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Monday 1 July 2013

Week's trading plan

Here is my trading plan for this week, I will try to adhere to it for the whole week no matter what. I will have any NFT interview tomorrow, but doubt any live account will be available this week, maybe by the end of it, so I better gain some confidence again by trading practice week this week and not touching live, either PTP or my own.

So the trading plan:
1. Trade only break out setups out of mini-consolidation or tight pullbacks, during large momentum candle run in a prevailing market direction, i.e. sentiment. Don't trade reversal early, until one rotation is done in a new direction and a pull back failed to continue in old direction. Basically my old setup #1, but not going with entry 2 ticks past candle high or low, but rather using break out technique inside the candle. Use 10 ticks stop. Use just 15 ticks profit target initially, subject to review. I expect the average stop to be around 7-8 ticks, so it should be more less fine. If market is really moving and we are approaching a key level that if broken can generate a lot of movement, I will manually change my take profit to 20-30 ticks, but I won't change my OCO setting in the DOM. Default will be 15-10.
2. For this week I will pass on fading any levels as it tends to generate too many little failures in the row. I will need to work with 3 consecutive failures in a row as max (same as live), so I need to focus on more probable setups even if they might have lesser R:R due to larger stops. I will still be watching VWAP fading setups and mark my trade ideas on chart real-time (anyone can find a good trade in a hindsight and reason it as a real pro) for later evaluation during the weekend.

This is a super simple plan, but everything genius is simple, but not too simple. (c)
Even if it looks like a mechanical system, it is not. I look for sentiment, traded volume, liquidity, spreads, compare sizes of rotation, promitity of key level that act like magnets and when broken can propel trade to profits fast.

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