I finally did it.

[Burtakus]

I finally developed a trading plan, wrote it down and followed it. And is worked. Not that I didn't think that plan would work but instead I finally had the dicipline to develop it and stick to it (for winners and losers) instead of consistently shooting from the hip.

Writing it down was the key I believe because I have developed many wininng ideas in the past but never wrote them down so they were really just a crap shoot.

That was a really good feeling. And best of all, the level of stess while trading the plan was reduced to amost nothing because I had predefined what I would do when certain conditions were met and forced myself to follow the plan.

Just thought that I would share

[jasperforex]

Talking myself out of plans is my biggest problem. Because there are always two arguments in fx its easy to do. It might not work for others, but for me I've found the best way to organise my trading is to split it up into various exercises. I have intraday moves based on hunches and feeling. Second I have setup for data trading. Third I use two other trading systems which tend to be longer term. All three combined give me plenty to do each week but I run them as seperate entities.

[MickMason]

Originally posted by Burtakus
And best of all, the level of stess while trading the plan was reduced to amost nothing because I had predefined what I would do when certain conditions were met and forced myself to follow the plan.

Excellent, awesome!

Now you're on the right track to trading without emotion which is imperative to long term success, there will never be any surprises in the outcome of any of your trades, it will improve your confidence, increase your patience, reduce hesitancy, and ultimately increase gains and reduce loss. No hoping and praying, no gambling or guessing. Sweaty palms, anxiety, excitement, anger, elation, disappointment, the roller coaster ride...will become things of the past.

I don't want to sound patronising but well done, you have overcome one of the biggest hurdles in trading, emotion.


Mick

[Baruch]

Originally posted by Burtakus
I finally developed a trading plan, wrote it down and followed it. And is worked. Not that I didn't think that plan would work but instead I finally had the dicipline to develop it and stick to it (for winners and losers) instead of consistently shooting from the hip.

Writing it down was the key I believe because I have developed many wininng ideas in the past but never wrote them down so they were really just a crap shoot.

That was a really good feeling. And best of all, the level of stess while trading the plan was reduced to amost nothing because I had predefined what I would do when certain conditions were met and forced myself to follow the plan.

Just thought that I would share

Well done. How is your trading plan?

[Burtakus]

My plan is quite simple actually.

It is not totally automatic and still depends on my interpretation of what I am looking at but provides enough structure that I can feel confident about a trade when I enter and exit. Thus reducing stress and the chance of overtrading.

[Baruch]

Originally posted by Burtakus
My plan is quite simple actually.

It is not totally automatic and still depends on my interpretation of what I am looking at but provides enough structure that I can feel confident about a trade when I enter and exit. Thus reducing stress and the chance of overtrading.

OK. Could you give some details? Where do you add to your position? Where do take profit? Where do you place stops...

[Burtakus]

Here is the actual plan:

1.0 Money management

Never risk more than 1% on any one trade. Never have more than 2% at risk at any time. If more than one trade is open do have trades with highly correlated pairs (ex. EURUSD and USDCHF)

2.0 Trend Forecast

Use ADX (14), ATR (14), MACD (12,26,9)

If ADX, ATR are both in relative extreme lows and are increasing and MACD lines are spreading while very near or crossing the middle line then expect the market to trend in the direction of the MACD. Refer to 2.1 for trades

If ADX and ATR have peaked and are decreasing and the MACD has already crossed after a move then the market is sideways. Refer to 2.2 for trades.

2.1 Impending trending market

Exit Rules
Exit upon a trend-line break or a crossover of the two MACD lines

Entry Rules
Enter on a breakout of a consolidation region or an established trend-line only when the ATR and ADX are increasing from an extreme relative low and the MACD lines are spreading apart as they cross the middle or bounce off of the middle.

Stop Loss Rules
Consolidation breakout – Place a stop near the middle of the consolidation region or 1 ATR above/below the breakout point.
Trend breakout – Place a stop 1 ATR above/below the last local high/low

2.2 Sideways trend
Williams %R (14) and Bollinger bands (14,2) are used

Exits Rules
Exit after price action pierces the Bollinger bands in the direction of the trade and the Williams %R has hit a low/high number and changes slope

Entry Rules
Enter when price crosses the middle line of the Bollinger bands and the Williams %R concurs with the direction of the price break

Stop Loss Rules
Place a stop just above the top/bottom of the Bollinger bands

[Baruch]

OK. Nice to know. So you don't have a limit on how much pips you want to lose if you are wrong? Like 20 or 50 pips?