Tuesday, 27 September 2011

On the Road to CP

OK, you have got the aims of your trading plan defined.
I want to earn an average of $300 per day as a first goal.
I want to work from 9am until Noon, NY time
I want to trade the eMini ES
I want to be a very active trader looking for quick profits
I will put $25,000 into my trading account
I need a win rate of more than 65% to trade in a relaxed manner
Now lets get to the next bit. How do you achieve these goals?

Firstly, you assemble your tools that you can use in your trading plan, either on a discretionary basis or in your algo.

The ones we will look at and choose from in the November workshop will include:
  • 33 and 99 EMAs and how to use these two very important metrics - a trading methodology in itself
  • the large and short CCIs, defining trends and triggering trades
  • Pullbacks and how to use them
  • First Hour strategies
  • Several Order Flow tools: Pressure Indicator, Order Flow Metrics indicator
  • HH and LL
  • Wrapping money management around a system to make it more profitable. VERY important
We test to see what combination(s) of the tools are profitable generally. We find the best maximum stop loss and best logical first scale out target to use as the basis of further developing the trading plan.

I then teach the techniques of how to bring the tools together to create the trading plan that meets the requirements as set out above. We then include in the TP what the trader must do to ensure that the TP stays as profitable as possible, a maintenance mode.

The TP needs to be specific enough for an algo to be created from it. We then create the algo logic rules.

The ES was climbing all the London morning. Plenty of pullbacks to trade as it motored north. Flo was in her element and I didn't have much to do but watch.

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