Updated Trading Plan for E-mini S&P 500 Futures

Trading Goals
Monthly Profit Target: $5,000
Maximum Drawdown: 10%
Risk Per Trade: 1-2% of trading capital

Market Selection
Index: E-mini S&P 500 Futures (ES)
Trading Hours: Day Trading (9:30 AM - 4:00 PM ET)

Trading Strategies

Enhanced Morning Strategy (9:30 AM - 12:00 PM)

Pre-Market Preparation

1. Morning Routine:

Ensure adequate rest and nutrition.

Review economic calendars and news headlines for significant events.
Open your trading platform and ensure all indicators and charts are properly set.

2. Pre-Market Analysis:

Check the performance of overnight markets.

Identify and mark pre-market high and low levels.
Determine the general trend using daily and 5-minute charts.

Opening Strategy

1. Opening Drive:
 Identification: Monitor the market at the open for strong directional moves
within the first 15-30 minutes, characterized by high volume.
Execution:

Bullish: Enter a long position if the price action shows a strong upward move
with the 5-period SMA crossing above the 15-period SMA on the 1-minute
chart.
Bearish: Enter a short position if the price action shows a strong downward
move with the 5-period SMA crossing below the 15-period SMA on the 1-
minute chart.

Confirmation: Use candlestick patterns (e.g., bullish engulfing for long, bearish
engulfing for short) and volume spikes as additional confirmation.

2. Mastering the Clock:

Key Times:

9:30 - 10:00 AM: Initial volatility. Look for initial direction and potential
breakouts or breakdowns.
10:00 - 10:30 AM: Potential reversal or continuation of the opening trend.
Monitor for significant news releases at 10:00 AM.
11:00 AM - 12:00 PM: Mid-morning trends and setups. Look for continuation
or trend exhaustion signals.

Trend Following Strategy

1. Identifying the Trend:

Early Recognition: Look for signs of a trending day early, such as lack of trading
on both sides of the open and large rotations in one direction.
Entry Points: Utilize the 5 & 15-period SMA crossover on the 5-minute chart to
identify trend entry points:

Bullish Trend: Enter long when the 5-period SMA crosses above the 15-
period SMA and price action confirms.
 Bearish Trend: Enter short when the 5-period SMA crosses below the 15-
period SMA and price action confirms.

2. Pullbacks and Continuations:

Entry on Pullbacks: Enter on pullbacks to the 5 or 15-period SMA during a

trending move. Look for confirmation with volume spikes and bullish/bearish
candlestick patterns at these levels.
Continuation Patterns: Monitor for continuation patterns such as flags, pennants,
or consolidation breakouts.

Targets and Exits

1. High-Quality Targets:

Use the overnight high or low as potential targets.

Target the initial balance high or low, which typically gets broken during the
trading session.

2. Exit Strategies:

Fixed Profit Targets: Use a multiple of the Average True Range (ATR) or a
predefined number of points as profit targets.
Trailing Stops: Adjust trailing stops to lock in profits as the trade moves in your
favor.

Risk Management

1. Stop-Loss Placement:

Place stop-loss orders below the recent swing low (for longs) or above the recent
swing high (for shorts).
Use ATR to determine the appropriate stop-loss distance if recent swings are too
close.

2. Position Sizing:
 Calculate position size based on risk tolerance and stop-loss distance to ensure
consistent risk per trade.

Review and Adjustment

1. Mid-Morning Review:

Assess the morning’s trades and market behavior.

Adjust strategy based on observed patterns and market conditions.

2. End of Morning Session:

Close all positions by 12:00 PM.

Review trades, journal performance, and prepare for the afternoon session.

Enhanced Afternoon Strategy (2:00 PM - 3:50 PM)

Pre-Afternoon Preparation

1. Afternoon Routine:

Review the morning session’s performance and adjust your plan based on
observed market conditions.
Check for any significant news or economic data scheduled for the afternoon
session.

Afternoon Strategy

1. 5 and 15-Minute Crossover Strategy:

Crossover Identification: Monitor the 5 and 15-period SMA on both the 5-

minute and 1-minute charts.
Bullish Signal: Enter long when the 5-period SMA crosses above the 15-period
SMA on the 5-minute chart, confirmed by the same crossover on the 1-minute
chart.
Bearish Signal: Enter short when the 5-period SMA crosses below the 15-period
SMA on the 5-minute chart, confirmed by the same crossover on the 1-minute
 chart.

2. Support and Resistance:

Identify Key Levels: Mark key support and resistance levels on the 5-minute chart
based on price action from the morning session.
Confirmation: Look for bullish or bearish candlestick patterns at these levels to
confirm entries.

Trade Execution and Management

1. Entry Execution:

Use market orders for immediate entry upon crossover signals.

Place limit orders for retracement entries within the crossover signals.
Set stop-loss orders below the recent swing low (for longs) or above the recent
swing high (for shorts).

2. Trade Monitoring:

Continuously monitor price action and volume in real-time.

Move stop-loss orders to break-even once the trade moves in favor.
Exit trades at predefined profit targets or based on reversal signals.

3. Profit Management:

Fixed Profit Targets: Use a multiple of ATR or a predefined number of points.

Trailing Stops: Adjust trailing stops to lock in profits as the trade progresses.

Transition Times and Key Considerations

1. Key Transition Times:

2:00 - 2:30 PM: Monitor for initial afternoon volatility and potential reversals.
 3:00 - 3:30 PM: Be cautious of late-day volatility and possible trend reversals as
traders position themselves for the market close.

2. Volume and Price Action:

Pay attention to volume spikes and significant price action around key support
and resistance levels.
Use price action analysis to confirm trends and potential reversals.

Daily Review and Adjustments

1. Post-Market Routine:

Review trades and analyze each trade for adherence to the plan and outcomes.
Update trading journal with entries, exits, reasons for trades, and results.
Plan for the next trading day by identifying key levels and reviewing the overall
market context.

2. Performance Analysis:

Conduct a weekly review of all trades and journal entries.

Summarize monthly performance, focusing on key statistics and lessons learned.
Make necessary adjustments to the trading plan based on performance analysis.

Changes Made:

1. Market Condition Strategy:

Added specific trading conditions based on "TENDENCIES_DATA":

Tuesday: Trade on Tuesdays as they show positive average percentage

changes.
Friday: Trade on Fridays due to a moderate positive tendency.

2. Identifying the Trend:

 Incorporated the data from "INDEX TENDENCIES" to focus on days with positive
tendencies, specifically avoiding Wednesdays due to negative tendencies.

3. Key Transition Times:

Highlighted transition times for both morning and afternoon sessions to

capitalize on high-probability periods based on historical data.

4. Exit Strategies:

Added more detailed fixed profit targets and trailing stops using ATR multiples.

These updates integrate the insights from the spreadsheet into your trading plan,
enhancing your approach to day trading the E-mini S&P 500 futures. Start testing the
updated plan in a simulated environment to ensure its effectiveness before trading with
real capital.