I changed the section marked in red as I realized that keeping a basic set of four pairs was not helpful but rather created distraction. The most efficient way to operate seems to be to pick out a few pairs every night to watch the next day for potential trades. These pairs may very well change every night as the markets move.
Rules and Goals:
[ol]
[li] The goal of the demo trading is to achieve three consecutive profitable months.[/li]Only months when trades have been taken count, no trading months are viewed as non existent when performance is reviewed.
[li] The home chart for trading will be the 4H time frame.[/li]2H and 8H are also allowed for trading.
[li] Charts and demo accounts[/li][LIST=1]
[li] Netdania.com ChartStation will be used for all charting[/li][li] Trading will be performed with Oanda demo accounts[/li][li] Trades will be placed using Oanda FXGame and Oanda FXGame for Android[/li][/ol]
[li] The charts will be checked when a bar closes except during night hours or when circumstances cause a delay[/li][li] All trades are placed using pending orders and trades are triggered if/when the CBL entry line is reached by price. The CBL is always used for entries.[/li][li] Risk per trade[/li][ol]
[li] The risk per trade will always be 1.5%[/li][LIST=1]
[li] Maximum simultaneous risk will be 3%[/li][/ol]
[li] On the Kelly demo the risk will be 10x the normal risk, that is, 15%[/li][ol]
[li] Maximum simultaneous risk will be 30%[/li][/ol]
[/LIST]
[li] Stop loss is always used and it is placed a few pips beyond the high/low of the CBL[/li][ol]
[li] The stop loss is moved to break even at 1R or shortly before as circumstances allow[/li][/ol]
[li] Trades can be exited in three different ways:[/li][ol]
[li] By trailing the stop loss behind swing levels[/li][li] By exiting at a predetermined level[/li][li] By stop loss being hit[/li][/ol]
[li] Funds will not be added to the demo account at all[/li][ol]
[li] If/when the method is used for live trading funds will be added only after a profitable month when trades have been taken.[/li][/ol]
[li] Records:[/li][ol]
[li] All trades will be recorded in the online service MyFXBook[/li][/ol]
[li] During the weekend as well as every evening a detailed analysis is performed where pairs of interest are noted and placed on the Active Watchlist. Pairs that may soon print interesting setups are placed on the Potential Watchlist. [/li]
[li] There are three different setups that are allowed for trading:[/li][ol]
[li] Retracements in a trend[/li][li] Retests of breakouts in trend direction[/li][li] Counter trend trades at very strong PPZ levels where price is likely to turn, such as the outer boundaries of a range zone[/li][/ol]
[li] Chart analysis will be based on:[/li][ol]
[li] Determination of trend or no trend[/li][LIST=1]
[li] If trend - strength and clarity[/li][li] If range - strength of range boundaries and determination of price behavior in the range[/li][/ol]
[li] Determination of higher time frame trend or range[/li][li] Placement of appropriate S/R lines[/li][li] Placement of appropriate trendlines[/li][/LIST]
[li]Only the very best setups will be chosen[/li][/LIST]