THE eMINI DAY TRADING PLAN

eMini Day Trading Systems since 1997

THE eMINI DAY TRADING PLAN

(Traders may adapt this plan to their personal objectives)

1. New Trades

The Rule for going long (buying) is:

Buy at the market when the close of a finished bar crosses above the FAC; place a protective sell stop under … but never larger than 1.50 points (ES or ER2). Exit the trade when there is a sell signal from the FAC, or MOC (Market on Close), whichever happens first.

The Rule for going short (selling) is:

Sell at the market when the close of a finished bar crosses below the FAC; place a protective buy stop above ……… but never larger than 1.50 points (ES or ER2). Exit the trade when there is a buy signal from the FAC or MOC (Market On Close), whichever happens first.

2. Closing Trades

We must use the reversal of the FAC to close the open day trade and initiate a new day trade in the opposite direction. The only exception is for taking profits early as analyzed in chapter 6.

3. Adding Trades To Open Positions

When we have an open trade from the FAC reversal signals, we may add more day trades in the same direction using

- FAC breakouts

NAB breakouts
Alpha Sequential Pattern (ASP)

4. Taking Profits Early

If closing trades before a new FAC trading signal is issued, follow the guidelines set in chapter 6.

5. Avoid Mistakes

Never violate the dictums in chapter 2.

If initial losses are threatening the Initial Equity, stick to the Survival Mode trading plan until the equity is restored as discussed in chapter 7. Then go back to the FAC trading signals system since they provide the largest profit potential.

6. Limit Orders

For FAC or NAB breakouts use limit orders slightly above the breakout level for longs, or slightly under the breakout level for shorts, as described in chapter 6.

7. Number of Contracts to Trade

Use $2,000.00 of your $5,000.00 account as Initial Equity. Trade one contract per $1,000 starting only with one contract until the Initial Equity doubles. Once the Initial Equity is above that level use the Trading Schedule analyzed in chapter 1.