http://www.brookspriceaction.com/viewtopic.php?t=1394&postdays=0&postorder=asc&&start=225
Trading plan for 06 to 17 –August – 2012
Setups:
With-the-trend:
• Buying a H2 pullback to the moving average in a bull trend.
• Selling a L2 pullback to the moving average in a bear trend.
• Buying a H2 double bottom bull flag.
• Selling a L2 double top bear flag.
• Buying a wedge pullback in a bull trend.
• Selling a wedge pullback in a bear trend.
• Buying a H1 pullback in a strong bull spike in a bull trend, but not after a strong buy climax.
• Selling a L1 pullback in a strong bear spike in a bear trend, but not after a strong sell climax.
• Buying a breakout pullback after a breakout from a bull flag in a bull trend.
• Selling a breakout pullback after a breakout from a bear flag in a bear trend.
Trading ranges:
• Buying a H2 near the bottom of the range. These are often second attempts to reverse the market up from the bottom, like a double bottom.
• Selling a L2 near the top of the range. These are often second attempts to reverse the market down from the top, like a double top.
• Buying at the bottom of a trading range, especially if it is a second entry after a break above a bear trendline.
• Shorting the top of a trading range, especially if it is a second entry after a break below the bull trendline.
• Buying a wedge bull flag near the bottom.
• Selling a wedge bear flag near the top.
• Buying a bull reversal bar or reversal pattern like a final flag after a break below a swing low at the bottom of the range.
• Selling a bear reversal bar or reversal pattern like a final flag after a break above a swing high at the top of the range.
• Buying a breakout pullback after an upside breakout near the bottom of the range (for example, if the market starts up and pulls back, look to buy above the high of the prior bar).
• Selling a breakout pullback after a downside breakout near the top of the range (for example, if the market starts down and pulls back, look to sell below the low of the prior bar).
Profit targets:
With-the-trend: Start trailing profits at RRR=1,5 times de risk.
Trading ranges: RRR=1
Trading size:
500 shares
Trading plan for 06 to 17 –August – 2012
Setups:
With-the-trend:
• Buying a H2 pullback to the moving average in a bull trend.
• Selling a L2 pullback to the moving average in a bear trend.
• Buying a H2 double bottom bull flag.
• Selling a L2 double top bear flag.
• Buying a wedge pullback in a bull trend.
• Selling a wedge pullback in a bear trend.
• Buying a H1 pullback in a strong bull spike in a bull trend, but not after a strong buy climax.
• Selling a L1 pullback in a strong bear spike in a bear trend, but not after a strong sell climax.
• Buying a breakout pullback after a breakout from a bull flag in a bull trend.
• Selling a breakout pullback after a breakout from a bear flag in a bear trend.
Trading ranges:
• Buying a H2 near the bottom of the range. These are often second attempts to reverse the market up from the bottom, like a double bottom.
• Selling a L2 near the top of the range. These are often second attempts to reverse the market down from the top, like a double top.
• Buying at the bottom of a trading range, especially if it is a second entry after a break above a bear trendline.
• Shorting the top of a trading range, especially if it is a second entry after a break below the bull trendline.
• Buying a wedge bull flag near the bottom.
• Selling a wedge bear flag near the top.
• Buying a bull reversal bar or reversal pattern like a final flag after a break below a swing low at the bottom of the range.
• Selling a bear reversal bar or reversal pattern like a final flag after a break above a swing high at the top of the range.
• Buying a breakout pullback after an upside breakout near the bottom of the range (for example, if the market starts up and pulls back, look to buy above the high of the prior bar).
• Selling a breakout pullback after a downside breakout near the top of the range (for example, if the market starts down and pulls back, look to sell below the low of the prior bar).
Profit targets:
With-the-trend: Start trailing profits at RRR=1,5 times de risk.
Trading ranges: RRR=1
Trading size:
500 shares
Trading plan (simplified)
To trade and to have a balanced life. 1) Trading Time: mainly 8:30am to 11:30am. No new trades after 11:30am. 2) Trade ES Only. 3) Maximum daily loss limit: $500 Maximum position size : 3ES 4) Setups: Only long setups are defined here. Main focus on 5m chart. The foundation for long bias: real value > current price & currently more buying pressure. Based on urgency in demand, define two major setups: • Fast Entry Strong Breakout(FESBO) . o TRSBO_B (trading range strong break out buy); o TDSBO_B (trend strong break out buy). • Slow Entry Mean Reversal(SEMR) o TRBC_B ( mainly TR fade_B & BCTL_B; BCTCL_B : counter trend buy) o aS1stPB_B (after spike 1st PB buy) o TDPB_B (Trend pull back buy) 5) Trade Management: focus on entry. Set INITIAL STOP at a price where market proves my basis for entry not valid any more. If long at a good entry, stop at 1T below the low of the bar right before EB or low of TTR should not be hit. (chart of 11/20). 6) Trading Rules: o Mainly use a fixed PT & a fixed stop to stay focused on identifying context and setup, not floundering around with where to set stops & limits to be learned after the basics. o Identify and trade best setups in best context; If not sure, stay out or exit. o Choose PT & R by swing H/L; for Limit/Market long, try not to enter when a bear bar is forming. o Learn to anticipate the setup: http://i.imgur.com/ZVdd6.png o What to do when making a mistake? Try to exit asap. o Follow trading plan and follow trading flow chart! know PT & Stop before entry. Trading flow chart: http://i.imgur.com/F0ibr.png • STEP 1 Before entry, trade only when calm and focused. • STEP 2 Enter trade and trade management. • STEP 3 After exit.
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