Plan

Discretional model using short term mean reverting strategies to enter in direction of higher time frame trend.

• 3 bar high/low as directional filter http://my.jetscreenshot.com/demo/20120413-jfvi-120kb.jpg  ; http://my.jetscreenshot.com/demo/20120413-a7td-80kb.jpg  ; http://my.jetscreenshot.com/demo/20120413-lhgq-73kb.jpg ;  http://my.jetscreenshot.com/demo/20120413-5axy-80kb.jpg
• Quasimodo pattern to identify trend change http://www.nobrainertrades.com/2009/06/over-and-under-pattern.html.
• Average true range to identify "edges"
• Harmonic patterns for entry.http://harmonictrader.com/

Trading Plan

Money management

Money management rules are non negotiable. Non-compliance will result in termination of the project.

Maximum daily draw down 1.00% of notional capital (10% nominal)
Maximum daily draw down 3.00% of notional equity (30% nominal)

Position Sizing

Maximum position size 1.00% of notional capital (10% nominal)

Minimum position size 1.00% of notional capital (10% nominal)

note: Minimum position size is intended to reduce over trading. Scaling in and out of positions may result in individual positions being less than 1.00% of the notional account, however a minimum of 1.00% will be risked in total on the one "idea".

Entry

Weekly 3SMA touch
Quasimodo

Extended ATR

Harmonic Pattern

Stop Loss

minimum 20 pips through harmonic pattern requirement (X) for Gartley and Bat
minimum 20 pips through next XA fib for Butterfly and Crab

Exit

3SMA high or low - depending on direction.

Exits are guides only. Early exit is permitted.

Time frame

W1/D1 for trend direction (3SMA)
H4/H1 for mean reversion and entry

When

Enter in first two hours of SPI, FTSE or S&P open.