How to Write a Good Commodity Trading Plan

trading plan checklist - the following is a template examples of a commodity plan template example:

JUSTIFICATION

1. Commodities Trading IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS

• Businesses that are successful always start with a plan.
• Successful business planning will guide you to success, think of trade plan as a map: it's a constant reminder of how you'll consistently pull profits from the commodities market.
• Difference between a successful trader & a losing commodity one is the trade plan.

2. TO KEEP ME IN THE RIGHT DIRECTION when Trading Commodity

Consistency is important in your routine to measure how successful you're.

Keep you on target, read the trade plan every day & stick to its rules.

When it comes to your plan you should think of it as a map that shows you this is what you follow, it should have clear guidelines which specify when you open or close a trade.

Your commodity plan should cover all aspects of commodity, you should read the commodity plan every day until it is on your fingertips so that when you are transacting on the fast moving market of commodity you'll always know what to do in every situation.

Your commodity plan can be as simple or as complicated as you like, but the most important thing is that you have one. By having a one you have an advantage over the market, you'll have better chances of making a profit than those who do not have one.

This commodity plan checklist tutorial topic provides with an example commodity plan template that you can use for creating your own trade. By now you have already written down the justification part of your commodity plan template, If not get a pen & paper & write the justification part. Next we shall look at how to write the system.

Commodity Trading plan is one of the secrets which can help you to improve your profits. A good commodity training guide like this one should show you how to come up with one using a commodity plan template which you can use as an example to develop your own trade plan.

One of the most common asked question is, Is Commodity Trading profitable? one of the techniques to make it profitable is to have a good plan.

IF YOU HAVE A GOOD Commodities Trading PLAN & YOU ARE DISCIPLINED ENOUGH TO STICK TO ITS RULES When Commodities Trading, YOU WILL BE SUCCESSFUL.

GOALS OF THE TRADING SYSTEM

1. Ability to IDENTIFY TREND AS EARLY AS POSSIBLE .
2. Ability to AVOID WHIPSAWS .

The trade system should find a compromise between the 2 Goals,

Find a way to identify a commodity trend as early as possible but also find ways to help you distinguish the fake trading signals from the live ones.

FUNCTIONS OF EACH INDICATOR

MA - Identify a new trend as early as possible.

MACD - Identify a commodity trend as early as possible.

Determine strength of a continuing trend.

RSI - Swing failure to confirm the start of a new commodities trend.

Extra confirmation tools to help determine the strength of our commodities trend.

Parabolic SAR - Help to ensure that we aren't caught up on the wrong side of the trend.

Trend Lines - Signals a reversal when the line is broken

Trading Price Action Signals - confirm the weakening of a trend.

Bollinger Band - for commodities trading price action study

To learn more about each indicator & how these indicators can be used to generate trading signal setups you can go to Technical Commodity Indicators Section

CHART TIMEFRAMES

• Main timeframe is the 1H.
• Signals are generated on 15 minutes time frame.

15 Minutes Charts

• Trend-Lines (Support & Resistance)
• 5 & 7 LWMA
• RSI (14)
• Bollinger Bands (20, 2)

RULES

LONG ENTRY

Entry

15 Minutes Charts

1. Both MAs are moving UP
2. MACD moving UP
3. RSI >-> 50
4. Parabolic SAR is below the commodities trading price ( Support )

When signal is generated on the 1 Hour Trading Chart, use the 15 minute chart time frame to open and close positions.

LONG EXIT

1. RSI gives opposite signal
2. Price breaks Support Trend-Line
3. Parabolic SAR is hit (Trailing Stop)

RULES

SHORT ENTRY

Entry

15 Minutes Charts

1. Both MAs are moving DOWN
2. MACD moving DOWN
3. RSI <-< 50
4. Parabolic SAR is above the commodities trading price ( Support )

When signal is generated on the 1 Hour Chart, use the 15 minute chart time frame to open and close trade transactions.

SHORT EXIT

1. RSI gives opposite signal
2. Price action breaks Support Trend-Line
3. Parabolic SAR is hit (Trailing Stop)

ROUTINE

1. Signals are generated using 1H commodity chart time frame and executed using the 15 minute commodities chart timeframe.
2. Trading signal to be executed immediately trading rules are met.
3. Entry alert signals should be executed during daytime.

TIME OF DAY TO WATCH MARKET - MARKET HOURS

Watch market during daytime when most companies and online brokers are open for trades. Use this to create a suitable program.

Example Trading Plan Template

Tips - You can use the MT4 Trading Platform to save this as a commodity template that way you don't have to lay it afresh every time you open a new chart. If you want to learn how to save a commodity plan template on the MT4 platform, read: MT4 Platform Tutorial Guides.

Commodity Money Management

• Day trading - Low risk High return technique
• Trade when I have a high risk:reward ratio 3:1 or more
• Stop loss = Parabolic SAR

• Set TP target 40-60 Commodity Trading Pips
• Never transact beyond Three % of account equity
• Never risk more than 2% on one trade transaction

Commodity Trading MINDSET/PSYCHOLOGY

• Trade without Trading Emotions (greed, fear, impulse, bias, anticipation, overexcitement)
• I trade what I see not what I feel.
• I will be patient.

My job description is not to be the commodity system!

It is not to decide which signal looks promising.

That is the job of my commodity system - which has a set of commodity guidelines which tells me this is what I follow. Don't get caught up in commodities trading price action & make trading rules as you go along.

MY JOB DESCRIPTION IS

To sit patiently & wait for my commodity strategy to indicate that it's time to enter or it's time to exit. And then with great focus I execute commodity plan as outlined.

Taking trades not indicated by the commodity system, second guessing it and not taking signals given, hesitating and getting in late, anticipating and getting into trades early are all common place and boil down to lack of faith in the plan and not having a burning resolve on accurate trade execution.

GOAL: To have 100 % undivided desire on mastering my ability to execute my Commodity Trading rules accurately.

More you cultivate your ability to step back from commodities trading price movement & watch the market dispassionately, waiting for a commodity signal, the easier it will be to witness the fluctuations of your emotions without getting sucked into them & allowing them to throw you off your trading game.

WEAKNESS

1. I am greedy.
2. I over-trade
3. Make a list of all your weaknesses that are interfering with your trading. This is the first step to help you overcome these weaknesses. Use Commodity Trading psychology to help you overcome them.

NB: by writing down your weaknesses you will begin recognizing them as you make progress, once you do this you'll start to avoid these trading mistakes and your trading results will improve.

GOALS

• To focus on exit just as much as I do on entry signals.
• Always protect my account using stop loss, commodity money management techniques, follow with the trend direction & always following the trading rules of my trading strategy.
• Never second guess or go against my trading strategy. To always keep up my discipline.
• Follow all the guide-lines of my commodities strategy and never break them.
• Transact fewer times & execute all my signals correctly. Trade what I see, what the system + commodity charts are telling me.
• Sit patiently and wait for signals from my strategy.
• Achieve consistent commodity results before opening a live commodities account.

FOLLOW THIS Commodity Trading SYSTEM

This is the most important part of creating the commodity system.

Always follow the trading rules

Stick with the trading rules

Be disciplined & patient enough

Commodities JOURNAL

Log all my trade transactions in a commodity journal so as to track my training progress and improve my commodity execution trading methods.

This commodity strategy uses momentum to figure out the trend of any commodity.

Even if you are new to trading market & you do not know how a commodity system looks like, this commodity system template example illustrates to you how a trading strategy should look like, the Commodity Trading guides described in other sections of this training website will also explain further different aspects that you need to learn.

Hence, the objective is to help you create your own complete commodity strategy that is if you are looking for one, by showing you one that's already complete. In fact you can just use it as it is, or make a few adjustments so that it suits your commodity style.

The aim is to help you improve your commodity results by using a commodity plan, & another advantage is that this trade plan will offer you a chance to improve your knowledge and it will help you improve your commodity results and help you make pips when commodity and keep them so that you do not keep giving them back to the commodities market.

Read this commodity plan training lesson about developing a commodity trade plan of your own, along with learn commodity courses and commodities trading strategies listed at the tops of this learn commodity guide web site.

The Most Beneficial part of using this commodity plan template is the "Commodities Trading Money Management Part" you'll learn how to trade commodities and minimize risk, which is the most important thing when it comes to trading the commodities market.

Commodity Trading Plan Checklist - How to Develop a Trading Plan in Commodity Trading - Commodity Trading Plan Example - Commodity Trading Plan Doc