How to Write a Good Forex Plan - Written Example Trading Plan Template

plan checklist - the following is a template examples of a plan template exemplification:

JUSTIFICATION

1. Forex IS A BUSINESS, BUSINESSES WHICH ARE SUCCESSFUL ALWAYS HAVE PLANS

Businesses that are successful always begin with a plan.
Successful business planning will guide you to success, think of trade plan as a map: it is a constant reminder of how you'll consistently pull profits from the currency market.
Difference between a successful trader & a losing forex one is the trade plan.

2. TO KEEP ME IN THE RIGHT DIRECTION

Consistency is vital in your routine to measure how successful you are.

Keep you on target, read the trade plan every day & stick to its rules.

In your plan you should think of it as a map which shows you this is what you follow, it should have clear rules that specify when you open or close trade.

Your trading plan should thoroughly cover all the factors and aspects of trading, you should read and study the plan every day until it is on your fingertips so that when you are transacting on the fast moving market of currency exchange you'll always know what to do in every situation.

Your plan can be as simple or as complicated as you like, but the most crucial thing is that you as a trader have one. By having one you've got an advantage/edge over the market, you will have better chances of earning a profit than those who don't have one.

This plan checklist tutorial topic provides with an example plan template that you as a trader can use for coming up with your own trade plan. By now you've already written down the justification part of your plan template, If not get a pen & paper & write down the justification part. Next we shall explore and look at how to write the trade system.

FX plan is one of the secrets that can help you as a trader to improve your trading profits. A good currency training guide like this one should explain to you how to come up with one using a plan template which you can use as an example to come up with your own trade plan.

One of the most often asked question is, Is FX trading profitable? one of the methods and ways to make it profitable is to have a good plan.

IF YOU HAVE A GOOD FX PLAN AND ARE DISCIPLINED ENOUGH TO STICK TO IT When Forex Trading YOU WILL BE SUCCESSFUL.

OBJECTIVES AND GOALS OF THE TRADE SYSTEM

Ability to IDENTIFY TREND AS EARLIEST AS POSSIBLE .
Ability to AVOID WHIPSAWS .

The system should find a reasonable middle ground between the 2 Goals,

Get a way to identify a currency trend as earliest as possible but also find methods to help you distinguish fake out whipsaw signals from real signals.

FUNCTIONS OF EACH OOF--THEE INDICATOR

MA - Spot a new market trend as earliest as possible.

MACD - Identify a trend as early as possible.

Determine power of a continuing trend.

RSI - Swing failure to confirm the start of a new trend.

Extra confirmation technical tools to help figure out the momentum of our trend.

Parabolic SAR - Help to ensure that we aren't caught up on wrong side of the trend.

Trend lines - Signals a reversal when the line is broken

Price Action Signals - confirm weakening of a trend.

Bollinger Band - for the price action study

To learn more about each indicator & how these indicators can be used & combined together to generate signal setups you can go to Indicators Section

CHART TIME FRAMES

Main chart time frame is the 1H.
Signals are generated/derived on 15 Min timeframe.

15 Min Charts

Trend lines (Support and Resistance)
5 & 7 LWMA
RSI (14)
Bollinger Bands (20, 2)

RULES

LONG ENTRY

Entry

15 Minute Charts

Both Moving Averages are moving UP
MACD Above Zero Center-Line (Not MACD heading UP)
RSI >-> 50
Parabolic SAR is below price (Support)

When signal gets derived/generated on the 1 H Chart, use the 15 minute chart time frame to open & close-out positions.

LONG EXIT

RSI provides a in the opposite trend signal
Price breaks Support Trendline
Parabolic SAR is hit (Trailing Stop)

RULES

SHORT ENTRY

Entry

15 Minute Charts

Both Moving Averages are heading DOWN
MACD Below Zero Center Line (Not MACD moving Down)
RSI <-< 50
Parabolic SAR is above price (Support)

When signal is generated/derived on the 1H Chart, use the 15 Min chart time frame to open and close trade positions.

SHORT EXIT

RSI gives and provides a in the opposite trend signal
Price action breaks Support Trendline
Parabolic SAR is hit (Trailing Stop)

ROUTINE

Signals are generated using 1H chart time frame & executed using the 15 Min chart time-frame.
Trading trading signal to be executed immediately the rules are met/matched.
Entry trade signals should be executed during the day time.

TIME OF THE DAY TO MONITOR THE MARKET - MARKET HOURS

Watch market during day time when most companies and online currency online brokers are open for trades. Use this to develop a good program.

Example Plan Template

Written Strategy for Trading/Transacting Plan Example Template - Forex Plan Checklist

Tips - You can use the MetaTrader 4 Software to save this as a fx template that way you don't have to lay it afresh every time you open a new trading chart. If you want to learn how to save a plan template on the MetaTrader 4 platform software, read: MT4 Platform Guides Courses.

FOREX MONEY MANAGEMENT

Intraday trading - Low risk High return trading method
Trade when I have a high risk-reward ratio 3:1 or more
Stoploss = Parabolic SAR

Set TP target 40-60 Pips
Never transact beyond three % of account equity
Never risk more than 2% on one trade transaction

FOREX MINDSET/PSYCHOLOGY

Trade without Emotions (greediness, fear, impulse, bias, anticipation, overexcitement)
I trade what I see & not what I am feeling.
I'll be patient.

My job isn't to be the trade system!

It isn't to decide which trade signal looks promising & which does not.

That's the job of my system - that has got a set of rules that inform me this is what I follow. Do not get caught-up in the price action and make your own rules as you go along.

MY JOB IS

To sit patiently and wait out for my trading strategy to show that it is time to enter or it's time to exit. And then with great and extreme focus I execute forex plan as outlined.

Taking trades not indicated by the trading system, second guessing it & not taking signals given, hesitating & getting in late, anticipating & getting into trade positions early are all common-place & boil down to lack of faith in plan & not having a burning resolve on accurate trade execution.

GOAL: To have 100 % undivided resolve on mastering the ability to execute my FX rules accurately.

The more you master your ability to step back from price movement & watch market dispassionately, waiting for a signal, the easier it will be to witness the fluctuations and oscillations of your emotions without getting sucked into them and allowing them to throw you off your game.

WEAKNESS

I am greedy.
I over-trade
Make a listing of all your weaknesses that are interfering with your trading. This is the first step to help you to overcome these weak-nesses. Use Forex psychology to help you as a trader to overcome them.

Note: by writing down your weaknesses you'll start recognizing them as you make progress, once you do this you will start to avoid these mistakes & your results will improve.

GOALS

To focus on exit just as much as I do on the entry signals.
Always protect my account using stop loss, equity management methods, follow with the market trend direction and always following the trading rules of my trading strategy.
Never second guess or go against my strategy. To always keep up my discipline.
Follow all the rules of my strategy and never break them.
Transact fewer times and execute all my signals rightly. Trade what I see, what the system + currency charts are telling me.
Sit patiently & wait for signals from my strategy.
Achieve consistent forex results before opening a real/live account.

FOLLOW THIS FOREX SYSTEM

This is the most important part of creating the trading system.

Always follow the rules

Stick with the trading rules

Be disciplined and patient enough

FOREX Trading JOURNAL

Log all my trades in a journal so as to track my training progress & improve my currency execution methods.

This strategy uses momentum to identify trend of any currency pair.

Even if you are new to market and you do not know how a system resembles, this trading strategy template illustration illustrates to you how a trading strategy should look like, the tutorials explained in other sections of this training website will also explain further the different aspects which you need to learn.

Therefore, the aim is to help you make your complete strategy that's if you're looking for one, by showing you one that's already complete. In fact you can just use it as it is, or make a few adjustments so that as it suits your trading style.

Objective is to help you as a trader improve your results by using a plan, & another advantage is that this trade plan will offer you a chance to improve your knowledge and it will help you improve your results and help you make pips when forex trading and keep them so that you don't keep giving them back to the market.

Read this plan training guide about creating a trading plan of your own, along with the learn tutorials & strategies listed at top of this learn guide site.

The Most Beneficial part of using this plan example is the "Money Management Part" you'll learn how to trade currencies & minimize risk, which is the most important thing in trading the exchange market.

Forex Plan Checklist - How to Develop a Trading Plan in Forex - Trading Plan Examples - Forex Plan Doc

Learn More Lessons and Tutorials & Courses:

Trade Forex Trading