TRADING PLAN 2021

“Compound interest is the eighth wonder of the world.

He who understands it, EARNS IT… he who doesn’t…pays it”
-Albert Einstein

1 MY 5 RULES OF TRADING
1. PROTECT YOUR ACCOUNT – Keep your losses small while making consistent
gains.
2. TREND IS YOUR FRIEDN – Always go with the trend.
3. SECURE POSITIONS EVERYTIME – Always secure positions when 10 pips in
profit.
4. USE YOUR BULLETS WISELY – Quality over quantity, stick with 1, max 2
trades per day. Pick your shots wise.
5. JOURNAL EVERY SINGLE TRADE – Trading is a business – treat it like one.
Track every single move you make.
2 MAIN TRADING TIME
My day when I come to the charts starts at 7:30. In the first 30 minutes I will just watch the price action
and do FRESH ANALYSIS on GJ and EJ. My official TRADING TIME starts at 8:00 and lasts till 11:00 which
is 4H candle close as well.

That means that I will only be looking to take the trade in the morning between 8:00 and 11:00.

*INITIAL TRADING TIME

If I can’t find or don’t take any trades in that time, I will leave the charts and IF I HAVE TIME, I will come
back to look for a trade in NY session from 13:00 to 15:30. In that time I can catch two very volatile
events  NY open @ 14:00 (8:00 am EST) and NYSE open @ 15:30 (9:30 am EST)

“In spite of having initial trading time my MAIN FOCUS will be on my MAIN TRADING TIME, because the
pairs that I trade are the most active during London session and I want to build my day and future life
around trading in the morning. It is the thing that suits me the most that’s why I need to adapt to it
now!”

3 TRADING PAIRS
I know how important it is to stick with one or max two trading pairs and become absolute master at
them. That is why I will only focus on GBP/JPY and EUR/JPY. My main pair will of course be GJ because I
have by far the most experience trading it. However, if I spot a good setup on EJ during my trading time I
will not hesitate and take that trade.

No matter which pair I take trade on I need to know basic characteristics of both pairs that is why I will
describe them on the next page.
3.1 CHARACTERISTICS OF TRADING PAIRS

GBP/JPY

Is a wild horse. It moves very fast and can get me that winning
trade really quick (within few seconds) as well as it can get me
in trouble really fast. GJ is very volatile in certain sessions
which are:

 Pre London open (8:00-9.00) - (2:00- 3:00 am EST)

 LONDON OPEN (9.00) – (3:00 am EST)
 Pre NY open (13.00-14.00) – (7:00 – 8:00 am EST)
 NY OPEN (14.00) – (8:00 am EST)
 NYSE OPEN (15:30) – (9:30 am EST)

I have the most experience trading GJ and therefore I know that I need to be very careful with it. It
sometimes does that deeper retests but when we got that confirmation it is going to fly like crazy. I also
know that GJ rarely does retest in high volume times. So, if I miss a breakout trade there most likely will
be no retest. BUT try to focus on high confirmation trades and later on jump in when GJ is trending hard.

*Average raw spread on GJ is around 0.8 pips (TP @ 11 pips in profit)

EUR/JPY

It is quite the opposite as GJ. It is a very slow mover and

trades might take quite longer to play out on EJ. When taking
trades on EJ I need to be very patient with them because they
might take quite some time. Another important point with EJ
is that we often get that retest after a break. So that means
that we can play on that high probability setup more often.

Most volatile session for EJ is London session (be careful

because both currencies are open) but it can easily be traded
across NY and NYSE session since London is still open at that point.

*Average spread on EJ is around 0.3 pips (that is why it is important to secure as soon as it hits 10 pips!)
4 TRADES
This is one of the most crucial points in this entire trading plan. I need to follow this systematic approach
to trading if I want to first SURVIVE and second MAKE IT in this market!

My systematic approach for taking trades:

I will call it a day when I get:

 2 WINS (Most of the time I will call it a day with 1 WIN IN A DAY)
 1 WIN and 1 LOSS
 2 LOSSES (If I get 1L and there is nothing for me to take another trade or my trading time is over
I will call it a day after 1L)

NO MATTER WHAT DON’T EVER TAKE MORE THAN TWO DIFFERENT TRADES IN A DAY!

*If the risk is well managed on Losing trade, I might give that trade a second chance or add a position
and at that point this still counts as one trade

“I know that with every single trade I take, the odds are against me so the only possible way to win in
this market is to participate in it as little as possible.”
5 TRADING STRATEGY
Trading strategy is the key component of this trading plan. Now that I know WHEN and WHAT am I going
to trade the only thing left is HOW am I going to do that. This section requires the most attention
because it is the first building stone and if it is not laid properly everything else will not work.

I will continue to trade nothing more than NAKED PRICE ACTION based on SUPPORT and RESISTANCE. As
I proved to myself in November and early in December, I KNOW how to trade it and I know that IT
WORKS! I will depend solely on those things stated above, everything else will be added just as another
confirmation.

The most important thing for me is to really understand what the candles are telling me and being
fluid in this on all time frames. I proved to myself numerous of times that I KNOW and I CAN read price
action as a story and when I do that and execute with confidence that is where the best trades
happen. I will execute only when I have an edge over the market!

I will focus only on setups WITH THE TREND and execute on setups that have THE HIGHEST
PROBABILITY OF WORKING OUT (closing above/below, retesting the high/low…)

Most of my trades will be executed based on 30min and 1H time frame. I will always WAIT FOR CANDLE
TO CLOSE IN MY DIRECTION and accept the fact that while waiting I will miss some trades!

“Put yourself in the best position to win”

5.1 RISK MANAGEMENT

I am aware that outcome of every single trade taken is RANDOM. Every single trade taken has an equal
chance of being a WINNER or LOSER. That is the KEY why I need to manage my risk.

Every time a trade shows even a slightest probability of not working out I have to immediately reduce
the risk. For that I have a certain system of rules in place:

 Manage trades on LOWER TIME FRAMES (5min and 15min)

 When I am in a trade and 15min candle is closing in the opposite direction I will close 50% of my
trade (except when that closing is doji or lookalike doji candle)
 When my trade is 6+ pips in profit and price comes back to my entry I will close 50%
 I will put my SL @ BE once price is quite deeply in profit (8/9+ pips) and I see it is having some
issues pushing further or the range is smaller as usual or there are some rejections to the left…
 Close 50% (custom) of my trade when low/high of 15min candle is broken
 Close custom position whenever I won’t feel comfortable in given trade anymore

Remember what Mack told you: I always cut my trades very early because there are countless
opportunities to enter the market again – so why would I hold trade in a deep draw down…

“Be impatient with losers”

5.2 RISK PER TRADE
Since I am still very fresh into trading, I will not take too much risk on myself. I am starting fresh with
1000€ account.

1% RISK PER TRADE

My most commonly used risk per trade: 1% of my account. This will be my standard risk and every time
when I see a high probability setup, I am using no more than 1% per trade

2% RISK PER TRADE

When I see that “perfect” setup with the trend and very high probability of working out I am allowing
myself to boost risk up to 2% or in some cases maximum 3%. No more than that! For that to happen
certain criteria needs to be meet:

 Setup needs to play out perfectly and 30min candle needs to close
 Timing must be perfect (30min candle close – closing of first 30min candle in 1H)
 All time frames must be aligned and point in the same direction
 Range needs to be big enough to grab a portion of it on all time frames
 SL needs to be decent site (placed below/above previous 30min candle)
 There must be early chance to take some risk of (candle breaking 15min low/high)
 EVERY PIECE OF THE PUZZLE NEEDS TO MAKE SENSE. EVERY TIME FRAME NEEDS TO TELL A
PERFECT STORY TO BE CONTINUING UP!

REDUCING RISK - 50%

There will be some cases when I will reduce some risk as well. Some of scenarios where that will happen
is:

 Taking trade based on 15min candle closing

 Taking counter trend trade (everything needs to be perfect - range needs to be big enough)
 Taking the same trade as with 1% risk but not everything is the way it should be (highs not
respected in downtrend/lows being broken in uptrend…), at that point I will use CUSTOM RISK
but less than 1%

VERY IMPOTRANT THING BEFORE I EVEN THINK ABOUT INCREASING RISK IS THAT I KNOW I AM ABLE
TO MANAGE IT. IF I AM INCREASING RISK ON A CERTAIN SETUP BE SURE TO REDUCE IT BCAUSE IF NOT
THAT CAN BE AHUGE SETBACK FOR YOUR ACCOUNT!

“Be excited about managing risk! Every time the trade goes against you, it gives you the chance to
sharpen your risk management. Don’t be excited about winners… be excited about losing less!”
5.3 BEFORE EXECUTING
Before each and every time I execute, I need to KNOW and be 100% AWARE of those things:

 HOW MUCH AM I RISKING?

 WHAT IS THE WORST THAT CAN HAPPEN?
 WHERE WILL MY SL BE?

 What I want to see to execute

 When will I execute?
 WHY will I execute?
 WHERE WILL I SECURE POSITIONS?
 HOW WILL I MANAGE RISK?

“Time for execution is NOT time for planning”

5.4 IN TRADE
Whenever I am in a trade, I require maximum ATTENTION and LASER FOCUS from myself. Watch every
move price makes. Be like an eagle and most importantly, see what price is doing on lower time frames
to form a story and act accordingly. It is my job to reduce risk as soon as price shows any sign of not
going my way. And by watching lower time frames I can urge early and PROTECT MY ACCOUNT!

I need to be 100% confident in every single trade I take! If there is a slightest form of doubt, I need to
close custom percentage of a trade or act accordingly. DON’T EVER RELY ON HOPE!

5.5 SECURING POSITIONS

Securing positions is the second most important thing in my trading plan. Managing risk comes first BUT
right after that there comes SECURING POSITIONS.

I PROMISE I WILL ALWAYS SECURE POSITIONS WHEN PRICE HITS MY 10/11 pip target! If there is
enough range and price is around 10/11 pips in profit maybe let it run to 13/14 pips BUT don’t ever go
without securing positions.

Every time you become greedy just remember this: The disappointment of losing money that was
already in your hand, is way greater than the excitement that comes from holding your trade for a few
pips longer!

INEVER LET GREED GET INTO YOU! If you want more leave a bigger runner with SL @ BE but never ever
go without securing positions!

“You can never go broke securing positions”

5.6 AFTER TRADE
After each and every single trade my job is to do the same thing as I was doing now. JOURNAL every
single button you pressed on your mt4!

MY JOB IS TO JOURNALE EVERY SINGLE TRADE TAKEN. Remember, in the long run you are only in a
trade for 10 to 15 minutes… maybe even less. The real learning starts when you look at the same thing
for the second or third time and see everything you have done wrong and LEARN EVERYTHING YOU
COULD DO BETTER!

JOURNALING IS THE SINGLE MOST IMPORTANT THING IN TRADING! STICK TO IT LIKE YOU DID TILL NOW!

6 LOSING TRADES
There is not a single trader on this world who doesn’t have losing trades. What is important is to detach
your emotions from your losses and not take them personal!

The one and only rule with taking loses is: make sure they are small. Don’t ever let your loss exceed your
winner. Cut them short

AND NEVER EVER TRY TO REVCOVER YOUR LOSS. Every trade is a trade on it’s one, it is not there for you
to cover your loss. Your losing trade is done and buried in stone. FORGOTTEN. Don’t ever try to make
up for that loss with next trade because you will lose again 100%.

Take every single trade with mindset – my first trade on my new account.

Remember you as a trader can either learn from your loss and drag out the best out of them or
complain and get emotional about them. You know what it the right thing to do…

“If you never fail, you are not even trying”

6.1 WHAT TO DO WHEN I HAVE A LOSING STREAK?

Whenever you are facing a losing streak the most important thing to do is to make sure your psychology
stays RAZOR SHARP! Whenever you are facing a series of losing trades do the following:

 LOOK HOW FAR YOU’VE COME AND GET EXCTITED ABOUT NEXT SIX MONTHS!
 Take some time off and don’t put pressure on yourself
 Go over all your losing trades and find what could be the cause of this loss
 Take a look at your winning trades to increase your confidence again
 Listen to Ted’s talk (voice record) and watch Stefanosfx’s video on IG. It has helped me before
and it will help me again
 And as a final point maybe write to someone from FX FAMILY and get any advice

BE READY and EXPECT LOSING STREAKS TO HAPPEN because this is just another part of the process.
Sometimes things won’t go the way you want them but THAT IS OKAY. STAY STRONG!

“Your greatest victory will come right after the temptation to quit is the greatest”
7 EMOTIONAL ASPECT OF TRADING
Once you learn to control your emotions and detach them from trading everything becomes easy. I think
I have been doing pretty well in this aspect but there were some things that brought out the best of me.
I must not let that happen again!

Keep in mind that: Each and every trade has random outcome. And once I understand that I will not give
much value to certain trading setup no matter how good it looks. My job is to always execute on my
edge and make sure to keep loses small!

Once I enter the market, I MUST leave my emotions outside. Remember that each and every single
trade taken according to my plan is just another execution of my trading edge!

Try to be as neutral about trading as possible. Afterall it is nothing. It is just red and green candle going
up and down the screen. Try to do your part as good as you cand and the rest will fall into place.

“Once you remove emotion from decision, every decision becomes very easy”

8 GOALS
My main goal and only goal when it comes to trading is FOLLOWING MY TRADIN PLAN! I know this
trading plan can being me everything I ever wanted and much more if I just follow it properly!

If I can really follow it to the dot there is not a single reason, I can’t be consistently profitable in the
market. And when I reach that consistency my profit goal is:

 2-3% gain per week,

 8/10% per month
I know those are realistic targets and they have been reached before so they can be duplicated.
I don’t expect unrealistic gains from myself because I am in this gain for the long term and even
smaller gain of 2% per week can compound my account like nothing if I give it enough time.

With that being said my “time-oriented goals” are:

 Doubling my 1000€ account within 8 to 10 months with small consistent gains

This is like a milestone and I know that once I pass that challenge, I am able to double any kind
of money or take any account to whichever number I want if I do the same things.

 After that I will add some more money to my account and consider joining any funding
firm to really maximize my profitability and discipline

“Look how far you have come and be excited about what the future will bring”
8.1 WHAT DO CERTAIN % GAIN MEAN IN A LONGRUN
Now just to see what certain % compounding means and what can it bring in a few years…

Starting account balance: 5000€

Gan per week: 1%

Account balance after:

 1 year: 8.400€
 2 years: 14.110€
 3 years: 23.710€
 4 years: 39.830€
 5 years: 66.930€

Gain per week: 2%

Account balance after:

 1 year: 14.040€
 2 years: 39.430€
 3 years: 110.730€
 4 years: 310.970€
 5 years: 873.290€

Gain per week: 2.5%

Account balance after:

 1 year: 18.120€
 2 years: 65.660€
 3 years: 273.950€
 4 years: 862.310€
 5 years: 3.124.900€

Gain per week: 3%

Account balance after:

 1 year: 23.350€
 2 years: 109.070€
 3 years: 509.425€
 4 years: 2.379.307€
 5 years: 11.112.720€
9 EMERGENCY RULE
If for some reason I will not do good on my live account in Q1 of 2021 I have a special rule in place to set
things in place and build up that discipline:

 Every time I get 3 consecutive Losing trades on my live account I am done with trading on that
account. I am moving to demo account until I get 3 consecutive wins in demo.
 Every time I overtrade or take dumb trade, I must head off right to my demo account and build
my discipline to the point where I will not be doing this anymore!

“not doing stupid things = having an edge in trading”