Now

This blog has been great for me.  It has created a focus for my trading that I've never had.  It has highlighted my weaknesses and enabled me to strengthen them.  It has enlightened me.

As a result, I feel better about my opportunity for success going forward than I ever have.  In these three months I've blended the experiences I've had and the lessons I've learned into a plan that I am confident will generate substantial profits.

I know that the postings have made me look scattered, uncertain, even foolish at times.  Not many people bare their soul like this.  If they did, they might look the same.  I'm telling you (whoever might be listening) that I'm 1000% more competent now than I was three months ago.

The plan I will be using is simply a refinement of the plan I started with September 1.  It includes all the trading principles that I believe you must employ to be successful.  It actually takes me back to 1999 and the Drummond Geometry days when I felt like I was first learning strategies that made sense.  I have certainly floundered since then, primarily getting off track with the hype of Forex, but I'm positive that I've pulled it back together in this last quarter of 2009.

Here is the plan:

Market
     ES

Strategy
     • Day Trading
     • Multiple TimeFrame Decision-making

Indicators
     • Cycles (Support & Resistance)
     • Volume Patterns

Trading Hours
     • 0930 – 1500 ET Monday through Thursday

Trade Types

• Support
• Resistance
• Break through Support
• Break through Resistance
• Pullbacks
• End of Trends

Filters
     • No entries from 1130 to 1300 ET

Circuit Breakers
     • Any string of consecutive losers that wipes out the profit for the previous week
     • 10% closed-trade equity drop from the day’s opening balance
     • 30% peak-to-trough closed-trade equity drawdown
     • Less than 50% Win Rate (without mistakes) – Paper Trade Until at least 50% Win Rate is Restored

Capital Control and Risk Management
     • The initial risk level on base capital will be set to 0.5% or 1 lot, whichever is higher. The risk level on profits will be set to 2%.
     • After 60 trades and profit the risk level on base capital will be raised to 1%, and the risk level on profits will be raised to 3%.
     • When the account size reaches $200,000, the account growth plan will be reassessed.

Method
Entry – Long (Support Pattern):
The 1500-tick (Focus time frame) establishes Support.  The latest signal (a bullish momentum divergence) on the 4500-tick (Permission time frame) supports the direction of the 1500-tick signal.

Entry – Short (Resistance Pattern):

The 1500-tick (Focus time frame) establishes resistance. The volume distribution pattern on the 4500-tick (Permission time frame) supports the direction of the 1500-tick signal.

Entry – Short (Break Through Support):
The 1500-tick (Focus time frame) breaks Support. The cycle resistance pattern on the 4500-tick (Permission time frame) supports the direction of the 1500-tick signal.

Exit:
Exits are made on the Open of the 4th, 10th, and 28th bars.  All signals (from either chart) are ignored after entry until the assigned exit bar.