Do you think this trading plan is achievable, overly ambitious.. or see any problems with my plan in general? (Who better then a room full of traders to critique a trading plan?)
I think I've covered all my bases.. I genuinely appreciate any comments. I'm intentionally placing my plan under scrutiny to improve it and therefor the chances of it's success. I may not agree with every view point I receive, but I will, at-lest, consider them.
Of course ill test it in demo, after I complete project weather and develop "trades" from it. (Covered in Rule #4, "General trading rules")
My Trading Plan:-----------------------------------------------------------------
Trading:
- Day Trading: (Up to 3 hours in any position) Nadex's Forex Binary Options on; GBP/USD, AUD/USD, USD/CHF, USD/CAD, USD/JPY and GPB/JPY
Side Note: The binary contracts I trade are daily, and I normally trade them 3 hours before expiration(Keep in mind you don't HAVE to hold until expiration.) The binary option's price gets more and more volatile as they approach expiration. I find the 3 hour mark to be a level of volatility im comfortable with. (When actually holding until expiration.)
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Goals:
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- Weekly Goal: Gain 20% on 'entire' account per week. (Compounded weekly)
- Objective: Place 10 trades a week or 2 trades a day gaining 20% per traded amount (Traded amount would be 20% of total account balance). Each trade should net me 2% on my entire account.
- Daily Goal: Go "long" or "short" but place at-lest 2 trade each night. (I might switch this to 2 long because I tend to do better in slightly longer positions.)
Money Management:
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- Take profit: 20% on each trade. (If I placed $100 on a trade then I would take profit on $120) (If the price starts acting like it's going to switch directions, then I would exit a little early.)
- Stop Loss: Visually Monitored. Place a Stop-Loss marker on my chart before entering a trade. (Technical Analysis will determine actual location of the stop-loss.) (Nadex doesn't have very good hard set stop loss, so it's all on me.)
Strategy: Technical Analysis.
- Long position: Usually a 3 hour ride to option expiration. (Also the most profitable, consequently, the most risky.)(I've Extensively tested this from various angles in demo with roughly 80% going in my favor.)
- Short position: Project Weather; Up to an 1 hour with price action immediately going in my favor. (Very lightly tested in demo and still under development.)
- Long or Short: Use technical analysis to determine the best position, long or short.
Side Note: "Short" in this plan can be defined as an exit before contract expiration and "Long" as a hold until contract expiration. A long position would realize the maximum amount of money that could be made from the trade OR maximum amount of loss. (1:1 Although not always.)
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Plan Specific Rules:
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- May enter more then 2 trades but most stop after achieving 4-5% of total account value.
- If taking constant losses stop trading for the day, Analysis losses then comeback the next day.
- Cut losses entirely and remain focused on daily goal. Don't try to make them up in the same day.
- Extensively record each trade and follow general trading rules.
- Remain neutral on position type ("Long" or "Short") until daily analysis points to the best choice.
Problem Anticipation:
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- I may need to tweak the numbers to factor in, and compensate a loss margin.
Misc:
- "Project Weather" is a case study based on a theory of mine; Under similar conditions the markets will react in similar ways, but like the weather can only be expressed as a "chance of".
I think I've covered all my bases.. I genuinely appreciate any comments. I'm intentionally placing my plan under scrutiny to improve it and therefor the chances of it's success. I may not agree with every view point I receive, but I will, at-lest, consider them.
Of course ill test it in demo, after I complete project weather and develop "trades" from it. (Covered in Rule #4, "General trading rules")
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