Example Trading Plan
This plan is an example trading plan for educational purposes
My personal trading plan by YOUR NAME HERE ___________________________________
( COPY PASTE THIS TEXT TO A WORD DOCUMENT- FORMAT IT- AND USE IT AS A STARTING SPOT)
The goal of my trading is to supplement my income for the next 3 years until I retire. During year one, I will make sure I have practiced and finalized my plan and will work to be profitably trading live money by month 4. Nexgen education is extensive, so it will take 2 months to learn all the setups and another 2 months of practice to perfect my plan. I am in no hurry; I want to do this correctly the first time.
I need to make $200,000 annually by year 3 to replace my current income and retire. I want to make $100,000 annually in year 2. I want to make $50,000 year 1 during the last 6 months of the year. This means I need to average $417 per day after costs. Assumes 20 trading days per month*6 months =120 days.
I will commit $10,000 towards my trading account. I will trade 2 contracts with a goal of $220 per contract per day on average. If I make more than this, I will readjust my year 2 and 3 goals if needed.
I will start on the simulator then move to micro-contracts MCL($100 to trade 1), MES($50 to trade 1) Once profitable, I will move to big contracts. My primary market to day-trade is crude oil futures. The current cost per contract is $2000 to trade 1 contract. I will watch the E-mini S&P market $500 to trade as a secondary market. *NOTE: when opting to trade micro futures, do your analysis on the "big" contract. Set up one tiny chart for executing the micro-futures. This will allow your analysis to be generated by those market participants with enough money to dictate the market.
As my skills increase, I may trade gold futures as a secondary market after I double my trading account.
I will commit 5 hours per day to trade and study M-F and spend 3 hours on Saturday or Sunday doing market replays and refining my trading goals. I will post pictures in class, and using my trade tracking sheet to document each trade I take is vital to my plan’s maturation over time.
Trades I will take are High or Medium probability trades only with 10-ticks minimum room to target. Trend trades, HVA trades, and “continuation of trend after small triggers cross in favor to resume the trend which, are also known as “second chance” entries. EXAMPLES TO FOLLOW in the examples section.
Defined by Nexgen: HIGH PROBABILITY TRADE- defined as when each indicator on every chart agrees with rules for the trade. Typically, this is when all triggers are their strongest, no termination conditions exist, and there are no trouble spots between your entry and your target.
MEDIUM PROBABILITY TRADE- defined as when most indicators line up for any trade; however, a minor issue may prevent me from reaching a 20-tick target. Medium probability trades may be the vast majority of your trades. When executing medium probability trades, you will take these trades and manage them assertively. If there is trouble in your way, you may take a portion of the position off at that trouble spot and reduce the risk to a zero loss level.
Trend Trades When executing a trend trade, my focus will be on all charts possessing very favorable trigger lines. I will also enter as close to support or resistance inside 5-1 large triggers as possible. Following the guide for trigger-line reading is essential. I know every picture’s meaning and intent inside and out through my participation in class and asking questions. https://nexgen-software-services.gitbook.io/nexgen-education/step-1
Specifically, this is the look for a trend trade for me. https://www.screencast.com/t/VmCKSQ4wqCE 13-2 and 8-range trigger strength & room to first target will be my focus when taking a trend trade entry. https://www.screencast.com/t/ng9dVAukEif
HVA trades - https://nexgen-software-services.gitbook.io/trading-t3-fibs-protrader/tops-bottoms-hva-trading-with-market-flow may be taken "TAB HERE" 1. AFTER KEY AREAS REACHED ON 13-2 + 5-1 chart termination conditions 2. Both 13-2 and 5-1 charts have termination conditions 3. NEVER TAKE AFTER LARGE TRIGGERS HAVE VIOLATED THE TOP OR BOTTOM (wait for a rolling trigger back on the “correct” side of the Fibonacci areas. https://www.screencast.com/t/ypv5gx2yQ 4. IMPORTANT- using 10 tick + BE+1 and 20 target- the HVA line may be used multiple times.
I may end up taking 2 or 3 HVA trades from the same HVA line. Make sure there are no large triggers beyond the Fibonacci areas. If I execute a 3rd HVA trade, make sure that all triggers are STRONG and helping the HVA trade by overlapping the entry spot.
Continuation Trades – this gives me patience and many 2nd chance opportunities When the 21-3 chart and 13-2 Fibonacci and trigger line reading suggests, the trend continues after the 5-1 chart has “terminated” the high or medium probability trend trades. I will wait for a trigger line to roll and attempt the trade at key areas once 5-1 small triggers have crossed the area as a “momentum style “trade. Example pictures to follow. https://www.screencast.com/t/XetjRWFbGaa https://www.screencast.com/t/SklKMFRuVR4 https://www.screencast.com/t/WmSExCWYx https://www.screencast.com/t/CJLYKvNb4x https://www.screencast.com/t/nFuNwI5v3
My trades will allow me to meet and exceed my daily goal of $417 per day trading two contracts. I will not need EDGE or COUNTER TREND trades to meet my objectives.
< room left intentionally to add to plan if needed- see management on next page>
Management of trades: My DAILY MAX LOSS: $400 per contract - trailed from highest profit achieved intraday and will stop trading. Any more will be hard to recover from, so I must strictly adhere to this rule!
Profit targets. (UNTIL I DOUBLE MY ACCOUNT) - all profit targets will be 10 and 20 ticks. My stop will move to break-even + 1 tick at 10-ticks of profit. After my account doubles, I will re-evaluate taking more profit on each contract as the market conditions dictate. Click here to set up targets in Ninja Trader
Since my first target is only 10-ticks $100, and my management is quick to move to break-even, using the trades I have specified in my plan, very few times will I need to “manage out” of my trade. KEY EXITS 1. 3 divergences – especially when the 3rd divergence creates a “head and shoulders” look by being higher or lower than the 2nd divergence. https://www.screencast.com/t/iIJHPQRG 2. If the 8-range small triggers roll and 5-1 chart has divergence- exit trade. https://www.screencast.com/t/IFAAExjrSxV 3. Any divergence combined with the wrong trigger direction and or background colors must be managed out of when trigger lines are weak or failing and divergence is true. 4. The only exception to rule #3 is when the 8-range triggers are very strong and can ignore divergences on the 5-1 chart. Also, I will manage a trade if the Market Flow HVA lines agree with divergences & background color on 5-1 chart. https://www.screencast.com/t/8EubU4bJCh5 5. White paint bars into pivot stop out of a divergence high or low is an immediate EXIT if profit is greater than 15 ticks and triggers are weak or into Fibonacci areas. https://www.screencast.com/t/HUP1tPbRaG 6. Suppose the market flow generates a white paint bar into pivot a stop out of a divergence high, and the triggers are STRONG. In that case, I will move my protective stop, trailing it behind a new reversal bar marker in case of a signal in the opposite direction.
YOU MAY REMOVE THIS DISCLAIMER FROM YOUR TRADING PLAN IF YOU WISH- READ IT FIRST!
    CTFC required Risk Disclosure: The following statement is not designed to be all-inclusive of the inherent risks of trading in leveraged investments. Regarding risks, you should execute such transactions only if you clearly understand the nature of the contracts (and contractual relationships) into which you are entering & the extent of the exposure to risk.
    You alone can/should determine whether trading is appropriate for you considering your experience, objectives, financial resources, & other relevant circumstances. Trading is a speculative, high-risk activity that is challenging & not suitable for everyone. No individual advice nor trading management services of any kind are provided, therefore no member or subscriber should assume that their participation in the services provided herein serves, nor is suitable as, a substitute for ongoing or customized individual personalized investment advice from a hired finance service.
    Nexgen Software Services, nor any of its employees or associated persons, does not claim nor does it warrant that its products, services, & information will not address nor will they be suitable for all of your trading needs. Any trading setups taken or trading examples discussed during the educational sessions are for educational purposes only & should not be looked upon as investment advice or as signals to buy or sell any financial instrument.
    The performance of these trades is not guaranteed in any way - they are intended as a teaching tool to educate clients about risk management & various trading techniques. Should you choose to trade during this class, despite these warnings, you accept that you are doing so at your own risk & of your own analysis of the software & hold Nexgen or staff harmless for the outcome of your trading. If you do not accept the above then please exit this room.
    Please read and understand the following disclaimers before proceeding:
    Futures, FX and SECURITIES and or options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. In no event should the content of Nexgen Software Services Website or Software be construed as an express of an implied promise, guarantee or implication by Nexgen Software Services that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website, publication and or software program is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
    No information accessed through this program (s) constitutes a recommendation by Nexgen Software Services to buy, sell or hold any security, financial product or instrument discussed therein. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities by Nexgen Software Services. Nexgen Software Services does not offer or provide any investment advice or opinion regarding the nature, potential, value, suitability, or profitability of any particular investment or investment strategy, and you shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.
    In using the T3 ProTrader and associated software you will also need access to several other programs such as, Ninja Trader, Data providers, Internet Connections, and any other program deemed necessary for its use. By using the T-3 Fibs ProTrader and associated software you agree to hold harmless Nexgen Software Services and any of its agents for any failures caused by third-party programs.
    The CFTC requires the following disclosure statement in reference to hypothetical results.
    Please read and acknowledge this risk disclosure to proceeding. The risk of loss in trading commodity futures contracts can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain a position in the commodity futures market.
    THE PERFORMANCE TABLES AND RESULTS OF THE TRADING SYSTEMS PRESENTED ARE HYPOTHETICAL IN NATURE AND DOES NOT REPRESENT ACTUAL TRADING RESULTS.
    Required Warning!
    Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
    HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
    ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
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