Trading Plan
This template will guide you creating your personalized trading plan.
My Forex Trading Plan
Trader Name: [Your Name]
Date Created: [Date]
Date Last Reviewed/Updated: [Date]
1. Trading Goals & Objectives
• Long-Term Goal (e.g., 1 year+):
o Example: Achieve consistent profitability of 5% per month.
o Example: Grow trading account to $X by [Date].
• Short-Term Goal (e.g., 1-3 months):
o Example: Consistently follow all strategy rules.
o Example: Reduce emotional trading errors.
2. Market & Timeframe Selection
• Currency Pairs Traded:
o Example: EUR/USD, GBP/JPY, AUD/USD
• Primary Trading Timeframe (for entries):
o Example: H1 (1-Hour Chart)
• Higher Timeframe for Trend Confirmation (Optional, but Recommended):
o Example: H4 (4-Hour Chart) to confirm 200 EMA trend.
• Preferred Trading Sessions:
o Example: London and New York overlaps (Specific hours in your local time).
3. Trading Strategy: 200 EMA Trendline Breakout
• Core Strategy Overview: Briefly describe the 200 EMA Trendline Breakout (e.g.,
Trend-following strategy, buy above 200 EMA on downtrend line breakout, sell
below 200 EMA on uptrend line breakdown).
• Entry Criteria (Detailed):
o BUY:
▪ Price is above 200 EMA.
▪ Identify a valid downtrend line (min. 2 touches).
▪ Price decisively breaks out and closes above the downtrend line.
▪ Entry on candle close.
o SELL:
▪ Price is below 200 EMA.
▪ Identify a valid uptrend line (min. 2 touches).
▪ Price decisively breaks down and closes below the uptrend line.
▪ Entry on candle close.
• Stop Loss Placement:
o BUY: Recent swing low preceding the breakout.
o SELL: Recent swing high preceding the breakdown.
• Take Profit Strategy:
o Initial Target: Minimum 1:1 Risk-to-Reward ratio.
o Trailing Stop Method (after 1:1):
▪ Example: Trailing to breakeven + 5 pips.
▪ Example: Trailing using subsequent swing lows/highs.
▪ Example: Trailing using the 20 EMA.
o Partial Profits (Optional):
▪ Example: Take 50% off at 1:1, let remaining run with trailing stop.
• Invalidation Rules (When NOT to Trade):
o Example: During major news announcements (NFP, CPI).
o Example: During extremely low volatility periods.
o Example: If 200 EMA is flat/choppy.
o Example: If no clear trendline can be drawn.
4. Risk Management Rules
• Risk Per Trade:
o Maximum Percentage of Account Risked Per Trade: [e.g., 1% or 2%]
o Maximum Fixed Dollar Amount Risked Per Trade (for smaller accounts): [e.g.,
$20]
• Position Sizing Calculation: Always calculate based on Stop Loss distance to
ensure fixed risk %.
• Maximum Daily Loss: [e.g., 4% of account, or 2 consecutive losing trades]
• Maximum Weekly Loss: [e.g., 8% of account]
• Maximum Drawdown Tolerance: [e.g., 15% before taking a break]
• Never trade without a Stop Loss.
5. Trade Management Rules
• Pre-Trade Checklist: Always use the "200 EMA Trendline Breakout Strategy
Checklist" before every trade.
• Order of Operations:
o Identify Setup.
o Calculate Risk & Position Size.
o Place Entry, Stop Loss, and Initial Take Profit orders simultaneously.
o Monitor trade according to plan.
• Trade Adjustments:
o Only adjust Stop Loss to trail profits, never widen it.
o Only adjust Take Profit to scale out, never move closer unless pre-defined.
• News Management: Avoid opening new trades 30 minutes before and after high-
impact news. Consider closing existing trades or moving SL to breakeven before
major news.
6. Trading Psychology & Discipline
• Emotional Control: How will you manage fear, greed, revenge trading?
o Example: Step away from charts for 30 mins after a loss.
o Example: Stick to plan, don't chase trades.
• Discipline: Commitment to following the plan consistently.
• Patience: Waiting for high-probability setups.
• Journaling: Commit to journaling every trade.
7. Review & Improvement
• Daily Review:
o Review all trades taken for the day.
o Identify emotional errors or rule violations.
• Weekly Review:
o Analyze overall performance (win rate, R:R, profitability).
o Review trading journal entries.
o Identify areas for improvement in strategy or psychology.
• Monthly/Quarterly Review:
o Assess progress towards long-term goals.
o Consider minor adjustments to the plan based on consistent data, not
emotions.
8. Important Notes & Reminders
• "Consistency over profitability in the beginning."
• "Never risk more than 2% per trade."
• "Trust the process, not the outcome of one trade."