Trading Plan Build Exercise - Trade off Orderblocks
Before ICT’s Month 6 - Lesson 3 Video → Here is where I’m doing the homework from Lesson 2 (Building an example Trading plan)
emagloire.atlassian.net/l/cp/cifnbnuL (Page for Homework Sheet)
The way Arjo explains there are 5 Foundational Levels within a Trade:
Bias
Narrative
Context
Entry
Risk Management
You work to build through a backward approach where you start from Entry (Risk Management actually lol) and work into what environments/elements/conditions constitute a trade to be executed in your plan
This exercise of building an example trading plan is influenced by Arjo’s structure in the above video.
How to build a Data Trading Plan
PD Array and Time in Focus
What PD Array you want to key in
What timeframe you want to execute on?
Gather Data in Specified Timeframe to understand amount of Trading Opportunities Presented and what was the expected outcomes
How many times does the Orderblock form?
How many times does the Orderblock hold?
Did the Orderblock created a Market Structure Shift?
How many times does the Orderblock Fail?
Did the Orderblock fail to create a Market Structure Shift?
Then based off the data, build your Trading Plan with consideration for what elements made up the winning trades. Starting with a Naked Trading Plan where you consider all entries off the PD Arrays.
PD Array in Focus:
PD Array: Orderblocks that led to a Market Structure Shift (Break of Structure “Continuation” & Change of Character “Reversal“)
Execution Timeframe: 1H
Gather Data:
Case Study Info
Ticker: GBPUSD
Time of Study: May 27, 2024 - Jun 16, 2024
*
*15 times (Win Rate: 60%)
*External Liquidity: 4 out of 5 (80% WR)
*Internal Liquidity: 11 out of 20 (55% WR)
*How many times does the Orderblock Fail?
9 times (Loss Rate: 40%)
External Liquidity: 1 out of 5 (20% LR)
Internal Liquidity: 9 out of 20 (45% LR)
Risk Management: Stop Loss at opposite extreme of OB or most recent Pullback (second Stop Loss considered when OB is tight)
Risk/Reward Summary:
1: +2 RR
2: -1 RR
3: -1RR
4: +2 RR
5: +2 RR
6: +2 RR
7: -1 RR
8: +2 RR
9: -1 RR
10: +2 RR
11: +2 RR
12: +2 RR
13: -1 RR
14: +2 RR
15: -1 RR
16: -1 RR
17: +2 RR
18: +2 RR
19: +2 RR
20: -1 RR
21: +2 RR
22: +2 RR
23: -1 RR
24: +2 RR
25: N/A
21 RR for a month of Orderblock Trading
24 trades of 20 trading days
Next Steps:
With the same Trading Plan - analyze your Trades and create improved trading plans based off of an aspect that could increase your trading win rate or lower the amount of trades you’re in or total volume of trades?
emagloire.atlassian.net/l/cp/cifnbnuL (Page for Homework Sheet)
The way Arjo explains there are 5 Foundational Levels within a Trade:
Bias
Narrative
Context
Entry
Risk Management
You work to build through a backward approach where you start from Entry (Risk Management actually lol) and work into what environments/elements/conditions constitute a trade to be executed in your plan
This exercise of building an example trading plan is influenced by Arjo’s structure in the above video.
How to build a Data Trading Plan
PD Array and Time in Focus
What PD Array you want to key in
What timeframe you want to execute on?
Gather Data in Specified Timeframe to understand amount of Trading Opportunities Presented and what was the expected outcomes
How many times does the Orderblock form?
How many times does the Orderblock hold?
Did the Orderblock created a Market Structure Shift?
How many times does the Orderblock Fail?
Did the Orderblock fail to create a Market Structure Shift?
Then based off the data, build your Trading Plan with consideration for what elements made up the winning trades. Starting with a Naked Trading Plan where you consider all entries off the PD Arrays.
PD Array in Focus:
PD Array: Orderblocks that led to a Market Structure Shift (Break of Structure “Continuation” & Change of Character “Reversal“)
Execution Timeframe: 1H
Gather Data:
Case Study Info
Ticker: GBPUSD
Time of Study: May 27, 2024 - Jun 16, 2024
- How many times does the Orderblock form?
- 26 times
- 2 orderblocks have not been traded to
- 24 useable Orderblocks
- 5 External Liquidity OBs
- 19 Internal Liquidity OBs
- Opportunity Rate: 92.3%
*
*15 times (Win Rate: 60%)
*External Liquidity: 4 out of 5 (80% WR)
*Internal Liquidity: 11 out of 20 (55% WR)
*How many times does the Orderblock Fail?
9 times (Loss Rate: 40%)
External Liquidity: 1 out of 5 (20% LR)
Internal Liquidity: 9 out of 20 (45% LR)
Risk Management: Stop Loss at opposite extreme of OB or most recent Pullback (second Stop Loss considered when OB is tight)
Risk/Reward Summary:
1: +2 RR
2: -1 RR
3: -1RR
4: +2 RR
5: +2 RR
6: +2 RR
7: -1 RR
8: +2 RR
9: -1 RR
10: +2 RR
11: +2 RR
12: +2 RR
13: -1 RR
14: +2 RR
15: -1 RR
16: -1 RR
17: +2 RR
18: +2 RR
19: +2 RR
20: -1 RR
21: +2 RR
22: +2 RR
23: -1 RR
24: +2 RR
25: N/A
21 RR for a month of Orderblock Trading
24 trades of 20 trading days
Next Steps:
With the same Trading Plan - analyze your Trades and create improved trading plans based off of an aspect that could increase your trading win rate or lower the amount of trades you’re in or total volume of trades?
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