<aside> <img src="/icons/report_gray.svg" alt="/icons/report_gray.svg" width="40px" /> Find your edge and stick to it, that’s the key job of a trader
</aside>
<aside> <img src="/icons/report_gray.svg" alt="/icons/report_gray.svg" width="40px" /> Make sure you write down (per session) WHAT you want to see WHERE and WHEN in the chart to take a trade. This should be really crystal clear and based on data. Otherwise you are gambling.
</aside>
Example
What type of trader am I (intraday, position, swing): intraday
Asset(s) I trade: EU
Session I trade: NY (7-10 NY time)
Edge description (this description can ONLY be based on backtesting, you must have seen your edge play out >50 times imo!)
Trading schedule
<aside> <img src="/icons/report_gray.svg" alt="/icons/report_gray.svg" width="40px" /> Balance in life versus trading is key for a healthy lifestyle. More exposure to the markets does not implicate bigger profits at the end of the month. Often, less is more. Write down what time you have time to trade. Your model should be aligned with your life schedule
</aside>
| Do I have time to trade my session(s) | Implications | |
|---|---|---|
| Mon | No | No trading day |
| Tue | No | No trading day |
| Wed | Yes | Trade my edge if it’s there |
| Thu | Yes | Trade my edge if it’s there |
| Fri | Yes | Trade my edge if it’s there |
<aside> <img src="/icons/report_gray.svg" alt="/icons/report_gray.svg" width="40px" /> Imo, your risk should offer room for 5-8 losing streak. And if you are planning to use different risk during challenge phase versus funded, think about if this is wise in terms of building habits
</aside>
Example
| Challenge phase 1 and 2 | When funded | |
|---|---|---|
| Standard risk | 0.5% | 0.5% |
| Risk for countertrend trade (if your edge encounters countertrend trades) | 0.25% OR my edge doesn’t encounter countertrend moves | 0.25% OR my edge doesn’t encounter countertrend moves |
| After …% DD reduce risk to until back at …. | After 2% DD reduce risk to 0.25% until back at -1%, then standard risk again | After 2% DD reduce risk to 0.25% until back at -1%, then standard risk again |
| Implications for DD after 5 trades losing streak from initial balance | -1.75% | -1.75% |
| Max entries per day | 1 (only if my edge is there) | 1 (only if my edge is there) |
| Quit trading for the week/lock in profit after | +2% | +2% |
(!) Your edge should be this specific that you know if/where you trail your SL
<aside> <img src="/icons/report_gray.svg" alt="/icons/report_gray.svg" width="40px" /> Find your triggers and eliminate them 1 by 1. Finding triggers only happens by you journaling day by day
</aside>
Example
| Trigger | Solution to improve |
|---|---|
| Overleveraging (mostly when reaching DD, after a losing trade) | I will evaluate per trade in my journal if i respected the risk. When I don’t respect it, I’m not allowed to …… that day (find a punishment for not sticking to your plan) |
<aside> <img src="/icons/report_gray.svg" alt="/icons/report_gray.svg" width="40px" /> Think of what habits a professional trader should have. What prepares you mentally for your trading session? Stick to your routines, even when you don’t feel like it. Focus on the process instead of the outcome is key. Read the book Atomic habits (audiobook) if you want to understand this better. Develop good habits won’t happen overnight, keep that in mind.
</aside>