Trading Made Profitable (TMP) - MT4/MT5 Resources

Don’t let your flame die, keep sparking in the irreplaceable spark, in the hopeless swamp of the approximate, the incomplete, the not yet, the non-existent… The world you want can be won. It exists, it is real, it is possible, and it is yours.

"Ayn Rand"

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Trading plan content

1. Your personal skills assessment - are you ready to trade real money? Why are you ready? Can you follow your drama without hesitation? Have you defined in writing your criteria for when to start trading with real money?

2. Mental preparation – How are you feeling? Have you had a good rest? Have you experienced any recent mental or emotional trauma? Under what psychological and emotional conditions would you not trade?

3. Determine Risk Level - What percentage of your account equity will you risk on each trade? How much can you lose per month before you have to stop trading? At what point, what's the standard, do you increase the risk percentage?

4. Goal Setting - What is your weekly profit target? How do you determine your price target before entering a trade? Set up monitoring methods to track the success of your profit goals. What are your short and long term goals? How do you track progress toward these goals?

5. Deal Analysis - What is your pre-trade analysis process? Do you have a methodical process for getting this done? What is your approach to post-trade analysis? Is there a way you can monitor your psychology during trading? Have you developed a trading playbook?

6. Homework – Have you found a method to complete your homework and research in an organized manner. How are you going to record it? Do you have a continuing education plan? Do you have a trading library? Do you schedule time for homework and research?

7. Business Plan - How much will it cost to enter the deal? What are your monthly expenses? How much do you plan to allocate to education? When can you reasonably expect to break even? What will you do with your profits? Have you prepared rewards for yourself when you reach certain stages of your plan?

8. Office Setup - What is your office setup like? Do you have all the contact numbers of your brokers and internet service providers? Do you have a backup chart service (you can use a free one)? Do you have antivirus software on your trading station and do you run it every day? What should you do if your trading station crashes during a transaction? How do you plan to recover from a trading station crash?

You should consider these eight aspects and add as much detail as possible to your trading plan. The more complete your trading plan is, the clearer the path you need to follow. You should revisit your trading plan approximately every three months to see how you are following it. Take the time to thoroughly complete your trading plan and it will benefit you more than you think.

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Trading is a game of probability. We need statistical advantage to be profitable in the long run. To gain a statistical advantage, we create trading systems. Simply put, the system helps us win more trades and lose less trades (make more profits and lose less money). Creating and adopting other expert trading systems does not always work for us if many traders are successful in a short period of time. There are many trading methods in the trading world, such as some traders trade without even looking at charts, some traders use bare charts, some traders use moving averages, some traders use market profiles and so on.

An example is this - Mr. X is a new trader and he has learned a lot about Forex trading from different websites. Now he knew he needed to develop a trading system that worked for him. He collected many systems from different sources on the Internet, but he knew that not all systems were good, and not all good systems were suitable for him. He started trading using a system on a demo account that included an indicator called a pivot point. After a few days of trading, he said the system wasn't as profitable as it looked.
A few days later, he discovered a video in which someone explained over the course of 30 minutes how Camarilla pivot points work. Previously Mr. After a few weeks of trading, he discovered that the system did not always work under certain market conditions and he lost money overall because he had to miss a lot of good entry opportunities on the 30-minute time frame. Now Mr. X met Mr. Y, a professional trader, who told Mr. Mr.X stopped using pivot points for trading. The cycle continues (system adoption and system discarding), and I'm not saying that system adoption and system discarding are always bad.

People say follow what works for you. I can guarantee you that if you don't work hard on your system it won't work for you unless it's an automated trading system that has proven profitable in the past and is still being developed by the hard work of others. Why anyone else would give you their proven profitable automated system is a big question.

We need to analyze whether our trading system is effective within our trading time frame. But what are our trading timeframes and observation timeframes? Good question, I'll answer it in a future post. In this theme, our trading time frame is 4 hours (H4). It doesn't matter whether you use a GMT time broker, a GMT+2 or a GMT+3 broker. The timeframes we look at are the daily and 1 hour charts.

Now how do we test the system? In other words - how do we understand if a system is working for us?

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We will conduct Level 3 system testing to train ourselves.
1. Backtesting - See how the system works on historical market data or past data. Which types of entries provide more accurate entries. Develop trading rules through observation. Take a short screen shot and write in the screen shot why you think this is a good entry and your rules for entry and exit.

2. Forward Testing - After a few weeks or possibly months, start doing trading demos using the rules you created to see how you perform in live trading without you knowing what will happen next. You just know that your rules have worked very well before.

3. Anticipation testing - Anticipation testing is to test how well you understand the system and how much you expect a certain situation in the market. Don't expect too high or too low the market. When trading make sure that your rules have worked in the past and that you have performed well within the system.

Okay, enough knowledge dispensing let's share a system I'm developing.



Some important topics and ideas

1. Urban Myths: Entries Are Not So Important Here
2. An effective trader must consider three main areas of concern. here
3. What kind of drawdown should you expect? here
4. Discipline here
5. Some things I have learned here
6. Money Management Tips Here
7. Adapt to change here
8. Transaction successful here
9. Metrics – Good or Bad? here
10. There are few reasons for failure. here
11. Development system here

New system starts here
General guidelines here