Goal: Build a $______ account to $________ in _____ months ending ___________
Strategy: Swingtrades and intraday trades campaigned within a framework of backtested basetrades.
| Risk Control and Position-Sizing: |
|
abreviations:
IR = Individual Risk per basetrade, TR = Total Risk Capital, P = Realized
Profit above TR
|
| Designate risk capital (RC) for each market traded, not to exceed 50% of total account size to allow for adequate margin. |
|
Basetrade size will be based on the formula IR < .05TR + .25P, recalculated before each new basetrade. |
| When realized profit (P) reaches 25% of TR, it will be swept to TR |
|
Maximum risk while campaigning a basetrade will never be allowed to exceed the IR calculated when the basetrade was begun. |
|
Trade size may be increased within a basetrade as long as the original IR for the trade is not exceeded. |
| Acceptable Trades: |
|
Base Trades: 3m dot1, 3m dot2, gap against 3m dot trend, 3m FS in daily window, gap into daily window. |
|
Auxilliary trades within a basetrade: As long as original risk for the basetrade is not exceeded, size may be increased, scalps may be done on top of the original position, position may be exited and re-entered (at a better price if possible, else at a backtested entry). |
| Risk control trades: Attempt will be made to use auxilliary trades to cover the IR risk without moving the original stoploss if possible. This may be achieved by scalping on top of the original position, trading against the original position, or taking partial profits. |
| Counter-trend trades: If a short is on and an acceptable long basetrade occurs, the long will be taken without ending the short. The long will be played according to the same rules as the short. Stoploss for both trades must be in place. Either the long or short or both will be ended only according to the standard exit rules below (either stopped out or ended in profit). Longs and shorts will be logged on separate blotters and managed separately to avoid prejudice as far as possible. |
| Exits: |
|
Basetrade will be ended if stopped out at original stop-loss. |
| After a 30 point move a trailing stop may be used to protect open profits. |
| Basetrade may be ended before trend-end on a blowoff move if extraordinary profit is available. |
| If basetrade has not ended, may temporarily exit all or part at any time and re-enter as auxillary trade (see above). |
|
Exit all or part temporarily to cover risk without ending the trade (see above). |
| Markets traded: |
|
Concentrate on SP500 e-mini 3m dot trends, with emphasis on pressing dot trends in conjunction with daily window. |
|
Add additional markets for position trades based on daily windows, subject to risk calculation above. |