TRADE STYLES
TRADE PLAN PARAMETERS:
EFFECTIVE DATE: 1st January 2020:
This year I am slightly amending my TRADE STYLES from last year in 2019.
Last year, I split away from offering FLASH, RADAR, MOMENTUM and POSITION trades to focus on longer-term trades only via POSITION trade set ups.
By fluke, NOT design, BREXIT related trades came into existence as the UK BREXIT deadlines were not met and extensions with the EU became a common occurrence.
In addition, it became obvious to me that longer-term trading had several trade styles within it. I was trying to be both a SWING and POSITION trader at the same time. So, midway through the year I separated SWING trades away from POSITION trades and creates two additional trade styles. Long-term trading became CORE POSITION trading.
This year, I have decided to break my longer-term trading into three distinct styles.
- INVESTOR TRADES (INV) – were previously CORE POSITION trades.
- SWING TRADES (SWG) – were previously NON-BREXIT trades.
- BREXIT TRADES (BRX) – were previously BREXIT related trades.
TRADE PLAN PARAMETERS BY TRADE STYLE:
(CORE POSITION) - INVESTOR TRADES (INV):
TYPICAL FX PAIRS TRADED:
No exceptions, although the preference would be for pairs with decent liquidity.
TRADER SUTABILITY:
These are my really longer-term trades suitable for traders with limited “Trade Screen” access during the day. These trades would ideally suit PART-TIME traders, those looking to add anadditional income stream to their household etc.
PROJECTED TRADE TIME-FRAME:
My goal is for anything from at least 6 months in duration.
ENTRY & EXIT GUIDELINES:
Entries are by pre-defined LIMIT ORDER set ups. STOP LOSS levels will be based on the Monthly Average True Range (ATR). LIMITS will be chosen by a combination of extreme Fibonacci levels, previous annual highs and lows or areas of significant prior horizontal support or resistance.
RISK / POSITION SIZES:
Usually a multi-trade approach with the initial trade sizes being between 10% -25%. It really depends on the currency pair and the trade opportunity itself.
SWING TRADES (SWG):
TYPICAL FX PAIRS TRADED:
All pairs qualify; no exceptions.
TRADER SUITABILITY:
Traders who have reasonable access to check screens on several occasions during the day.
PROJECTED TRADE TIME FRAME:
Initially day trades that I am looking to develop in SWING trades of about a 4/5 days duration.
ENTRY & EXIT GUIDELINES:
Entries will be by pre-defined LIMIT ORDER set ups. These are based initially on Pivot Points, Fibonacci Levels, Chart Patterns, basically, any combination of indicators that provide a high probability set up. Initial STOPS and LIMITS will be fairly conservative. I expect to update these should the trade develop and gather traction.
RISK / POSITION SIZES:
Usually a single trade approach. The trade set up size will be c. 25% - 50%. If the trade develops, I will add a secondary position to bring the trade closer to full size.
BREXIT TRADES (BRX):
TYPICAL FX PAIRS TRADED:
Any GBP related pair.
TRADER SUITABILITY:
Traders who do NOT object to large drawdowns. I am trading these pairs based upon the future fair value of the GBP being back at fair value c. 1.5000 versus USD.Drawdowns can be 1,000 pips or greater depending on the pair traded. Many of the GBP cross rates have wider than most pairs Monthly ATR levels. Traders for this style need to have reasonable screen access during the tradingday.
PROJECTED TRADE TIME FRAME:
I have successfully traded this trade style under the “GRAB ‘N GO” approach. Taking 50-150 pips profit on each trade when pips / $$$ become available. Trades can be from one hour to 6 months duration depending upon how the limit orders are triggered.
ENTRY & EXIT GUIDELINES:
Entries are by pre-defined LIMIT ORDER set ups. These are based initially on Pivot Points, Fibonacci Levels, Chart Patterns, basically, any combination of indicators that provide a high probability set up. STOPS and LIMITS will be very, very wide based on extreme support and resistance levels to accommodate any huge spikes in VOLATILITY.
RISK / POSITION SIZES:
A multi trade approach. Trades are maximum 10% position size.
With my approach in 2020 I am extremely confident that I am now meeting the needs of all longer-term POSITION traders. Combined with my “PIPS PROECTION” for 2020, the opportunities to make $$$ this year is as good as ever.
Scott Pickering
The Pip Accumulator
