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legal notice

Legal Notice

© 2010, ForexTradersDaily.com

ALL RIGHTS RESERVEDAll work contained in this book is the copyright of the author. No part of this document may be reproduced or transmitted for resale or used by any party without express written permission from the author.

LEGAL NOTICEWhile all attempts have been made to provide effective, verifiable information in this document, the author does not assume any responsibility for errors, inaccuracies, or omissions. Any slights of people or organizations are unintentional. The information contained in this package does not make any claims or guarantees. Many variables affect each individual’s results. Results will vary. The author does not make any promise of your personal success. The author has no control over what you may or may not do with this information, and therefore cannot accept the responsibility for your results. Any and all references to persons or businesses, whether living or dead, existing or defunct, are purely coincidental.

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example trading plan

Example Trading Plan

The plan below is my original trading plan used to trade harmonic patterns. You can use this model to begin building your own method around. You will notice that the rules are short and sweet. Remember K.I.S.S. (keep it simple stupid!)

1. MAXIMUM LOSS LIMIT: 1%

2. CURRENCY PAIRS: EUR/USD GBP/USD USD/CHF AUD/USD USD/CAD USD/JPY

3. TIME FRAMES: 15MIN AND 1HR

4. GARTLEY, AND OTHER HARMONICS (BAT, BUTTERFLY, CRAB)

5. MINIMUM 1.5:1 – 5:1 RISK / REWARD RATIO

“Nifty Fifty” Rules:

Enter Harmonic patterns at 50% of entry “window.”

Run stops 13-34 pips outside of the window. Use ATR to determine how much extra room to give it. The greater the daily ATR, the greater breathing room it needs.

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example trading plan

Target a move back to the price of the B point of the original pattern.

Move stops to break even once the trade moves 50% of the way towards your target and begin scaling out.

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example trading plan worksheet

Example Trading Plan Worksheet

1. FILL IN YOUR MAXIMUM RISK AMOUNT

2. CHOOSE THE CURRENCY PAIRS YOU WILL TRADE:

3. CHOOSE THE TIME FRAMES YOU WILL TRADE:

4. CHOOSE THE HARMONIC PATTERNS YOU WILL TRADE:

5. CHOOSE YOUR MINIMUM AND MAXIMUM RISK / REWARD RATIOS.

Having this plan is a great start but it is not enough. The hardest part about any trading plan is sticking to it and this is the real challenge you have in front of you now. If you really have the desire to succeed you will stick to your plan for no less than 1,000 trades before giving up. Winners never quit and quitters never win! Happy Trading!