The DAY TRADING PLAN 2021

Starting 22 April 2021

Introduction:

This document is for those who are members of the Discord Channel and who like to Day Trade the London Open and/or the US Session.

As you may be aware that we trade the DAX30 and the US30 at their respective open times. I have been using the LOBOT and the NEOBOT method for a while now.

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, I have been undergoing a lot of transformation over the last 12 months or so. You probably already know that one of my favourite quote and my motto is

“Simplify Simplify Simplify”

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, a set period of time, during the summer last year (2020).

It allowed me to understand what is a good pullback setup that I can trade on the 1 minute chart.

I learned that Setup 1 is made of 60 candles (Range of 40~80). Within a 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 X time frame, you will ALWAYS see a Good Pullback Setup (i.e. bull bear flags / wedges / pennants etc) on the 5XHTF.

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. I went on and simplified it further.

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

There was this inner guilt inside me. I felt like I was betraying my members and friends. I felt 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, realised 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 adapt 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. That 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.”

Ok!!! Then…

Here we go…

The Plan is simple

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

Day Trading Schedule

I will follow the following Routine and Methods

First Session: London

Instrument to Trade: Trade DAX 30

Starting at: 07:00 (FX) and 08:00 DAX until 10:00 UK

Break Time: Variable time but most probably around 12pm.

Second Session: US Open

Trade US30 / DAX30 at the

Starting: 14:00 UK till 16:00 UK

Will look at the charts from 1pm but properly trade US30 from NEO.

Third Sesion: US Close

Trade US30 at the Close

Starting at 19:00 UK – 21:00 PM Uk

4 Simple concepts all traders must know.

What is …

1. A Trading Range (wide/tight) (Bear and Bull Moves within Range)

2. Trend (3 types strong mild weak)

3. Pull Back (2 types , simple / complex)

4. Climax (1 type)

Which means,

you need to know what these are ,
you need to know within a single glance at the chart,
and how to use this information in your trading when you see it.
When you see one of these happening, what do you do? that is it.

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

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.

The Process:

I will look at the big picture. I will see what the Daily chart says. I will mark or note some levels. I will also look at the H1 chart.
Then I will see where the market closed YD. I will compare that with Frankfurt Open Price. Is it up from the close or down.
I will mark the range if I see one.
I will wait and see how the first candle on the m1 chart is printed.
I will then wait for the M5 candle… and see if it is a strong bullish or bearish candle each side of the open. (a Trend Candle is a Breakout in its own right)(check definition of Trend Candle)
If it’s clear and obvious I might even set breakout long and short of the range or take a trend candle close as an entry.
But most importantly, I want to see if the market has volume and volatility.
I will follow the rules of Swing Trading on the 5 Minute Chart for running trades. Refer to the recent blog post (LINK)

Entry Methods:

I will use the following entry methods:

Note: Before you apply any of these methods you need to know the market mode. E.g. a Bull Trend Candle nea the High of a Range and a double Top is a Sell Signal.

The TREND CANDLE — Buy on Close (Out of range / in direction of trend on a pullback)
The Trend Candle and Micro Pullback
The Trend Candle and the Waltz Method
Range Breakouts whether its a setup 1 or setup 0 or Classic Breakout
Range Reversals (selling double tops and buying double bottoms)
The Seed and Cherry for Pullbacks
I will also use Limit orders within trends. Buy the break of the low of a bearish candle within up trend and vice versa.

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.

Risk and Position Size 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)

Instrument	100% Risk	50% Risk	25% risk
DAX30	£10	£5	£2.5
US30	£5	£2.5	£1.3

Range and Trend and Momentum:

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)

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

Examples:

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.

(a) The Market Trends in 3 Ways

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

(b) The Market Remains in Two Types of Trading Ranges

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

Examples

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

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

A Bull Move/Wave/Leg within a Trading Range, A Pullback within a Bull Leg within a Trading Range
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

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

Buying and Selling Wider Trading Ranges on the M5 Chart

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

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.

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

Screenshot from the Video Above

What Template and Indicators will I use?

This is a crucial and interesting question. I won’t be using anything.

I will simply use the seed indicator or session lines to plot that session line for me. And that’s about it. (Or probably just the naked chart)

What is my Trading Monitor Layout

I’d like to see the four index charts on one screen.

I like to see the correlation and why one is going up and the other one down.

I like to trade and focus on UK100 and DAX30 more during the European session.

After that during the US Open Session where both sessions overlap I like to focus and trade the US30 and NAS100 and DAX30 and FTSE100.

Later I will trade only the US30 and NAS100 during the US close session.

But Immy….

Can I use Hunt 2.0 Template? Sure you can.

Can I use 10/20 with Seed and Cherry 2.0? Sure you can, absolutely.

Can I use the Setup 1 template? Oh yes indeed. Why not…

Can I use naked chart? You know with just the candles? Oh yes … YOU CAN…

I am saying this to myself first. I am allowing myself to use any of the templates I feel like using. Why?… Because I know that the core method will always be focused on one thing.

Trend, Range, Momentum, Volatility and Levels. That’s it!

Trading is a Mental Game:

Day Trading is a Game of 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?

Mental Checklist

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

Lessons of the Week:

Here I will record and note Day Trading Lessons.

Edit: 20/04/2021 This should be recorded in my trading journal.

Log of Changes:

DAte	Description	Version
22 April 2021	First Draft	1.0
27 April 2021	Changes to Schedule page 2	1.1
27 April 2021	Reviewed the plan / corrected mistakes	1.2
27 April 2021	Added Risk management	1.3
29 April 2021	Daily Session Analysis into Lessons on page 8	1.4
3 May 2021	4 Important Concepts	1.5
7 May 2021	lesson of the Week p10	1.6
8 May 2021	Imported Google Doc into WordPress and Lots of editions and images	2.0

DATE	Lesson
27/04/2021	LESSON of THE DAYI keep forgetting that I only want to trade “pause/pullbacks” …. after a trend move…. I don’t want to bet a breakout…. HenceONLY BUY or SELL Pullbacks in a TRENDING Market ONLY SELL HIGHS and LOWS within a RANGE BOUND MARKET
29/04/2021	Record your Win Rate and Discipline Score at the End of the Day.
29/04/2021	What was the Market Like Today? Was the session you traded (in your view) a) TRENDING or b) RANGING If (a) Trending then Was it a Single Direction Longs Only or Shorts only Trend? Or was it Two Sided Trend (trend both directions If (b) Ranging then Was it a TIGHT range or a BROAD Range 2. In both the cases was the trendSteep/strong/Parabolic orModerate /standard or Shallow / Mild Can you answer those questions?
30/04/201	LESSON FROM THIS WEEK Breakouts usually fail. (meaning breakouts of ranges, but not just ranges, usually the wider ranges. Tighter ranges are easier to break because the traders on the other side of your trade don’t see a bigger potential for profit) In some cases 70% of the time they fail. If that is the case, then NEVER anticipate a breakout. Instead, Accept what you see in the now. And go with it. Don’t fight it or anticipate it. Don’t get in before the break trying to get early entry. Don’t go “if this breaks I will be rich”. Instead, accept that if it is at support and resistance, that it might reverse from there. And be open, that if it breaks, then you will get in on a pullback. This is VERY simple, don’t complicate things.
Friday 7, May 2021	LESSON FROM THIS WEEK Don’t Trade Reversals on Trend Days or Trending MarketsTrade reversals on M5 in the Direction of the H1 Trend https://www.screencast.com/t/9OcYuFqNKUC

Introduction:

The Plan is simple