Explore the "Trading Template," designed for accurate asset identification, evaluation, trading execution, and monitoring to optimize your trading strategy.
1
Identify the Asset for Trading
2
Evaluate the Asset
3
Eliminate Non-Favorable Assets
4
Run Market Analysis on Selected Asset
5
Approval: Market Analysis
6
Produce Trade Simulation
7
Assess Simulation Results
8
Approval: Simulation Results
9
Determine Trade Entry Point
10
Refer to Trading Policy for Limits
11
Set Stop-Loss and Take-Profit Levels
12
Execute Trade
13
Record the Trade Information
14
Monitor the Market Post-Trade
15
Keep Track of Profit/Loss Changes
16
Re-evaluate Asset at Close of Trading
17
Generate End-of-Day Report
18
Approval: End-of-Day Report
19
Archive Trade Data
20
Review and Prepare for Next Trading Day
Identify the Asset for Trading
In this task, you will identify the asset that you want to trade. Consider factors such as market trends, potential profit, and your risk tolerance. Think about what assets align with your trading strategy and goals. What are the risks and benefits of trading this asset? Make sure to research and gather all relevant information before making a decision.
1
Stocks
2
Forex
3
Commodities
4
Cryptocurrency
5
Options
1
Technical Analysis
2
Fundamental Analysis
3
Sentiment Analysis
4
Quantitative Analysis
5
Intermarket Analysis
1
Gather historical price data
2
Analyze news and events
3
Evaluate market trends
4
Assess volatility
5
Consider supply and demand factors
Evaluate the Asset
In this task, you will evaluate the selected asset to assess its potential profitability and risks. Analyze factors such as historical performance, market conditions, and any relevant news or events. Consider the asset's volatility, liquidity, and correlation with other assets. Use appropriate tools or indicators to aid your evaluation. What are the key metrics or indicators you will use to evaluate the asset? How will you interpret the results? Make an informed judgement based on your analysis.
1
Technical Analysis
2
Fundamental Analysis
3
Sentiment Analysis
4
Quantitative Analysis
5
Intermarket Analysis
1
Moving Averages
2
Relative Strength Index (RSI)
3
MACD
4
Support and Resistance Levels
5
Earnings Per Share (EPS)
Eliminate Non-Favorable Assets
In this task, you will eliminate any non-favorable assets from your potential trading options. Review the evaluation results of each asset and compare them against your trading strategy and criteria. Eliminate assets that do not meet your requirements or do not align with your trading goals. What are the specific criteria or factors that make an asset non-favorable? Discuss any challenges or considerations when eliminating assets. Document your final list of favorable assets for further analysis.
1
Low liquidity
2
High volatility
3
Weak correlation
4
Negative news sentiment
5
Poor historical performance
1
Asset A
2
Asset B
3
Asset C
4
Asset D
5
Asset E
Run Market Analysis on Selected Asset
In this task, you will conduct a thorough market analysis on the selected asset to gather more insights and refine your trading strategy. Use various methods of analysis, including technical, fundamental, and sentiment analysis. Monitor market trends, news, and events that may impact the asset's price. Evaluate any potential risks or opportunities. What specific analysis techniques or tools will you utilize? How will you interpret the market analysis results? Document your findings and insights for future reference.
1
Technical Analysis
2
Fundamental Analysis
3
Sentiment Analysis
4
Quantitative Analysis
5
Intermarket Analysis
1
Low
2
Medium
3
High
Approval: Market Analysis
Will be submitted for approval:
Run Market Analysis on Selected Asset
Will be submitted
Produce Trade Simulation
In this task, you will simulate the potential trade scenario for the selected asset based on the analysis and evaluation. Use a trade simulation tool or platform to generate a simulated trading environment. Set parameters such as entry price, stop-loss, take-profit levels, and trading size. Monitor the simulated trade's performance and track its profitability or loss. What simulation tool or platform will you use? How will you set the simulation parameters? Document the details and results of the trade simulation.
1
TradingView
2
MetaTrader
3
Thinkorswim
4
NinjaTrader
5
Interactive Brokers
Assess Simulation Results
In this task, you will assess the results of the trade simulation to determine its feasibility and effectiveness. Analyze the simulated trade's performance, including profit/loss, risk/reward ratio, and other relevant metrics. Evaluate the consistency and reliability of the simulation results in relation to the market conditions. Identify any potential issues or discrepancies. How will you interpret the simulation results? What criteria will you use to assess the effectiveness of the simulation? Provide suggestions or improvements based on the findings.
1
Profitability
2
Risk/Reward Ratio
3
Win Rate
4
Consistency
5
Market Adaptation
1
Adjust entry strategy
2
Refine risk management
3
Modify position sizing
4
Consider alternative assets
5
Improve trade execution
Approval: Simulation Results
Will be submitted for approval:
Produce Trade Simulation
Will be submitted
Determine Trade Entry Point
In this task, you will determine the optimal trade entry point for the selected asset based on the analysis and simulation results. Consider factors such as support and resistance levels, price patterns, and market dynamics. Set specific criteria or indicators that will trigger the entry. Define the entry price and any additional conditions. How will you identify the trade entry point? What are the specific criteria or indicators you will use? Document the details of the trade entry plan.
1
Breakout above resistance
2
Pullback to support level
3
Confirmation from multiple indicators
4
Candlestick pattern formation
5
Convergence of trend lines
Refer to Trading Policy for Limits
In this task, you will refer to the trading policy and guidelines to set specific limits and conditions for the trade. These limits may include maximum risk exposure, position size, leverage, and other risk management parameters. Ensure that your trade aligns with the trading policy and complies with any regulatory requirements. What are the specific limits and conditions set by the trading policy? How will you ensure compliance with the policy? Document the details and limits for the trade.
1
Small
2
Medium
3
Large
4
Custom
1
Check regulatory requirements
2
Review trading policy
3
Consult with compliance officer
4
Confirm risk management measures
5
Calculate position size
Set Stop-Loss and Take-Profit Levels
In this task, you will set the stop-loss and take-profit levels for the trade. Determine the maximum acceptable loss level and the desired profit target. Consider factors such as support and resistance levels, risk/reward ratio, and market volatility. Set specific criteria or indicators that will trigger the stop-loss or take-profit orders. How will you determine the stop-loss and take-profit levels? What are the specific criteria or indicators you will use? Document the details and levels for the trade.
1
Support level breach
2
Moving average crossover
3
Volatility-based stop
4
Percentage-based stop
5
Chandelier exit
1
Resistance level breakout
2
Profit target based on risk/reward ratio
3
Trail stop with moving average
4
Percentage-based target
5
Indicator divergence
Execute Trade
In this task, you will execute the trade based on the determined entry point, stop-loss, and take-profit levels. Submit the necessary orders through your trading platform or broker. Double-check the order details and confirm the trade execution. Monitor the trade's progress and any changes in market conditions. What trading platform or broker will you use? How will you confirm the trade execution? Document the trade execution details.
1
E*TRADE
2
Interactive Brokers
3
TD Ameritrade
4
Fidelity
5
Robinhood
Record the Trade Information
In this task, you will record all the relevant information about the executed trade. This includes the trade's details such as entry point, stop-loss and take-profit levels, trade size, and any additional notes. Maintain accurate and organized records for future reference and analysis. How will you structure the trade information? What specific details will you include? Document all the trade-related information.
Monitor the Market Post-Trade
In this task, you will monitor the market and the performance of the executed trade after it has been completed. Keep an eye on price movements, news releases, and any other factors that may impact the trade. Monitor the trade's progress in relation to the set stop-loss and take-profit levels. How will you monitor the market? What are the specific factors you will keep track of? Document any relevant observations or updates related to the trade.
1
Check price movement
2
Monitor news releases
3
Review relevant economic indicators
4
Assess market sentiment
5
Track trade performance
Keep Track of Profit/Loss Changes
In this task, you will keep track of the profit/loss changes of the executed trade. Calculate the current profit/loss status based on the market price and the trade's entry and exit levels. Monitor any changes in the profit/loss value. How will you calculate the profit/loss changes? What specific factors will you consider? Document the profit/loss updates and any related insights or observations.
Re-evaluate Asset at Close of Trading
In this task, you will re-evaluate the asset at the close of trading to assess its performance and determine whether to continue or close the trade. Analyze factors such as the asset's price movement, market conditions, and any relevant news or events. Evaluate the asset's performance against your initial expectations. How will you review and analyze the asset's performance? What criteria will you use to make the decision? Document the re-evaluation results and any related insights.
1
Profitability
2
Market Conditions
3
News/Events Impact
4
Comparison with Similar Assets
5
Risk/Reward Ratio
1
Continue Trade
2
Close Trade
3
Adjust Trade Parameters
Generate End-of-Day Report
In this task, you will generate an end-of-day report summarizing the trading activities and results for the day. Include details such as executed trades, profit/loss figures, and any notable observations or insights. Provide a clear and concise summary of the day's trading performance. How will you structure the end-of-day report? What specific information will you include? Document the key highlights and results of the trading day.
Approval: End-of-Day Report
Will be submitted for approval:
Generate End-of-Day Report
Will be submitted
Archive Trade Data
In this task, you will archive the trade data for future reference and analysis. Store the relevant documents, reports, and records in a secure and organized manner. Maintain a proper system of categorization and labeling to easily retrieve the archived data when needed. How will you organize and store the trade data? What specific documents or records will you archive? Document the archiving process and any specific instructions or considerations.
1
Save trade execution confirmations
2
Store analysis reports
3
Back up data on external storage
4
Organize files by date or asset
5
Encrypt sensitive information
Review and Prepare for Next Trading Day
In this task, you will review the trading activities and results of the day, identify areas for improvement, and prepare for the next trading day. Analyze the performance, any mistakes or missed opportunities, and lessons learned. Adjust your trading strategy or parameters as necessary. Develop a plan or checklist for the upcoming trading day. How will you review the trading day? What specific areas will you focus on for improvement? Document the key takeaways and the preparation for the next trading day.
