TRADING PLAN
SMC STRATEGY
END 2022
INSPIRED BY :
Photon trading
INTRODUCTION
STRATEGY
SMC CONCEPTS
I have created this plan at the end
of 2022 after my funding. This PLAN CONTENTS
plan will be the set rules I will
follow when approaching the
market.
When to take a trade?
I will journal all the trades and I
Market structure
will constantly reflect upon this
Supply & Demand zones
trading plan. When I have found
Entry model
new information in the market
Risk management
after thorough reflection on my
Mindset
trades I will change this trading
Journaling
plan accordingly.
Summary
Furthermore I will do a constant
reflection on myself to make sure
Trade examples
my head and mentality is in the
right position to trade. When this
is not the case I will stop trading
and improve my mental state.
I will show discipline to comply
with the rules in this plan.
WHEN TO TAKE A TRADE
MARKET STRUCTURE
RULES ON MARKET STRUCTURE
There are 3 types of structure: Swing, Internal and Fractal. I can take trades
based on all these types of structure. How the structure is broken is different
for all types of structure.
Swing: Candle closure
Internal: Candle closure
Fractal: Candle wick (however, closure is preferred)
This is the same on all timeframes
Part of market structure are weak highs and lows. When price breaks a high,
it is expected that the low of the pullback which broke the high holds, it is
protected. This can be very useful in planning a trade since you expect price
not to go lower than a certain point. This is the same for highs, when price
breaks a low, the high which caused it is protected. Weak highs and lows are
parts of structure we expect to fail, these are the points which initiated a
pullback. Price is expected to break this structure when the pullback is over.
Orderflow is another part of market structure, it is an extra confluence when
deciding on weak highs and lows. It is drawn as a box/range in which price is
expected to pull back before breaking a high/low. With this you can easily
identify the 'flow' of the market and thus decide on what direction the market
is probably moving to next.
WHEN TO TAKE A TRADE
MARKET STRUCTURE
WHEN CAN I TAKE A TRADE?
Market structure is very important when deciding whether or not I can take a
trade. I can take a trade when:
rule 1
rule 2
rule 3
rule 4
rule 5
etc.
etc.
Are there any exceptions?
What is classified as HP?
Any other comments
SUPPLY AND DEMAND
ZONES
DIFFERENT KIND OF ZONES
Zone which caused a break
Supply and demand zones are only valid if
they have broken something. It shows that
demand is strong enough to take out supply.
When i.e demand is not strong enough to take
out supply, the low is then targeted because it
failed to take out a high. Therefore the demand
zone created before supply stepped in is not
valid. When a demand zone has caused a
break, it will often fill more orders around that
zone to go higher.
Zone which caused a break
and swept liquidity
Liquidity is a very important part of the
strategy, when price sweeps liquidity it will
have triggered all the stop losses of early
buyers so their own positions can get filled.
When price sweeps a protected low and
continues going the other direction, it creates a
demand zone which I qualify as high
probability. Often price will come back to fill
more orders around that zone to go higher.
Flip zone
A flip zone is a zone which is created due to a
reaction to supply. Price first reacts to supply at
the weak high causing a reaction after which it
breaks the high. A flip can sweep liquidity by
creating a fractal low, sweeping it and breaking
the structure. When a flip sweeps it is a high
probability zone, when it does not sweep it can
get used for inducement at the extreme of the
leg.
SUPPLY AND DEMAND
ZONES
HOW TO CHOOSE
SUPPLY AND DEMAND
ZONES?
HOW TO DRAW SUPPLY Some supply and demand zones
have a higher probability of holding
AND DEMAND ZONES? than other zones. This can be due to
multiple factors. It is important to
What do you use as guidelines for always keep these factors in mind to
drawing S&D zones? Since everyone build up a more plausible narrative.
draws them differently.
Does it fit the overall HTF and MTF
narrative? (PT or CT and how are
the timeframes aligned?)
Is the POI in a well-priced area?
Did the POI achieve something?
(BOS, Flip or both)
Is the POI a sweep zone? Did it
grab liquidity when it formed?
Is there structural liquidity in front
of the zone? (Otherwise the POI
itself can become inducement for
a lower zone)
How is price getting back to the
zone? (impulsive or corrective)
What makes a HP zone?
Break structure (always needed)
Sweep liquidity
Have inducement
Flip another zone (extra
confluence, makes it even more
HP)
ENTRY MODEL
WHAT IS NEEDED TO ENTER A POSITION?
DIFFERENT ENTRY MODELS
What different entry models do you follow? Is it only one or multiple?
What are set requirements?
What are confluences?
ENTRY MODELS
DIFFERENT ENTRY MODELS
Entry model 1
Entry model 2
Explain
Entry model 3
Explain
TRADE MANAGEMENT
WHAT TO RISK?
RISK PER TRADE
What do you risk per trade?
What is your strike rate? Do you have rules on strike rate?
TRADE MANAGEMENT
WHEN TO REDUCE RISK AND TAKE
PROFIT?
How do you manage your trades?
MINDSET
RULES ON MINDSET
Do you have rules on your
mindset?
WHY MINDSET IS When to trade or not?
IMPORTANT IN TRADING How to cope with losses?
What to do if you feel like you have
It is important to seek consistency, analysed the market wrongly
not perfection. Not every trade needs
to be perfect. When it fits the plan it
needs to be executed.
When making trade ideas and
executing trades it is important to not
get emotionally attached to them.
This often occurs when a bias is
created in the market. Therefore, it is
important to strictly stick to the
analysis and when the market tells
otherwise, change the analysis. This
will make it that you always view the
market in a rational way. The market
does whatever it wants and does
change based on what you want.
The correct mindset in trading is one
that is dedicated, focused, disciplined,
confident, has no ego, has no fear of
losing, and has detachment to
money. This will help in optimising
the profits in the long run.
JOURNALING
KEEPING TRACK
HOW TO JOURNAL
How and where do you journal
Data gathering
Data analysing
SUMMARY
ALL ENTRY REQUIREMENTS
Add all the rules of your trading plan in one summary
SUMMARY
ALL ENTRY REQUIREMENTS
Add all the rules of your trading plan in one summary
I did not have any pictures to not distract.
TRADE EXAMPLES
DAX SHORT
4HR NARRATIVE
TRADE EXAMPLES
DAX SHORT
15M NARRATIVE
ADD AS MANY TRADE EXAMPLES
AS YOU WANT.
TRADE EXAMPLES
DAX SHORT
1M NARRATIVE
TRADE EXAMPLES
GBPUSD SHORT
4HR NARRATIVE
TRADE EXAMPLES
GBPUSD SHORT
15M NARRATIVE
TRADE EXAMPLES
GBPUSD SHORT
1M NARRATIVE
