Well prep / Well Execute

Goal Setting:

I want to be a profitable trader

Need Excellent Paper Trading: “I want to be an excellent paper trader.”

Need excellent record keeping: “I want to be an excellent record keeper.”

Plan/Scan/Execute:

Plan:

Select Daily time for “DAILY Prep”:

(use “2 Top down daily call track sheet)

(around 20:00 NY eastern) highest likelihood of tomorrows

trading action to create a probability filter over your trades

(write down call (up/down. Sideways,…)

Determine what to scan for:

(i.e.: sideways= fade highs, buy double bottom (at least

4 x 15 min candle stick bar apart)

(directional: fade in the direction of the trend-don't

counter trend trade)

Select Daily times for execution:

(every day the same time segment) Scan :

Scanning Sheet

1.) Daily Call: Identify pattern to be executed

Trade Evaluation

2.) Determine a Sensible Entry Price

3.) Determine Stop Level

4,) Measure Stop Level

5.) Gauge difference towards today’s expectancy (=Range/Volatiltiy versus Risk)

6.) Determine Financing, 1st, 2nd Target Levels

7.) Determine Risk-to-Reward

8.) Ask: Is my call still good? (Verify daily call)

Execute:

Trade countdown

10.) What is the daily call?

9.) What patterns in what direction qualify for execution based on the daily call?

8.) Scan for patterns?

7.) Verify if this pattern fits the daily call

6.) What is the entry price? (Write number down)

5.) What is the stop price? (Write number down)

4.) Calculate actual stop number in points and relate to daily range/next sensible target zones?

3.) Where is the next s/r for financing point? (Write the number down)

2.) Calculate if fin point and stop point align to r/r ratio larger than 1:2?

1.) Determine 1st and 2nd target and evaluate if trade is sensible? (write number down)

0.) If all previous steps are “GO” for trade entry, enter trade at next entry zone reached. A & B & C

A.) Paper Trading = make calls, scanning for market for pattern of the call, find a pattern or

you don’t, No Pattern = Stay Out, Pattern = Action

B.) Real Time = Sim as close as possible to real money execution {i.e., yellow-sticky click}

C.) Real Time = after solid 500 sample size successful profitable results execute very small real $

MONITOR (Back test/Forward test)

write down my trades i took (paper trading)

at the end of the day check what the right call was and if it measured up to yours and what the system trades were and write them down in detail

at the end of the week-compare your calls and the system calls and your trades versus the system trades to see if the system is valid and how much it differs between what you were executing

1.Did I do the call

2.did my call protect me

3.Did I make the right call

4.Did I scan for the right patterns

5.Did I identify the right patterns

6. did I write down all the values before entering a trade

7.Was my call profitable in regards to what the market

offered