Strategy Section
P R E S E N T E D B Y :
M i ke B.
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constitutes a recommendation that any particular investment, security, portfolio of securities, transaction
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Strategy Section
• Trading Tenets
• Trading Rules
• Trading Framework
• Trading Plan
• Money & Risk Management
• Trade Management
• Best Trade
• Worst Trade
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Strategy Section
• Trading Tenets
• A principle, belief, or doctrine generally held
to be true
• One held in common by members of an
organization, movement, or profession
• What are your tenets?
• From your trading results and research what
do you believe will make you successful
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Strategy Section
• Trading Rules
• Rules are your friend
• Preserve/increase trading capital
• Preserve/increase emotional capital
• Protect you from yourself
• Rules need to fit your personality
• We are all different, so are rules should be too
• You shouldn’t be fighting with yourself
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Strategy Section
• Trading Framework: Daily Stock Selection
• Permeant or daily watchlist
• Identify what you are good at trading
• Stock Change %
• Stock Catalyst
• Volume
• Float
• Average True Range
• Short %
• Exchanges
• Reviewing and analyzing your trading journal
• Establishes a “Baseline” to evaluate yourself
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Strategy Section
• Trading Framework: Risk Calculations
• Daily Max Loss
• Must follow
• TradeBook Edge determines it
• Daily Profit Target
• Dollar amount
• Performance value
• Max 30 Day Loss
• 6% Rule
• Exchanges
• Additional Comments
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Strategy Section
• Trading Plan: Strategy Overview
• Time: What timeframe you employ your strategy
• Indicators: These are the variables that make you get interested
in a stock
• Confirmations: These are the variables that make you want to
enter the stock
• Entry: This is where you want to enter a position when the
variables are met
• Stop Loss: This is where you place your stop prior to entering
the stock
• Targets: Point where you look to partial
• Specific Rules for Strategy: Any special rules
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Strategy Section
• Trading Plan: Money & Risk Management
• Develop this in the non-market hours
• Criteria comes from analyzing your journal and statistical reports
• Risk per trade
• Profit target per trade
• Max loss per trade
• Trade limits
• Time constraints
• Stop loss mechanism
• Break-even win%
• Scaling up criteria
• Numbers are specific to you
• Two traders trading the same strategy are going to have different results
• This has to do with the psychology of the traders
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Strategy Section
• Trading Plan: Trade Management
• Removing size from the position
• Adding to the position
• Movement of your stop loss
• Seeking realized rate of return
• Maximize your profitability by analyzing your trading journal
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Strategy Section
• Trading Plan: Best/Worst Trade
• Overview of trade
• Why it was your best/worst trade
• What did you learn from the trade
• How can you repeat/prevent the trade
• Record book
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mike@bearbulltraders.com
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