Trading Rules

General Rules

  1. Objective – Generate consistent income
  2. Market – Futures
  3. Product – E-Mini Dow Futures
  4. Strategy – To Capture Strong Opening, Trend, Reversal and Wide Range Movement
  5. Weakness – Narrow Range Movement and Erotic Market Movement
  6. Maximum Risk – 100 Points Per Day
  7. Trading Session – First 3 Hours of US Market
  8. Time Frame – 15 Minutes
  9. No. 1 Rule – Always Follow the Rules
  10. No Trading – If a situation occurs outside of the rules or there is a conflict in the Rules, Do Not Trade
  11. Mistakes – Correct mistakes immediately, regardless of Profit or Loss
  12. Pin-Head Candle – The entire body must be less than 1/4 of the wick
  13. Bollinger Band – 20 Length, 2 Deviation Up, -2 Deviation Down
  14. Bullish Candles
    1. Green Candles
    2. Hammer Candles
    3. Morning Star Dojis
  15. Strong Bullish Candles
    1. Full Green Candles with No Upper Wick
    2. Long Green Candles with Very Short Upper Wick
    3. Green Candles with Long Lower Wick and Very Short Upper Wick
  16. Bearish Candles
    1. Red Candles
    2. Shooting Star Candles
    3. Evening Star Dojis
  17. Strong Bearish Candles
    1. Full Red Candles with No Lower Wick
    2. Long Red Candles with Very Short Lower Wick
    3. Red Candles with Long Upper Wick and Very Short Lower Wick
  18. Support – Level where price stop falling and move upwards
  19. Resistance – Level where price stop raising and move downwards

Entries

  1. Open Trend Entry (Long)
    1. Signal
      1. Candles leading to open candle are Bullish
      2. Candles are above the Bollinger Middle Line
      3. Open Candle is a Bullish OR Doji
    2. Order
      1. Entry – 1 Point above Open Candle
      2. Stop – 5 Points below Open Candle or 5 Points below Support
  2. Open Trend Entry (Short)
    1. Signal
      1. Candles leading to open candle are Bearish
      2. Candles are below the Bollinger Middle Line
      3. Open Candle is a Bearish OR Doji
    2. Order
      1. Entry – 1 Point below Open Candle
      2. Stop – 5 Points above Open Candle or 5 Points above Resistance
  1. Open Reversal Entry (Long)
    1. Signal
      1. Candle breaks below Lower Bollinger Band
      2. Open Candle is Bullish OR Doji
    2. Order
      1. Entry – 1 Point above Bullish Candle
      2. Stop – 5 Points below Support
  2. Reversal Entry (Short)
    1. Signal
      1. Candle breaks above Upper Bollinger Band
      2. Open Candle is Bearish OR Doji
    2. Order
      1. Entry – 1 Point below Bearish Candle
      2. Stop – 5 Points above Resistance
  1. Trend Entry (Long)
    1. Signal
      1. Bollinger Middle Line is Pointing Upwards
      2. Candles are above the Bollinger Middle Line OR Market has made a Higher High
      3. Market make a Pause or Pullback follow by another Bullish Candle
      4. No Trend Entry at End of Trend
    2. Order
      1. Entry – 1 Point above Bullish Candle
      2. Stop – 5 Points below Bullish Candle or 5 Points below Support
  2. Trend Entry (Short)
    1. Signal
      1. Bollinger Middle Line is Pointing Downwards
      2. Candles are below the Bollinger Middle Line OR Market has made a Lower Low
      3. Market make a Pause or Pullup follow by another Bearish Candle
      4. No Trend Entry at End of Trend
    2. Order
      1. Entry – 1 Point below Bearish Candle
      2. Stop – 5 Points above Bearish Candle or 5 Points above Resistance
  1. Reversal Entry (Long)
    1. Signal
      1. Candle breaks below Lower Bollinger Band
      2. Next form a Bullish Candle
    2. Order
      1. Entry – 1 Point above Bullish Candle
      2. Stop – 5 Points below Support
  2. Reversal Entry (Short)
    1. Signal
      1. Candle breaks above Upper Bollinger Band
      2. Next form a Bearish Candle
    2. Order
      1. Entry – 1 Point below Bearish Candle
      2. Stop – 5 Points above Resistance

Trade Management

  1. Biasness
    1. High on the Curve, Short Bias
    2. Low on the Curve, Long Bias
  2. Move Stop – Move Stop to 5 Points from Next Entry or 5 Points from New Support/Resistance Formed
  3. Opposing Entries – Stop and Entry are at the same level, 5 Points from Entry Candle