How to Write The Best Commodity Trading Plan
The following is a trade plan examples template of a best commodity plan:
JUSTIFICATION
1. Commodity Trading IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS
- Businesses that are successful always begin with a plan.
- Successful business planning will guide you to success, think of the commodity plan as a map: it's a constant reminder of how you will consistently pull profits from the commodities market.
- Difference between a successful commodity trader & a losing one is the commodity plan.
2. TO KEEP ME IN THE RIGHT DIRECTION when Trading Commodities
Consistency is important in your routine to measure how successful you're.
Keep you on target, read your commodity plan every day and stick to it.
When it comes to your commodity trade plan you should think of it as a map that shows you this is what you follow, it should have clear commodity rules that specify when you open or close a commodity trading transaction.
Your commodities trading plan should cover all aspects of commodity, you should read your commodity plan every day until it is on your fingertips so that when you are trading 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 commodity plan you have an advantage over the commodity market, you'll have better odds of making a profit than those commodity traders who do not have a commodity trade plan.
This commodity plan tutorial topic provides commodity traders with an example commodity plan template that you can use for creating your own commodity trade plan. By now you have already written down the justification part of your commodity plan template, If not get a pen and paper and write the justification part. Next we shall look at how to write the commodities trading system.
Commodities plan is one of the secrets which can help you to improve your trading profits. A good commodity training guide like this one should show you how to create a commodity plan using a commodity plan template which you can use as an example to develop your own.
One of the most common asked question is, Is Commodities profitable? one of the methods to make it profitable is to have a good commodity trade plan.
IF YOU HAVE A GOOD Commodity Trading PLAN AND YOU ARE DISCIPLINED ENOUGH TO STICK TO IT When Commodity Trading, YOU WILL BE SUCCESSFUL.
GOALS OF THE Commodities TRADING SYSTEM
- Ability to IDENTIFY A Commodity Trading TREND AS EARLY AS POSSIBLE .
- Ability to AVOID WHIPSAWS .
The commodity system should find a compromise between the two 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 real ones.
FUNCTIONS OF EACH Commodity TECHNICAL INDICATOR
MA - Identify a new commodity trend as early as possible.
MACD - Identify a commodity trend as early as possible.
Determine strength of a continuing commodities trend.
RSI - Swing failure to confirm the begin of a new commodities trend.
Extra confirmation commodity indicators and tools to help determine the strength of our commodities trend.
Parabolic SAR - Help to ensure that we are not caught up on the wrong side of the commodities trend.
Commodities Trend Lines - Signals a reversal when the commodity trend line is broken
Commodity Trading Price Action Signals - confirm the weakening of a commodities trend.
Bollinger Band - for commodities trading price action study
To learn more about each commodity indicator and how these indicators can be used to generate commodity signal setups you can go to Commodities Technical Indicators Section
CHART TIMEFRAMES
- Main commodity chart time frame is the 1H.
- Commodity Trading Signals are generated on the 15 minute chart time frame.
15 Minutes Commodity Trading Charts
- Commodities Trend-Lines (Support & Resistance)
- 5 & 7 LWMA
- RSI (14)
- Bollinger Bands (20, 2)
Commodity Trading System RULES
LONG ENTRY
Entry
15 Minutes Charts
- Both MAs are moving UP
- MACD moving UP
- RSI >-> 50
- Parabolic SAR is below the commodities trading price ( Support )
When a commodity signal is generated on the 1 Hour Chart, use the 15 minute chart time frame to open and close positions.
LONG EXIT
- RSI gives opposite trading signal
- Commodities Price breaks Support Commodities Trend Line
- Parabolic SAR is hit (Trailing Stop)
RULES
SHORT ENTRY
Entry
15 Minutes Charts
- Both MAs are moving DOWN
- MACD moving DOWN
- RSI <-< 50
- 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 positions.
SHORT EXIT
- RSI gives opposite trading signal
- Commodities Price action breaks Support Commodities Trend Line
- Parabolic SAR is hit (Trailing Stop)
ROUTINE
- commodities trading signals are generated using 1H commodity chart time frame and executed using the 15 minute commodities chart timeframe.
- commodities trading signal to be executed immediately rules are met.
- Entry alert signals should be executed during daytime.
TIME OF DAY TO WATCH MARKET - MARKET HOURS
Watch market during daytime when most companies & online commodity brokers are open for trade transactions. Use this to come up with a suitable commodity schedule.
Example Trading Plan Template
Commodities Tips - You can use the MT4 Commodities Trading Software to save this commodity plan example as a commodity template on the MT4 platform - that way you don't have to lay it afresh every time you open a new commodity chart. If you want to learn how to save a commodity template on the MT4 platform, read: MT4 Commodities Platform Tutorials.
MONEY MANAGEMENT RULES
- 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 3 % of commodity account equity
- Never risk more than 2% on a single trade
MINDSET/PSYCHOLOGY
- Trade without Emotions (greed, fear, impulse, bias, anticipation, overexcitement)
- I trade what my eyes see not what I feel.
- I will be patient.
My job 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 trading rules which tells me this is what I follow. Do not get caught up in commodities trading price action & make rules as you go along.
MY JOB DESCRIPTION IS
To sit patiently and wait for my commodity strategy to indicate that it is time to enter or it is time to exit. And then with great focus I execute commodity trade plan as outlined.
Taking trades not indicated by the commodity system, second guessing the commodity system and not taking signals given, hesitating and getting in late, anticipating and getting in early are all common place and boil down to lack of faith in the plan and not having a burning focus on accurate execution.
GOAL: To have 100% undivided focus on mastering my ability to execute my commodities trading rules accurately.
More you develop the ability to step back from commodities trading price movement & watch the commodity market dispassionately, waiting for a trading signal, the easier it will be to witness fluctuations of your emotions without getting sucked into them & allowing them to throw you off your game.
WEAKNESS
- I am greedy.
- I over-trade
- 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 Commodities psychology to help you overcome them.
NB: by writing down your weaknesses you will start recognizing them as you make progress in commodities trading, once you do this you'll start to avoid this mistakes & your trading results will improve.
GOALS
- To focus on exit just as much as I do on entry signals.
- Always protect my commodity account using stop loss, commodity money management techniques, follow with the commodity trend direction & always following the rules of my commodities trading strategy.
- Never second guess or go against my commodity strategy. To always keep up my discipline.
- Follow all the rules of my commodities strategy and never break them.
- Trade fewer times & execute all my commodity signals correctly. Trade what I see, what the commodity system + commodity charts are telling me.
- Sit patiently & wait for commodity signals from my commodities trading strategy.
- Achieve consistent profitable results before opening a live commodities account.
FOLLOW THIS SYSTEM
This is the most important part of creating the commodity system.
Always follow the commodity rules
Stick with the commodity rules
Be disciplined & patient enough
Commodity Trading JOURNAL
Log all my commodity trade transactions in a commodity journal so as to track my training progress & improve my commodity execution methods.
The commodity strategy uses momentum to figure out the commodity trend of any commodity.
Even if you are new to commodities trading market & you do not know how a commodity system looks like, this commodity system examples illustrates to you how a commodity system commodity strategy should look like, the Commodities tutorials explained in other sections of this learn commodity 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's if you are looking for one, by showing you one that's already complete. In fact you can just use this commodity plan examples as it is, or make a few adjustments so that it fits your commodity style.
The aim is to help you improve your commodity results by using a commodity plan that is written, and another advantage is that this commodity trade plan will offer you a chance to improve your knowledge and it will help you trade better, make pips and keep them so that you do not keep giving them back to the commodities market.
Read this commodity plan training guide about developing a commodity trade plan of your own, along with learn commodity courses and commodity strategies listed at the tops of this learn commodity tutorial.
The Most Beneficial part of using this commodity plan template is the "Commodities Trading Money Management Part" you'll learn how to trade commodities trading and minimize risk, which is the most important thing when it comes to the commodity market trading.
