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Example Of Forex Trading Plan
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TOPIC: Example Of Forex Trading Plan
#31
catchmeifyoucan
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Example Of Forex Trading Plan 4 Years, 10 Months ago Karma: 0
Purpose: To make an average of 50 tics per day, or $500 per day.

Market: Day trading will occur on the EUR/USD spot market. Trades will take place during defined trading period. Positions will be held no longer than 24 hours.

Research:
Basic Information: ForexTradersWorld.com
Fundamental Economic Information: Briefing.com, Bloomberg.com, DJIA, NASDAQ, FTSE
FX Specific News/ Price Targets: FXStreet.com, Forexnews.com

Trend Identification: Major trends will be identified using the moving averages on the 4 hour chart. Minor trends will be identified using the 5 minute charts. Moving Averages will be used to determine minor trend. If 10 Period MA is > 20 Period MA, uptrend is current trend. If 20 Period is < 10 period, downtrend is current trend.

Basic Trading Rules/Money Management:
1. All trades will follow the major trend, unless noted in the exception section.
2. Trades will occur using the 5 minute chart.
3. Trailing stop losses will be set for each trade.
4. Limit orders will be placed for each trade, and can be moved provided stop loss is also moved.
5. Trader can add to a winning position.
6. Trader can double down on a losing position provided trade fits plan.
7. No more than 2% of equity shall be lost on a single day.

Long (Short) Entry Points on 5 Minute Chart:
When any of the following conditions hold:
1. Point where 10 Period MA crosses 20 Period MA.
2. Current Price is below (above) 200 Period MA.
3. Momentum is above .0015 and positive (negative) sloping.
4. Candlestick reversal pattern.

Exit Points on 5 minute chart: When any of the following conditions hold:
1. Profit limit is reached.
2. When trader feels uneasy about situation.

Exceptions to Trend Following:
A. Trading may occur against the major trend due to a moving average cross on the 5 minute chart.
B. Trading on the basis of fundamental news may occur regardless of the trend.
 
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