Trade Manual

Formulas

Back Test Trading Journal

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Trading Strategy Manual

How to create a trading strategy

Stoic Investor

Any trading strategy need, at least, to have the following steps and considerations:

Direction: this is the most important aspect, you should always trade with the market direction, not against it.

Trigger: which change in the market price makes you think the price will reverse or continue that leads to a trade.

Entry: after the trigger is hit, where should you enter.

Stop Loss/Take Profit: every trade should have an exit target, either in loss or in profit. This is usually defined in the trigger and entry phase. This is a must so you can know which trade you can enter based on your risk/reward

Back testing: After you create your trading system you need to back test to see if it’s profitable or not and what’s the win rate.

Risk/Reward:

Strategy Example

Direction

How to establish direction?

PA - Swing High/Swing Low

Indicators - MACD, EMA, DMI

Trigger

Entry

Stop Loss/Take Profit

Back testing

Risk/Reward

Risk/Reward vs Win rate

20%

30%

40%

50%

60%

1:1

Not Profitable

Break Even

Profitable

1:2

Not Profitable

Profitable

1:3

Not Profitable

Profitable

1:4

Break Even

Profitable

1:5

Profitable

⁠

Risk/Reward Calculator

Risk/Reward

Entry

Take Profit

Stop Loss

1.67

100

120

There are no rows in this table

⁠

Risk/Reward Break Even Calculator

Use this to calculate your break even. You should always trade above the R/R of

1.25

⁠

Win %

R/R

Winning Trades

Losing Trades

Total of Trades

Loss %

20%

1.25

80%

There are no rows in this table

⁠

1

⁠

Strategy Example

Direction

How to establish direction?

Trigger

Entry

Stop Loss/Take Profit

Back testing

Risk/Reward

Risk/Reward Calculator

Risk/Reward Break Even Calculator

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