A trading plan is your business blueprint. Without one, you're gambling. With one, you're operating a systematic business. This article provides a template for creating a comprehensive forex trading plan with integrated risk management.
Trading Plan Components
1. Goals and Expectations
Define realistic monthly/yearly targets. Focus on process goals (% of trades following rules) rather than just profit targets.
2. Market and Timeframe
Specify exactly which pairs you trade and on which timeframes. Stick to this — no exceptions for "interesting" setups in unfamiliar markets.
3. Strategy Rules
Complete entry and exit criteria. For the Katana system: MA5/MA20 crossover + AO confirmation + fractal entry.
4. Risk Parameters
- Maximum risk per trade: 1-2%
- Maximum daily loss: 3-5%
- Maximum weekly loss: 5-8%
- Maximum open positions: 3
- Maximum total exposure: 5-6%
5. Drawdown Protocol
What to do when drawdown reaches certain levels: reduce size at -10%, pause trading at -15%, seek mentorship at -20%.
6. Psychological Rules
- No trading when emotional state > 7/10
- Mandatory 15-minute break after any loss
- Maximum 3 consecutive losses before stopping for the day
- Weekly review of trading journal
Conclusion
Your trading plan is a living document — review and update it monthly. The Supervision Room provides accountability for following your plan, and Personal Mentorship helps you build one tailored to your psychology.