PT 04 PTP 04 PTP 3 0 Next Steps

Next Steps

In this section, the speaker discusses the next steps after completing the course and provides a practical guide to help get started.

Writing a Trade Plan

• The three-step process: write a trade plan, forward test, and backtest.

• Mold your trade plan by picking time frames, pairs to trade, sessions to trade, and entry models.

• Use Euro Dollar if you are taking more of that day trading approach.

• Focus on using credential model 2 or fake break as an entry model when starting out.

Forward Testing

• Only execute your chosen entry model during forward testing but track other entry models for data collection purposes.

Backtesting

• No specific bullet points provided in this section.

Timestamps were not available for some parts of the transcript.

Creating a Trading Plan

In this section, the speaker emphasizes the importance of having a trading plan and provides guidance on how to create one.

Importance of Having a Trading Plan

• A trading plan is essential for gaining experience and collecting data.

• Start with something simple that keeps emotions out of it, such as 5R.

• There is no Holy Grail to trading; just pick something and get more advanced with it as you go along.

Components of a Trading Plan

• The left-hand side should be completed first, starting with the trading plan.

• Customize the template to make sense for you by adding diagrams or writing out your own ideas.

• Include entry models, management strategies, and high probability trade examples in your plan.

Building Out Your Trade Setups

• Build out your setups by adding liquidity entry models or other relevant information.

• Add real-life trade examples over time to help visualize what winning setups look like.

Daily Forward Testing

In this section, the speaker discusses the importance of daily forward testing and provides guidance on how to do it effectively.

Starting Point: Euro Dollar

• Follow along with Euro Dollar every day without fail to start tracking the live market.

Daily Forward Testing

• Create a markup for each day's trading activity using Discord's team content tab under photon analysis or photon journaling.

• Even if you can't be on the chart that day due to other commitments, go back later and create a markup with hindsight analysis so that you can track your progress going forward.

Tracking Your Trades

In this section, the speaker explains how to track your trades and analyze them for better decision-making.

Keeping Track of Trades

• Mark out any trades you make, including whether there was a stop loss or take profit.

• Add as much or as little detail as you want to your analysis.

• Use a demo account to try executing trades and get used to feeling emotions.

• After a week or two, open a small live account and continue tracking your trades.

Analyzing Your Trades

• Do your own analysis before the session starts.

• Compare your analysis with others' after the session is over.

• Build trust in your own approach by comparing it with others'.

• Collect your own markups instead of relying on others'.

Using Notion for Tracking Trades

• Go into Notion and click on "Full Test" to create a new template.

• Add trading view links and screenshots for each day's hard, medium, and low time frame markups.

Creating a Comprehensive Trade Journal

In this section, the speaker discusses the importance of creating a comprehensive trade journal and provides tips on how to do so.

Importance of Trade Journal

• A trade journal is a super useful resource for traders.

• It helps in quickly scanning back through tons of markups.

• Create your own trade journal and add team ones as well.

Recording Trades

• Record individual setups or trades taken to get quantitative data.

• Use either the backtesting table or the table in the trade journal.

• Add each individual trade taken to the table.

• Start with backtesting straight away if you're just starting out.

Building Out Trade Journal

• Do daily markups and add them to your chosen trade journal format.

• Record individual trades or setups every day or every setup.

• Use screenshots of trades for qualitative review.

• Flesh out examples of individual models in a separate folder.

Tracking Data Consistently

In this section, the speaker emphasizes tracking data consistently and provides tips on how to do so.

Full Testing Every Day

• Start full testing every day with your trade plan.

• Track it along ideally Euro dollar, maybe Aussie too.

• Do forward testing and compare it to ours.

Recording Trades Continuously

• Record any individual setup or trade taken every day or every setup.

• Use either backtesting module or trade journal place for recording trades continuously.

Adding Trade Examples

• Add clean setups to your setups folder over time.

• Keep fleshing out examples of individual models so that they are all in one place.

Conclusion

The speaker concludes by summarizing key points discussed earlier.

Key Takeaways

• Concentrate on getting started and being consistent.

• Create a comprehensive trade journal to track data.

• Record individual trades or setups every day or every setup.

• Add clean setups to your setups folder over time.

Backtesting Strategies

In this section, the speaker discusses two backtesting strategies that traders can use to improve their trading skills.

Weekly Review

• The easiest and most sustainable method is to do a weekly review of the previous week's trades.

• During the weekly review, traders should look at price action, compare it to their trade plan, and identify any missed setups or opportunities for better trade management.

• The benefit of hindsight can help traders gain more confidence in their trading skills.

Classic Backtesting

• Traders who want to speed up the backtesting process or collect more data can use classic backtesting methods.

• This involves selecting a time period and using backtesting software to analyze trades from that period.

• Traders should add trades in chronological order step by step.

Utilizing Historical Markups and Session Recap Videos

• Traders can utilize historical team markups and session recap videos to see the exact thought process of experienced traders on specific days.

• These resources are available on the course dashboard under "phone-in service" and can be used as examples for improving trading skills.

Importance of Visual Review at the Start

In the beginning, traders should focus on visually reviewing their trades rather than relying solely on quantitative data. This is because they are likely to make mistakes and miss setups that do not meet their plan. It takes time and experience to properly build a narrative and identify high probability setups.

• Paying too much attention to stats such as strike rate and P/L is irrelevant in the beginning.

• Properly building a narrative and identifying high probability setups takes time and experience.

• At the start, visual review of trades is more important than quantitative data.

• Visually reviewing screenshots can reveal mistakes such as trying to trade in a dumb area or timeframe.

When to Pay Attention to Strike Rate and Profit Expectancy

As traders gain more experience, they can begin paying attention to strike rate and profit expectancy. However, it's important not to get lost in the details of data too soon.

• Once traders have more experience and know their approach well, they can start paying attention to strike rate and profit expectancy.

• Don't waste energy on looking at stats too soon; spend time going back through daily markups instead.

• Traders who understand the narrative have gone through the process of visually reviewing their trades.

Zoom Out for Better Perspective

Traders should zoom out from month-to-month thinking when evaluating performance. Instead, think from quarters-to-quarters for better perspective.

• Three negative months in a row doesn't mean failure; the market moves in cycles.

• Don't be discouraged by a few losses; keep going and get 12 months of data.

• Emotions and life can get in the way of executing a trade plan, so don't expect to make a fixed salary every month.

• Think from quarters-to-quarters for better perspective rather than session-to-session or week-to-week.

The Importance of Backtesting

In this section, the speaker emphasizes the importance of backtesting and explains how it can improve trading results.

Why Backtesting is Important

• Properly forward testing and reviewing trades can significantly improve trading results.

• Scanning through previous weeks' trades, even for just 20-30 minutes, can put traders leagues ahead of others in the market.

• Procrastination should be avoided when it comes to backtesting. Starting with a quick weekly review is better than waiting months to begin.

• Although backtesting is not easy and can be frustrating at times, getting started and sticking with it will give traders the best chance of success.

Making Backtesting Sustainable

• At first, backtesting may feel like a chore but over time traders should aim to find a process that is sustainable for them.

• Doing a quick review each week can help make backtesting more manageable.

• Traders should start by creating a trade plan and then begin forward testing every day. Once they feel confident with their strategy, they can move on to proper backtesting.

Final Thoughts

• Traders should utilize all available resources such as team content and session recap videos when conducting their backtests.

• Trusting the process and having fun while backing oneself are key to successful trading.