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How to Write a Trading Plan-converted

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Farhad Alimoradi
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25 views

How to Write a Trading Plan-converted

Uploaded by

Farhad Alimoradi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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How to write a Trading Plan

It is an example and anybody have to write it by its own strategy

1. I am a full time trader and I will trade intraday. I choose trading positions based
on swing trading and the QM and Fisher patterns.
2. My working hours are due to the type of strategy chosen and the amount of
capital in the time frames below daily, but I will not come lower than a quarter
time frame.
3. According to surveys, I will have at least one trading position almost every day,
and with this survey, at least 20 trades will be done per month.
4. The analytical style has been selected to obtain the areas from the technical
method and based on the Trigger Price Action trainings, and the chart
specifications with the template, the image of which will be presented later, have
been selected in a condensed form with a positive double zoom.
5. It has been decided to operate in the Cryptocurrency market, and I must learn
this style within a maximum of six months and come up with a plan.
6. The time frame of the analysis is based on the pattern and the time pattern and
trigger will be proportional to the pivots that make up the pattern, and the method
of detecting the pivot in the style of trigger price action is quite clear.
7. I will work with a capital of 10 thousand dollars. Therefore, in the strategy testing
phase, the traditional $100 account is used to show the numerical equivalent of
$10,000 in the chart, and this work is similar to the main account in terms of
psychology and profit and loss calculations.
8. I will withdraw my profits on a monthly basis. But I will analyze my trades on a
weekly basis and review the statement.

Explanation: In the first stage, with the doubling of the start account, I will have the
withdrawal, and in the next stage, which is monthly, as in the first case, one third of
the profit will increase the capital, one third for the savings and one third for the
expenses. And my withdrawal method is through …. exchange.

9. According to studies, the number of signals issued in the designed system is at


least 22 per month, which expects a minimum monthly profit of 21%, and if I
reach the maximum profit in a period of less than a month, continue in the
remaining days with a volume of one third.
10. Since the time frames for recognizing the desired pattern are different, we will
also have different stop-loss, and the maximum selected lot size will be
calculated based on the stop-loss.
11. It has allocated ten percent of the main capital for education, some of which will
be used to buy articles, books, downloads, print files, internet costs, and
purchase the necessary supplies.
12. The maximum leverage that will be used for the first year is 100 and one percent
risk has been announced and for every 1000 successful trades I will double the
percentage of risk and margin and the ceiling of this process will be up to a
maximum risk of 10 percent of capital in each trade. First, when the maximum
account loss reaches 10%, I will do a general overview of the system process.
13. For all trades, before and after the result, I will have an image to be included in
the journal so that I can use it for further studies, and the journal format will be
provided in the attached file.
14. The journal attachment comes with a complete spreadsheet in Excel that
includes all the items that affect the trade.
15. Each week, I do a general analysis of the price movement of the traded currency
pair so that I can use the analysis views in specific situations.
16. I will only trade on my work system and I will not have any way to communicate
with the market on my mobile or tablet and laptop other than my work
environment and I will never trade on trips. Because I believe that it is a very
professional job and I have to do a professional job in a completely professional
way in my work environment, which is in my office.
17. In case of emergency, except for the trading system, I will support the transaction
through the workplace, and except for the Internet, which is connected to the
system, I will also have a separate Internet system for the laptop.
18. My health is my first priority and I will follow my nutrition completely and exercise
is definitely included in my work plan and I will never trade in times of fatigue or
situations when I am not mentally ready.
19. The trigger for my entry into the market will be based on the candle chart
patterns and the break of the trigger line in the form of an instant trade, which I
will explain later in the figure.
20. If my coach opinion is that I did not succeed in this task, his expert opinion is
respected, and if I am not able to present a statement up to three months later to
prove that I have reached a personal strategy that has been proven to be
profitable in the demo, this is done. I will not continue.
21. I will not leave my main job until I have reached a continuous and reliable
profitability for life, and I will definitely consult with my coach when deciding to
change jobs.
22. The method of specifying stop loss is in accordance with the time pattern and the
selected targets will be equal to the time trigger pattern and structure. And as
mentioned before, the permissible risk level should be one percent per trade and
the maximum percentage of capital.
23. Trading setup
In the trading setup we will have a complete explanation about: how to identify the entry
point and manage the trade and the method of identifying a signal by determining the
loss limit and price targets and we check how to enter with other signs and setups that
is used in the trigger.

A common example of a price action strategy is failure break out. In short, it is a


strategy that traps small traders. In fact, traders predict the failure of a line and trade on
the basis of it but they trapped. In fact, failure break out is the strategy of large banks to
reach better trading positions and put positions in a better place.

I chose QM for this pattern because the method of recognizing and seeing this pattern
is very simple and we do not need special skills to see this pattern in the chart, and
most importantly, the pattern is very common in other time frames and in most financial
markets. And has a high risk to reward trading capability.

In the meantime, we use other necessary triggers when we reach the market for trading,
so that the triggers give us the areas to set the stop and then calculate the targets. The
triggers used can include:
- Long shadow setup
- Inside bar setup
- Trigger inside bar setup
- Trigger inside bar stop setup
- The nature of the level and the break of the trigger line in the trigger time
- All stop hunt patterns, CO and SO4
- Flag, CP, 3Drive and Triple patterns
- Double, CanCan, Qm, FM and diamond patterns

1. Find trend direction in higher timeframe:


At this stage, it is very important to see the chart. Look at the current market chart and
pay close attention to what has happened to the price. You can use the indicators to
find the trend, but never signal the indicators to trade. Always use four-hour or daily or
weekly charts to find trends.

Your chart has one of the following modes:

1. It is trending, it means it has a trend. If it has an upward trend, each high is


higher than its previous high, and if it has a downward trend, each low is lower
than its previous low.
2. Sideway or no process if the oscillator moves up and down and does not show
any specific direction.
3. It is changing from a sideway state to a trend state if it breaks the sideway status
chart.
4. Changing the situation from trendy to sideway: In this case, instead of moving the
chart in a certain direction, it fits.
5. Reversing the direction of the trend means moving from ascending to descending
and vice versa.

• Look for patterns in areas where the chart changes from trend mode to sideway
mode or in areas where trend starts moving after being sideway.
The Qm pattern works very well when the chart is sideway and starts to move. Do not
trade according to the pattern when the chart is moving and there is no sign of trending.
Be sure. The template is in the right place. Getting results with Price Action Patterns
requires flexibility and a creative mind.

a) Entry point and exit point and pattern trading plan:

The diagram above gives us a good picture of the entry and exit points and how
to deal with this pattern. You can change the entry and exit point if necessary,
but in any case, make sure that the risk-to-reward ratio is 1 to 2, and exit the
trade wherever you feel the pattern is broken and does not form.

The figure above shows how the Qm pattern can not be formed. You just have to be
ready for this kind of situation and have money management system.

Successful trades in Price Action are highly dependent on correct diagnosis of the
direction of the trend. In fact, in Price Action, you should always be systematic and
careful. In Price Action we can make good profits and exit in the right places according
to the terms of our trading. To reach such a stage requires practice and skill. To
become a strong trader, you need to make the right decision, practice, acquire skills,
and so on.

Preparation of trading journal


In the next step, when you have done the time frame, risk, reward and back test, you
should start preparing a journal, and for this you can use the Excel Trigger Price Action
file, and you have to select the method, and do it just right as you have written and
traded, and you should write down the reasons for leaving and have a picture of it in the
test forum.

To do this, work discipline is the first and last word, and keep in mind that you can use
the available software for the test, and now you have to check the result of the method
you have designed and change it in the rules to the best resolve, and when the rules
are finalized and the proper efficiency is achieved, you must respect the rules face to
face. This will be done in three stages of trading the demo account, and you have a
hard time in the management discussion because you are both an employer and a
worker, and we will continue the discussion related to the journal and the review of the
statement and the completion of the setup.

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