Trading Manual - Art of the Trade

The Trader Within

This manual serves as my business plan, giving me structure, strategy, and a clear understanding of the risks and goals I need to focus on. It outlines my approach to the markets, risk management, performance targets, and areas where I need to improve.

This document helps me stay grounded by providing a structured, methodical approach to trading. It keeps me focused and ensures I make decisions based on my plan rather than emotions. By following this manual, I can hold myself accountable and track my growth, making sure I stay on course toward becoming a better trader. It serves as a tool to guide me through difficulties, helping me refine my process and remain disciplined.

Mission Statement

My mission is to execute my trading process with unwavering discipline, patience, and strict adherence to risk management. I focus on long-term consistency rather than individual trades or short-term gains, believing that success in trading is found in following a structured, proven process. By prioritizing the integrity of my approach over the outcome of each trade, I can navigate the market with clarity and purpose, unaffected by short-term market fluctuations.

I am committed to maintaining a high probability of success by sticking to my well-defined rules, driven by logic, analysis, and a strategic approach to risk. Each decision is rooted in my process, which has been tested through experience and proven effective over time. I execute each trade with precision, confident in my approach to trading as a method for continuous growth and success.

With a fearless mindset, I approach each opportunity with confidence, knowing that the consistency of my process leads to sustainable success. By maintaining a commitment to my rules and strategy, I ensure stability in my trading, even in the face of market uncertainties. My mission is to live life on my terms, achieving both financial success and personal fulfillment through mastery in trading.

Trading Goals

Achieving success in trading requires a structured, step-by-step approach. My focus is on execution, adaptability, discipline, and scaling efficiently while maintaining consistency. Success is not defined by monetary gains but by my ability to execute with precision, adapt to different market conditions, and perform at a professional level.

The focus is on adhering to a structured trading plan, managing risk effectively, and improving trade quality by avoiding mistakes like overtrading. Adapting to multiple CME futures markets and refining a playbook with market-specific setups will enhance trading flexibility. Execution precision will be improved by minimizing slippage and optimizing decision-making. Emotional discipline will be strengthened to maintain composure in varying market conditions. Performance will be tracked through journaling and analytics to drive improvement. Mastery of the DOM/Ladder will boost market intuition, while position sizing will scale as proficiency and control increase. The ultimate goal is to build a track record for prop firm readiness with consistent execution and high-level trading.

Success will ultimately be measured by my ability to execute consistently, adapt across market conditions, and scale my trading sustainably while maintaining peak performance and meeting the above goals over the next 12 months.

Trading Strengths

Pattern Recognition & Market Memory

I have a strong ability to recall significant market movements and patterns, which allows me to anticipate market reactions based on current activity. Over the past 9 years, I have developed the skill to execute trades at the right zones, a process that has been honed through consistent practice and experience.

Technical Understanding

I have a deep understanding of core price action concepts, blended with market profile for contextualisation through to understand various order flow patterns which allow me to further refine my execution skills in the key zones I wish to do business along with the DOM and ladder.

Market Structure Analysis

I possess a deep understanding of accumulation and distribution phases, enabling me to make informed decisions regarding optimal entry and exit points. My analytical and methodical approach allows me to assess market structure effectively and differentiate between trending and ranging environments.

Discipline & Patience

I am committed to continually reviewing my past performance, striving to enhance my trading strategies and tactics. My exceptional patience and discipline empower me to avoid taking trades that do not align with my established rules, even when faced with boredom or temptation.

Risk Management

I have a proven record of recovering from losses and demonstrating excellent risk management. If a trade is not working in my favour, I swiftly cut my losses and move on to the next opportunity. My resolute risk management system has been a key factor in my consistent profitability despite having a low win ratio; my expectancy and profit factor is what gives me confidence moving forward.

Areas for Improvement

Planning and Setup

I often map out my plans and then change them by getting drawn in on lower time periods and becoming impulsive, looking back my original plans offered better setups.

Solution: To prevent this, I will be more organized on my charts, printing out my setups and waiting for the appropriate triggers. I will plan the market the night before and review my setups in the morning to ensure I'm familiar with the plan, the levels I wish to trade, which will help me remain decisive.

Missed Setups

I often miss setups that I have already planned.

Solution: I will set price alerts that notify me once the preconditions for a trade are met. This ensures I do not miss my planned opportunities.

Position Sizing and Risk Management

I can sometimes over-risk, stepping outside of my comfort zone.

Solution: To circumvent this, I will scale into a trade and be in profit before adding more or compounding onto the position. I will also ensure my risk is appropriate for my account size, always defining my risk before entering a trade.

Impulsive Decision-Making

It can be tempting to act on gut instincts or emotions rather than sticking to a pre-planned strategy.

Solution: I will work on staying disciplined, reminding myself that impulsive decisions rarely lead to long-term success, this has been established as part of my trading process.

Execution

I often fail to execute my plan as intended due to a lack of discipline and emotions.

Solution: I will commit to following my plan, even in the face of market volatility, and will work to resist the temptation to deviate from my established rules and ensure I use correct risk management ahead of time.

Failure to Take Profit Consistently

I struggle with taking profit consistently at the right levels.

Solution: I will take some profit at key levels (FTAs) or scale out around 25-30% of the trade. Additionally, I will adjust my risk management and stop levels to ensure I lock in profits while managing my risk effectively.

Trading Mindset & Psychology

My Mental Game

Use my resource accordingly.

My mental capital, which drives my trading decisions, my most valuable resource, is limited and can become fatigued over time, much like a muscle. As I use it throughout the day, my ability to make sound decisions diminishes. To manage this, I must structure my trading day, recognising when I am most effective and taking breaks as needed.

For longer-term trades, I can work longer but should be aware of diminishing focus. For fast-paced trading, shorter, more structured stints with breaks are essential. Additionally, simplifying other areas of my life to reduce decision fatigue will help conserve mental energy for critical decisions.

By managing my mental capital wisely, I can maintain clarity and make better choices throughout the day.