Trading the SMR Oscillator Checklist
1. TREND: What is the tradable major trend of this market?
[ ] UP - trade only from the long side.
[ ] DOWN - trade only from the short side.
[ ] CONGESTION - DO NOT trade this market.
2. TRADING PATTERN:
What trading pattern has setup? _________________________________________
(Example: “D1” SELL PATTERN)
If this trade is based on anticipation what is needed before you take this trade? ________________________________________________________________________
(Example: If the Japanese Yen can get down to 6900 it will turn the SL down. I would like to sell this market because the it is trading below the 49 Day Moving Average, the DL is all ready moving down, the momentum is down and the market won't run into major resistance until it get to the 6825 price level.)
3. ENTRY PRICE:
Long Entry Price: ______________
(2) Short Entry Price: ______________
4. STOP LOSS: At what price should I place my stop loss order?
[ ] Buy stop - I am selling the market. Stop Loss Price: ______________
[ ] Sell stop - I am buying the market. Stop Loss Price: ______________
5. RISK: What is the dollar amount of money I am going to risk on this trade?
Entry Price: _______________ Minus Stop Loss Price: _______________
Total Points Risked: _______________ X $_________ = _________________
6. REWARD: Is my target price reasonably obtainable. What is the dollar amount of money I am going for on this trade?
Target Price: _______________ Minus Entry Price: _______________
Total Points Gained: _______________ X $_________ = _________________
7. DECISION: Is this risk within my money management boundary?
[ ] YES - Go ahead with this trade.
[ ] NO - DO NOT enter this trade. I am risking more then I can reasonably get out of this trade. If I am stopped out, I will lose too much of my trading equity. Wait for another trade that has less risk and better reward.