Section One: The Game Plan

1.0 Introduction

This document will serve as my day trading plan for the year 2021. It has been modified many times but made available to members and public in May 2021. The plan will be used by myself and members of this website. It will be particularly helpful for members of AIMS Live Trading Group, the Discord Channel and whoever like to Day Trade the London Open and/or the US Session. 

The Trading plan has been divided into two sections.

Section 1 is a the actual trading plan. It is the PLAYBOOK or GAMEPLAN. I review this section regularly to keep me on track.

Section 2 goes explanations of some of the concepts in section 1. I keep updating this section as well on a regular basis so that everything remain in sync.

I trade the DAX30 and the US30 at their respective open times but also FX on the hourly charts.

1.1 – The LOBot, NEOBot, The PRICE Experiment

You are probably aware that I have a specific method for the London Open I call the LOBOT. The LOBOT is the London Open Breakout Trading Method. I have been using the LOBOT and the NEOBOT method for a while now. These two methods rely mostly on Price. The AIMS strategies don’t rely too heavily on indicators but the more I trade the more I see Price more than what the indicators tell me. Realizing that I was more focused on price and ignored the indicators, I decided to conduct an experiment. I got rid of all the indicators to test my ability to trade. I was surprised to find out that when I traded the LOBOT or NEOBOT I really did not actually look at indicators at all. It is important to point out that it was was not intentional. I never wanted to ignore my indicators. It was something I learned on its own.

I am fascinated with price, I did not even know it. I have created a proper long and detailed trading course on the LOBOT method, Previously knows as Lesson 16. TAKE THE COURSE HERE

1.2 – Why The Change

I have gained new insights and experiences over the past 10 years. Every few months, I look at my process, my results, and my performance and I make adjustments accordingly. For some, these changes might be too frequent but for me, it’s just how things have always been. Having said that, I have been undergoing a lot of transformation over the last 12 months or so. You probably already know that one of my favorite quote and my motto is 

“Simplify Simplify Simplify”

The Plan is Simple

Big Fat Lie – Nothing is simple in life

1.3 – The 12 Seconds Setup 1

The Setup 1 is my favourite trading pattern. It is simple with simple rules. However, I’m not using the Setup 1 on the 1-minute chart or the 5-minute chart. However, I did use it on the 12 Seconds chart, for a set period of time, during the summer of last year (2020). A Good setup 1 is a Good Hunt Signal on the 5 times higher time frame. I understand what is a good pullback setup that I can trade on the 1-minute chart. The Pullback Method Explained here or the HUNT 2.0 Method.

I learned that Setup 1 is made of 60 candles (Range of 40~80 Bars). Within the setup 1, there is an impulse wave (wave 3) which is about half of the pattern. The second half of the Setup 1 pattern is the Consolidation / Tight Range / Pause. It usually takes the other 40 to 50% of the candles. I find that most setup 1’s have around 30-40 candles of Wave 3. And the respective wave 4 can last between 15-30 candles. 15 candles on m1 are 3 candles on m5. So when you see a good setup 1 on the X time frame (current time frame), you will ALWAYS see a Good Pullback Setup (i.e. bull-bear flags/wedges/pennants, etc) on the 5X Higher Time Frame. Read More Here

From there I stopped using the Setup 1 on the 12 seconds chart, because I was far more comfortable with trading the simplicity of the 3 candle pullback method. Then I went on and simplified it further. 

1.4 – The Price Draws My Attention

I realized that the speed of the market did not allow me enough time to listen or see what all the indicators were telling me. Also, I found myself too focused on the price itself and the levels to the left. 

1.5 – The Guilt

There was this inner guilt inside me. It felt as if I was betraying my members and friends. That I was doing an injustice to my beloved setup 1. I thought about this further and found that I was wrong.

I have finally, realized that it was just my emotional response. The fact of the matter is that I should be looking for better methods. And I must be open to change. If something works for me then I should adopt it and keep it. 

Consistency is the last refuge of the unimaginative" - Oscar Wilde

Who is this Oscar Wilde aye? But yes, I agree and have understood for a while that constant change is consistency. Change is the only constant. 

“Stability as a means to business success doesn’t work anymore. The past several decades have seen one thing become more and more true - change is always happening so if you can’t manage it well, you will not succeed.”

1.6 – 2 Things I Want from Day Trading

1. Be Happy (Have Fun)
2. Make Money

If either one is missing, then trading will not be fun. I scalp because it gives me the thrills and I make a little bit of money. I trade because I enjoy it and it makes me money.

1.7 – Goals of Day Trading

1. Don’t lose money
2. Make Money
3. Make a lot of Money

 NOTE CHANGE of PLAN Starting 17 MAY Until Further Notice: 
 I will NOT trade Right at the Open anymore.
 I will NOT  trade the One Minute Chart. 

Instead,

I will focus on the M5 chart.

I will wait for a clear Entry Signal. (Entry Signals are Explained Here )

We are Trend Traders

1. “We seek to enter a position in alignment with the pre-existing trend, or at the beginning of a new trend. (on the time frame we are looking at)
2. “We achieve the above by making entries on pullbacks and breakouts (s1)”
3. “Ideal trades are often in the middle of the trend”

Rationale: Why NOT trade right at the Open?

What is the real reason behind this decision of not trading right in the open? I need to clarify this.

The Curse of M1 – Impulsive Trading and Market Orders: When the market opens, I would try to get in with market orders and often get chopped on the days the market is not ready to instantly breakout and dance.

I noticed in my review and analysis of my performance that those rash and impulsive trades were hurting my profit and loss. I would see a candle that is surging up and I would get in. I found myself getting in or out without even waiting for the close of the candle. This I call the “curse of M1”.

If you don’t wait for the m1 candle to close then you’re trading a fraction of the m1 candle. Effectively trading the 10 seconds or 30 seconds chart. This is a very important trick.

ALWAYS WAIT FOR CANDLE CLOSE NO MATTER WHAT TIME FRAME

I will have more time to wait for the candle to close if I trade only the 5-minute chart.

I will be able to look at the FTSE100 and US30 as well to see what they are doing.

I will be able to stay relaxed, calm and be able to actually look off the screen for a minute as well.

1.8 Why Do I Trade All Day?

I am a day trader. I am also a swing trader but I am on the screen all day. It does not give me pleasure to leave the screen and walk in the park. People who enjoy the outdoors more than trading, they should do that. I really want to simply trade all day. I want to be on my desk, in the trading room, and trading from morning to evening. Is that something bad? I don’t think so? _(IMHO). Having said that, the day has to have structured breaks which I have included into daily schedule.

2.0 – My Day Trading Schedule 

This is my Day Trading Plan and Schedule. Feel free to adopt, change or adapt. 

3.0 – Pre-Open Game Plan and The Process

The process goes like this: I start the session with looking at yesterdays action and overall market. I will;

• Look at the big picture. Check the Daily Chart and Mark its Highs and Lows.
• Mark or note some levels from the Hourly Chart to get finer levels.
• Is the Market Trending or Range Bound? Answer this question for All time frames, D1 then H1 then M5.
• Then I will see where the market closed YD and Compare it to Today’s Open. (Omit the after-hours price action)
• Check if the market is trending or in a Trading Range on H1 and then on the M5. (Very Important)
• Mark the range highs and lows if I see one because this analysis will dictate what type of entries I take.
•  I will wait and see how the first candle on the m1 chart is printed. (Ignore)
• I will then wait for the M5 candle to close and see if it is a strong bullish or bearish trend candle that closes either above or below the trading range.
  (a Trend Candle is a Breakout in its own right) (check the definition of Trend Candle) 
• If the Market is in a Wide Range on The H1 time frame, I will trade the H1 Time Frame Levels and Manage them on H1.
• If the market is trending on the H1, I will continue to take Pullback, Breakout, and Reversal Entries in that direction and try to hold all day on the 5 minutes chart.
• I want to see if the market has volume and volatility. 
• If there is too much sideways action, I will try to scalp between the range highs and lows. (Don’t overdo it – Money is in Swing Trading)
• Remember Money is in Swing Trading which means Money is in LETTING it Run with wider Stop Losses and Trailing Effectively.

3.1 – Game Plan for Swing and Day Trading – Forex and Stock Indices (Video)

This is the Process I follow for Swing Trading.

All my Swing Trading Signals are Based on this Logic and these Rules

• Step 1: First Look at the Chart – Ask this Question:
• IS IT TRENDING or RANGE BOUND on HTF? 
  • If Trending on the HTF then
  • Trade Pullbacks  or Reversals off the S/R Levels on the TTF
• IF RANGE BOUND on the HTF then 
  • Trade Reversals off the S/R Levels  on the TTF

3.2 – How to Prepare Charts for the Day

I have shared this in my recent blog post here (Video Tutorial)

• Keep Each Market (DAX30 / FTSE100) on a Separate Platform.
• Mark the Highs and Lows of D1 Candles and Some S/R Levels (Double tops bottoms)
• Check those levels on H1 and Mark some more relevant levels of the H1 chart. (YD’s High/Low Swing high Low)
• Mark Levels on the M5 Chart – Marke Overnight Range
• Save Template and then apply to all 3 charts.
• NOW PLAY FOR THESE LEVELS

3.3 – Things To Remember

• Trade What Yous SEE > NOT What You Hope to See or Expect To See
• The main Entry Method is Pullback Method
• Trade Ranges of the Hourly Chart not the Range of the M5 Chart (unless scalping)
• If H1 is Trading Take Reversals on M5 in that Direction
• Don’t Trade Reversals Against The H1 Trend
• Don’t Lose Money (Don’t do anything stupid)
• Make Money and Make A lot of it
• Swing Trading Makes more Money
• DO NOT Take Impulsive Market Order Trades
• The Market can trend in both directions within a day. Trade Long or Short based on the trend or the trading range.
• Always WAIT for The Candle To Close before you make a decision.

3.4 – Find Your Process that Works for You

4.0 – Entry Methods

I will use the following entry methods:  Before I make an Entry Decision I must first establish What is the Market Condition. Explained in Section 2.1

1. Buy or Sell the Close of a TREND CANDLE (Closed outside a trading range / or at the end of a Pullback in direction of the trend) 
2. The Trend Candle and Micro Pullback (Explained in the Lobot Method Lesson 16.5)
3. The Trend Candle and the Waltz Method (Explained the Waltz Method Course)
4. Range Breakouts in the direction of trend (Explained in The Setup Book / Course)
5. Range Reversals (Selling double tops and buying double bottoms, Selling or Buy PC, Cherries and also Check the FRUIT Method) 
6. The Seed and Cherry for Pullbacks (The Hunt and Hunt 2.0 Method)
7. I will also use Limit orders within trends. E.g. within an Uptrend: I will buy the low of a bearish candle.

_{Note: All of the above have been explained in different articles and courses. But if someone has questions they are welcome to comment below or ask in Discord.} 

4.1 – What are Confirmation Candles?

Use confirmation candles for Range Bound Entries. Confirmation candles can also be used for Pullback Entries.

Make Entries on Confirmation Candles Only such as Outside Bar, Fruit Candle, Pin Bar, Reversal Trend Candle.

What are HTF and TTF? (sometimes referred to CTF i.e. Current Time Frame)

HTF = Higher Time Frame for FX = D1
Higher Time Frame for Indices = H1
TTF = Trading Time Frame for FX = H1
Trading Time Frame for Indices = M5

MORE QUESTIONS: 

FOR FX:
What Kind of Candle Do You See on the HTF?
Is it a Trend Bar ? or Range Bar? 

If Trend Bar and Market is Trending then take trades on the h1 in that direction. 

DO NOT SELL RESISTANCE WHEN MARKET IS TRENDING UP

DO NOT BUY SUPPORT WHENARKET IS TRENDING DOWN 

5.0 – Risk, Position Size and Trade Management 

I will be using 3 levels of position sizes. It will be based on percentage of account risked per required stop loss. So if the trade requires a wider stop loss I I will use lower lot size. Also if I have low confidence in a setup then I will use half or quarter risk with the aim to add on to it as the trade progresses. 

Risk Percentage (Sample for £25,000 Account)

Instrument	100% Risk	50% Risk	25% risk
DAX30	£10 (30 Points Risk)	£5	£2.5
US30	£5 (50 Points Risk)	£2.5	£1.3

Section Two: The Market Life Cycle and Stages

The market remains in the following perpetual cycle. 

The market will always be either  a) TRENDING or  b) RANGING

What is a Trend Candle?

A Trend Candle on the current time frame is a strong bullish or bearish candle that has either no wicks or very small wicks on each side. 80% of more of the candle is made of a Bull or Bear Body. These candles are indication of strong bull or bear activity.

Fractal Geometry of Trend Candle and A Breakout Trend Phase

A trend candle of the current time frame might be a breakout on the lower time frame.

2.2: Fractal Geometry of a Breakout vs a Tight Channel a Converging Trend Channel

The following is a chart of UK100 / FTSE100. What you see is the fractal geometry of the market. ON the right you see a 3 candle breakout. A breakout on a lower time frame will always be a TIGHT CHANNEL. In both cases it’s a Bulls-only market.

However, the third section of the chart is the Hourly chart. Here we have a trending channel that is converging to the right. So its swings are becoming smaller. I took this picture because I could predict with a degree of certainty that the next day will be something interesting.

Today, after the weekend, we saw the following chart. The Hourly chart had given us the heads up. The channel is broken with an outside bearish candle. After that it simply continued dropping.

The Market Cycle : Breakout > Trend Channel > Trading Range

This is a chart of DAX30 M1 Today the 11 of May 2021 during the London Session.

I posted the above in the chatroom. Later we saw the market created another kind of channel and then a trading range.

Blue Shows The BREAKOUT PHASE

The GREEN shows the Trend Channel (converging/Contracting)

The Zone channel and Red zone shows Trend Bear Channel and Trading Range.

90% of the time the market will remain either in a channel or a trading range. only 10% of the time the market will remain in the Breakout phase.

Breakout > Bear Channel > Trading Range

Breakout > Tight Parallel Trend Channel > Converging Trending Channel > Trading Range

Below I will show you 3 charts of FTSE100 from 11 of May 2021. The M5 chart is the one I traded. Pay attention to the breakout and how it turned into a trading channel and eventually a Trading Range. This happens ALL THE TIME.

2.3: Trading Ranges, Trends, and Momentum

The market is either trending or range. Likewise, a candle is either a trending candle or a range candle. The trend candles have smaller wicks and bigger bodies. The range candles have bigger wicks and smaller bodies. 

There are only 2 Types of Candles and 2 Types of Markets

I will always be aware whether the market is in a 1 minute or 5 minute or hourly time frame range. I will be aware of those ranges within ranges and I will keep an eye on the levels. 

Keep it BINARY to Help Make Decision Making Easy

I will keep it BINARY: At any given point

• A Candle is Either a Trend or a Range Candle 
• The market is either in a trend or range 

Questions to Ask: Is the market in a trend or a range? 

Use pullbacks ONLY when market is Trending
Use Reversals ONLY when market is Stuck within clearly defined range 

And USE Pullback Entries and Trend Trading MORE than Reversals.

DO NOT SCALP unless it is time for scalping (which is almost never)

A Breakout / Momentum Phase (green) followed by a bear trend (a trend channel) and then A Trading Range. 

A Tight Trading Range on the USDJPY Hourly Chart. 

2.4: The Market Trends in 3 Ways

1. Breakout Phase (Momentum with Trend Candles no Pullbacks)
2. A Tight or Wider Trending Channel (Small Pullbacks) 
3. A Very Wide Trend Channel where both bulls and bears could make money. 

2.5: The Market Remains in Two Types of Trading Ranges

1. A TIGHT Trading Range or what we call the Tight Boxes (Nobody can make money here, Do Not Trade. 
2. A WIDE (Tall) Trading range where the distance between the Support and Resistance is wide enough for both bulls and bears to make money. 

A Breakout – A Tight Trend Channel and Trading Range

Let’s look at this chart of NASDAQ100 on the 5 minute time frame. I have marked the parts where the market broke out into a trend. The blue shaded area is the Breakout Candles. On a higher time frame, this will be just 1 or 2 Trend Candles. On a Lower time frame, it will be a series of trend candles with smaller bear candles i.e. a tight trend channel.

It did not actually turn into a trading range it turned into a Bear Wave within an Up trend. Followed by Breakout Up Again. 

A Wider Bull Channel 

Sometimes we see wider channels within big bear and bull waves. Both sides can make money even though its a bull trend, because its wide enough. 

The Market Either has A bull Wave or a Bear Wave

When the market is trending the bull wave is often bigger than the bear wave and vice versa for bear markets where bear waves will be longer than bull waves. 

When the market is in a trading range the bull and bear waves will have equal lengths but it will also have the following

1. A Bull Move/Wave/Leg within a Trading Range, A Pullback within a Bull Leg within a Trading Range 
2. A Bear Move/Wave/Leg within a Trading Range, A Rally (inverse pullback) within a Bear Leg within a Trading Range 

The following chart of the US30 Hourly time frame shows a very wide trading range. I I bought the lows and sold the highs several times until the last sell trade failed and it later turned into a 3 day up trend. (all time highs again)  

We also saw a bear trend channel within a trading range. It was possible for both bull and bears to trade and make money during the trading range and inside this bear trend channel 

2.6: What will I Do When the H1 Chart is in a Trending Phase 

When the Hourly chart is trending I will NOT take swing trades against that trend when trading the 5 minute chart but I can take scalp trades against the hourly trend. 

When the Hourly chart is in a wide range like it was on the NASDAQ and US30 during the last 2 weeks of April 2021, I will sell the highs of the range and buy the lows using the levels on H1 and price action on the 5 minute chart. 

E.g. example these trades 

2.7: Buying and Selling Wider Trading Ranges on the M5 Chart 

NASDAQ 100 Post NFP Wide Range
https://www.screencast.com/t/LBq0qXcOJ 

2.8: When NOT to DRAW Your Trend Lines?

Trend Lines are simply of mapping your way. It does not mean that price will 100% respect these lines. You’re only creating a pattern with the help of drawing some straight lines.

Use trend lines ONLY during Bull and Bear Trends. To see if they are

a) Parallel or b) converging.

The idea is that you want to see this

1. A Range Bound Market either in a Tight or Wider (horizontal channel) RANGE.
2. You will see (often) a Breakout (which means series of similar colour candles no pullbacks or very small pullbacks creating a very tight trend channel)
3. After that you will often see a few candles pullback 5-10 candles is fine. Or you will see continuation by the channel will converge. The breakout of this type of channel often leads to a good trade in the opposite direction.

Don’t Draw Trend lines when you can see its a RANGE. Just Draw the horizontal lines and consider it a range.

Below is a Chart of NASDAQ 100 M5 on 10th of May 2021. The Market has been slow today and all the indices have done at at least 3 Bullish Days.

I am long on the Nasdaq and Ger30 at this moment. The Nasdaq 100 is in a sideways RANGE rather than a channel.

2.9: Don’t be too pedantic – Perfection Does NOT Exist

The following chart shows the chart template with KC on it. I’m making the point that you don’t look for too cute or too perfect signals once you have a pullback scenario. Enter any of the marked areas on the following chart.

2.10: How to Trade – Momentum Breakout – Trend Channel and Trading Range

Screenshot from the Video Above

2.11: A Trend Trend Day

Some days the market moves in one direction. It is what I call the trend trend days. (something I learned from the Bella of SMBCapital)

The following chart shows a Trend Trend Day. I have marked the initial Breakout. This is where momentum traders laugh. Momentum trading opportunities exist but only for brief periods. mostly it happens right at the open or at major news. Scalpers love momentum.

When you find a Single Direction Trend Day You have to make money. You must finish the day UP. If not, you’re doing something wrong.

A trading channel is great for swing traders to get in trend candles and pullbacks and hold through swings.

How to Trade The Micro Pullback After A Trend Candle

When you find a trending chart and then you find a Trend Candle in the same direction you can either take entry at the close of the trend candle or you can get a better price by using micro pullback method. e.g the GBP/AUD shows a trend and a trend candle. Drop to the H1 and you find a beautiful pullback pattern.

How to Use Candlestick Patterns as Confirmation for Making Entries

Trading is a Mental Game: 

Day Trading is a Game of Performance. But because there is not much physical activity involved its a game of “Mental Performance”.  

• How good are you? 
• How well can you see the “ball”. 
• Are you relaxed yet laser focused? 
• Are you enjoying yourself? 
• Are you excited about the markets? 
• Are you determined to trade well every day? 
• Are you ready to change yourself? 

The Daily Mental Checklist

Before we start to trade we need to ask these questions. We are all humans and we all have many different problems in our lives. If anything is bugging you too much then it must affect your trading performance. I had a vaccine on the 4th of May. The next day I had mild reaction symptoms. I had fever and chills in my body yet I traded. That was a losing day. I broke an 8 Days winning streak. If you’re not feeling well, DONT TRADE.

1. Did you sleep well?
2. Did you wake up on time?
3. Have you had a glass of water?
4. Do you have any family emergencies or issues going on? 
5. Are you emotionally charged or feeling excited? Negative or positive?