While I am still trying to work out my system, I have come up with my trading plan. Of course this will be a living document, used as my guide. Anyway, I would appreciate any constructive feedback that you may have.
Thanks for the comments!
Trading System
* Charts
o H1 for trade setup
o M15, H4 for confirmation of direction.
o M5/15 to monitor current movement to recognize possible moves of the TP range
* Trade on Price movement. Utilizing the Shi Channel, Linear Regression Channel, Barry's Support and Resistance and Fibonacci.
* Trade after retracement starts and looks like its almost complete.
* Make sure that current levels are not close to your top (Buys) or low (sells) channels
* Looking for (re)entrance in the .382 or .500 range.
* Utilize SL on a previous resistance level (ex, if entrance at .382 use .500 as SL)
* Trade in the direction of the market only. I can get in and ride the wave, even if a trade got stopped out.
* Trade only on EURUSD, GBPUSD, USDJPY and USDCHF. Main focus on EURUSD, especially for GBP setups.
* Never risk more than 3% of account on the SL, if I need more pips then I will reduce my lot size.
* Never move SL to a further negative position.
* Know what the TP point is, you have to plan you trade an make sure the risk (SL) is less than the expected gains.
* Protect profits with a trailing stop, even if your not past your TP point. You can always reenter.
Trading Routine
* Primarily look for setups around 9am, and through the rest of the US day. A lot happens around 7:45, I need to start watching this too.
* Never trade Sunday nights or Friday after noon.
* Never trade around news.
* Never trade on Holidays.
* Check daily news release times before setting up.
*Please keep in mind that I have job and I am demoing right now so my trading times may not be the best in the world, but they are what I have to work with right now
Mindset
* I will see what is on the charts and not what I want to see.
* No matter how biased I am towards a direction, I will make sure to trade only what my eyes see and not what my feelings tell me.
* I will not get �revenge� on the market if I lose on a trade.
* I will not trade when there are no setups. I will be weary when the trends are not being followed.
* I will not beat myself up if I make a losing trade. Instead I will take it as a learning experience and move on.
Weakness
* Finding trades when they are not there.
* Trading outside of my normal style.
* Watching the market too much and second guessing/Hedging myself.
* Testing new systems on �live account�.
* EA�s
Goals
* Initial goal is to trade for 2 months with demo account and have positive equity.
* Learn how to trade on price action, being able to understand where the market may go.
* I will shoot for at least 25% monthly return.
* Devise EA and test. Never allow too big of draw downs.
* Read Japanese Candlestick Charting Techniques, Second Edition (Hardcover)
* 80% weekly success rate.