Trading Plan
Starting Capital: Rs.50,000
Instruments to be traded: USDINR and EURINR
Max. Risk per Trade: 1% of Starting Capital i.e. Rs.500
Max. Drawdown: 35%
Expected outcome after 600 trades:
Excluding commissions and other costs.
Broker: Zerodha
Rules
Standard Trade Setups:
1. TS3:
Take only if in direction of 15min trend.
All you need to focus on is that for a simple ABC correction you need all three elements:
• The ABC correction pattern
• Wave C WPT (support / resistance zones) and
• The correctly coloured Reversal Bar
2. TS1: • The ABC correction pattern
• Wave C WPT (support / resistance zones) and
• The correctly coloured Reversal Bar
Take only if in direction of 15min trend.
A TS1 trade set-up is where the ABC correction forms as part of the first correction to the first move off an important high or low. In Elliott wave terms, this is off the end of a larger-degree Wave (2) or (B) correction.
• The ABC correction pattern(minor wave)
• Typical wave C WPT and
• The correctly coloured Reversal Bar
• The ABC correction pattern(minor wave)
• Typical wave C WPT and
• The correctly coloured Reversal Bar
3. TS2:
Take only if in direction of 15min trend.
A TS2 trade set-up is where the ABC correction forms as part of a correction once the main trend is already well established. In Elliott wave terms, this is off the end of a Wave (4) correction.
• The ABC correction pattern(minor wave)
• Typical wave C WPT and
• The correctly coloured Reversal Bar
• The ABC correction pattern(minor wave)
• Typical wave C WPT and
• The correctly coloured Reversal Bar
4. TS4:
Take only if in direction of 15min trend.
The TS4 trade set-up is again based on a 3-swing (ABC) correction. In fact, it is very similar to a TS3 trade set-up as it uses the same degree of swing, however the TS4 trade set-up does not look back to see the prior swing. So it cannot judge whether it is corrective in relation to the prior swing.
• You must look at the Wave C swing low (TS4 label) and check that it falls above (for a long trade) the prior main low. Reverse for a short trade.
• The ABC correction pattern
• Wave C WPT (support / resistance zones) and
• The correctly coloured Reversal Bar
5. DP: • You must look at the Wave C swing low (TS4 label) and check that it falls above (for a long trade) the prior main low. Reverse for a short trade.
• The ABC correction pattern
• Wave C WPT (support / resistance zones) and
• The correctly coloured Reversal Bar
The DP automatic trade set-up is designed to catch the end of an impulsive move as the impulsive trend runs out of steam.
• the reversal is at the DP (Decision Point) support/resistance zone
• there is clear divergence on the STF oscillator
• the R/R is strong (above 2:1) at the first profit target (the opposing DP level)
• the reversal is at the DP (Decision Point) support/resistance zone
• there is clear divergence on the STF oscillator
• the R/R is strong (above 2:1) at the first profit target (the opposing DP level)
Trade Management:
1. As soon as the trade is entered, place an initial protective stop 1 tick beyond the recent high or low.
2. Follow time stop.
3. Use the projected profit targets when the STF is weak.
4. Swap to the ATRStop when the STF is strong i.e. has exceeded its Strength Band. As ATRstop give more room for price.
5. If you get a volume spike at any important levels (DPs or other wpt targets) move stop close to bar low/high.
2. Follow time stop.
3. Use the projected profit targets when the STF is weak.
4. Swap to the ATRStop when the STF is strong i.e. has exceeded its Strength Band. As ATRstop give more room for price.
5. If you get a volume spike at any important levels (DPs or other wpt targets) move stop close to bar low/high.
Advance Trade Setups:
HOLY GRAIL Setup:
Market creates a Holy Grail Wave 2, off a Wave 1. Go long on a BLUE Candle. Go Short on a RED Candle. Trade may have already been entered prior to Holy Grail since it will have occurred after market enters a Support/Resistance zone and reverses.
PROFIT TARGET: All Holy Grail entries should use “Typical wave 3 Zone” as the profit target.
Trade Management:1. As soon as the trade is entered, place an initial protective stop 1 tick beyond the recent high or low.
2. Follow time stop.
3. Use the projected profit targets when the STF is weak.
4. Swap to the ATRStop when the STF is strong i.e. has exceeded its Strength Band. As ATRstop give more room for price.
5. If you get a volume spike at any important levels (DPs or other wpt targets) move stop close to bar low/high.
2. Follow time stop.
3. Use the projected profit targets when the STF is weak.
4. Swap to the ATRStop when the STF is strong i.e. has exceeded its Strength Band. As ATRstop give more room for price.
5. If you get a volume spike at any important levels (DPs or other wpt targets) move stop close to bar low/high.
Wave 5 Setup:
Market creates a clear Wave 5 anywhere during the trading day. Prefer seeing TWO VSA spikes prior to entering a Wave 5. Second spike should be the reversal candle. Go short on a RED bar. GO Long on a BLUE bar.
PROFIT TARGET: All Wave 5 trades should use the Decision Point zone created by the previous Wave 4 Swing High/Low.
Trade Management:1. As soon as the trade is entered, place an initial protective stop 1 tick beyond the recent high or low.
2. Follow time stop.
3. Use the projected profit targets when the STF is weak.
4. Swap to the ATRStop when the STF is strong i.e. has exceeded its Strength Band. As ATRstop give more room for price.
5. If you get a volume spike at any important levels (DPs or other wpt targets) move stop close to bar low/high.
2. Follow time stop.
3. Use the projected profit targets when the STF is weak.
4. Swap to the ATRStop when the STF is strong i.e. has exceeded its Strength Band. As ATRstop give more room for price.
5. If you get a volume spike at any important levels (DPs or other wpt targets) move stop close to bar low/high.
PS: All trades taken are Intraday.