Trading plan

Trading plan.pdf (173 KB)Hi all I have been trading a demo account now for a while and I am just about ready to jump into the fire with a live account but I want to make sure my trading plan is ok so I have attached a rough version of it and I would like any constructive comments that will help me develop this plan or even how to set it out.

Interesting trading plan. Your following the KISS rule which is great. Can I ask, what exactly is your entry point? Also, are you trading a correction of the current downward trend, or after a correction when price hits a resistance point and continues downward? What is your take profit?

Yes I am trying to wait for the corection back up and then if I get a bearish candle formation at a resistance level or at a trendline I would enter the market with a sell entry. I think it is the safest way for a beginer like me to not blow my bank in the early stage of my trading life and i should be able to develop my trading as I gain more expirience.
My aim is to use the 1:1.5 ratio for profit loss so risk 20 pips for a 30 pip gain I have also been locking in profit once I get 15 pips up just in case the market turns against me

I have been entering the market at the close of the last candle and provided it is a sell signal I would enter with a market entry but I want to practice a little with limit and stop entries to see what advatages I can get with these entry points

Sounds like a good plan overall. I believe you have all the basic elements. The only thing left to ask is, how much testing have you done on demo with this particular system? I recommend 3-6 months of backtesting and 1-2 months of forward testing. Most people will tell you more. Personally, i never follow these rules. I always backtest 3-6 months over a weekend and then, the next week, jump in with small lot sizes on live. Wouldn’t recommend it though. Its cost me quite a bit in the past.

Not a bad idea necessarily, but waiting to close, almost always provides better results. In my experience, you will have more whipsaws hitting your entry point and moving straight to stop. Can’t hurt to demo it though :).

So what resistance lines are you using?

Wow! Nice and simple! Good luck with it! =)

I have been playing on a demo account for around 8 months but have only recently been focusing my attention on the markets and I have seen some good results.

In regards to the resistance lines over the weekend I clear my charts of all lines and start fresh by adding support and resistance at swing highs and lows and also trend lines are added by zooming out on the chart and then placing them on the chart. I try to just use the 3 support and 3 resistance levels from the live candle but if there is a strong support or resistance level I will add that as well but in a different colour.

Awesome plan dude. May the pips be with you!

To really complete this trading plan maybe you could add the ff:

1.) Which trading session you are going to trade in (price acts differently depending on the time of day)
2.) Examples of entry/exit in pictures, that way you always have something to refer to during those times when your psychology is messing with your head (haha, when you’re losing!)

Thanks for the constructive comments Pip Devil I think I should also add a weeky target like 60 pips/week

I have found it a little hard to isolate my time frame at the moment because of my current job but since I have been in china for the past 3 months I seem to be doing well around the open of the U.S the only trouble is that will be a little late when I return back to Australia but in saying that to be successful you must make sacrifices :smiley:

You can try trading the morning EU session! I believe that’s 4pm-9pm your time.

Good luck going live…

Start small, and risk lower than your demo account levels until you master some of the emotions of real money…

Then… as they say… HAMMER DOWN!!

Good luck.

Thanks Guys for the advice and in regards to the trading time I am arriving back to the hotel around 6pm and about an our after that I can sit down and focus on the markets (7pm Beijing time) and this is why it is close to the N.Y open before day light savings any way