Your Trading Plan

As soon as I started to become serious about my trading I created and have tweaked a trading plan ever since. I read my plan from start to finish at the start of every trading week this is first thing I do. I have got to a point where I could resite it I know it that well, however I feel this helps me create a process in my brain that helps me create and execute my trades in a very methodical and logical manner.

The following is not the entire plan I have had to edit it quite a bit to move out the specific parts that relate only to me but I have tried to keep it pretty tight and to the point and keep in the stuff that I feel could benefit you.

The Trading Plan

Objectives

The objectives of this plan is create the framework necessary to trade the foreign exchange market for the sole purpose of generating an income for the entity known as XXXX Pty Ltd. This plan outlines the steps in creating and executing profitable trades, without being affected by emotion or outside influences. You must always be clinical and brutal in your execution of this plan. (NO EXCEPTIONS EVER)

Instruments

The following markets and instruments are included in this plan:

"List your pairs which you trade"

Time Frames

I exclusively trade the following time frames 4h, daily and weekly and monthly for reference points.

Tools

1 x Laptop, dbfx trading account Internet access and backup Internet access account, Iphone, Universal power supply.

Risk Capital

You trading account Balance

Brokers

DBFX

Risk Management Strategy

Strategy differs from pair to pair but normally I want to earn a 3:1 RR and 6:1 on aggressive pairs that are prone to big runs. Dont take any trade without getting at least a 3:1 RR, this will send you broke.

Trading System

My trading system consists of following main factors:

The use of fundamental analysis to determine the trend for short, medium and long term trades. This can include but not limited to, GDP data, employment data, Statements from reserve banks, interest rate commentary, manufacturing and service industry data. Anything else that the market is paying attention to on a given day.My job as a trader is to seek this information out and work out how to use it.

The use of long term time frames to reduce the noise on the charts and use support and resistance with a better chance of being respected. The use of Long term time frames 4h charts and above with less whipsaw action and a clear picture of the overall trend allowing me to make informed choices for my trades.

The use of open interest data from the futures market to gauge support or otherwise for currency pairs. The Commitment of traders report released every Friday for open positioning.

The use of Commodity prices to gauge the flow of support or otherwise into or away from currency pairs sensitive to commodity prices. Pay attention to this especially when taking trades for AUD and NZ pairs.

Conduct Share market analysis to ascertain the underpin of risk and general sentiment towards it, caused by flows into and out of the share market. Isolate the major local news for this market, to ascertain any regional flows to a currency pair caused by regional based news.

Routine

At the start of everyday, I will always gain the knowledge needed to expedite my trades in the most informed and effective manner, whilst exercising calm exerting discipline whilst interacting with the market. my routine will always include:

- Find and list multiple reasons for taking every trade.
- Allow market forces to decide where the exit of every trade is.
- Use technical analysis to help determine the ideal entry points and to determine proper support and resistance
- Analyze the affect of factors outside the forex market to help trade manage every open position, including the analysis of other markets which have affects on FX positions.
- Analyse ancillary data such as open interest futures, commitment of traders reports in a methodical and non bias way.
- Analyse market sentiment to understand what the herd might be doing and gain an understanding of what the professional money is trading and where

Profits

Always bank profits when the market gives you the opportunity too. Use my profits to diversify my investments into as amany different areas as possible and spread my risk.

Committment

To be a successful trader I must always stick to my plan and execute it with deadly precision in order to be successful. This is my committment to myself and the people that reply on me.

This is a cut down version of my plan but I have tried to simplfy it so if you are creating a plan this might give you a starting point.