Trading Plan Development

A trading plan is your roadmap to consistent profitability.

Essential Components

1. Trading Goals

• Monthly return target (realistic)
• Maximum drawdown limit
• Process goals (follow rules)

2. Risk Parameters

• Risk per trade (1-2%)
• Maximum portfolio heat (5-10%)
• Daily loss limit
• Weekly loss limit

3. Trading Strategy

• Setups you will trade
• Entry criteria (specific)
• Exit criteria (stop and target)
• Timeframes used

4. Pair Selection

• Which pairs you'll trade
• Session preferences
• Correlation rules

5. Trading Schedule

• When you'll analyze
• When you'll execute
• When you'll review

Entry Checklist Example

1. Is higher TF trend aligned?
2. Is price at key level?
3. Is there a valid pattern?
4. Is R:R minimum 1:2?
5. Am I within risk limits?
6. Is there major news pending?

All YES = Valid trade

Exit Rules

Stop Loss

• Below/above structure
• Maximum X pips/ATR
• Never moved to increase risk

Take Profit

• At key levels
• Partial profits at TP1
• Trail remainder

Review Process

Daily

• End of day journal
• Did I follow my rules?

Weekly

• Win rate, R:R, expectancy
• What worked, what didn't

Monthly

• Full performance review
• Plan adjustments

Living Document

• Update as you improve
• But don't change mid-trade
• Test changes on demo first