Totally Revised Trading Plan

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.
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


  1. Check News, no trades 15 min prior to or after new releases.
  2. Identify the trend
  3. locate support /resistance
  4. 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
    if setup is good :[/B]
    enter on next candle
    1 pip above (uptrend) previous candle high
    1 pip below(downtrend) previous candle low
  1. set s/l over the last swing high (downtrend) or under the last swing low (downtrend)

  2. profit target is # of pips between entry and s/l + spread.

  3. 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

I completely fail to understand how you expect to make 60 dollars a week if you expect to make 10 trades a day, being 4 of them losses.

So 6 Trades times 2.00$=12$, and 4 losses means 8$.

So that leaves you with 4$ a day in expected profits…

that’s 20$ on your first week…

650% per month/every month is insane, if I could be as easy as is to write it but if you shot for the stars and land in mud is better than shotting for mud and lading in mud.

He could “cut losses as soon as they develop” as he stated and have 6 big winners and 4 small losers.

Well thought out and needs some refining, but you are off to a nice start. :slight_smile:

I have been at the same strat about a week and a 1/2 its good. 10 trades a day is not going to happen unless you are watching a few pairs. I am putting together a pdf of the way I have been trading this strat. I will put it up soon. This is a very high win rate way to trade if you keep to your rules and don’t make up trades that are not there you should do fine. I found some pairs do not have nearly as high a win rate as EU. If you want 10 trades a day you will need to look at others, back test the other pairs or forward demo them.
I will follow this thread.

I seriously doubt with all due respect you’ll be able to make $60 a week off a $100 balance? 60% week on week growth… its wildly optimistic and just can’t be done… I don’t care how good your strat is! LOL. I like the compounding though… now thats a winner!

I am busted by RC back on the M5:27:

$60 a week on $100 is a real stretch. Thats 10% a day you will be at $1,000,000 in 20 weeks. Yes I have a compounding spreadsheet.
here it is this is a copy feel free to change the values.

But… is that the only inconsistency you people see?

The guy said he would be making 12$ a day, even by losing 4 trades daily…

LOL Shr1K… I’ll admit to a slight frown on seeing you on the 5m… AGAIN… LOL! But real nice to see you around about here on BP.

There’s treatment centers for this addiction you know? :stuck_out_tongue:

Your right on here it is 4 a day as the OP laid out his plan

What happens if you hit a series of losses… say 6-10 in a row? Do you have measures to handle that event?

Well, erasing our losses from our mind, doesn’t make us profit…

I think the OP has a psychological problem towards accepting losses, no one in his right mind fails to calculate losses when they are detailed in such a way.

I don’t agree with the way you are changing the risk parameter. My opinion is that you should pick a risk level and stick to it. Just because your balance increases is not a reason to increase risk. Plus making a major change like this (ie 50% increase in risk) is sure to rock the boat enough to possibly upset your consistency.

The original post says [I][U][B]POTENTIAL[/B][/U][/I] profit of 6 wins a day for the $12.

He also noted that he’s accepting the fact that he may net only 2 wins.
He based the compounding on the most optimal situation.

gimmie3pips, to go along with what ICT said, you should also consider reverse compounding should you run into a string of losses.

Preservation of capital is key;)

I don’t know quite what your original plan was, but I can’t imagine it was worse than your “new” one. Looks like it is back to the drawing board.

Ok I guess i didnt quiet explain it well.

The trading method used is a high win scalping method, most people who have it down have an 80%+ win ratio, the max pip target per trade is 26 which is why the 1:1 ratio. My risk is staying at 2% the only thing changing is the equity in the account. If I have $100 and risking 2% that $2 if I have $1000 risking 2% thats $20…it’s still only 2% of my account. I’m simply increasing the amount in line wit the account value

i took 5 trades so far today, won 5 of the 6…the only reason it wasnt 6 of 6 was that i was near resistance on a double top and I decided to close for a 4 pip loss…had i held the trade it broke resistance and hit my original TP.

I’m also watching/trading multiple pairs, right now they are EUR/USD, GBP/USD, AUD/USD, USD/CHF

I’ll see how it all works out by this time next week, it can only go 1 of 2 ways right…so far so good

And yes CheckDavid, .I did screw up when i did my original p/l calculation when i did it, had a brainfart what can i say…you win it’s $20 a week not $60

Thanks for addressing the point… no so much for the “win” though.

Your thread is interesting btw.

so anyway, current balance is $155.62…I only took 7 trades so far today. 2 of those were basically break even, one I was on the wrong side of the 50 sma and didnt like going against the trend so I cut it for a loss of like $0.07.

The other was the AUD/USD where I got in at a pullback at 1.0570 but I hadnt marked my resistance above it and then realized there was a double top of resistance at that point on the 5min…so I bailed out of it for a small loss of $0.45 what really sucks is that it went through that resistance and is now at 1.0674

10 trades a day sounds like a recipe for disaster to me… Sure I understand that your scalping pull backs, that seems like a very risky way to trade…

Overtrading is one of the main reasons new traders “fail”… something to keep in mind.


My opinion is that you should watch only 1 pair until you can master it. Who knows how long it could take, maybe years. Each pair has its own personality. And with a scalping method, there should be plenty of trade opportunities to satisfy your craving to trade.