
Award-Winning 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 TF).
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 TF).
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
-
NAC 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 NAC 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 theTrading Schedule analyzed
in chapter 1 of the manual.
©Copyright
Luiz V. Alvim 1997-2010
|