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
- Is higher TF trend aligned?
- Is price at key level?
- Is there a valid pattern?
- Is R:R minimum 1:2?
- Am I within risk limits?
- 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