Module 2.

Building Your Strategy

Strategy Name:

Strategy Objectives: (describe your strategy)

Strategy Context: (when does this strategy work best?)

1. Filters:
- Pairs/Asset

- Time Frames

- Indicators

- Scripts/EA

2. Setup
What are you looking for in the charts?

What variations do you know for this setup?

3. Trigger
When will you enter a trade (entry signal)?

What is a high quality signal?

What is a low quality signal?

How will you enter the trade (type order)?

❏ Market order ❏ Limit order ❏ Stop order

When should you not trade the setup?

4. Stop
When will you exit the trade? Where is your stop loss placed?

5. Target
Where is your take profit? Why there?

What is a high quality TP level?

6. Trade Management
How will you manage the trade if it goes in your favor?
❏ Scale in ❏ Scale Out ❏ Trailing Stop
Describe

How will you manage the trade if it goes against you?

❏ Scale in ❏ Scale out ❏ Hedge
Describe

When will you stop trading?

Daily Target

Daily loss

Time limit

Based on your experience with the trading strategy, name as many common and odd scenarios that may
happen, and what should be the most effective action plan to take when recognized?

Name Indications/early Action plan when Implication in

signs recognized size/sl

Scenario1

Scenario 2

Scenario 3
Module 4. Building your trading plan.

Trading Objectives

Why do I trade? What are my goals?

I'm currently trading: Full Time / Part Time / For Fun / For
Curiosity/Other__________________________

Why do I love trading?

What are my expectations from trading?

When does trading fulfill me?

When does trading distress me?

Name 5 strengths of you and how can they be used in trading?

1.

2.

3.

4.

5.
Name 5 weaknesses and how could you bypass them while trading:

1.

2.

3.

4.

5.

Key skills I still need to acquire:

Write down a statement for good trading days:

Write down a motivational statement for bad trading days:

Daily checkup

Self Evaluation
Before starting a trading session, ask yourself the following:

Is my environment set up for the trading session?

❏ Yes, all in place
❏ No, let's start with that
Do I feel mentally ready for this session?
❏ Yes, let’s go!
❏ No, so I have to be more cautious or consider not to trade
Do I feel emotionally ready for this session?
❏ Yes, onward!
❏ No, I need to be aware of that when trading or consider not to trade
I know what I want to achieve in this trading session?
❏ Yes,
describe_____________________________________________________________________
❏ No, so why am I trading today?

Trade Checklist
Before taking a trade ask yourself the following:
Does this trade meet all my trading parameters?
❏ Setup
❏ Correct lot size
❏ Correct stop loss
❏ Correct take profit
Is this a:
❏ high quality signal
❏ low quality signal
Session Recap
After a trading session ask yourself

Despite the outcome, did I take the trades I needed to take according to my strategy?
❏ Yes
❏ No, why?____________________________________________________________________
Was my lot size the correct one?
❏ Yes
❏ No
Did I get emotional during the trading session?
❏ Yes
❏ No

How do I feel now?

What do I need to do in order to feel good after the next trading session?
Trade Journal

Record your next 50 trades.

Make sure you follow your strategy rules and all the parameters are “checked” before entering a trade.

Date Pair Lot Buy/s Total $ Why did I enter the How did I feel prior and What would I do
size ell pips gain/loss trade? How did I set during the trade? differently next time?
up the trade?
What are the conclusions of your trade record?

Based on those results, What do you need to tune in your strategy?

When I had a sequence of good trades:

I felt_____________________________________________________________________________
I did_____________________________________________________________________________
When I had a sequence of bad trades:
I felt_____________________________________________________________________________
I did_____________________________________________________________________________
When I'm distracted I:
❏ kept trading
❏ stopped trading,
why?______________________________________________________________
How did I recover from losses?

Did I trail stop too early?

❏ Yes,
why?_________________________________________________________________________
❏ No

Did I take profits too early?

❏ Yes,
why?_________________________________________________________________________
❏ No
Module 5. Advanced risk and money management techniques

MM Tactics - Apply the right MM tactic in different circumstances

Losing trade Winning trade

Scale in on a loss (average a loss) Scale in on a win

Scale down on a loss Scale down on a win

Hedge Trailing Stop

Matching MM to your trading style, individual personality & your lifestyle/life goals

What trading session are you trading?

❏ Australian
❏ Asian
❏ London
❏ NY

Do you know what to expect from those sessions?

Describe_____________________________________________________________________

What pairs are worth trading on each session?

Describe_____________________________________________________________________

How much time do you have to trade?

❏ Less than 1 hour a day
❏ 1 hour a day
❏ 2-4 hours a day
❏ All-day

Use larger TF for less time available and lower TF for more time available.

Based on your time availability to trade, what time frame would be better for you?

Describe____________________________________________________________________
Your risk profile. Ask yourself the following:

How much money do I allocate?

Do I sometimes go heavier than I should?
Do I carefully calculate each and every position?
Do I not trade sometimes even if I would like to?

Your trader profile. Ask yourself the following:

How do I emotionally react to trading?

Does a losing trade upset me?
Do I get in as soon as I see an opportunity or wait for multiple confirmations?

What are your conclusions from previous questions?

____________________________________________________________________________
____________________________________________________________________________
Module 6. Applied psychology
Trade diagram

After taking a trade, place it in one of the following categories. Good trades are those who meet
all your trading parameters and follow your strategy. Bad trades are those who don't meet your
parameters, even if they ended up making money. As long as you are taking good trades you
are doing your job and should not be upset by the outcome.

Good trade that lost money Good trade that won money

Bad trade that lost money Bad trade that won money

Lot size to prevent/avoid common emotional challenges

Most emotional challenges and behaviors are triggered by a lot size larger than needed.
Reducing your lot size considerably will prevent yourself from facing emotional challenges, and
will keep you from making mistakes such as cutting your winning short and widening your stops.

What lot size is the correct one for your risk profile?
Describe_____________________________________________________________________

What are realistic goals and achievements in trading?

Describe_____________________________________________________________________

Realistic expectations

Focus on consistency and remember trading is a process. The market will not behave always as
we want so we do not need to force our system to provide signals when they are not there.

With your actual account size, what are you looking to achieve daily, weekly, monthly? Is it a
dollar amount? a percentage?
Describe___________________________________________________________________

Is that a realistic goal for your trading system? Will it provide enough high quality signals for so?
Describe___________________________________________________________________

What account size do you need to meet your life and trading goals?
Describe___________________________________________________________________
What is a realistic time to get to that account size?
Describe___________________________________________________________________

Recovering from a losing strike

If you are going through a bad losing streak, these are the steps you need to take:

● Stop Trading, and take a break of 24 hours.

● Review what is failing, you, or your trading strategy.
● Tune your trading strategy and stick to your rules.
● Develop a Positive Trading Mindset
● Reduce lot size and exposure.
● Get back to trading.

Maintaining good performance - be aware from being over confident

For every sequence of success, there will be times where you won’t be on top. If you’re
euphoric or building too much confidence due to past success, you could quickly fall into
big-time disappointment.

After a sequence of wins, we need to remind ourselves that we’re not here purely for success,
but rather to do the job. When we do our job well enough, success is the byproduct.

We perform every day to get better and constantly improve our trading. Be happy when you hit it
big but know that real success comes from the daily steps.

Mental action plan

After a winning or losing strike, emotions and thoughts will lead us to act in certain ways.

Fear, Greed, FOMO, lack of trust in sistem, leaving money on the table, overleveraging, are only
some of the emotions triggered and actions caused by them.
Map your emotions and feelings and detect what actions may be triggered, and be aware of
them: