Hi Pan,

Good to hear from you.

The thing that I like about what you have written below is that it seems that before you start trading you are trying to develop a plan which you are going to base your trading on. Secondly I like that you are showing this plan to others and seeking feedback as I think putting in the effort to develop a solid plan and then seeking and being open to input on that plan from others are two of the main keys to success in any business including trading.

So from what I can tell from the below it seems that you have outlined your risk management and position sizing strategy which is based on the % Risk Method outlined in our Free Basics of Trading Course.

I think most traders would consider this a reasonable method for determining the maximum risk and position size that you are willing to do on a trade.

After this part however your plan seems to get a little non specific. You mention that you will use trend lines to get the overall direction of the market. What time frame will those trends be used on?

You mention that you will use the ATR to help with placing stops. How exactly do you plan on doing that? Same question for the ADX.

How about profit targets how will these be determined?

So basically here I think you are moving in the right direction but just as you would not open up a restaurant before deciding exactly what was going to be on the menu and why in my opinion a trading plan is not complete until you have defined exactly what you are going to be doing and why.

If you have not done so already I would encourage you to watch my video on the 20 components of a successful trading plan in the free basics of trading course as this may be of help as well.

If you have any other thoughts on this or would like to come back with some more detail I would be happy to comment.

Lastly, thanks for sharing this with the community I think these types of conversations are valuable for everyone and we can all learn a lot from them which is the point of this site. With this in mind if anyone else has any comments or questions on this one please feel free to post them in the comments section below.

Best Regards,
Dave