CadChf Short

Reasons:

1) In the direction of main tread
2) Bounce from TL
3) Bounce from Monthly SR
4) Hidden divergence

Trading Plan - Trend Line Bounce N Breaks

This is draft of my trading plan. From today,  I m going to take trades in a demo account until I ll be profitable for consecutive 3 months. I m starting with an equity of $2500.

• Know yourself, Know your purpose

1. Why do you want to be a trader?
• Current job is sometime stressful, difficult ot take leave
• Job very harmful for health
• To fulfill my dreams eg: Range rover
• Would love to be part of 5% of people
2. What sort of trader are you?
• You can call me medium day trader. With my day job, I can manage to look at H4 closes.
3. What are your strength & weakness?
• Strength: Ability to let the profits run.
• Weakness: Wanting to re-cope a loss quickly
4. Are you in right frame of mind to trade?
• I will only trade on days when I am rested, relaxed and not distracted by work or family. I will not trade on days when I m feeling hangover, tired or when I am mentally distracted by event in my life.
5. What are your Income targets?
• monthly $200
• 1 year - $2500 ie 100% per year.
• maximum draw down 30%
6. What is your trading goal?
• Max 9 trades per month
• Win ratio 3:2
• If attained we will go to BBQ nation

• Pre-market Routines

1. Which time fame(TF) will you trade?
• I ll max go down to H1 not beyond that.
2. What is your daily pre-market routine?
• To analyse and log yesterdays trade. Review any open positions, update TP & SL. Initial selection of possible instruments to trade.
3. Have you analysed yesterdays trades?
• Each day I ll ensure that yesterday's trade was analysed and logged and that my trading journal is upto date.

• Risk & Money Management

1. What is your risk to reward ratio?
• Equal or greater than 1:2
• Risk per trade - 2%
2. When will you stop trading?
• When we loose 6% in a week - stop trading for current week.
3. Will you locking profits?
• I ll utillize the trailing stops which I ll position at previous swing high or lows.
4. How will you determine your position size?

• Exit Strategy

1. Will you exit before you SL is hit?
• No
2. Which signal will see you exit completely?
• If the TL which I am riding is broken
• If it hit trailing SL which is 2R from the peek
3. Which signal will see you a close half?
• I ll exit half my positions when I see a bounce from major Monthly, Weekly or Daily SR lines.
4. Which strategy will you trade?
• Trendline bounces and breaks.

• Setups and Entries

1. What are your set-ups?
• Find out trending pairs in monthly, weekly or daily
• Dras TL in H4 or daily
• Trade the bounces from TL & trade the breaks after retest.

• End of Day

1. Have you recorded today trade?
2. Did you executed trades according to your plan?
3. Have you completed your trading journal?

• Discipline

1. What are the punishments if you break your trading plan?
2. What questions do you ask after winning a trade?
3. What questions do you ask after losing a trade?

H4 Power by 60MM

Inside bar breakout eg; post450
Basic rule post55
Dealing with fear of loss. post Read down few more posts.

CrucialPoint -notes

The construct

Feb's Teachings

Feb's threads

Tail your stops. Thats my secert weapon. The market hits my 20 ticks stop-loss once in a blue moon. I don't even remember the last time. If I get stopped, I look for an opportunity the other way. Be a player.

Post shows feb entry.

downtrend=lower lows +lower highs
uptrend=higher highs +higher lows
if in a downtrend the pullback doesnt form a higher high + higher low most of the times the downtrend will continue...

ok I might pop a bubble here...but here we go
You win...one time...yeah...of course you get excited...it's normal.
Then...let's say..you win a second time....a third time
now you feel like in top of the world...yeah baby
but.......you lose 1
"it's cool" you say
but....you lose again...oh ..what's going on???
then...lets say you win 1 time...things are leveling..right???
but then you lose again......now this feb crap doesn't work...I have to run back to the big mac and RSI
Remember, this is a race...not a sprint 

Technical Analysis Fallacy FTI - notes

1. Why Volume doesn't work.

--An explanation from FTI

http://www.forexfactory.com/showthread.php?p=1745429#post1745429

post33-what to look for in market.

2. Loss Recovery.
The percentage gain it takes to recover a loss increases geomatrically with losses.
Link

3. Do not draw patterns in your chart.
Link1 
Link2

 4. I understand you mainly trade on the 5 min. What do you do to determine the trend direction?
Post555 

5. About rescue and attack positions
Post959
Post1216
Rescue xls Post1220
Post1237
Post1252
post1259
post851 
post1419  FTI's attack sequence
post1422 different rescue sequecne from legih



Attack sequence - post1325

6. About position sizing
Post949

5. Good posts
post177 and 4 below
post579 
post746 
FTI's interpretation of AOW chapter 1 , chapter 2
post964,
post1045
post1066,
post1084
Elliot fist studies post882
post49&51
Legs post1316
post1430 The more rigid the MO, the weaker the player. There is no skill
post1433 Not pattern analysis but the way it forms
The ISSUE stop loss order post1767

6. The Romance of the 3 Kingdoms
Post981
7. Get in to trade when you are in front of the tradestation,
Post1065, Post1081

8. leighsww explains about rescue troops post1182 
post1650 - you need a different mindset to trade fti's method.post1657

9. Trading simulator

10. Examples from NortPro
post1384
post1362
post1364 - in rescue operations donot look for more profit. Start attack again is a better option.

Songs post
chart analysis by FTI post1
warning by FTI post
about market flow post1588
I repeat.
The only way to manage a win AND a loss position is by size snowballing.
There is no other way. One increases the profitabilty bottom line and the other a recovery protocol.

Snowballing your positions in a win situation to to enhance and stretch the profits in the book.

Snowballing in a loss situation is very tricky,
The trick is to stay on the front line, and not allowing the market to run too far away from you for effective salvaging the bad . Therefore averaging of cost is the main component in this MO. Later in Art of War you will learn that to save 1 bad postion , you will need a squad. Therefore the timing is critical and the terrain whereby this is allowed to occcur must be manageable. This MO must be given sufficient thought , well parametered and executed swiftly on running battle sequences. If any possibilities of failure were to present itself , the whole exercise have to be abandon. So use it wisely. Under the strength of unlimited capital, this activity will dig you out of the holes , a trader might find themselves in. But traders do not have unlimited resource as with banks, if this protocol is adopted then much preparation is necessary, in terms of the limits of the parameters is concerned.

Remember that every loss you swallow, based on the WW tables, will put you off geometrically. So to a trader a 10 cts profit is a 10cts profit whereas a 10cts loss is not exactly that, its more. To keep books healthy, loss taking is a very detrimental exercise.
Try to be profitable , a small profit is better than a very small loss, by leaps.

======================

It is very possible to only have to put in one rescue attempt or at the most two, because if you're needing to put any more than 2 rescue attempts, that probably means you either are not entering your rescue at the right time, or you are not exiting at break even (or "small" profit).

Where Am I here

GJ Short

Reason1: TL on H4

Reason2: Looks like a distribution.
Stopping Volume has come before LO, but still the market is in range after LC.

And now the Great Saying.. Let the market decide.

Will update the result. Stay tunned... :-)