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H4 Flow Trade Plan

jtradev1.3

24 March 2014

The purpose of this evolving trading plan is to clarify & define each step of the trading process with

the goal of creating a relatively simple, consistently repeatable, profitable method with minimal - &

perhaps eventually almost zerodiscretion. A method I can execute with a high degree of accuracy

and meet my goal of trading fully for a living whilst still having a life beyond trading.

V1.0 is first draft & will not include any charts, although chart examples will be added or at least

form part of the trade journal included in this plan. More detail to be added as a work in progress.

Fundamental premiseof this method is to fish for entries at Weekly extremes & then build a stack

of long-term positions from there. This will frequently require repeated trial and error entries until

an established position can be built. This is not a high win % method : 50% winners would beexceptional.

Basic blueprintis 60minutemans current variation to enter on breakof H4 candles which form at

the current Weekly extreme combined with a directional bias allowing trades only in the direction of

the prior Daily Close being above / below the SMA(50).

v1.2 update: to clarify, if directional bias is Long only, then a Weekly Lowmust be reached to

trigger a possible trade setup. The entry is then made on a break abovethat bar.

v1.3 Monday filter: after the weekend Weekly reset, there are likely many more setups than

usual on a Monday morning, possibly increasing whipsaws. To address this I will draw the Friday HiLo

across Monday before the weeks trading begins. I am using the Alchemy Weekly HiLo indicator with

alerts for the rest of the week. No idea if this Monday filter is a good idea, but I am using it right

now.

Looks like this :

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Experimental hybrid variationmay be added initially to allow lower timeframe entries during the

periods that I am usually day trading, typically the European morning from 0800 (Frankfurt Open).

Hybrid entry may be as simple as dropping down to the M15 chart, or using a Renko chart (work in

progress). This is intended to take advantage of my being very familiar trading faster charts with

small stops : whether it adds to this method in a worthwhile way or not remains to be seenit may

just add a load of small losers. I will set up charts during the first weeks trading to see if this is

manageable. (NB. A major goal is to greatly REDUCE my time in front of the screens !)

Instrument universe: EURAUD EURJPY GBPJPY GBPUSD XAUUSD XTIUSD(will add YMfutures

as index pair at some point, but this will require more $$$ in TS account to handle overnight margin

requirements on large stack).

(During start-up phase, may restrict number of pairs traded at any one time, eg. only one or FX

symbol at a time. Intention is to expand the number of open instruments with the potential benefits

of both smoothing & improving equity curve.)

Initial stop placement: beyond signal bar extreme (spread + 2)

Stop trail: not yet known; what is known is that I have a fear-based tendency to tighten stops too

soon.

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Entry units and management: 2u entry, of which 1u is a shorter term trade, usually exited EOD : the

purpose of this is to lock in shorter-tern gains to smooth the equity curve. Longer term unit is to be

stacked if it survives.

Scale-ins: as per initial entry method.

Position size: will start at TS minimum $1/pip & scale up aggressively as soon as I feel confident of

my consistent correct execution and have a better idea of likely drawdown size & duration. Longer-

term I would like to reach a point where my individual trade risk is