Wednesday, 21 July 2010

Trade the Plan

We have been working very hard on the trading plans in the training. It is one of the keys to success. Firstly, defining it so you know exactly what to do, then SIM trading it to test it, then SIM trading it some more after you have corrected what was wrong and then SIM trading it some more until you can do it all instinctively and are CP in SIM.

But it all starts with the plan. "The Plan, the plan" (hope some of you remember old TV shows, Ricardo Montalban was the guy it was said to).

What the guys and gal in the training are doing is trading an initial TP (trading plan), gathering some statistics and experience in SIM, then also doing extensive back testing either manually or by computer. The walking forward test is the SIM after the adjustments.

When the "final version" (its never really final as its a living document) has been settled then its full speed ahead in SIM until CP in SIM is reached.

We started off with a single "picture" to trade. Some of the traders have a few variations but we are trying to keep it simple. The trading plans are all different. No two alike. And that's how it should be. They start from just a 1 page doc and go up to many pages, depending on the trader.

Max posted a comment yesterday with a link to a Trading Plan he found on the web. Although I don't agree with all of it, it does provide a list of all the things to consider. The trading plans the EL group have written are based on the things they have learned in the training. Most of them have already made a couple of revisions based on their experience.

Today's trade was just the Gap trade for me. It was not just a normal gap trade but also based on Pete Steidlmayer's "free exposure" concept. Those that have been fortunate to have taken classes from him or read the available material will know what I mean, if you don't, try 'Googling' it.

The ES RTH market opened at its highs, broke support of 1083.75 which triggered my trade and proceeded to go down to the support I found by splitting the profile. That was enough and I was finished working before the initial balance was in.


  1. I said "Da Plane Boss Da Plane" not "the plan the plan" to Ricardo!!!

  2. Was it the profile dip on 16.07 that gave you the broken support at 1083.75?


  3. EL/Kiki: I'm on my way to CP but I have a hard time quantifying my results since I don't have another point of reference.

    - How many ES pts did Kiki got per day per contract (on avg) when she started becoming CP? How many is she harvesting nowadays?
    - EL: How many ES pts per contract do you make on avg?
    - what would be a reasonable expectation based on your recent training experience?

    Thanks to the 2 of you. I'm sad that I discovered this blog too late, otherwise I would have enrolled for the training :/