Trading Consistency through a Systematic Approach

Introduction

• Achieving consistency in trading requires a systematic approach.
• A fixed formula or blueprint with eight steps is necessary.
• The strategy applies regardless of market conditions or the type of asset being traded.

The Eight-Step Trading Formula

1. State
   • Identify the state as narrow.
   • Determine position: position one above or below the narrow state; position two as an alternative.
2. Position
   • Position one is the ideal starting point.
3. Power
   • Look for a power indicator such as a power bar (elephant or tail).
4. Entry
   • Decide on entry: in-bar (anticipation) or above-bar (confirmation).
5. Stop
   • Set an original stop at the entry level.
6. Color Change & Add
   • Identify the color change (actual or hidden) and add to the position accordingly.
7. Profit Take
   • Take profits in parts (two out of three) and leave the rest.
   • If partial profit is taken, move stop to break even.
8. Let It Ride
   • Allow the remaining position to run with no risk, ensuring stop is at break even.

Applying the Formula

• Apply the same steps consistently to each trade for reliability.
• The sequence is applicable to both upward and downward market movements.

Examples

• Tesla, Apple, Google, Amazon, Starbucks
  • Each asset must follow the eight-step order.
  • Consistent adherence ensures that no financial item dictates the approach.

Key Principles

• Consistency is achieved by treating every trade identically.
• A trader must become a 'trading robot' by applying the same routine to every situation.
• The formula creates order and enforces discipline in trading.

Conclusion

• Trading success is about forcing every trade through the same structured process.
• The trader, not the market, sets the rules and maintains the order.
• The eight steps are non-negotiable and must be followed for every trade to achieve consistency.