Week 4: We will begin in a few minutes…

Abraham Avila Jr.

The Building Blocks

of
TRADING PLAN
How to develop a trading plan
Like a pro

Abs Trading Strategy

Random Project 2
Disclaimer:
This training program uses resources from various sites and groups. This system is
not in any way affiliated with any group or organization. Any similarities with any
system is purely coincidental in my knowledge and capacity.

All stock recommendations and comments are the opinion of presenter.

All investors are advised to conduct their own independent research into
individual stocks before making a purchase decision. In addition, investors are
advised that past stock performance is not indicative of future price action.

You should be aware of the risk involved in stock trading, and you use the
material contained herein at your own risk. The analysis, ratings, and/or
recommendations made by presenter do not provide, imply, or otherwise
constitute a guarantee of performance.

The materials on this training are provided for information purpose only.

The presenter does not accept liability for your use of the training. The training is
provided on an “as is” and “as available” basis, without any representations,
warranties or conditions of any kind.
 How to
Develop a Trading Plan
Like a Pro
What is Trading Plan?

It acts as road map; a route to

take you from where you are to
where you want to be.

There is no absolute blueprint for

constructing the perfect trading
plan. But writing it down helps
you to organized your thoughts
and takes the emotion out of
your trading.
What is Trading Plan?

structure of a
set of
guidelines

define your
trading
activity

what, when
and how to
trades
Why Create a Trading Plan?

Manages your risk better

Streamline your decision making

Helps you enter or exit based on

strategy and not emotion

Maintain discipline
How to Develop a Trading Plan?

By answering 7
questions…
How to Develop a Trading Plan?

1. What markets are you trading?

2. What time frame?
3. How much are you risking on
each trade?
4. What are the conditions of your
trading setup? (Parameters)
5. How will you enter your trade?
6. Where is your stop loss?
7. Where is your profit target?
How to Develop a Trading Plan?

1. What markets are you trading?

2. What time frame?
3. How much are you risking on
each trade?
4. What are the conditions of your
trading setup? (Parameters)
5. How will you enter your trade?
6. Where is your stop loss?
7. Where is your profit target?
How to Develop a Trading Plan?

1. What markets are you trading?

2. What time frame?
3. How much are you risking on
each trade?
4. What are the conditions of your
trading setup? (Parameters)
5. How will you enter your trade?
6. Where is your stop loss?
7. Where is your profit target?
1. What markets are you trading?

PSE Market Capitalization

Blue chips - Investors

2nd liners –
Investors/Traders
Basura - Traders
2. What is your time frame?

Position Trader

Looking at big picture: Weekly

Entry/Exit: Daily
2. What is your time frame?

Swing Trader

Looking at big picture: Daily

Entry/Exit: Intraday
2. What is your time frame?

Day Trader
Entry/Exit: Intraday
Trading Plan:
3. How much are you risking on each trade?

Risk should no more than 1% of

total portfolio

Position sizing and allocations

Risk/Reward Ratio – 1:2 or better

4. What are the conditions of your trading setup?

Downtrend
4. What are the conditions of your trading setup?

Range
4. What are the conditions of your trading setup?

Uptrend

Suggestion:
Trade at uptrend
5. How will you enter your trade?

Sell
Buy on Breakout

Buy on
Retracement

Buy
6. Where is your stop loss?

Ask yourself first

“Where will I
get out if I’m
wrong?”
7. Where is your profit target?

If the price moves in

your favor, know
where to take your
profits
Sample Trading Plan
Trade Set-up: Breakout Play
Trade Objective: Trend Following
1. What markets are you trading?

IF I’m trading, THEN

I will only trade on PSE: 2nd liners
and 3rd liners
2. What is your time frame?

IF I’m trading stocks, THEN

I will focus on daily charts
3. How much are you risking on each trade?

IF I place the order, THEN

I will not loss more than -1% of
total capital for each trade
4. What are the conditions of your trading setup?
(Parameters)

IF Price > 20MA > 50MA > 100MA, THEN

the trend is bullish.
 50 Day Period
20 Day Period 100 Day Period
Moving Average
Moving Average Moving Average
(MA)
(MA) (MA)
Price > 20MA > 50MA > 100MA
5. How will you enter your trade?
(Triggers)

IF trend is bullish, THEN

identify the resistance where
price could breakout to
Resistance
5. How will you enter your trade?

IF price break the resistance at

near end of day (EOD), THEN
enter an allocation 50%* max of
total accounts.
 Buy on
Breakout
Resistance
6. Where is your stop loss?

IF price return back below the

previous resistance or reached -3%
to -5% loss, THEN
cut loss.
Resistance
Resistance
Resistance
Resistance
Resistance
Resistance
Resistance
+97% in 20 Days
Trading Plan:
7. Where is your profit target?

IF price snaps the 20MA, THEN take

profit
THANK YOU!
References:

Zeefreaks, March 2, 2013, Zeus' Strike and the Alignment of the Stars,
https://zeefreaks.blogspot.com/2013/03/zeus-strike-and-alignment-of-stars.html

North Star, July 10, 2017, Trend Following - Reverse Engineering ZF System,
http://findingyournorthstar.blogspot.com/2017/07/trend-following-reverse-engineering-zf.html

Kashiwagi A., 2018, Money Grower #Uptrend2018 Challenge General Guidelines

UPTREND Strategy | #Uptrend2018 | Part 1

https://www.youtube.com/watch?v=OnAvNkn7Kpc

UPTREND Strategy | #Uptrend2018 | Part 2

https://www.youtube.com/watch?v=-Y3ZxhRB1lU

Teo R., January 2016, Trend Following Trading Strategy Guide

https://www.tradingwithrayner.com/trend-following/

Kairos C., 2018, Cosmos Kairos’s Trading System

Cam, J., 2015, The Trading Code – The Trading Code Checklist