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Zhongwei Li
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skills/trading-plan-generator/SKILL.md
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skills/trading-plan-generator/SKILL.md
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---
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name: trading-plan-generator
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description: Generate comprehensive trading plans with risk management, position sizing, entry/exit strategies, and performance tracking to trade with discipline and consistency.
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---
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# Trading Plan Generator
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A comprehensive skill for creating disciplined, rule-based trading plans that help you manage risk, control emotions, and trade consistently.
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## What This Skill Does
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Helps you create professional trading plans for:
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- **Day Trading** - Intraday positions, quick scalps
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- **Swing Trading** - Multi-day to multi-week positions
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- **Position Trading** - Long-term trend following
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- **Options Trading** - Directional and income strategies
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- **Investing** - Long-term portfolio management
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## Why You Need a Trading Plan
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**Without a plan:**
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- Emotional, impulsive decisions
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- Inconsistent position sizing
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- No clear entry/exit rules
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- Revenge trading after losses
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- Account blowup risk
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- Can't identify what works
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**With a plan:**
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- Disciplined, rule-based trading
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- Consistent risk management
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- Clear decision framework
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- Emotional control
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- Long-term profitability
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- Measurable improvement
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**The Stats:**
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- 90% of traders fail (most have no plan)
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- Professional traders ALL have written plans
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- Plan + discipline = edge
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## Core Components of a Trading Plan
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### 1. Trading Goals & Mindset
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- Financial goals (realistic)
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- Time commitment
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- Risk tolerance
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- Trading philosophy
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- Success definition
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### 2. Risk Management (MOST IMPORTANT)
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- Maximum risk per trade (1-2% recommended)
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- Maximum daily loss limit
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- Maximum drawdown tolerance
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- Position sizing rules
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- Stop-loss requirements
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- Risk/reward minimums
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### 3. Market Selection
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- What markets you trade (stocks, forex, crypto, options)
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- Liquidity requirements
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- Price range preferences
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- Sector focus (if any)
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- What you DON'T trade
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### 4. Trading Setup Criteria
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- Entry signals (technical/fundamental)
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- Confirmation requirements
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- Timeframes used
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- Pattern recognition
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- Market condition filters
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### 5. Entry Rules
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- Exact entry triggers
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- Order types (market, limit, stop)
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- Position sizing calculation
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- Scaling in (if allowed)
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- Time-of-day restrictions
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### 6. Exit Rules
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- Stop-loss placement (hard rules)
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- Take-profit targets
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- Trailing stop strategies
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- Time-based exits
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- Scaling out rules
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- Break-even stops
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### 7. Trade Management
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- When to adjust stops
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- When to add to position
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- When to reduce size
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- When to exit early
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- Never scenarios (what you never do)
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### 8. Psychology & Discipline
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- Pre-market routine
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- Emotional state check
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- Tilt recognition
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- Break requirements
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- End-of-day review
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- Accountability measures
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### 9. Performance Tracking
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- Trade journal requirements
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- Metrics to track
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- Review frequency
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- Improvement process
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- Strategy adjustment criteria
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## Risk Management Frameworks
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### The 1% Rule (Recommended for Most Traders)
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**Never risk more than 1% of account on single trade**
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**Example:**
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- Account size: $50,000
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- Maximum risk per trade: $500 (1%)
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- Stock entry: $100
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- Stop-loss: $98
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- Risk per share: $2
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- Position size: $500 / $2 = 250 shares
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- Total position: $25,000 (50% of account)
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- Actual risk: $500 (1% of account)
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**Benefits:**
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- Can survive 20+ consecutive losses
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- Removes emotion from sizing
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- Consistent risk across trades
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- Protects capital
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### The 2R Minimum Rule
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**Only take trades with 2:1 reward-to-risk or better**
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**Example:**
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- Entry: $100
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- Stop: $98 (risk = $2)
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- Target: $104 (reward = $4)
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- R:R = 2:1 ✅
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**Why it matters:**
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- Can be profitable with 40% win rate
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- Forces selective trading
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- Improves overall edge
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### Maximum Drawdown Limit
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**Hard stop trading if down X% from peak**
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**Recommendations:**
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- Conservative: 10% drawdown → stop trading
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- Moderate: 15% drawdown → stop trading
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- Aggressive: 20% drawdown → stop trading
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**When hit:**
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1. Stop trading immediately
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2. Review all trades
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3. Identify mistakes
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4. Paper trade until recovered mentally
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5. Resume with reduced size
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## Trading Styles
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### Day Trading
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**Definition:** Open and close all positions same day
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**Characteristics:**
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- Multiple trades per day
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- No overnight risk
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- Pattern Day Trader rules ($25K minimum)
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- High screen time requirement
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- Quick decisions
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**Best for:**
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- Full-time traders
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- High risk tolerance
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- Quick decision makers
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- Pattern recognition skills
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**Key rules:**
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- Never hold overnight
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- Reduce size near close
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- Stop trading after daily loss limit
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- First 30 min often volatile
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### Swing Trading
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**Definition:** Hold positions 2-10 days
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**Characteristics:**
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- 2-5 trades per week
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- Overnight risk acceptable
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- Part-time friendly
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- Technical + fundamental mix
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**Best for:**
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- Part-time traders
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- Day job professionals
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- Trend followers
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- Patient traders
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**Key rules:**
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- Always use stop-losses
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- Check positions before/after market
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- Respect earnings dates
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- Weekend gap risk consideration
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### Position Trading
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**Definition:** Hold positions weeks to months
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**Characteristics:**
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- Long-term trend following
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- Fundamental focus
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- Low trade frequency
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- Larger position sizes
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**Best for:**
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- Investors with edge
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- Low time availability
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- Fundamental analysts
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- Macro trend followers
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**Key rules:**
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- Wide stops (volatility-based)
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- Focus on major trends
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- Ignore daily noise
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- Strong thesis required
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## Entry Strategies
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### Technical Entry Methods
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**1. Breakout Entry**
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- Price breaks above resistance
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- Increased volume confirmation
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- Wait for pullback or buy breakout
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- Stop below breakout level
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**2. Pullback Entry**
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- Wait for trend pullback
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- Enter at support/moving average
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- Continuation confirmation
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- Stop below support
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**3. Reversal Entry**
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- Identify overextended move
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- Look for reversal signals
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- Multiple confirmations required
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- Wider stops needed
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**4. Pattern Completion**
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- Specific pattern (flag, triangle, etc.)
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- Pattern completion signal
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- Volume confirmation
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- Target based on pattern
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### Fundamental Entry Triggers
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**For Stocks:**
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- Earnings surprise
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- Guidance raise
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- Product launch
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- Sector rotation
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- Insider buying
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- Short squeeze setup
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**For Macro:**
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- Fed policy change
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- Economic data surprise
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- Geopolitical event
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- Seasonality
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## Exit Strategies
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### Stop-Loss Methods
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**1. Percentage Stop**
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- Fixed % below entry
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- Simple and clear
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- Example: 2% below entry
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**2. Support/Resistance Stop**
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- Below key technical level
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- Makes technical sense
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- Varies by setup
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**3. ATR-Based Stop**
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- 1.5-2x Average True Range
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- Adapts to volatility
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- Prevents whipsaw
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**4. Time Stop**
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- Exit if no progress in X days
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- Frees up capital
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- Prevents dead money
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### Take-Profit Methods
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**1. Fixed R Multiple**
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- 2R, 3R, 4R targets
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- Predetermined exit
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- Consistent methodology
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**2. Technical Target**
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- Previous resistance
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- Fibonacci extension
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- Measured move
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- Pattern target
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**3. Trailing Stop**
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- Move stop as profit grows
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- Lock in gains
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- Ride trends longer
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**4. Partial Profits**
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- Take 50% at 2R
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- Trail remaining 50%
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- Reduces regret
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- Balances risk/reward
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## Position Sizing Formulas
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### Fixed Dollar Risk
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```
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Position Size = Account Risk $ / (Entry - Stop)
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Example:
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- Account: $50,000
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- Risk per trade: $500 (1%)
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- Entry: $100
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- Stop: $97
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- Risk per share: $3
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- Shares: $500 / $3 = 166 shares
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```
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### Fixed Percentage Risk
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```
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Position Size = (Account × Risk %) / (Entry - Stop)
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Example:
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- Account: $50,000
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- Risk: 1%
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- Entry: $50
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- Stop: $48
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- Risk per share: $2
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- Shares: ($50,000 × 0.01) / $2 = 250 shares
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```
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### Kelly Criterion (Advanced)
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```
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Position Size % = (Win Rate × Avg Win - Loss Rate × Avg Loss) / Avg Win
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Example:
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- Win rate: 55%
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- Avg win: $500
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- Loss rate: 45%
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- Avg loss: $300
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- Kelly: (0.55 × $500 - 0.45 × $300) / $500 = 28%
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- Use 1/4 Kelly = 7% position size (conservative)
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```
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**Warning:** Kelly can be aggressive, use fractional Kelly
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## Trading Psychology
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### Pre-Market Routine
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- [ ] Review previous day's trades
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- [ ] Check overnight news
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- [ ] Identify key levels
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- [ ] Plan potential setups
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- [ ] Check emotional state
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- [ ] Confirm risk limits
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### Emotional State Check
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**Don't trade if:**
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- Angry or frustrated
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- Desperate for money
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- Revenge mindset
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- Distracted or tired
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- Overconfident
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- Fearful
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**Green light to trade:**
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- Calm and focused
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- Following plan
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- Accepting of losses
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- Patient for setups
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- Clear-headed
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### Tilt Recognition
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**Warning signs:**
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- Increasing position size
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- Abandoning stops
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- Taking marginal setups
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- Revenge trading
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- Checking P&L constantly
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- Breaking rules
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**When tilting:**
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1. Stop trading immediately
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2. Close all positions
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3. Take a break (hour/day/week)
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4. Review what triggered it
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5. Return when calm
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### Daily Loss Limit
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**Critical rule:** Stop trading at daily loss limit
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**Example:**
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- Daily limit: -2% of account
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- Account: $50,000
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- Stop at: -$1,000 loss
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**Why it matters:**
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- Prevents blowup days
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- Forces you to stop tilting
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- Tomorrow is another day
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- Protects capital
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## Market Conditions & Filters
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### When to Trade
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- [ ] Market trending clearly
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- [ ] Volatility in normal range
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- [ ] Volume above average
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- [ ] Your setups present
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- [ ] Clear technical levels
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- [ ] Emotional state good
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### When NOT to Trade
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- [ ] Choppy, rangebound market
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- [ ] Major news pending (FOMC, etc.)
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- [ ] Low volume (holidays)
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- [ ] Extreme volatility
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- [ ] No clear setups
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- [ ] Emotional/tilting
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### Market Regime Recognition
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**Bull Market:**
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- Buy dips
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- Longer holds
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- Reduce short exposure
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- Follow momentum
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**Bear Market:**
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- Sell rips
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- Shorter holds
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- Reduce long exposure
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- Focus on defense
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**Sideways/Choppy:**
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- Reduce size
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- Take quick profits
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- Avoid breakout trades
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- Trade ranges
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## Performance Tracking
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### Metrics to Track
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**Win Rate:**
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- % of trades profitable
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- Target: >50% for day trading, >40% for swing
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**Average Win vs Average Loss:**
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- Avg $ won on winners
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- Avg $ lost on losers
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- Should be 1.5:1 or better
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**Profit Factor:**
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- Gross profit / Gross loss
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- >1.5 is good, >2.0 is excellent
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**Expectancy:**
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- (Win Rate × Avg Win) - (Loss Rate × Avg Loss)
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- Must be positive to be profitable
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**Maximum Drawdown:**
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- Largest peak-to-trough decline
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- Track and improve over time
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**Sharpe Ratio:**
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- Return / Volatility
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- >1.0 is good
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### Trade Journal Requirements
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**For each trade log:**
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- Date and time
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- Ticker/instrument
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- Entry price and size
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- Stop-loss and target
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- Exit price and reason
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- P&L ($ and %)
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- Setup/pattern
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- Market condition
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- Emotional state
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- Mistakes made
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- Lessons learned
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- Screenshot
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|
||||
### Review Schedule
|
||||
|
||||
**Daily:**
|
||||
- Review all trades
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- Calculate P&L
|
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- Note mistakes
|
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- Plan next day
|
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|
||||
**Weekly:**
|
||||
- Calculate weekly metrics
|
||||
- Identify patterns
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||||
- Best/worst trades
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||||
- Rule compliance %
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|
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**Monthly:**
|
||||
- Full performance review
|
||||
- Strategy adjustments
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||||
- Goal progress
|
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- Mindset check
|
||||
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## Common Mistakes to Avoid
|
||||
|
||||
### ❌ Fatal Errors
|
||||
|
||||
**1. No Stop-Loss**
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- One bad trade can wipe account
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- ALWAYS use stops
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- No exceptions
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**2. Overleveraging**
|
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- Position size too large
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- Can't handle normal volatility
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- Forced exits at worst time
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|
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**3. Revenge Trading**
|
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- Trading to "get back" losses
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||||
- Emotional decisions
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||||
- Breaks all rules
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||||
|
||||
**4. Moving Stops**
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- Moving stop to avoid loss
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- Invalidates risk management
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- Path to blowup
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|
||||
**5. Averaging Down Losers**
|
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- Adding to losing position
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- Doubles down on mistake
|
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- Increases risk dramatically
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||||
|
||||
**6. No Plan**
|
||||
- Winging it
|
||||
- Inconsistent decisions
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||||
- Can't improve
|
||||
|
||||
### ✅ Best Practices
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||||
|
||||
**1. Risk < Reward**
|
||||
- Always 2:1 R:R minimum
|
||||
- Selective trading
|
||||
- Math works in your favor
|
||||
|
||||
**2. Consistent Sizing**
|
||||
- Same risk each trade
|
||||
- Removes emotion
|
||||
- Sustainable growth
|
||||
|
||||
**3. Follow Your Plan**
|
||||
- Even when uncomfortable
|
||||
- Trust the process
|
||||
- Track compliance
|
||||
|
||||
**4. Take Breaks**
|
||||
- After losses
|
||||
- When tilting
|
||||
- Regularly
|
||||
|
||||
**5. Keep Learning**
|
||||
- Review trades
|
||||
- Study markets
|
||||
- Adapt and improve
|
||||
|
||||
## Using This Skill
|
||||
|
||||
### Generate a Trading Plan
|
||||
|
||||
```bash
|
||||
./scripts/generate_plan.sh
|
||||
```
|
||||
|
||||
Interactive workflow guides you through:
|
||||
1. Trading style and goals
|
||||
2. Risk management rules
|
||||
3. Market and setup selection
|
||||
4. Entry and exit criteria
|
||||
5. Psychology and discipline
|
||||
6. Performance tracking
|
||||
|
||||
### Validate Your Plan
|
||||
|
||||
```bash
|
||||
./scripts/validate_plan.sh path/to/plan.md
|
||||
```
|
||||
|
||||
Checks for:
|
||||
- Risk management defined
|
||||
- Position sizing rules
|
||||
- Entry/exit criteria
|
||||
- Stop-loss requirements
|
||||
- Performance tracking
|
||||
- Completeness
|
||||
|
||||
### Calculate Position Size
|
||||
|
||||
```bash
|
||||
./scripts/position_calculator.sh
|
||||
```
|
||||
|
||||
Quick calculator for:
|
||||
- Shares based on risk
|
||||
- Risk amount
|
||||
- R:R ratio
|
||||
- Compliance check
|
||||
|
||||
### Access References
|
||||
|
||||
```
|
||||
references/risk_management.md - Complete risk frameworks
|
||||
references/trading_psychology.md - Mental game and discipline
|
||||
references/technical_setups.md - Chart patterns and entries
|
||||
references/performance_metrics.md - Tracking and improvement
|
||||
```
|
||||
|
||||
## Trading Plan Checklist
|
||||
|
||||
- [ ] **Clear trading goals** defined
|
||||
- [ ] **Risk per trade** specified (1-2% recommended)
|
||||
- [ ] **Daily loss limit** set and hard stop
|
||||
- [ ] **Position sizing** formula defined
|
||||
- [ ] **Markets traded** clearly identified
|
||||
- [ ] **Entry criteria** specific and measurable
|
||||
- [ ] **Stop-loss rules** mandatory for every trade
|
||||
- [ ] **Take-profit strategy** defined
|
||||
- [ ] **Trade management** rules for scaling
|
||||
- [ ] **Emotional checks** before trading
|
||||
- [ ] **Trade journal** template ready
|
||||
- [ ] **Performance metrics** to track
|
||||
- [ ] **Review schedule** committed to
|
||||
|
||||
## Quick Start
|
||||
|
||||
### Beginner Trader Template
|
||||
- Risk: 0.5% per trade
|
||||
- Style: Swing trading
|
||||
- Daily loss: -1.5%
|
||||
- Minimum R:R: 3:1
|
||||
- Simple technical setups
|
||||
- Conservative sizing
|
||||
|
||||
### Experienced Trader Template
|
||||
- Risk: 1-2% per trade
|
||||
- Style: Your preference
|
||||
- Daily loss: -3%
|
||||
- Minimum R:R: 2:1
|
||||
- Advanced setups
|
||||
- Discretionary management
|
||||
|
||||
## Important Disclaimers
|
||||
|
||||
**This skill provides frameworks, not financial advice.**
|
||||
|
||||
- Trading involves substantial risk
|
||||
- Past performance ≠ future results
|
||||
- Only trade with risk capital
|
||||
- Educate yourself thoroughly
|
||||
- Consider working with professionals
|
||||
- Comply with all regulations
|
||||
- You are responsible for your decisions
|
||||
|
||||
**Risk Warning:**
|
||||
- You can lose all your capital
|
||||
- Leverage amplifies losses
|
||||
- Emotional control is critical
|
||||
- No guaranteed profits
|
||||
- Most traders lose money
|
||||
|
||||
## Best Practices
|
||||
|
||||
### 1. Start Small
|
||||
- Paper trade first
|
||||
- Then micro positions
|
||||
- Prove profitability
|
||||
- Then scale up
|
||||
|
||||
### 2. Focus on Process
|
||||
- Not on money
|
||||
- Follow rules
|
||||
- Track metrics
|
||||
- Improve systematically
|
||||
|
||||
### 3. Protect Capital
|
||||
- Risk management first
|
||||
- Survive to trade tomorrow
|
||||
- Slow and steady wins
|
||||
|
||||
### 4. Stay Disciplined
|
||||
- Plan your trades
|
||||
- Trade your plan
|
||||
- No exceptions
|
||||
- Review constantly
|
||||
|
||||
### 5. Keep Learning
|
||||
- Markets evolve
|
||||
- Adapt strategies
|
||||
- Learn from mistakes
|
||||
- Study the best
|
||||
|
||||
## Summary
|
||||
|
||||
A trading plan is your blueprint for success. It:
|
||||
- **Protects** your capital with risk management
|
||||
- **Guides** decisions with clear rules
|
||||
- **Controls** emotions through discipline
|
||||
- **Tracks** performance for improvement
|
||||
- **Builds** consistency over time
|
||||
|
||||
**Remember:** The goal isn't to get rich quick. It's to trade consistently, manage risk properly, and compound gains over time.
|
||||
|
||||
---
|
||||
|
||||
**"Plan your trade, trade your plan, and manage your risk. Everything else is noise."**
|
||||
585
skills/trading-plan-generator/references/risk_management.md
Normal file
585
skills/trading-plan-generator/references/risk_management.md
Normal file
@@ -0,0 +1,585 @@
|
||||
# Risk Management for Traders
|
||||
|
||||
The single most important factor determining trading success.
|
||||
|
||||
---
|
||||
|
||||
## Why Risk Management Matters
|
||||
|
||||
**The brutal truth:**
|
||||
- 90% of traders lose money
|
||||
- Most blow up their accounts
|
||||
- #1 reason: Poor risk management
|
||||
|
||||
**What separates winners from losers:**
|
||||
- NOT better analysis
|
||||
- NOT better indicators
|
||||
- NOT market prediction
|
||||
- **Risk management and discipline**
|
||||
|
||||
**Your job as a trader:**
|
||||
- Protect capital FIRST
|
||||
- Make money SECOND
|
||||
|
||||
---
|
||||
|
||||
## The 1% Rule
|
||||
|
||||
**Never risk more than 1% of account on single trade**
|
||||
|
||||
### Why 1%?
|
||||
|
||||
**Survival math:**
|
||||
- 10 losses in a row = -10% drawdown
|
||||
- 20 losses in a row = -20% drawdown
|
||||
- Still in the game
|
||||
|
||||
**Compare to 5% risk:**
|
||||
- 10 losses in a row = -50% drawdown
|
||||
- Need 100% return just to break even
|
||||
- Likely game over
|
||||
|
||||
### How to Calculate
|
||||
|
||||
```
|
||||
Risk Amount = Account Size × 0.01
|
||||
|
||||
Example:
|
||||
$50,000 account × 1% = $500 max risk per trade
|
||||
```
|
||||
|
||||
### Position Sizing with 1% Rule
|
||||
|
||||
```
|
||||
Shares = Risk Amount / (Entry - Stop)
|
||||
|
||||
Example:
|
||||
- Account: $50,000
|
||||
- Risk: $500 (1%)
|
||||
- Entry: $100
|
||||
- Stop: $98
|
||||
- Risk per share: $2
|
||||
- Position: $500 / $2 = 250 shares
|
||||
```
|
||||
|
||||
**Key insight:** Position SIZE changes, but RISK stays constant
|
||||
|
||||
---
|
||||
|
||||
## Daily Loss Limits
|
||||
|
||||
**Hard stop when you hit daily loss limit**
|
||||
|
||||
### Recommended Limits
|
||||
|
||||
| Trader Type | Daily Loss Limit |
|
||||
|-------------|------------------|
|
||||
| Conservative | -1% |
|
||||
| Moderate | -2% |
|
||||
| Aggressive | -3% |
|
||||
|
||||
### Why Daily Limits Matter
|
||||
|
||||
**Prevents:**
|
||||
- Revenge trading
|
||||
- Emotional spirals
|
||||
- Blowup days
|
||||
- Tilt-induced disasters
|
||||
|
||||
**Example:**
|
||||
- $50,000 account
|
||||
- 2% daily limit = -$1,000
|
||||
- Hit limit → DONE for the day
|
||||
- No exceptions
|
||||
|
||||
### What to Do When Hit
|
||||
|
||||
1. Close ALL positions
|
||||
2. Step away from computer
|
||||
3. Physical activity (walk/exercise)
|
||||
4. Review trades later (not now)
|
||||
5. Resume next day with clear head
|
||||
|
||||
**Remember:** There's always tomorrow
|
||||
|
||||
---
|
||||
|
||||
## Maximum Drawdown
|
||||
|
||||
**Stop trading at X% drawdown from peak**
|
||||
|
||||
### Recommended Limits
|
||||
|
||||
- Conservative: 10%
|
||||
- Moderate: 15%
|
||||
- Aggressive: 20%
|
||||
|
||||
### When Hit
|
||||
|
||||
1. **STOP trading immediately**
|
||||
2. Take minimum 1 week break
|
||||
3. Full trade review
|
||||
4. Identify systematic issues
|
||||
5. Paper trade only
|
||||
6. Return with reduced size
|
||||
|
||||
### Why This Matters
|
||||
|
||||
**Psychology of drawdown:**
|
||||
- -10% requires +11% to recover
|
||||
- -20% requires +25% to recover
|
||||
- -50% requires +100% to recover
|
||||
|
||||
**Each % down becomes harder to recover**
|
||||
|
||||
---
|
||||
|
||||
## Risk:Reward Ratios
|
||||
|
||||
**Only take trades with favorable R:R**
|
||||
|
||||
### Minimum Standards
|
||||
|
||||
**Conservative:** 3:1
|
||||
**Moderate:** 2:1
|
||||
**Aggressive:** 1.5:1
|
||||
|
||||
### The Math
|
||||
|
||||
With 2:1 R:R, you can be profitable at 40% win rate:
|
||||
|
||||
```
|
||||
10 trades:
|
||||
- 4 wins × 2R = +8R
|
||||
- 6 losses × 1R = -6R
|
||||
- Net: +2R profit
|
||||
```
|
||||
|
||||
### How to Calculate
|
||||
|
||||
```
|
||||
R = Risk (Entry - Stop)
|
||||
Reward = Target - Entry
|
||||
|
||||
R:R = Reward / Risk
|
||||
|
||||
Example:
|
||||
- Entry: $100
|
||||
- Stop: $98 (Risk = $2)
|
||||
- Target: $106 (Reward = $6)
|
||||
- R:R = $6 / $2 = 3:1 ✓
|
||||
```
|
||||
|
||||
**Rule:** If R:R < your minimum → SKIP THE TRADE
|
||||
|
||||
---
|
||||
|
||||
## Position Sizing Methods
|
||||
|
||||
### 1. Fixed Dollar Risk (Recommended)
|
||||
|
||||
**Same dollar risk every trade**
|
||||
|
||||
```
|
||||
Shares = Risk $ / (Entry - Stop)
|
||||
```
|
||||
|
||||
**Pros:**
|
||||
- Simple and consistent
|
||||
- Easy to track
|
||||
- Protects capital
|
||||
|
||||
**Cons:**
|
||||
- Doesn't scale with wins/losses
|
||||
|
||||
---
|
||||
|
||||
### 2. Fixed Percentage Risk
|
||||
|
||||
**Same % risk every trade**
|
||||
|
||||
```
|
||||
Shares = (Account × Risk %) / (Entry - Stop)
|
||||
```
|
||||
|
||||
**Pros:**
|
||||
- Scales with account
|
||||
- Compounds wins
|
||||
- Simple
|
||||
|
||||
**Cons:**
|
||||
- Also compounds losses
|
||||
|
||||
---
|
||||
|
||||
### 3. Volatility-Based (ATR)
|
||||
|
||||
**Position size based on volatility**
|
||||
|
||||
```
|
||||
Risk $ / (ATR × Multiplier)
|
||||
```
|
||||
|
||||
**Pros:**
|
||||
- Adapts to market conditions
|
||||
- Prevents whipsaw
|
||||
|
||||
**Cons:**
|
||||
- More complex
|
||||
- Requires calculation
|
||||
|
||||
---
|
||||
|
||||
### 4. Kelly Criterion (Advanced)
|
||||
|
||||
**Optimal position sizing based on edge**
|
||||
|
||||
```
|
||||
Kelly % = (Win Rate × Avg Win - Loss Rate × Avg Loss) / Avg Win
|
||||
```
|
||||
|
||||
**WARNING:**
|
||||
- Can be very aggressive
|
||||
- Use fractional Kelly (1/4 or 1/2)
|
||||
- Only for experienced traders
|
||||
- Requires accurate statistics
|
||||
|
||||
---
|
||||
|
||||
## Stop-Loss Strategies
|
||||
|
||||
### Never Trade Without Stops
|
||||
|
||||
**Why stops are mandatory:**
|
||||
- Limits losses
|
||||
- Removes emotion
|
||||
- Protects from disasters
|
||||
- Enables risk calculation
|
||||
|
||||
**No exceptions. Ever.**
|
||||
|
||||
### Stop-Loss Methods
|
||||
|
||||
**1. Fixed Percentage**
|
||||
- X% below entry
|
||||
- Simple and clear
|
||||
- Example: 2% below entry
|
||||
|
||||
**2. Technical Level**
|
||||
- Below support
|
||||
- Below swing low
|
||||
- Makes logical sense
|
||||
|
||||
**3. ATR-Based**
|
||||
- 1.5-2× Average True Range
|
||||
- Adapts to volatility
|
||||
- Prevents whipsaw
|
||||
|
||||
**4. Time Stop**
|
||||
- Exit if no progress in X days
|
||||
- Frees capital
|
||||
- Cuts losers
|
||||
|
||||
### Stop-Loss Rules
|
||||
|
||||
**✓ DO:**
|
||||
- Set stop BEFORE entry
|
||||
- Use actual stop orders (not mental)
|
||||
- Place stops at logical levels
|
||||
- Honor stops always
|
||||
|
||||
**✗ NEVER:**
|
||||
- Move stop further from entry
|
||||
- Remove stop "just this once"
|
||||
- Use mental stops
|
||||
- Hope price comes back
|
||||
|
||||
---
|
||||
|
||||
## Position Concentration
|
||||
|
||||
**Don't put all eggs in one basket**
|
||||
|
||||
### Maximum Position Limits
|
||||
|
||||
**Single position:**
|
||||
- Conservative: 10% of account
|
||||
- Moderate: 20% of account
|
||||
- Aggressive: 30% of account
|
||||
|
||||
**Sector exposure:**
|
||||
- Maximum 30-40% in single sector
|
||||
- Diversify across sectors
|
||||
- Correlation matters
|
||||
|
||||
**Total exposure:**
|
||||
- Day trading: 100% (close daily)
|
||||
- Swing trading: 60-80%
|
||||
- Position trading: Varies
|
||||
|
||||
### Why Concentration Matters
|
||||
|
||||
**Example:**
|
||||
- 50% in one position
|
||||
- Stock drops 20%
|
||||
- Account drops 10%
|
||||
- Hard to recover
|
||||
|
||||
**Better:**
|
||||
- 10% in one position
|
||||
- Stock drops 20%
|
||||
- Account drops 2%
|
||||
- Manageable
|
||||
|
||||
---
|
||||
|
||||
## Correlation Risk
|
||||
|
||||
**Avoid correlated positions**
|
||||
|
||||
### Understanding Correlation
|
||||
|
||||
**High correlation example:**
|
||||
- Long tech stock A
|
||||
- Long tech stock B
|
||||
- Both move together
|
||||
- Double exposure to tech risk
|
||||
|
||||
**Better diversification:**
|
||||
- Different sectors
|
||||
- Different market caps
|
||||
- Different strategies
|
||||
- True diversification
|
||||
|
||||
---
|
||||
|
||||
## Leverage and Margin
|
||||
|
||||
**Leverage amplifies BOTH gains and losses**
|
||||
|
||||
### Margin Risk
|
||||
|
||||
**2:1 Margin:**
|
||||
- 50% loss = margin call
|
||||
- Forced liquidation
|
||||
- Game over
|
||||
|
||||
**Recommended:**
|
||||
- Use margin sparingly
|
||||
- Never max out margin
|
||||
- Maintain buffer
|
||||
- Understand margin requirements
|
||||
|
||||
### Options Leverage
|
||||
|
||||
**Options can expire worthless**
|
||||
- 100% loss possible
|
||||
- Time decay (theta)
|
||||
- Volatility risk (vega)
|
||||
- Requires different risk management
|
||||
|
||||
**Options risk limit:**
|
||||
- Max 5-10% of account in options
|
||||
- Treat each option as high risk
|
||||
- Never bet the farm
|
||||
|
||||
---
|
||||
|
||||
## Risk Management Checklist
|
||||
|
||||
**Before EVERY trade:**
|
||||
- [ ] Position size calculated
|
||||
- [ ] Risk ≤ 1% (or your limit)
|
||||
- [ ] Stop-loss identified
|
||||
- [ ] R:R ≥ 2:1 (or your minimum)
|
||||
- [ ] Within daily loss limit
|
||||
- [ ] Not overexposed to sector
|
||||
- [ ] Account for correlation
|
||||
- [ ] Emotionally prepared to take loss
|
||||
|
||||
**If ANY unchecked → DON'T TAKE TRADE**
|
||||
|
||||
---
|
||||
|
||||
## Account Preservation
|
||||
|
||||
**Capital preservation rules:**
|
||||
|
||||
1. **Never go all-in**
|
||||
- Keep reserves
|
||||
- Opportunities come again
|
||||
|
||||
2. **Accept losses quickly**
|
||||
- Small losses are OK
|
||||
- Don't let small become big
|
||||
|
||||
3. **Don't average down**
|
||||
- Adding to losers doubles risk
|
||||
- Compounds mistakes
|
||||
|
||||
4. **Take breaks after losses**
|
||||
- Prevent revenge trading
|
||||
- Clear your head
|
||||
|
||||
5. **Reduce size in drawdown**
|
||||
- Trade smaller when losing
|
||||
- Build confidence back
|
||||
|
||||
---
|
||||
|
||||
## Common Risk Management Mistakes
|
||||
|
||||
### ❌ Fatal Errors
|
||||
|
||||
**1. No stop-loss**
|
||||
Result: One trade wipes account
|
||||
|
||||
**2. Risk too much per trade**
|
||||
Result: Few losses = blown account
|
||||
|
||||
**3. Moving stops**
|
||||
Result: Invalidates risk management
|
||||
|
||||
**4. Revenge trading**
|
||||
Result: Emotional decisions, bigger losses
|
||||
|
||||
**5. Averaging down**
|
||||
Result: Doubling down on mistakes
|
||||
|
||||
**6. Over-leveraging**
|
||||
Result: Margin call, forced exit
|
||||
|
||||
**7. Ignoring correlation**
|
||||
Result: Concentrated risk in disguise
|
||||
|
||||
### ✓ Best Practices
|
||||
|
||||
**1. Consistent position sizing**
|
||||
Same risk every trade
|
||||
|
||||
**2. Hard daily loss limits**
|
||||
Stop when hit, no exceptions
|
||||
|
||||
**3. Honest stop placement**
|
||||
Logical levels, not wishes
|
||||
|
||||
**4. R:R minimum**
|
||||
Quality over quantity
|
||||
|
||||
**5. Diversification**
|
||||
Don't concentrate risk
|
||||
|
||||
**6. Regular reviews**
|
||||
Track and improve
|
||||
|
||||
---
|
||||
|
||||
## Risk vs Reward Balance
|
||||
|
||||
**High Probability vs High R:R**
|
||||
|
||||
### High Win Rate (60-70%)
|
||||
- Smaller R:R (1.5:1)
|
||||
- More trades
|
||||
- Steady equity curve
|
||||
- Example: Mean reversion
|
||||
|
||||
### High R:R (3:1+)
|
||||
- Lower win rate (30-40%)
|
||||
- Fewer trades
|
||||
- Volatile equity curve
|
||||
- Example: Trend following
|
||||
|
||||
**Both can be profitable if managed correctly**
|
||||
|
||||
---
|
||||
|
||||
## Position Sizing Examples
|
||||
|
||||
### Example 1: Moderate Risk
|
||||
|
||||
```
|
||||
Account: $50,000
|
||||
Risk per trade: 1% = $500
|
||||
Entry: $50
|
||||
Stop: $48
|
||||
Risk per share: $2
|
||||
|
||||
Position: $500 / $2 = 250 shares
|
||||
Position value: $12,500 (25% of account)
|
||||
Actual risk: $500 (1% of account)
|
||||
```
|
||||
|
||||
### Example 2: Tight Stop
|
||||
|
||||
```
|
||||
Account: $50,000
|
||||
Risk per trade: 1% = $500
|
||||
Entry: $100
|
||||
Stop: $99
|
||||
Risk per share: $1
|
||||
|
||||
Position: $500 / $1 = 500 shares
|
||||
Position value: $50,000 (100% of account)
|
||||
Actual risk: $500 (1% of account)
|
||||
```
|
||||
|
||||
**Key:** Position SIZE varies, but RISK stays constant
|
||||
|
||||
---
|
||||
|
||||
## Emergency Procedures
|
||||
|
||||
### When Things Go Wrong
|
||||
|
||||
**Circuit breaker triggered:**
|
||||
1. Stop trading immediately
|
||||
2. Close positions if possible
|
||||
3. Assess damage
|
||||
4. Don't panic trade
|
||||
|
||||
**Flash crash:**
|
||||
1. Don't chase
|
||||
2. Check your stops
|
||||
3. Wait for stability
|
||||
4. Review risk exposure
|
||||
|
||||
**Account down big:**
|
||||
1. STOP trading
|
||||
2. Take mandatory break
|
||||
3. Full review
|
||||
4. Return with smaller size
|
||||
|
||||
---
|
||||
|
||||
## Risk Management Quotes
|
||||
|
||||
**"Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1"** - Warren Buffett
|
||||
|
||||
**"The goal of a successful trader is to make the best trades. Money is secondary."** - Alexander Elder
|
||||
|
||||
**"Risk comes from not knowing what you're doing."** - Warren Buffett
|
||||
|
||||
**"Don't focus on making money; focus on protecting what you have."** - Paul Tudor Jones
|
||||
|
||||
---
|
||||
|
||||
## Summary
|
||||
|
||||
**Risk management is:**
|
||||
- Your edge
|
||||
- Your protection
|
||||
- Your discipline
|
||||
- Your success factor
|
||||
|
||||
**Remember:**
|
||||
- Small consistent gains > Home runs
|
||||
- Protect capital first
|
||||
- There's always another trade
|
||||
- Survive to trade tomorrow
|
||||
|
||||
**The math is simple:**
|
||||
- Lose 50% → Need 100% to recover
|
||||
- Lose 10% → Need 11% to recover
|
||||
|
||||
**Trade small, trade smart, trade long-term**
|
||||
660
skills/trading-plan-generator/references/trading_psychology.md
Normal file
660
skills/trading-plan-generator/references/trading_psychology.md
Normal file
@@ -0,0 +1,660 @@
|
||||
# Trading Psychology
|
||||
|
||||
Master your mind, master the markets.
|
||||
|
||||
---
|
||||
|
||||
## Why Psychology Matters
|
||||
|
||||
**Technical analysis:** 20% of success
|
||||
**Risk management:** 30% of success
|
||||
**Psychology:** 50% of success
|
||||
|
||||
**The hard truth:**
|
||||
- You are your own worst enemy
|
||||
- Emotions destroy accounts
|
||||
- Discipline beats intelligence
|
||||
- The market exposes psychological weaknesses
|
||||
|
||||
---
|
||||
|
||||
## The Emotional Cycle of Trading
|
||||
|
||||
### Stage 1: Optimism
|
||||
- First wins
|
||||
- "This is easy!"
|
||||
- Overconfidence building
|
||||
- Taking bigger positions
|
||||
|
||||
### Stage 2: Excitement
|
||||
- String of wins
|
||||
- Feeling invincible
|
||||
- Breaking rules
|
||||
- Maximum risk
|
||||
|
||||
### Stage 3: Thrill
|
||||
- Biggest position yet
|
||||
- Ignoring warnings
|
||||
- "I can't lose"
|
||||
- Peak overconfidence
|
||||
|
||||
### Stage 4: Euphoria
|
||||
- Top of cycle
|
||||
- Taking ANY trade
|
||||
- No risk management
|
||||
- Disaster imminent
|
||||
|
||||
### Stage 5: Anxiety
|
||||
- First big loss
|
||||
- "Just bad luck"
|
||||
- Revenge trading starts
|
||||
- Doubling down
|
||||
|
||||
### Stage 6: Denial
|
||||
- "Market is wrong"
|
||||
- Moving stops
|
||||
- Averaging down
|
||||
- Refusing to accept loss
|
||||
|
||||
### Stage 7: Fear
|
||||
- Watching losses grow
|
||||
- Paralyzed
|
||||
- Can't exit
|
||||
- Hope replacing strategy
|
||||
|
||||
### Stage 8: Desperation
|
||||
- All-in trades
|
||||
- Gambling, not trading
|
||||
- Breaking all rules
|
||||
- Account in danger
|
||||
|
||||
### Stage 9: Panic
|
||||
- Forced exits
|
||||
- Margin calls
|
||||
- Capitulation
|
||||
- Major loss realized
|
||||
|
||||
### Stage 10: Capitulation
|
||||
- Give up
|
||||
- "Trading doesn't work"
|
||||
- Blame external factors
|
||||
- Quit or start over
|
||||
|
||||
### Stage 11: Despondency
|
||||
- Depression
|
||||
- Lost confidence
|
||||
- Consider quitting
|
||||
- Seeking answers
|
||||
|
||||
### Stage 12: Depression
|
||||
- Lowest point
|
||||
- Questioning everything
|
||||
- But...learning begins
|
||||
|
||||
### Stage 13: Hope
|
||||
- Education phase
|
||||
- Developing plan
|
||||
- Paper trading
|
||||
- Slow rebuild
|
||||
|
||||
### Stage 14: Relief
|
||||
- Small wins return
|
||||
- Following plan
|
||||
- Confidence building
|
||||
- Sustainable approach
|
||||
|
||||
**Then cycle repeats at smaller scale**
|
||||
|
||||
**Goal:** Flatten the cycle through discipline
|
||||
|
||||
---
|
||||
|
||||
## Common Psychological Traps
|
||||
|
||||
### 1. Revenge Trading
|
||||
|
||||
**What it is:**
|
||||
- Trading to "get back" losses
|
||||
- Emotional, not strategic
|
||||
- Larger positions
|
||||
- Breaks all rules
|
||||
|
||||
**Why it happens:**
|
||||
- Ego hurt
|
||||
- Feel need to "win"
|
||||
- Loss aversion
|
||||
- Impatience
|
||||
|
||||
**How to avoid:**
|
||||
- Hard daily loss limits
|
||||
- Mandatory cool-down periods
|
||||
- Accept losses as business cost
|
||||
- Focus on process, not money
|
||||
|
||||
---
|
||||
|
||||
### 2. FOMO (Fear of Missing Out)
|
||||
|
||||
**What it is:**
|
||||
- Chasing moves without setup
|
||||
- Entering late
|
||||
- Ignoring risk
|
||||
- "Everyone else is making money"
|
||||
|
||||
**Why it happens:**
|
||||
- Social comparison
|
||||
- Greed
|
||||
- Impatience
|
||||
- Scarcity mindset
|
||||
|
||||
**How to avoid:**
|
||||
- Wait for YOUR setup
|
||||
- Ignore what others are doing
|
||||
- Abundance mindset (opportunities come again)
|
||||
- Follow plan strictly
|
||||
|
||||
---
|
||||
|
||||
### 3. Overconfidence
|
||||
|
||||
**What it is:**
|
||||
- Taking outsized risk after wins
|
||||
- Ignoring risk management
|
||||
- "I can't lose"
|
||||
- Breaking rules
|
||||
|
||||
**Why it happens:**
|
||||
- Recent wins
|
||||
- Confirmation bias
|
||||
- Ego
|
||||
- Misunderstanding edge
|
||||
|
||||
**How to avoid:**
|
||||
- Fixed position sizing always
|
||||
- Review losers, not just winners
|
||||
- Remember: market is humbling
|
||||
- Track compliance, not just P&L
|
||||
|
||||
---
|
||||
|
||||
### 4. Analysis Paralysis
|
||||
|
||||
**What it is:**
|
||||
- Over-analyzing
|
||||
- Can't pull trigger
|
||||
- Waiting for "perfect" setup
|
||||
- Missing trades
|
||||
|
||||
**Why it happens:**
|
||||
- Fear of being wrong
|
||||
- Perfectionism
|
||||
- Too many indicators
|
||||
- No clear plan
|
||||
|
||||
**How to avoid:**
|
||||
- Simple setup criteria
|
||||
- Binary decision framework
|
||||
- Accept imperfect trades
|
||||
- Losses are part of game
|
||||
|
||||
---
|
||||
|
||||
### 5. Loss Aversion
|
||||
|
||||
**What it is:**
|
||||
- Refusing to take small loss
|
||||
- Moving stops
|
||||
- Hoping for recovery
|
||||
- Small loss becomes big
|
||||
|
||||
**Why it happens:**
|
||||
- Pain of being wrong
|
||||
- Sunk cost fallacy
|
||||
- Ego protection
|
||||
- Loss hurts more than gain feels good
|
||||
|
||||
**How to avoid:**
|
||||
- Stops are non-negotiable
|
||||
- View losses as business expense
|
||||
- Protect capital first
|
||||
- Smaller losses = stay in game
|
||||
|
||||
---
|
||||
|
||||
### 6. Confirmation Bias
|
||||
|
||||
**What it is:**
|
||||
- Seeking info that confirms view
|
||||
- Ignoring contrary evidence
|
||||
- Refusing to exit losing trade
|
||||
- Doubling down on mistakes
|
||||
|
||||
**Why it happens:**
|
||||
- Need to be right
|
||||
- Selective perception
|
||||
- Ego protection
|
||||
- Prior commitment
|
||||
|
||||
**How to avoid:**
|
||||
- Actively seek contrary evidence
|
||||
- Play devil's advocate
|
||||
- Follow price action, not opinion
|
||||
- Be wrong quickly
|
||||
|
||||
---
|
||||
|
||||
## Discipline Framework
|
||||
|
||||
### Pre-Trade
|
||||
|
||||
**Checklist before EVERY trade:**
|
||||
- [ ] Meets setup criteria?
|
||||
- [ ] R:R acceptable?
|
||||
- [ ] Position size calculated?
|
||||
- [ ] Stop-loss identified?
|
||||
- [ ] Within daily risk limit?
|
||||
- [ ] Calm and focused?
|
||||
- [ ] Following plan?
|
||||
|
||||
**If ANY "no" → Don't trade**
|
||||
|
||||
### During Trade
|
||||
|
||||
**Rules while in position:**
|
||||
- Check portfolio 2-3x max per day
|
||||
- Don't watch every tick
|
||||
- Trust your stop
|
||||
- Don't interfere unless rule-based
|
||||
- Avoid social media/chat
|
||||
|
||||
### Post-Trade
|
||||
|
||||
**After every trade:**
|
||||
- Log trade in journal
|
||||
- Note what went right/wrong
|
||||
- Capture lessons
|
||||
- Review compliance
|
||||
- Don't dwell on outcome
|
||||
|
||||
---
|
||||
|
||||
## Emotional State Management
|
||||
|
||||
### Pre-Market Routine
|
||||
|
||||
**Daily checklist (15-30 min):**
|
||||
- [ ] Adequate sleep (7+ hours)?
|
||||
- [ ] Hydrated and fed?
|
||||
- [ ] Calm and centered?
|
||||
- [ ] No major life stress?
|
||||
- [ ] Ready to accept losses?
|
||||
- [ ] Following plan today?
|
||||
|
||||
**If feeling off → Reduce size or skip day**
|
||||
|
||||
### Recognizing Tilt
|
||||
|
||||
**Warning signs:**
|
||||
- Increasing position size
|
||||
- Abandoning stops
|
||||
- Taking marginal setups
|
||||
- Checking P&L constantly
|
||||
- Feeling anxious/desperate
|
||||
- Anger at market
|
||||
- Rushing into trades
|
||||
|
||||
**When tilting:**
|
||||
1. STOP immediately
|
||||
2. Close positions
|
||||
3. Walk away
|
||||
4. Physical reset (exercise)
|
||||
5. Don't resume until calm
|
||||
|
||||
### Cool-Down Periods
|
||||
|
||||
**After any loss:**
|
||||
- Minimum 15-30 minutes
|
||||
- Walk, breathe, reset
|
||||
- Review trade objectively
|
||||
- Return only when calm
|
||||
|
||||
**After 2 consecutive losses:**
|
||||
- 1 hour minimum
|
||||
- Full review of both trades
|
||||
- Confirm plan compliance
|
||||
- Reduce size if continuing
|
||||
|
||||
**After 3 consecutive losses:**
|
||||
- DONE for the day
|
||||
- Full day review tomorrow
|
||||
- Don't force it
|
||||
- Tomorrow is new day
|
||||
|
||||
---
|
||||
|
||||
## Mindset Shifts
|
||||
|
||||
### From Outcome to Process
|
||||
|
||||
**Wrong focus:**
|
||||
- "I need to make $X today"
|
||||
- "I need to win this trade"
|
||||
- "I can't afford to lose"
|
||||
|
||||
**Right focus:**
|
||||
- "Did I follow my plan?"
|
||||
- "Was my risk management correct?"
|
||||
- "What can I learn?"
|
||||
|
||||
### From Prediction to Probabilities
|
||||
|
||||
**Wrong thinking:**
|
||||
- "This trade WILL work"
|
||||
- "I know what market will do"
|
||||
- "I can't be wrong"
|
||||
|
||||
**Right thinking:**
|
||||
- "This has good probability"
|
||||
- "I don't know, but R:R is good"
|
||||
- "I can be wrong and still profitable"
|
||||
|
||||
### From Money to Process
|
||||
|
||||
**Wrong focus:**
|
||||
- Daily P&L
|
||||
- "How much did I make?"
|
||||
- Comparing to others
|
||||
|
||||
**Right focus:**
|
||||
- Plan compliance
|
||||
- "Did I execute well?"
|
||||
- Personal improvement
|
||||
|
||||
---
|
||||
|
||||
## Handling Losses
|
||||
|
||||
### Accept Losses as Business Cost
|
||||
|
||||
**Truth:**
|
||||
- Losses are inevitable
|
||||
- Even 70% win rate = 30% losses
|
||||
- Losses are data, not failure
|
||||
- Cost of doing business
|
||||
|
||||
**Mindset:**
|
||||
- "This is expected"
|
||||
- "I planned for this"
|
||||
- "On to next trade"
|
||||
- No emotion
|
||||
|
||||
### Learn from Every Loss
|
||||
|
||||
**After each loss ask:**
|
||||
- Did I follow my plan?
|
||||
- Was setup valid?
|
||||
- Was risk management correct?
|
||||
- What can I improve?
|
||||
|
||||
**Categories of losses:**
|
||||
1. **Good loss:** Followed plan, just didn't work
|
||||
2. **Bad loss:** Broke rules
|
||||
3. **Learning loss:** New insight gained
|
||||
|
||||
**Good losses are OK. Learn from bad ones.**
|
||||
|
||||
---
|
||||
|
||||
## Handling Wins
|
||||
|
||||
### Don't Get Overconfident
|
||||
|
||||
**After big win:**
|
||||
- Resist urge to increase size
|
||||
- Follow plan as always
|
||||
- One win doesn't mean edge
|
||||
- Stay humble
|
||||
|
||||
### Avoid Euphoria
|
||||
|
||||
**Warning signs:**
|
||||
- Feeling invincible
|
||||
- "I figured it out"
|
||||
- Itching to trade more
|
||||
- Looking for any setup
|
||||
|
||||
**Remedy:**
|
||||
- Stick to plan
|
||||
- Take break if needed
|
||||
- Remember: regression to mean
|
||||
- Past performance ≠ future
|
||||
|
||||
---
|
||||
|
||||
## Daily Practices
|
||||
|
||||
### Morning
|
||||
|
||||
**Before market open:**
|
||||
- Review plan
|
||||
- Check emotional state
|
||||
- Set intentions
|
||||
- Prepare workspace
|
||||
- Identify setups
|
||||
- Set risk limits
|
||||
|
||||
### During Session
|
||||
|
||||
**While trading:**
|
||||
- Follow checklist
|
||||
- One trade at a time
|
||||
- Take breaks
|
||||
- Stay hydrated
|
||||
- Avoid news during trades
|
||||
- Trust process
|
||||
|
||||
### Evening
|
||||
|
||||
**After market close:**
|
||||
- Journal all trades
|
||||
- Calculate P&L
|
||||
- Review compliance
|
||||
- Note lessons
|
||||
- Prepare for tomorrow
|
||||
- Disconnect from markets
|
||||
|
||||
---
|
||||
|
||||
## Accountability Systems
|
||||
|
||||
### Trade Journal
|
||||
|
||||
**Required entries:**
|
||||
- Setup and reasoning
|
||||
- Emotional state
|
||||
- Rule compliance
|
||||
- Mistakes made
|
||||
- Lessons learned
|
||||
|
||||
### Performance Review
|
||||
|
||||
**Weekly:**
|
||||
- Win rate
|
||||
- Avg win/loss
|
||||
- Compliance %
|
||||
- Emotional patterns
|
||||
- Improvement areas
|
||||
|
||||
**Monthly:**
|
||||
- Full performance analysis
|
||||
- Goal progress
|
||||
- Strategy refinement
|
||||
- Psychological assessment
|
||||
|
||||
### External Accountability
|
||||
|
||||
**Consider:**
|
||||
- Trading buddy
|
||||
- Mentor
|
||||
- Trading journal app
|
||||
- Community (carefully)
|
||||
|
||||
---
|
||||
|
||||
## Meditation & Mindfulness
|
||||
|
||||
### Why It Helps
|
||||
|
||||
**Benefits for traders:**
|
||||
- Emotional regulation
|
||||
- Impulse control
|
||||
- Focus and clarity
|
||||
- Stress reduction
|
||||
- Better decisions
|
||||
|
||||
### Simple Practice
|
||||
|
||||
**Daily meditation (10 min):**
|
||||
1. Sit comfortably
|
||||
2. Focus on breath
|
||||
3. Notice thoughts
|
||||
4. Return to breath
|
||||
5. No judgment
|
||||
|
||||
**Before trading:**
|
||||
- 5 minutes breathing
|
||||
- Center yourself
|
||||
- Set intention
|
||||
- Begin calm
|
||||
|
||||
---
|
||||
|
||||
## Physical Health
|
||||
|
||||
### Sleep
|
||||
|
||||
**Critical for trading:**
|
||||
- 7-9 hours minimum
|
||||
- Consistent schedule
|
||||
- No trading if tired
|
||||
- Sleep > trading
|
||||
|
||||
### Exercise
|
||||
|
||||
**Benefits:**
|
||||
- Stress management
|
||||
- Mental clarity
|
||||
- Emotional regulation
|
||||
- Energy levels
|
||||
|
||||
**Recommendation:**
|
||||
- 30 min daily minimum
|
||||
- Before or after trading
|
||||
- Not during market hours
|
||||
|
||||
### Nutrition
|
||||
|
||||
**Avoid:**
|
||||
- Excessive caffeine
|
||||
- Sugar spikes
|
||||
- Trading hungry
|
||||
|
||||
**Prefer:**
|
||||
- Balanced meals
|
||||
- Steady energy
|
||||
- Hydration
|
||||
|
||||
---
|
||||
|
||||
## Dealing with Drawdowns
|
||||
|
||||
### Normal Part of Trading
|
||||
|
||||
**Reality:**
|
||||
- All traders have drawdowns
|
||||
- Expect them
|
||||
- Plan for them
|
||||
- Survive them
|
||||
|
||||
### During Drawdown
|
||||
|
||||
**Actions:**
|
||||
1. Review all trades
|
||||
2. Verify plan compliance
|
||||
3. Reduce position size
|
||||
4. Take break if needed
|
||||
5. Focus on process
|
||||
6. Trust recovery
|
||||
|
||||
**Don't:**
|
||||
- Increase size to "get back"
|
||||
- Abandon plan
|
||||
- Change strategy mid-stream
|
||||
- Panic
|
||||
|
||||
---
|
||||
|
||||
## Quotes for Mindset
|
||||
|
||||
**"The goal of a successful trader is to make the best trades. Money is secondary."** - Alexander Elder
|
||||
|
||||
**"In trading, the impossible happens about twice a year."** - Henri M. Simoes
|
||||
|
||||
**"The market is a device for transferring money from the impatient to the patient."** - Warren Buffett
|
||||
|
||||
**"The most important quality for an investor is temperament, not intellect."** - Warren Buffett
|
||||
|
||||
**"Rule No. 1: Never lose money. Rule No. 2: Don't forget rule No. 1."** - Warren Buffett
|
||||
|
||||
**"It's not whether you're right or wrong, but how much money you make when you're right and how much you lose when you're wrong."** - George Soros
|
||||
|
||||
---
|
||||
|
||||
## Psychological Checklist
|
||||
|
||||
**Before trading session:**
|
||||
- [ ] Adequate sleep
|
||||
- [ ] Calm and focused
|
||||
- [ ] No major stress
|
||||
- [ ] Following plan
|
||||
- [ ] Prepared to lose
|
||||
- [ ] No revenge mindset
|
||||
|
||||
**During trading:**
|
||||
- [ ] Checking P&L minimally
|
||||
- [ ] Following checklist
|
||||
- [ ] Taking breaks
|
||||
- [ ] Trusting stops
|
||||
- [ ] No tilt signs
|
||||
|
||||
**After trading:**
|
||||
- [ ] Journaled all trades
|
||||
- [ ] Reviewed objectively
|
||||
- [ ] Noted lessons
|
||||
- [ ] Disconnected
|
||||
- [ ] Ready for tomorrow
|
||||
|
||||
---
|
||||
|
||||
## Summary
|
||||
|
||||
**Trading psychology is:**
|
||||
- 50% of success
|
||||
- Controllable
|
||||
- Improvable
|
||||
- Critical
|
||||
|
||||
**Master these:**
|
||||
- Emotional control
|
||||
- Discipline
|
||||
- Process focus
|
||||
- Loss acceptance
|
||||
- Patience
|
||||
|
||||
**Remember:**
|
||||
- Markets are uncertain
|
||||
- Outcomes are random
|
||||
- Process is controllable
|
||||
- Discipline wins long-term
|
||||
|
||||
**Your edge isn't prediction. It's consistency.**
|
||||
810
skills/trading-plan-generator/scripts/generate_plan.sh
Executable file
810
skills/trading-plan-generator/scripts/generate_plan.sh
Executable file
@@ -0,0 +1,810 @@
|
||||
#!/bin/bash
|
||||
|
||||
# Trading Plan Generation Script
|
||||
# Interactive workflow for creating comprehensive trading plans
|
||||
|
||||
set -e
|
||||
|
||||
# Colors
|
||||
GREEN='\033[0;32m'
|
||||
BLUE='\033[0;34m'
|
||||
YELLOW='\033[1;33m'
|
||||
RED='\033[0;31m'
|
||||
MAGENTA='\033[0;35m'
|
||||
CYAN='\033[0;36m'
|
||||
NC='\033[0m'
|
||||
|
||||
# Header
|
||||
echo -e "${BLUE}╔══════════════════════════════════════════════════╗${NC}"
|
||||
echo -e "${BLUE}║ Trading Plan Generator ║${NC}"
|
||||
echo -e "${BLUE}╚══════════════════════════════════════════════════╝${NC}"
|
||||
echo ""
|
||||
echo -e "${YELLOW}⚠️ IMPORTANT: This generates a framework, not financial advice${NC}"
|
||||
echo -e "${YELLOW} Trading involves substantial risk of loss${NC}"
|
||||
echo ""
|
||||
|
||||
# Helper function for prompts
|
||||
prompt_input() {
|
||||
local prompt_text="$1"
|
||||
local var_name="$2"
|
||||
local required="$3"
|
||||
|
||||
while true; do
|
||||
echo -e "${CYAN}${prompt_text}${NC}"
|
||||
read -r input
|
||||
|
||||
if [ -n "$input" ]; then
|
||||
eval "$var_name=\"$input\""
|
||||
break
|
||||
elif [ "$required" != "true" ]; then
|
||||
eval "$var_name=\"\""
|
||||
break
|
||||
else
|
||||
echo -e "${RED}This field is required.${NC}"
|
||||
fi
|
||||
done
|
||||
}
|
||||
|
||||
# Step 1: Trading Style and Goals
|
||||
echo -e "${MAGENTA}━━━ Step 1: Trading Style & Goals ━━━${NC}"
|
||||
echo ""
|
||||
|
||||
echo "Select your primary trading style:"
|
||||
echo "1) Day Trading (close all positions same day)"
|
||||
echo "2) Swing Trading (hold 2-10 days)"
|
||||
echo "3) Position Trading (hold weeks to months)"
|
||||
echo "4) Options Trading (directional or income)"
|
||||
echo "5) Mix of styles"
|
||||
echo ""
|
||||
|
||||
prompt_input "Enter number (1-5):" STYLE_NUM true
|
||||
|
||||
case $STYLE_NUM in
|
||||
1) TRADING_STYLE="Day Trading" ;;
|
||||
2) TRADING_STYLE="Swing Trading" ;;
|
||||
3) TRADING_STYLE="Position Trading" ;;
|
||||
4) TRADING_STYLE="Options Trading" ;;
|
||||
5) TRADING_STYLE="Mixed Approach" ;;
|
||||
*) TRADING_STYLE="Swing Trading" ;;
|
||||
esac
|
||||
|
||||
echo ""
|
||||
prompt_input "Account size (USD):" ACCOUNT_SIZE true
|
||||
prompt_input "Monthly return target (%):" MONTHLY_TARGET false
|
||||
prompt_input "Time commitment (hours/day):" TIME_COMMIT false
|
||||
|
||||
# Step 2: Risk Management (CRITICAL)
|
||||
echo ""
|
||||
echo -e "${MAGENTA}━━━ Step 2: Risk Management (MOST IMPORTANT) ━━━${NC}"
|
||||
echo ""
|
||||
|
||||
echo "Risk per trade (% of account):"
|
||||
echo "1) 0.5% (Very Conservative)"
|
||||
echo "2) 1.0% (Recommended for most)"
|
||||
echo "3) 2.0% (Aggressive)"
|
||||
echo "4) Custom"
|
||||
echo ""
|
||||
|
||||
prompt_input "Enter number (1-4):" RISK_NUM true
|
||||
|
||||
case $RISK_NUM in
|
||||
1) RISK_PER_TRADE="0.5" ;;
|
||||
2) RISK_PER_TRADE="1.0" ;;
|
||||
3) RISK_PER_TRADE="2.0" ;;
|
||||
4) prompt_input "Enter custom risk % (e.g., 1.5):" RISK_PER_TRADE true ;;
|
||||
*) RISK_PER_TRADE="1.0" ;;
|
||||
esac
|
||||
|
||||
# Calculate dollar risk
|
||||
DOLLAR_RISK=$(echo "scale=2; $ACCOUNT_SIZE * $RISK_PER_TRADE / 100" | bc)
|
||||
|
||||
echo ""
|
||||
echo -e "${GREEN}✓ Risk per trade: ${RISK_PER_TRADE}% = \$${DOLLAR_RISK}${NC}"
|
||||
echo ""
|
||||
|
||||
prompt_input "Daily loss limit (% of account):" DAILY_LOSS_LIMIT true
|
||||
prompt_input "Maximum drawdown before break (% of account):" MAX_DRAWDOWN true
|
||||
|
||||
echo ""
|
||||
echo "Minimum Risk:Reward ratio:"
|
||||
echo "1) 2:1 (Conservative)"
|
||||
echo "2) 3:1 (Recommended)"
|
||||
echo "3) 1.5:1 (Aggressive)"
|
||||
echo ""
|
||||
|
||||
prompt_input "Enter number (1-3):" RR_NUM true
|
||||
|
||||
case $RR_NUM in
|
||||
1) MIN_RR="2:1" ;;
|
||||
2) MIN_RR="3:1" ;;
|
||||
3) MIN_RR="1.5:1" ;;
|
||||
*) MIN_RR="2:1" ;;
|
||||
esac
|
||||
|
||||
# Step 3: Markets and Instruments
|
||||
echo ""
|
||||
echo -e "${MAGENTA}━━━ Step 3: Markets & Instruments ━━━${NC}"
|
||||
echo ""
|
||||
|
||||
echo "Primary market:"
|
||||
echo "1) US Stocks"
|
||||
echo "2) Options"
|
||||
echo "3) Forex"
|
||||
echo "4) Crypto"
|
||||
echo "5) Futures"
|
||||
echo "6) Multiple"
|
||||
echo ""
|
||||
|
||||
prompt_input "Enter number (1-6):" MARKET_NUM true
|
||||
|
||||
case $MARKET_NUM in
|
||||
1) PRIMARY_MARKET="US Stocks" ;;
|
||||
2) PRIMARY_MARKET="Options" ;;
|
||||
3) PRIMARY_MARKET="Forex" ;;
|
||||
4) PRIMARY_MARKET="Crypto" ;;
|
||||
5) PRIMARY_MARKET="Futures" ;;
|
||||
6) PRIMARY_MARKET="Multiple markets" ;;
|
||||
*) PRIMARY_MARKET="US Stocks" ;;
|
||||
esac
|
||||
|
||||
prompt_input "Sector focus (or 'Any'):" SECTOR_FOCUS false
|
||||
prompt_input "Minimum liquidity (avg daily volume):" MIN_LIQUIDITY false
|
||||
prompt_input "Price range preference (e.g., \$20-200):" PRICE_RANGE false
|
||||
|
||||
# Step 4: Entry Strategy
|
||||
echo ""
|
||||
echo -e "${MAGENTA}━━━ Step 4: Entry Strategy ━━━${NC}"
|
||||
echo ""
|
||||
|
||||
echo "Primary setup type:"
|
||||
echo "1) Breakouts"
|
||||
echo "2) Pullbacks/Retracements"
|
||||
echo "3) Reversals"
|
||||
echo "4) Pattern completion"
|
||||
echo "5) Multiple setups"
|
||||
echo ""
|
||||
|
||||
prompt_input "Enter number (1-5):" SETUP_NUM false
|
||||
|
||||
case $SETUP_NUM in
|
||||
1) SETUP_TYPE="Breakouts" ;;
|
||||
2) SETUP_TYPE="Pullbacks/Retracements" ;;
|
||||
3) SETUP_TYPE="Reversals" ;;
|
||||
4) SETUP_TYPE="Pattern completion" ;;
|
||||
5) SETUP_TYPE="Multiple setup types" ;;
|
||||
*) SETUP_TYPE="TBD" ;;
|
||||
esac
|
||||
|
||||
prompt_input "Primary timeframe for analysis:" TIMEFRAME false
|
||||
prompt_input "Required confirmation signals:" CONFIRMATIONS false
|
||||
prompt_input "Entry order type (Market/Limit):" ORDER_TYPE false
|
||||
|
||||
# Step 5: Exit Strategy
|
||||
echo ""
|
||||
echo -e "${MAGENTA}━━━ Step 5: Exit Strategy ━━━${NC}"
|
||||
echo ""
|
||||
|
||||
echo "Stop-loss method:"
|
||||
echo "1) Fixed percentage (e.g., 2% below entry)"
|
||||
echo "2) Technical level (support/resistance)"
|
||||
echo "3) ATR-based (1.5x-2x ATR)"
|
||||
echo "4) Combination"
|
||||
echo ""
|
||||
|
||||
prompt_input "Enter number (1-4):" STOP_NUM true
|
||||
|
||||
case $STOP_NUM in
|
||||
1) STOP_METHOD="Fixed percentage" ;;
|
||||
2) STOP_METHOD="Technical level" ;;
|
||||
3) STOP_METHOD="ATR-based" ;;
|
||||
4) STOP_METHOD="Combination approach" ;;
|
||||
*) STOP_METHOD="Fixed percentage" ;;
|
||||
esac
|
||||
|
||||
echo ""
|
||||
echo "Take-profit strategy:"
|
||||
echo "1) Fixed R multiple (e.g., 2R, 3R)"
|
||||
echo "2) Technical target"
|
||||
echo "3) Trailing stop"
|
||||
echo "4) Partial profits (scale out)"
|
||||
echo ""
|
||||
|
||||
prompt_input "Enter number (1-4):" TP_NUM false
|
||||
|
||||
case $TP_NUM in
|
||||
1) TP_STRATEGY="Fixed R multiple" ;;
|
||||
2) TP_STRATEGY="Technical target" ;;
|
||||
3) TP_STRATEGY="Trailing stop" ;;
|
||||
4) TP_STRATEGY="Partial profits" ;;
|
||||
*) TP_STRATEGY="Fixed R multiple" ;;
|
||||
esac
|
||||
|
||||
prompt_input "Do you allow position scaling in/out? (Yes/No):" SCALING false
|
||||
|
||||
# Step 6: Psychology and Discipline
|
||||
echo ""
|
||||
echo -e "${MAGENTA}━━━ Step 6: Psychology & Discipline ━━━${NC}"
|
||||
echo ""
|
||||
|
||||
prompt_input "Pre-market routine duration (minutes):" ROUTINE_TIME false
|
||||
prompt_input "Maximum trades per day:" MAX_TRADES_DAY false
|
||||
prompt_input "Cool-down period after loss (minutes/hours):" COOLDOWN false
|
||||
|
||||
echo ""
|
||||
echo "Conditions when you MUST NOT trade:"
|
||||
echo "(e.g., 'After 2 losses in a row', 'When tired', 'Before major news')"
|
||||
echo ""
|
||||
prompt_input "No-trade condition 1:" NO_TRADE_1 false
|
||||
prompt_input "No-trade condition 2:" NO_TRADE_2 false
|
||||
prompt_input "No-trade condition 3:" NO_TRADE_3 false
|
||||
|
||||
# Step 7: Performance Tracking
|
||||
echo ""
|
||||
echo -e "${MAGENTA}━━━ Step 7: Performance Tracking ━━━${NC}"
|
||||
echo ""
|
||||
|
||||
echo "Trade journal method:"
|
||||
echo "1) Spreadsheet"
|
||||
echo "2) Trading platform"
|
||||
echo "3) Dedicated software"
|
||||
echo "4) Paper notebook"
|
||||
echo ""
|
||||
|
||||
prompt_input "Enter number (1-4):" JOURNAL_NUM false
|
||||
|
||||
case $JOURNAL_NUM in
|
||||
1) JOURNAL_METHOD="Spreadsheet" ;;
|
||||
2) JOURNAL_METHOD="Trading platform" ;;
|
||||
3) JOURNAL_METHOD="Dedicated software (e.g., Edgewonk)" ;;
|
||||
4) JOURNAL_METHOD="Paper notebook" ;;
|
||||
*) JOURNAL_METHOD="Spreadsheet" ;;
|
||||
esac
|
||||
|
||||
echo ""
|
||||
echo "Review frequency:"
|
||||
echo "1) Daily only"
|
||||
echo "2) Daily + Weekly"
|
||||
echo "3) Daily + Weekly + Monthly"
|
||||
echo ""
|
||||
|
||||
prompt_input "Enter number (1-3):" REVIEW_NUM false
|
||||
|
||||
case $REVIEW_NUM in
|
||||
1) REVIEW_FREQ="Daily" ;;
|
||||
2) REVIEW_FREQ="Daily and Weekly" ;;
|
||||
3) REVIEW_FREQ="Daily, Weekly, and Monthly" ;;
|
||||
*) REVIEW_FREQ="Daily and Weekly" ;;
|
||||
esac
|
||||
|
||||
# Generate filename
|
||||
FILENAME="trading_plan_$(date +%Y%m%d).md"
|
||||
|
||||
# Output directory
|
||||
OUTPUT_DIR="."
|
||||
if [ ! -z "$1" ]; then
|
||||
OUTPUT_DIR="$1"
|
||||
fi
|
||||
|
||||
OUTPUT_FILE="$OUTPUT_DIR/$FILENAME"
|
||||
|
||||
# Generate the plan
|
||||
echo ""
|
||||
echo -e "${BLUE}Generating your trading plan...${NC}"
|
||||
echo ""
|
||||
|
||||
cat > "$OUTPUT_FILE" << EOF
|
||||
# Trading Plan
|
||||
|
||||
**Created:** $(date +%Y-%m-%d)
|
||||
**Account Size:** \$${ACCOUNT_SIZE}
|
||||
**Trading Style:** ${TRADING_STYLE}
|
||||
|
||||
---
|
||||
|
||||
## ⚠️ CRITICAL DISCLAIMER
|
||||
|
||||
This trading plan is a personal framework for managing trading decisions. It does NOT constitute financial advice. Trading involves substantial risk of loss. Only trade with capital you can afford to lose.
|
||||
|
||||
---
|
||||
|
||||
## 1. Trading Goals & Philosophy
|
||||
|
||||
### Financial Goals
|
||||
- **Account Size:** \$${ACCOUNT_SIZE}
|
||||
- **Monthly Target:** ${MONTHLY_TARGET:-TBD}%
|
||||
- **Focus:** Consistent execution over returns
|
||||
|
||||
### Time Commitment
|
||||
- **Daily Time:** ${TIME_COMMIT:-TBD} hours
|
||||
- **Trading Style:** ${TRADING_STYLE}
|
||||
- **Market Hours:** [Specify your trading hours]
|
||||
|
||||
### Trading Philosophy
|
||||
[Write your personal trading philosophy - what you believe about markets, why you trade this way, your edge]
|
||||
|
||||
**Example:**
|
||||
"I believe markets trend, and I have an edge in identifying early-stage trends with technical analysis. My success comes from discipline, not prediction. I focus on process over profits."
|
||||
|
||||
---
|
||||
|
||||
## 2. Risk Management (MOST IMPORTANT)
|
||||
|
||||
### Position Sizing Rules
|
||||
|
||||
**Risk Per Trade: ${RISK_PER_TRADE}%**
|
||||
- Maximum risk per position: \$${DOLLAR_RISK}
|
||||
- NEVER exceed this amount on a single trade
|
||||
- Calculate position size BEFORE entering
|
||||
|
||||
**Position Size Formula:**
|
||||
\`\`\`
|
||||
Shares = Risk Amount / (Entry Price - Stop Price)
|
||||
= \$${DOLLAR_RISK} / (Entry - Stop)
|
||||
\`\`\`
|
||||
|
||||
**Example:**
|
||||
- Entry: \$100
|
||||
- Stop: \$98
|
||||
- Risk per share: \$2
|
||||
- Position: \$${DOLLAR_RISK} / \$2 = $(echo "scale=0; $DOLLAR_RISK / 2" | bc) shares
|
||||
|
||||
### Daily Loss Limit
|
||||
|
||||
**HARD STOP at -${DAILY_LOSS_LIMIT}% daily loss**
|
||||
|
||||
- Maximum daily loss: \$$(echo "scale=2; $ACCOUNT_SIZE * $DAILY_LOSS_LIMIT / 100" | bc)
|
||||
- When hit: STOP TRADING immediately
|
||||
- Close all positions
|
||||
- Step away from computer
|
||||
- Review what went wrong
|
||||
- Resume next day with clear head
|
||||
|
||||
**No exceptions. This rule protects your account.**
|
||||
|
||||
### Maximum Drawdown
|
||||
|
||||
**Break from trading at -${MAX_DRAWDOWN}% drawdown**
|
||||
|
||||
- Stop trading if account drops ${MAX_DRAWDOWN}% from peak
|
||||
- Take minimum 1 week break
|
||||
- Paper trade only
|
||||
- Review all trades
|
||||
- Identify systematic issues
|
||||
- Resume only when mentally ready
|
||||
|
||||
### Risk:Reward Requirements
|
||||
|
||||
**Minimum R:R: ${MIN_RR}**
|
||||
|
||||
- Only take trades with ${MIN_RR} or better
|
||||
- Measure before entry
|
||||
- If R:R doesn't meet minimum → skip trade
|
||||
- Quality over quantity
|
||||
|
||||
### Stop-Loss Rules
|
||||
|
||||
**EVERY trade MUST have a stop-loss**
|
||||
|
||||
- **Method:** ${STOP_METHOD}
|
||||
- Set stop BEFORE entry
|
||||
- Enter stop order immediately after fill
|
||||
- NEVER move stop further from entry
|
||||
- Accept the loss if stopped out
|
||||
|
||||
### Position Concentration
|
||||
|
||||
**Maximum positions:**
|
||||
- Day trading: [Specify max concurrent positions]
|
||||
- Swing trading: [Specify max concurrent positions]
|
||||
- Maximum sector exposure: [e.g., 30% in any one sector]
|
||||
|
||||
---
|
||||
|
||||
## 3. Markets & Instruments
|
||||
|
||||
### Primary Market
|
||||
**${PRIMARY_MARKET}**
|
||||
|
||||
### Specific Criteria
|
||||
- **Sector Focus:** ${SECTOR_FOCUS:-Any sector}
|
||||
- **Minimum Liquidity:** ${MIN_LIQUIDITY:-1M+ shares daily volume}
|
||||
- **Price Range:** ${PRICE_RANGE:-\$20-500}
|
||||
- **Market Cap:** [Specify if relevant]
|
||||
|
||||
### What I Trade
|
||||
- [List specific criteria]
|
||||
- [Examples of ideal stocks/instruments]
|
||||
|
||||
### What I DON'T Trade
|
||||
- [ ] Penny stocks (< \$5)
|
||||
- [ ] Illiquid stocks (< 500K volume)
|
||||
- [ ] IPOs in first month
|
||||
- [ ] Earnings day (specify approach)
|
||||
- [ ] Biotech binary events
|
||||
- [ ] [Add other exclusions]
|
||||
|
||||
---
|
||||
|
||||
## 4. Entry Strategy
|
||||
|
||||
### Primary Setup
|
||||
**${SETUP_TYPE}**
|
||||
|
||||
### Setup Criteria
|
||||
|
||||
**Must-have conditions:**
|
||||
1. [Specific technical condition]
|
||||
2. [Specific technical condition]
|
||||
3. [Specific technical condition]
|
||||
|
||||
**Confirmation signals:**
|
||||
- ${CONFIRMATIONS:-Volume confirmation, trend alignment}
|
||||
- [Additional confirmations]
|
||||
|
||||
**Timeframes:**
|
||||
- **Analysis:** ${TIMEFRAME:-Daily}
|
||||
- **Entry:** [Entry timeframe]
|
||||
- **Filter:** [Higher timeframe trend]
|
||||
|
||||
### Entry Rules
|
||||
|
||||
**Order Type:** ${ORDER_TYPE:-Limit order}
|
||||
|
||||
**Exact entry trigger:**
|
||||
1. [Specific price level or signal]
|
||||
2. [Confirmation requirement]
|
||||
3. [Additional filters]
|
||||
|
||||
**Position sizing:**
|
||||
- Calculate using formula in Section 2
|
||||
- Risk: \$${DOLLAR_RISK} per trade
|
||||
- Size accordingly
|
||||
|
||||
**Time restrictions:**
|
||||
- ${TRADING_STYLE} specific timing
|
||||
- [e.g., "No entries in first 15 minutes" for day trading]
|
||||
- [e.g., "No entries Friday afternoon" for swing trading]
|
||||
|
||||
---
|
||||
|
||||
## 5. Exit Strategy
|
||||
|
||||
### Stop-Loss
|
||||
|
||||
**Method:** ${STOP_METHOD}
|
||||
|
||||
**Rules:**
|
||||
- Set immediately after entry
|
||||
- Use stop order (not mental stop)
|
||||
- NEVER move stop further from entry
|
||||
- Can move to break-even after [specify when]
|
||||
- Accept losses without hesitation
|
||||
|
||||
**Stop placement:**
|
||||
- [Specific methodology]
|
||||
- Example: [Concrete example]
|
||||
|
||||
### Take-Profit
|
||||
|
||||
**Strategy:** ${TP_STRATEGY}
|
||||
|
||||
**Specific targets:**
|
||||
- Primary target: [e.g., 2R or specific level]
|
||||
- Secondary target: [if scaling out]
|
||||
- Trail: [trailing stop method if applicable]
|
||||
|
||||
**Scaling out:** ${SCALING:-Not allowed}
|
||||
- [If yes, specify scale-out rules]
|
||||
|
||||
### Trade Management
|
||||
|
||||
**When to exit early:**
|
||||
- [ ] Loss of momentum
|
||||
- [ ] Reversal pattern
|
||||
- [ ] Time stop hit (no progress in X days)
|
||||
- [ ] Market condition change
|
||||
- [ ] Better opportunity elsewhere
|
||||
|
||||
**When to add to position:**
|
||||
- [ ] ${SCALING} (specify if allowed)
|
||||
|
||||
**When to trail stop:**
|
||||
- [Specific rules]
|
||||
|
||||
---
|
||||
|
||||
## 6. Market Filters
|
||||
|
||||
### When TO Trade
|
||||
|
||||
**Market conditions:**
|
||||
- [ ] Clear trend present
|
||||
- [ ] Volatility in normal range (e.g., VIX < 30)
|
||||
- [ ] Volume above average
|
||||
- [ ] My setups present
|
||||
- [ ] No major news pending
|
||||
|
||||
**Personal conditions:**
|
||||
- [ ] Well-rested
|
||||
- [ ] Calm and focused
|
||||
- [ ] Following plan
|
||||
- [ ] No external stress
|
||||
- [ ] Within risk limits
|
||||
|
||||
### When NOT TO Trade
|
||||
|
||||
**Market conditions:**
|
||||
- [ ] Choppy, rangebound market
|
||||
- [ ] Extreme volatility
|
||||
- [ ] Major news pending (FOMC, etc.)
|
||||
- [ ] Low volume (holidays)
|
||||
- [ ] Gap and crap environment
|
||||
|
||||
**Personal conditions:**
|
||||
- ${NO_TRADE_1}
|
||||
- ${NO_TRADE_2}
|
||||
- ${NO_TRADE_3}
|
||||
- [ ] Emotional/tilting
|
||||
- [ ] Hit daily loss limit
|
||||
- [ ] Consecutive losses (specify number)
|
||||
|
||||
---
|
||||
|
||||
## 7. Psychology & Discipline
|
||||
|
||||
### Pre-Market Routine
|
||||
|
||||
**Time required:** ${ROUTINE_TIME:-30} minutes
|
||||
|
||||
**Daily checklist:**
|
||||
- [ ] Review previous day's trades
|
||||
- [ ] Check overnight news and catalysts
|
||||
- [ ] Identify key support/resistance levels
|
||||
- [ ] Mark potential setups
|
||||
- [ ] Set risk limits in trading platform
|
||||
- [ ] Emotional state check (calm and focused?)
|
||||
- [ ] Hydrated and alert?
|
||||
|
||||
### Trading Rules
|
||||
|
||||
**Maximum trades per day:** ${MAX_TRADES_DAY:-3-5 trades}
|
||||
|
||||
**Cool-down period:** ${COOLDOWN:-30 minutes after any loss}
|
||||
|
||||
**Break requirements:**
|
||||
- After 2 consecutive losses: 1 hour break
|
||||
- After 3 consecutive losses: Done for the day
|
||||
- After hitting daily loss limit: Done for the day
|
||||
|
||||
### Tilt Recognition
|
||||
|
||||
**Warning signs I'm tilting:**
|
||||
- Increasing position size
|
||||
- Abandoning stops
|
||||
- Taking marginal setups
|
||||
- Checking P&L constantly
|
||||
- Feeling anxious or desperate
|
||||
- Anger at market
|
||||
|
||||
**When tilting:**
|
||||
1. Close ALL positions immediately
|
||||
2. Stop trading for the day
|
||||
3. Physical activity (walk, gym)
|
||||
4. Review what triggered it
|
||||
5. Don't resume until calm
|
||||
|
||||
### Emotional State Check
|
||||
|
||||
**Before each trade ask:**
|
||||
- Am I calm and rational?
|
||||
- Am I following my plan?
|
||||
- Is this revenge trading?
|
||||
- Would I take this if starting fresh today?
|
||||
|
||||
**If any answer is concerning → SKIP THE TRADE**
|
||||
|
||||
---
|
||||
|
||||
## 8. Performance Tracking
|
||||
|
||||
### Trade Journal
|
||||
|
||||
**Method:** ${JOURNAL_METHOD}
|
||||
|
||||
**Required for each trade:**
|
||||
- [ ] Date and time
|
||||
- [ ] Ticker/symbol
|
||||
- [ ] Setup type
|
||||
- [ ] Entry price and size
|
||||
- [ ] Stop-loss and target
|
||||
- [ ] Exit price and reason
|
||||
- [ ] P&L (\$ and %)
|
||||
- [ ] R multiple (1R, 2R, etc.)
|
||||
- [ ] Market condition
|
||||
- [ ] Emotional state (1-10)
|
||||
- [ ] Mistakes made
|
||||
- [ ] What I did right
|
||||
- [ ] Lessons learned
|
||||
- [ ] Screenshot of chart
|
||||
|
||||
### Metrics to Track
|
||||
|
||||
**Weekly:**
|
||||
- Total P&L
|
||||
- Win rate
|
||||
- Average win vs average loss
|
||||
- Profit factor
|
||||
- Best trade
|
||||
- Worst trade
|
||||
- Rule compliance %
|
||||
|
||||
**Monthly:**
|
||||
- All weekly metrics
|
||||
- Maximum drawdown
|
||||
- Sharpe ratio
|
||||
- Expectancy
|
||||
- Number of trades
|
||||
- Best setup type
|
||||
- Time-of-day analysis
|
||||
|
||||
### Review Schedule
|
||||
|
||||
**${REVIEW_FREQ}**
|
||||
|
||||
**Daily Review (15 minutes):**
|
||||
- Review all trades
|
||||
- Calculate P&L
|
||||
- Note rule violations
|
||||
- Identify improvements
|
||||
- Plan for next day
|
||||
|
||||
**Weekly Review (30 minutes):**
|
||||
- Calculate weekly metrics
|
||||
- Identify patterns (what works/doesn't)
|
||||
- Best and worst trades analysis
|
||||
- Rule compliance check
|
||||
- Adjustments needed?
|
||||
|
||||
**Monthly Review (1 hour):**
|
||||
- Full performance analysis
|
||||
- Goal progress check
|
||||
- Strategy refinement
|
||||
- Mindset and discipline assessment
|
||||
- Plan for next month
|
||||
|
||||
---
|
||||
|
||||
## 9. Plan Compliance
|
||||
|
||||
### Rules I Will NEVER Break
|
||||
|
||||
1. **NEVER trade without a stop-loss**
|
||||
2. **NEVER risk more than ${RISK_PER_TRADE}% per trade**
|
||||
3. **NEVER trade past daily loss limit (-${DAILY_LOSS_LIMIT}%)**
|
||||
4. **NEVER move stops further from entry**
|
||||
5. **NEVER add to losing positions**
|
||||
6. **NEVER trade when emotional**
|
||||
7. **NEVER skip the trade journal**
|
||||
|
||||
### Accountability
|
||||
|
||||
**How I'll stay accountable:**
|
||||
- [ ] Trading journal review
|
||||
- [ ] Weekly performance check
|
||||
- [ ] Trading buddy/mentor check-ins
|
||||
- [ ] [Other accountability measures]
|
||||
|
||||
**Consequences for breaking rules:**
|
||||
- 1 violation: Document why and how to prevent
|
||||
- 2 violations in a week: Reduce size 50%
|
||||
- 3 violations: Paper trade only for 1 week
|
||||
|
||||
---
|
||||
|
||||
## 10. Plan Evolution
|
||||
|
||||
### When to Review This Plan
|
||||
- Monthly minimum
|
||||
- After major changes in performance
|
||||
- After strategy adjustments
|
||||
- After market regime change
|
||||
|
||||
### When to Adjust This Plan
|
||||
- Consistent profitability → consider increasing risk slightly
|
||||
- Consistent losses → reduce risk, review everything
|
||||
- Market conditions change → adapt filters
|
||||
- Personal circumstances change → adjust time commitment
|
||||
|
||||
### What Never Changes
|
||||
- Risk management discipline
|
||||
- Trade journal requirement
|
||||
- Stop-loss mandate
|
||||
- Daily loss limit
|
||||
|
||||
---
|
||||
|
||||
## Appendix A: Position Size Calculator
|
||||
|
||||
**Quick reference:**
|
||||
|
||||
| Entry - Stop | Position Size (for \$${DOLLAR_RISK} risk) |
|
||||
|--------------|-------------------------------------------|
|
||||
| \$1 | $(echo "scale=0; $DOLLAR_RISK / 1" | bc) shares |
|
||||
| \$2 | $(echo "scale=0; $DOLLAR_RISK / 2" | bc) shares |
|
||||
| \$3 | $(echo "scale=0; $DOLLAR_RISK / 3" | bc) shares |
|
||||
| \$5 | $(echo "scale=0; $DOLLAR_RISK / 5" | bc) shares |
|
||||
|
||||
**Formula:** Shares = \$${DOLLAR_RISK} / (Entry - Stop)
|
||||
|
||||
---
|
||||
|
||||
## Appendix B: Trade Checklist
|
||||
|
||||
**Before EVERY trade:**
|
||||
- [ ] Setup matches my criteria
|
||||
- [ ] R:R is ${MIN_RR} or better
|
||||
- [ ] Position size calculated (risk = \$${DOLLAR_RISK})
|
||||
- [ ] Stop-loss level identified
|
||||
- [ ] Within daily loss limit
|
||||
- [ ] Emotional state good
|
||||
- [ ] Market conditions favorable
|
||||
- [ ] No news pending
|
||||
- [ ] Have clear exit plan
|
||||
|
||||
**If ANY box unchecked → DON'T TAKE THE TRADE**
|
||||
|
||||
---
|
||||
|
||||
## Appendix C: Resources
|
||||
|
||||
**Recommended reading:**
|
||||
- "Trading in the Zone" - Mark Douglas
|
||||
- "The New Trading for a Living" - Alexander Elder
|
||||
- "Reminiscences of a Stock Operator" - Edwin Lefèvre
|
||||
|
||||
**Tools:**
|
||||
- Trading platform: [Your platform]
|
||||
- Charting: [Your charting software]
|
||||
- Journal: ${JOURNAL_METHOD}
|
||||
- Screener: [Your screener]
|
||||
|
||||
---
|
||||
|
||||
## Commitment
|
||||
|
||||
I commit to following this trading plan with discipline and consistency. I understand that success comes from process, not individual trades. I will track my performance, learn from mistakes, and continuously improve.
|
||||
|
||||
**Signed:** ___________________
|
||||
**Date:** $(date +%Y-%m-%d)
|
||||
|
||||
---
|
||||
|
||||
## Plan Version History
|
||||
|
||||
| Version | Date | Changes |
|
||||
|---------|------|---------|
|
||||
| 1.0 | $(date +%Y-%m-%d) | Initial plan created |
|
||||
|
||||
EOF
|
||||
|
||||
echo -e "${GREEN}✅ Trading plan generated successfully!${NC}"
|
||||
echo ""
|
||||
echo -e "File location: ${BLUE}$OUTPUT_FILE${NC}"
|
||||
echo ""
|
||||
echo -e "${YELLOW}━━━ CRITICAL NEXT STEPS ━━━${NC}"
|
||||
echo ""
|
||||
echo "1. ${GREEN}READ${NC} the entire plan carefully"
|
||||
echo "2. ${GREEN}CUSTOMIZE${NC} the [TBD] sections with your specifics"
|
||||
echo "3. ${GREEN}COMMIT${NC} to following it (sign and date)"
|
||||
echo "4. ${GREEN}PRINT${NC} and keep it visible while trading"
|
||||
echo "5. ${GREEN}REVIEW${NC} before every trading session"
|
||||
echo "6. ${GREEN}TRACK${NC} your compliance daily"
|
||||
echo ""
|
||||
echo -e "${RED}⚠️ Remember:${NC}"
|
||||
echo " • Trading involves substantial risk"
|
||||
echo " • This plan doesn't guarantee profits"
|
||||
echo " • Discipline is everything"
|
||||
echo " • Protect your capital FIRST"
|
||||
echo ""
|
||||
echo -e "${CYAN}Tip: Use validate_plan.sh to check completeness${NC}"
|
||||
echo ""
|
||||
104
skills/trading-plan-generator/scripts/position_calculator.sh
Executable file
104
skills/trading-plan-generator/scripts/position_calculator.sh
Executable file
@@ -0,0 +1,104 @@
|
||||
#!/bin/bash
|
||||
|
||||
# Position Size Calculator
|
||||
# Quick calculator for trading position sizes
|
||||
|
||||
# Colors
|
||||
GREEN='\033[0;32m'
|
||||
BLUE='\033[0;34m'
|
||||
YELLOW='\033[1;33m'
|
||||
RED='\033[0;31m'
|
||||
CYAN='\033[0;36m'
|
||||
NC='\033[0m'
|
||||
|
||||
echo -e "${BLUE}╔══════════════════════════════════════════════════╗${NC}"
|
||||
echo -e "${BLUE}║ Position Size Calculator ║${NC}"
|
||||
echo -e "${BLUE}╚══════════════════════════════════════════════════╝${NC}"
|
||||
echo ""
|
||||
|
||||
# Get inputs
|
||||
read -p "$(echo -e ${CYAN}"Account size (\$): "${NC})" ACCOUNT_SIZE
|
||||
read -p "$(echo -e ${CYAN}"Risk per trade (%): "${NC})" RISK_PERCENT
|
||||
read -p "$(echo -e ${CYAN}"Entry price (\$): "${NC})" ENTRY_PRICE
|
||||
read -p "$(echo -e ${CYAN}"Stop-loss price (\$): "${NC})" STOP_PRICE
|
||||
|
||||
# Calculate
|
||||
RISK_AMOUNT=$(echo "scale=2; $ACCOUNT_SIZE * $RISK_PERCENT / 100" | bc)
|
||||
RISK_PER_SHARE=$(echo "scale=4; $ENTRY_PRICE - $STOP_PRICE" | bc)
|
||||
|
||||
if (( $(echo "$RISK_PER_SHARE <= 0" | bc -l) )); then
|
||||
echo -e "${RED}Error: Stop price must be below entry price${NC}"
|
||||
exit 1
|
||||
fi
|
||||
|
||||
POSITION_SIZE=$(echo "scale=0; $RISK_AMOUNT / $RISK_PER_SHARE" | bc)
|
||||
POSITION_VALUE=$(echo "scale=2; $POSITION_SIZE * $ENTRY_PRICE" | bc)
|
||||
PERCENT_OF_ACCOUNT=$(echo "scale=2; $POSITION_VALUE / $ACCOUNT_SIZE * 100" | bc)
|
||||
|
||||
# Calculate R multiples
|
||||
TARGET_2R=$(echo "scale=2; $ENTRY_PRICE + ($RISK_PER_SHARE * 2)" | bc)
|
||||
TARGET_3R=$(echo "scale=2; $ENTRY_PRICE + ($RISK_PER_SHARE * 3)" | bc)
|
||||
|
||||
echo ""
|
||||
echo -e "${BLUE}━━━ Position Size Calculation ━━━${NC}"
|
||||
echo ""
|
||||
echo -e "Risk Amount: ${GREEN}\$${RISK_AMOUNT}${NC} (${RISK_PERCENT}% of account)"
|
||||
echo -e "Risk Per Share: \$${RISK_PER_SHARE}"
|
||||
echo ""
|
||||
echo -e "${YELLOW}POSITION SIZE: ${POSITION_SIZE} shares${NC}"
|
||||
echo ""
|
||||
echo -e "Position Value: \$${POSITION_VALUE}"
|
||||
echo -e "% of Account: ${PERCENT_OF_ACCOUNT}%"
|
||||
echo ""
|
||||
|
||||
# Warnings
|
||||
if (( $(echo "$PERCENT_OF_ACCOUNT > 50" | bc -l) )); then
|
||||
echo -e "${RED}⚠️ WARNING: Position is ${PERCENT_OF_ACCOUNT}% of account${NC}"
|
||||
echo -e "${RED} This is high concentration - ensure this is intentional${NC}"
|
||||
echo ""
|
||||
fi
|
||||
|
||||
echo -e "${BLUE}━━━ Profit Targets (R Multiples) ━━━${NC}"
|
||||
echo ""
|
||||
echo -e "2R Target: \$${TARGET_2R} = ${GREEN}\$$(echo "scale=2; $RISK_AMOUNT * 2" | bc)${NC} profit"
|
||||
echo -e "3R Target: \$${TARGET_3R} = ${GREEN}\$$(echo "scale=2; $RISK_AMOUNT * 3" | bc)${NC} profit"
|
||||
echo ""
|
||||
|
||||
echo -e "${BLUE}━━━ Risk:Reward Analysis ━━━${NC}"
|
||||
echo ""
|
||||
|
||||
# Optional: Ask for target price
|
||||
read -p "$(echo -e ${CYAN}"Enter target price (or press Enter to skip): "${NC})" TARGET_PRICE
|
||||
|
||||
if [ -n "$TARGET_PRICE" ]; then
|
||||
REWARD=$(echo "scale=2; ($TARGET_PRICE - $ENTRY_PRICE) * $POSITION_SIZE" | bc)
|
||||
RR_RATIO=$(echo "scale=2; $REWARD / $RISK_AMOUNT" | bc)
|
||||
|
||||
echo ""
|
||||
echo -e "Entry: \$${ENTRY_PRICE}"
|
||||
echo -e "Target: \$${TARGET_PRICE}"
|
||||
echo -e "Stop: \$${STOP_PRICE}"
|
||||
echo ""
|
||||
echo -e "Potential Reward: ${GREEN}\$${REWARD}${NC}"
|
||||
echo -e "Risk Amount: ${RED}\$${RISK_AMOUNT}${NC}"
|
||||
echo ""
|
||||
|
||||
if (( $(echo "$RR_RATIO >= 2" | bc -l) )); then
|
||||
echo -e "R:R Ratio: ${GREEN}${RR_RATIO}:1 ✓${NC}"
|
||||
echo -e " ${GREEN}Good risk:reward ratio${NC}"
|
||||
elif (( $(echo "$RR_RATIO >= 1.5" | bc -l) )); then
|
||||
echo -e "R:R Ratio: ${YELLOW}${RR_RATIO}:1${NC}"
|
||||
echo -e " ${YELLOW}Acceptable, but aim for 2:1+${NC}"
|
||||
else
|
||||
echo -e "R:R Ratio: ${RED}${RR_RATIO}:1 ✗${NC}"
|
||||
echo -e " ${RED}Poor risk:reward - consider skipping this trade${NC}"
|
||||
fi
|
||||
fi
|
||||
|
||||
echo ""
|
||||
echo -e "${CYAN}━━━ Trade Summary ━━━${NC}"
|
||||
echo ""
|
||||
echo "BUY ${POSITION_SIZE} shares at \$${ENTRY_PRICE}"
|
||||
echo "STOP at \$${STOP_PRICE}"
|
||||
echo "RISK: \$${RISK_AMOUNT} (${RISK_PERCENT}%)"
|
||||
echo ""
|
||||
179
skills/trading-plan-generator/scripts/validate_plan.sh
Executable file
179
skills/trading-plan-generator/scripts/validate_plan.sh
Executable file
@@ -0,0 +1,179 @@
|
||||
#!/bin/bash
|
||||
|
||||
# Trading Plan Validation Script
|
||||
# Checks trading plan completeness and critical risk management
|
||||
|
||||
set -e
|
||||
|
||||
# Colors
|
||||
GREEN='\033[0;32m'
|
||||
BLUE='\033[0;34m'
|
||||
YELLOW='\033[1;33m'
|
||||
RED='\033[0;31m'
|
||||
NC='\033[0m'
|
||||
|
||||
if [ $# -lt 1 ]; then
|
||||
echo "Usage: $0 <trading_plan.md>"
|
||||
exit 1
|
||||
fi
|
||||
|
||||
PLAN_FILE="$1"
|
||||
|
||||
if [ ! -f "$PLAN_FILE" ]; then
|
||||
echo -e "${RED}✗ Error: File not found: $PLAN_FILE${NC}"
|
||||
exit 1
|
||||
fi
|
||||
|
||||
echo -e "${BLUE}╔════════════════════════════════════════════════╗${NC}"
|
||||
echo -e "${BLUE}║ Trading Plan Validation Report ║${NC}"
|
||||
echo -e "${BLUE}╚════════════════════════════════════════════════╝${NC}"
|
||||
echo ""
|
||||
echo -e "File: ${BLUE}$PLAN_FILE${NC}"
|
||||
echo ""
|
||||
|
||||
CRITICAL_ISSUES=0
|
||||
WARNINGS=0
|
||||
PASSED=0
|
||||
|
||||
# Function to check section
|
||||
check_section() {
|
||||
local name="$1"
|
||||
local pattern="$2"
|
||||
local critical="$3"
|
||||
|
||||
if grep -qi "$pattern" "$PLAN_FILE"; then
|
||||
echo -e "${GREEN}✓${NC} $name"
|
||||
((PASSED++))
|
||||
return 0
|
||||
else
|
||||
if [ "$critical" = "true" ]; then
|
||||
echo -e "${RED}✗${NC} $name - CRITICAL MISSING"
|
||||
((CRITICAL_ISSUES++))
|
||||
else
|
||||
echo -e "${YELLOW}⚠${NC} $name - recommended"
|
||||
((WARNINGS++))
|
||||
fi
|
||||
return 1
|
||||
fi
|
||||
}
|
||||
|
||||
echo -e "${BLUE}━━━ CRITICAL Risk Management (Must Have) ━━━${NC}"
|
||||
echo ""
|
||||
|
||||
check_section "Risk per trade defined" "Risk Per Trade\|risk.*per.*trade" true
|
||||
check_section "Daily loss limit set" "Daily Loss Limit\|daily.*loss" true
|
||||
check_section "Stop-loss methodology" "Stop.*Loss.*Rules\|stop.*loss.*method" true
|
||||
check_section "Position sizing formula" "Position.*Size.*Formula\|position.*sizing" true
|
||||
check_section "Maximum drawdown limit" "Maximum Drawdown\|max.*drawdown" true
|
||||
|
||||
echo ""
|
||||
echo -e "${BLUE}━━━ Essential Strategy Components ━━━${NC}"
|
||||
echo ""
|
||||
|
||||
check_section "Trading style defined" "Trading Style\|Day Trading\|Swing Trading\|Position Trading" true
|
||||
check_section "Entry criteria" "Entry.*Strategy\|Entry.*Rules\|Entry.*Criteria" true
|
||||
check_section "Exit strategy" "Exit.*Strategy\|Take.*Profit\|Profit.*Target" true
|
||||
check_section "Market selection" "Markets.*Instruments\|What I Trade" true
|
||||
check_section "Risk:Reward minimum" "Risk.*Reward\|R:R\|RR.*ratio" true
|
||||
|
||||
echo ""
|
||||
echo -e "${BLUE}━━━ Psychology & Discipline ━━━${NC}"
|
||||
echo ""
|
||||
|
||||
check_section "No-trade conditions" "When NOT to Trade\|No.*Trade.*Condition" false
|
||||
check_section "Pre-market routine" "Pre.*Market.*Routine\|Daily.*checklist" false
|
||||
check_section "Tilt recognition" "Tilt\|Emotional.*State.*Check" false
|
||||
check_section "Trade journal plan" "Trade Journal\|Performance Tracking" true
|
||||
|
||||
echo ""
|
||||
echo -e "${BLUE}━━━ Quality Checks ━━━${NC}"
|
||||
echo ""
|
||||
|
||||
# Check for dangerous patterns
|
||||
if grep -qi "no stop\|without stop\|mental stop" "$PLAN_FILE"; then
|
||||
echo -e "${RED}✗${NC} DANGER: References trading without stops"
|
||||
((CRITICAL_ISSUES++))
|
||||
else
|
||||
echo -e "${GREEN}✓${NC} Requires stop-losses"
|
||||
((PASSED++))
|
||||
fi
|
||||
|
||||
# Check risk percentage
|
||||
if grep -Eq "[3-9]\.?[0-9]*%.*risk|risk.*[3-9]\.?[0-9]*%" "$PLAN_FILE"; then
|
||||
echo -e "${YELLOW}⚠${NC} Risk per trade >3% detected - very aggressive"
|
||||
((WARNINGS++))
|
||||
elif grep -Eq "[0-9]+\.?[0-9]*%.*risk|risk.*[0-9]+\.?[0-9]*%" "$PLAN_FILE"; then
|
||||
echo -e "${GREEN}✓${NC} Risk percentage defined"
|
||||
((PASSED++))
|
||||
fi
|
||||
|
||||
# Check for TBD placeholders
|
||||
TBD_COUNT=$(grep -c "TBD\|\[Specify\]\|\[Add\]\|\[List\]" "$PLAN_FILE" || true)
|
||||
if [ "$TBD_COUNT" -gt 5 ]; then
|
||||
echo -e "${YELLOW}⚠${NC} $TBD_COUNT placeholder sections need completion"
|
||||
((WARNINGS++))
|
||||
elif [ "$TBD_COUNT" -gt 0 ]; then
|
||||
echo -e "${GREEN}✓${NC} Most sections completed ($TBD_COUNT placeholders remaining)"
|
||||
((PASSED++))
|
||||
else
|
||||
echo -e "${GREEN}✓${NC} All sections completed"
|
||||
((PASSED++))
|
||||
fi
|
||||
|
||||
# Check for signed commitment
|
||||
if grep -q "Signed:.*___\|Signed:\s*$" "$PLAN_FILE"; then
|
||||
echo -e "${YELLOW}⚠${NC} Plan not signed yet"
|
||||
((WARNINGS++))
|
||||
else
|
||||
echo -e "${GREEN}✓${NC} Plan appears to be committed to"
|
||||
((PASSED++))
|
||||
fi
|
||||
|
||||
echo ""
|
||||
echo -e "${BLUE}╔════════════════════════════════════════════════╗${NC}"
|
||||
echo -e "${BLUE}║ Validation Summary ║${NC}"
|
||||
echo -e "${BLUE}╚════════════════════════════════════════════════╝${NC}"
|
||||
echo ""
|
||||
echo -e "Checks passed: ${GREEN}$PASSED${NC}"
|
||||
echo -e "Warnings: ${YELLOW}$WARNINGS${NC}"
|
||||
echo -e "Critical issues: ${RED}$CRITICAL_ISSUES${NC}"
|
||||
echo ""
|
||||
|
||||
if [ "$CRITICAL_ISSUES" -gt 0 ]; then
|
||||
echo -e "${RED}❌ TRADING PLAN VALIDATION FAILED${NC}"
|
||||
echo ""
|
||||
echo -e "${RED}Critical issues MUST be addressed before trading.${NC}"
|
||||
echo ""
|
||||
echo "Required sections:"
|
||||
echo " • Risk per trade (0.5-2% recommended)"
|
||||
echo " • Daily loss limit (hard stop)"
|
||||
echo " • Stop-loss methodology (mandatory)"
|
||||
echo " • Position sizing formula"
|
||||
echo " • Entry and exit criteria"
|
||||
echo ""
|
||||
exit 1
|
||||
elif [ "$WARNINGS" -gt 3 ]; then
|
||||
echo -e "${YELLOW}⚠ Plan validation passed with warnings${NC}"
|
||||
echo ""
|
||||
echo "Address warnings to improve plan quality:"
|
||||
echo " • Complete TBD sections"
|
||||
echo " • Define no-trade conditions"
|
||||
echo " • Add pre-market routine"
|
||||
echo " • Sign and commit to plan"
|
||||
echo ""
|
||||
exit 0
|
||||
else
|
||||
echo -e "${GREEN}✅ TRADING PLAN VALIDATION PASSED!${NC}"
|
||||
echo ""
|
||||
echo "Your plan includes critical risk management components."
|
||||
echo ""
|
||||
echo -e "${BLUE}Next steps:${NC}"
|
||||
echo " 1. Print and keep visible while trading"
|
||||
echo " 2. Review before every session"
|
||||
echo " 3. Track compliance daily"
|
||||
echo " 4. Review/adjust monthly"
|
||||
echo ""
|
||||
echo -e "${YELLOW}Remember: A plan is only valuable if you follow it.${NC}"
|
||||
echo ""
|
||||
exit 0
|
||||
fi
|
||||
Reference in New Issue
Block a user