Mechanical Trading Plan
Analysis Process
1. Analyze the 1D time frame to identify the trend direction, range and find high probability
points of interest (POI).
2. Zoom into 4H time frame and refine those POI and identify trend. Identify the break of
structure and where the institutions have entered the market using: weak & strong
high’s and low’s, order blocks, where the liquidity and/or inducement areas are, market
imbalance/inefficiency and premium & discount zones within price action. Confirm the 4H
time frame POI align with the areas found on the 1D time frame.
3. Use the 1H time frame to identify entry signals using: weak & strong high’s and low’s,
order blocks, where the liquidity and/or inducement areas are, market imbalance/inefficiency
and premium & discount zones within price action. Identify stop loss & target location(s).
Bear in mind: where price is in relation to the 1D swings (strong or weak levels), 4H trend
(strong or weak levels) and premium & discount zones of all three time frames (1D, 4H
and 1H).
Before Execution Checklist
1. Price near POI.
2. Price took liquidity and left some behind.
3. Sign of Wyckoff signature.
Execution & Management Process
1. Zoom into the M10 time frame and target 1H weak structure (weak low failing to break
swing high and weak high failing to break swing low) from strong structure (strong low
that breaks weak high and strong high that breaks weak low).
2. Always look to take the trade from extremes ie. strong levels (unless the flip sweeps
liquidity).
3. From the M10 time frame confirm your entry & execute when it agrees with the direction
of the 1H trend.
4. Move stop loss to break even when trade is at 2R.
5. Trail the stop loss to follow bullish/bearish structure.
6. Take partial profits at any POI between your entry & target.
Risk Control Strategies
1. Aim to make 3:1 ratio minimum.
2. Build a system that makes money even when you lose 50% of trades.
3. Use a stop loss on every single trade you take.
Rules & Guidelines
1. Only trade during London and New York session.
2. Don’t hold trades overnight.
3. Don’t hold trades during news events.
4. Don’t take more than 2 trade per day.
5. Stop trading if you lose 6 trades in 1 week.
