20160617
Short 1 TF 1141.5, +1.5
Long 1 TF 1142.2, +1.5
Short 1 TF 1145.4, +1.0
Long 1 TF 1143.5, -1.0
Long 1 TF 1141.4, +1.2
Total TF +4.2
A Trade Plan is a rehearsal to carry out what should be done without having had the time to think about it. For instance, what if your entry model is an exhaustion move, but with an unexpected burst of volatility, blowing through one level of support while maintaining the fractal structure, and still arriving within a minute of the static time cycle that was designated by the entry model? What do you do? You re-enter with an additional contract more than the amount you got stopped out with. If the model was valid at one price level, it should be even better at a more extreme one. Some would call this the martingale betting scheme. But in trading, it actually works better than with cards, if the entry model remains precise while price simply moving to a more extreme stretch. However, such moves come with a great deal of emotion. If you haven't sufficiently rehearsed your intentions to perform this feat, it's quite unlikely you'll NOT have the nerve to execute. Today, at precisely such an opportunity post stop-out, I balked. I took the re-entry alright, but hesitated at the needed 2nd contract unit, and thus only regained what was lost on the too-early entry stop-out. The signal developed into a huge opportunity, as such exhaustion moves often do, and would easily have doubled the outcome of my trading day. But I was stuck sitting on the sidelines for the rest of the move after exiting with only enough to insure loss recovery. Have a Trade Plan. Be rehearsed in all its subtleties. Execute.
