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Forex Trading Plan

By

Ronnie H. Rusli




Selecting a Market

• I will trade the following market(s):

• e-mini S&P

• e-mini Dow

• 30-year T-Bonds

• Euro FX Futures

Selecting a Timeframe

• I will trade the following timeframe(s):

• ES: 8 tick range bars

• YM: 16 tick range bars

• ZB: 6 tick range bars

• G6E: 16 tick range bars

Selecting a Trading Style

I will use a two trend-following strategies (Simple and Boomerang Trading Strategy) in

trending markets and a trend-fading strategy (Ping-Pong Strategy) in a sideways

markets. From time to time I will use a scalping strategy (Seahawk Strategy) to extract

quick profits from the markets. I will not use ANY OTHER trading strategies.

The underlying assumption / idea is:

I will use the Bollinger Bands with and important Support and Resistance Lines like Pivot Point

and daily highs and lows to identify the direction of the market. I will use trend-following

strategies when I see the Bollinger Bands pointing up OR down in a 45 degree angle or more,

and I will use a trend-fading strategy when the Bollinger Bands are flat.

Entry Signals

Long Entry:

Simple Strategy:

I am using the MACD with the standard settings of 26,12 and 9 and the Bollinger

Bands with the settings of 12 for the moving average and 2 for the standard

deviation. The MACD has to be above the zero line AND its Exponential Moving

Average, a.k.a. "Signal Line". I am then entering at the value of the Upper

Bollinger Band with a stop order. If the current price is ABOVE the value of the

Upper Bollinger Band, I will enter with a market order.

Ping-Pong and Seahawk Strategy:

I will enter 1 tick below the LOW of the previous bar with a LIMIT order.


Boomerang Strategy:

The MACD has to be above the 0 line and its Moving Average and the RSI > 70.

I am then waiting for a bar with an RSI < 70 and enter 1 tick below the LOW of

this bar with a LIMIT order

Short Entry:

Simple Strategy:

I am using the MACD with the standard settings of 26,12 and 9 and the Bollinger

Bands with the settings of 12 for the moving average and 2 for the standard

deviation. The MACD has to be below the zero line AND its Exponential Moving

Average, a.k.a. "Signal Line". I am then entering at the value of the Lower

Bollinger Band with a stop order. If the current price is BELOW the value of the

Lower Bollinger Band, I will enter with a market order.

Ping-Pong and Seahawk Strategy:

I will enter 1 tick above the HIGH of the previous bar with a LIMIT order.

Boomerang Strategy:

The MACD has to be below the 0 line and its Moving Average and the RSI < 30.

I am then waiting for a bar with an RSI > 30 and enter 1 tick above the HIGH of

this bar with a LIMIT order

Exit Signals

Profit Target:

Simple Strategy:

15% of the Average Daily Range

Ping Pong Strategy:

It's a reversal strategy: I will close the position if I see an entry in the opposite

direction.

Seahawk Strategy:

• I will exit using the following profit targets:

• e-mini S&P: 2 ticks

• e-mini Dow: 4 ticks

• 30-year Bonds: 1 tick

• Euro FX Futures: 4 ticks

Boomerang Strategy:

I will exit the trade at the close of the entry bar.

Stop Loss:

Simple Strategy:

10% of the Average Daily Range

Ping Pong Strategy:

It's a reversal strategy: I will close the position if I see an entry in the opposite

direction.

Seahawk Strategy:

• I will exit using the following profit targets:

• e-mini S&P: 8 ticks

• e-mini Dow: 16 ticks

• 30-year Bonds: 4 ticks

• Euro FX Futures: 16 ticks


Boomerang Strategy:

I will exit the trade at the close of the entry bar.

Time Stop

I am exiting a trade as soon as I say NO to the following question: "If I wouldn't

be in the trade, would I enter based on what I see?"

Other Rules

• I am not trading the day before a major holiday

• I am not trading on a Rollover Day.

• Once I have achived my daily goal, I will stop trading.

• I am not trading when I'm distracted or feel sick

• I will not trade into a major report: I close my trade 5 min before the report is released

• and consider entering a trade 5 min after the report

Money Management

I am using Fixed Ratio Money Management. My daily goal is $100 per contract and my weekly

goal is $200. I choose a Delta of $1,200, i.e. I can increase my position every 6 weeks

assuming that I achieve my goals every week.


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