Purpose:
1. To organize my trading approach
2. To write down and further develop new ideas
Approach:
1. Trade daily and weekly chart support and resistance
2. Add positions as close to the initial rejection at support and resistance
Theoretical Probabilities:
Approach 1.
1. Average 1 successful trade a month yielding minimum 20:1 RR
2. Average 1 successful trade per quarter yielding minimum 40:1 RR
Approach 2.
1. Average additional 2 to 3 trades per month averaging 15:1 RR
2. Average additional 2 to 3 trades per quarter averaging 30:1 RR
Stop Loss: 25 pips (max)
Frequency: 20 trades per month (max)
Gross Profit = 100 per quarter
20% success rate
80% loss rate
IDEAS:
1. Reduce loss rate by incorporating a percentage of 0 trades
GOAL:
April 2012 - 20:1 RR trade + 2 X 15:1 RR trade
1. To organize my trading approach
2. To write down and further develop new ideas
Approach:
1. Trade daily and weekly chart support and resistance
2. Add positions as close to the initial rejection at support and resistance
Theoretical Probabilities:
Approach 1.
1. Average 1 successful trade a month yielding minimum 20:1 RR
2. Average 1 successful trade per quarter yielding minimum 40:1 RR
Approach 2.
1. Average additional 2 to 3 trades per month averaging 15:1 RR
2. Average additional 2 to 3 trades per quarter averaging 30:1 RR
Stop Loss: 25 pips (max)
Frequency: 20 trades per month (max)
Gross Profit = 100 per quarter
20% success rate
80% loss rate
IDEAS:
1. Reduce loss rate by incorporating a percentage of 0 trades
GOAL:
April 2012 - 20:1 RR trade + 2 X 15:1 RR trade