Today we will work backward from the trade plan back to how to develop a method for that plan.
You don’t have to develop your methods but never just depend on learning somebody else’s method as if all you had to do was follow instructions. You need to understand and make it your own. Even if you don’t want to design your methods, approach this as a learning exercise.
Let’s structure how to go about developing a method. First start with a bassline and then work your way through the process.
- Start with a repeatable market structure pattern. You can also use an indicator, trendline, or whatever it is you relate to and can see.
- Understand the essence of your pattern and use this as a bassline to develop from.
- Structure objective trade rules around that pattern. How are you going to enter, place a stop, manage trade, and exit?
- Test it and learn.