break Even[/B]. Let the [B]winner RUN. However[/B], depend on situation, may close all positions at TP2.
[/li][/ul]
[B]ALL ENTRY AND EXIT MUST ACCOUNT FOR PIP SPREAD!!![/B]
[B]6. Position Calculation[/B]
[ul]
[li][B]If there is an increase in account, the next trade will base on 2% loss of the current account balance instead of original in order to compound the balance. [/B]
[/li][/ul]
[B] That being said, if there is decrease in the balance, 2% loss will be calculated on the current account balance instead of the original balance.[/B]
So guys, pls help me evaluate if this is LOGICAL, ACHIEVABLE, and pls help me to add on if you feel it lacks something !
Thanks so much in advance!
Jack.C
