Routines – During Session
Table of Contents
Routines – During Session
Maintain a Positive and Focused Mindset
- Whenever focus has been distracted or minor stress is observed
- a) Log nature of distraction
- b) Office environment – quiet and serene
- c) Sitting – back straight
- d) Quick Relaxation / Breathing session
- e) FOCUS
- Once per hour
- a) Conduct one or two Chi Gung forms
- b) Quick Relaxation / Breathing session
- c) FOCUS
- Mid-Session Break (if conducting full session)
- a) Eat a small meal
- b) Full Relaxation / Breathing session
- c) Reflect on the opportunities that the trading day brings
- d) FOCUS
Recovery (Significant Loss or Negative Emotions)
- Relaxation – Body & Mind
- a) Relaxation / Breathing session
- b) Conduct a short Chi Gung session.
- Review
- a) Consider the nature of the occurrence from the perspective of feelings
- b) What feelings led to the decisions that were made, or actions that were taken?
- c) How does this make me feel after the event?
- i) The key here is to explore my feelings in a non-judgmental manner. Accept them.
- d) What does this mean? Where is the lesson?
- e) How will I behave in future when encountering the same circumstances?
- f) Visually replay the situation with the new improved behavior. Confirm improved feelings.
- Release
- a) Relaxation / Breathing session
- b) Forgive
- c) Completely let go of whatever happened.
- d) Review motivation journal.
Monitor Throughout the Session
- Regular monitoring
- a) Throughout the session, take time to monitor and record any significant observations regarding:
- i) Market structure and price action movement
- ii) My trading process
- iii) My physical and psychological state
- When?
- a) At key session times:
- i) Pre-Session, Mid-Session, Post-Session
- b) At key events
- i) After exiting every trade
- ii) After any structural changes
- c) Any other time that I feel I’ve gained an insight into market structure, my trading process or my physical and psychological state.
Ongoing Analysis
- Determine Candle Pattern Sentiment
- a) Classify the candle pattern and determine the short-term sentiment of price.
- b) Classify the candle pattern
- i) High / Mid / Low Close
- ii) Bull / Range / Bear Candle
- c) Determine the sentiment of the pattern
- Consider the Context
- a) Every pattern is unique and MUST be considered in the context of the background market environment in which it occurs.
- b) Where is the current price action in relation to key market structure features:
- i) Support or Resistance
- ii) Trend
- iii) Swing Highs and Lows
- c) What does this mean with respect to the sentiment of the pattern and the potential future price action?
- Does it Support my Premise?
- a) Is the market action continuing as expected, or is something indicating we’re out of sync with market flow? Does the current price action and sentiment support our previous expectations for future price action?
- i) Yes
- (1) Await further price information.
- ii) No
- (1) Decide whether to hold for the next candle, or to reconsider the Initial Market Analysis.
- iii) Unsure
- (1) Wait for further price information.
- i) Yes
- Repeat
- a) Repeat the process as new information appears on the chart.
Trading
- Trade Preparation
- a) Monitor price movement confirming it matches the behaviour previously anticipated. If price action differs from expectations, return to the initial analysis and recheck premise and assumptions.
- b) Identify trade parameters
- i) Stop loss location
- ii) Targets T1 & T2
- iii) Confirm entry zone
- (1) Consider both LWP (if identified) and LRP
- c) Identify preferred entry plan
- i) Stop and/or limit order
- d) Final confirmation
- i) The setup and trade is valid for this market environment
- ii) Price action is supporting the trade premise.
- Trade Entry
- a) Monitor price movement bar by bar, until the entry locations are identified. Ensure price continues to support the trade premise.
- i) Determine candle pattern sentiment
- ii) Consider the context
- iii) Does it support my premise
- b) If bracketing price, place a stop entry order at the LWP as soon as it‟s identified.
- c) If working an entry, place an appropriate order in the market as soon as the entry decision is made.
- i) Limit entry order in area of stall
- ii) Limit or Stop entry order on price action trigger.
- d) Confirm pending order details are correct.
- i) Entry price, direction, size,
- ii) Contingent stop and target orders
- e) On fill:
- i) Cancel other no longer required pending orders.
- ii) Confirm full or partial position filled
- f) Post-fill confirmation (gross error check)
- i) How do I feel about the entry?
- ii) Confirm the setup and trade are valid for this market environment
- iii) Confirm the price action is supporting the trade premise.
- Trade Management & Exit
- a) Continue monitoring price movement bar by bar. Ensure price continues to support the trade premise.
- i) Determine candle pattern sentiment
- ii) Consider the context
- iii) Does it support my premise
- b) Part One
- i) While premise remains valid:
- (1) Move the stop to breakeven when we would no longer wish to be in the trade if price retraced to the entry point.
- (2) Move the stop to new levels where we would no longer wish to be in the trade if price retraced to that point.
- ii) When premise is threatened
- (1) Cancel position if immediate exit is required.
- (2) Else work an exit through tightening both the stop and target orders, based upon lower timeframe price action.
- i) While premise remains valid:
- c) Part Two
- i) While premise remains valid:
- (1) Move the stop to breakeven when we would no longer wish to be in part two if price retraced to the entry point.
- (2) Move the stop to new levels where we would no longer wish to be in part two if price retraced to that point.
- ii) When premise is threatened
- (1) Cancel position if immediate exit is required.
- (2) Else work an exit through tightening both the stop and target orders, based upon lower timeframe price action.
- iii) When market shows increased strength
- (1) Consider extension of T2 or replacement with a trailing stop.
- i) While premise remains valid:
- d) On partial exit
- i) Confirm order correctly filled.
- e) On total exit
- i) Confirm flat.
- Post-Trade
- a) Reconfigure order entry screens or DOM.
- b) In the event of a loss:
- i) Consider the need for a recovery process.
- c) Is price setting up for a possible re-entry or subsequent setup?
- i) Delay any trade log entries and prepare for the new trading process.
- d) When time permits:
- i) Update trade log.
- ii) Monitor and record significant observations:
- (1) Market structure or price action.
- (2) My trading process.
- (3) My physical and psychological state.