Today we will focus on how to build the actual strategy in order to execute trades.
In order to do the aforementioned, you will need to write down the following:
a name for your strategy (i.e. Asian Supernova Strategy:))
the objective of your strategy (i.e. to make 10 pips or 1% or risk 8 pips or 0.5%)
filters you will be using (i.e. pairs, timeframes, indicators)
what you will be looking at in the chart (i.e. support and resistance levels)
when you will enter the trade (i.e. break of the high/low of the previous candle)
what type of entry (i.e. market execution or pending order)
when will you exit the trade (i.e. stop-loss and take-profit levels)
how will you manage the trade if price goes against you (i.e. will cut half of the position at half stop-loss distance)
when will you stop trading for the day (i.e. after 1 trade is taken and closed either in profit or loss)
Remember the more specific you are in writing the answers to the above-mentioned the clearer you're strategy will be.
We will continue on with our trading plan in part 3 of this series on ‘How to Make a Trading Plan’ in a next post.
Trade well!