Are these three what you would define as actual "setups"? I've been trying to objectively define how I enter, and I'm having a hard time because it depends on context--one for example is a triangle breakout-pullback, and a breakout-reversal. That to me would be a "setup" ... do you get more specific in your "plan" with your setups?

I'm working on writing out a plan with certain details, but gosh I'm just having a difficult time. I know so many people talk about a written plan, but not everyone works the same way. I'm not lazy, I just don't quite know what to write as a "setup" -- and even if I did write it down, would it really help me identify it in real time?

@josh

I found it interesting to read these commments of yours which are from a distant past. Have you finally been able to write a workable trading plan since then?

@Trendisyourfriend
@josh

I kinda agree with Josh's initial comments. I've given up trying to write down my setups too. This worried me for a while towards the end of last year. I use MP/VP for my trading and trying to write down a "setup" is kinda challenging since context plays a key role in whether I take a certain trade or not.

Something else that may be helpful is to make a set-up sheet for each setup you have. On that sheet draw a conceptual map of what the trade looks like. The map is not from a chart. It's just a drawing of what the setup should look like. In addition to the map you can describe background conditions. For example, the market is trending lower, or, it is trending lower but at a key support level. Describe what has to happen for the trade to play out. Example, market opens below prior day VAL, rally's back to VAL and is rejected and a reversal bar forms. Go short. Target(s) are.... Stop is....

D

I found it interesting to read these commments of yours which are from a distant past. Have you finally been able to write a workable trading plan since then?

trendisyourfriend, a few things have evolved in my trading methodology in the two years since that series of posts. In the posts after the one you quoted, it seems I was a bit hung up on writing out actual "triggers" or "setups" -- and I still am, because I still do not think in terms of setups, though visually I am sure that I employ pattern recognition. Today I seem to be more concerned with what price I want to buy or sell, rather than a specific set of conditions that must be met in order for me to pull the trigger. While I may have some things which will strengthen my confidence in a trade--such as a positively correlating delta, or TICK, or some cue from another market--I watch the order book for a general read, but pretty much use context and value to determine actual trades.

I have seen the value in writing a plan before the open and executing that plan. The value for me has been that I can be more objective in the planning phase, and I am less prone to rash decisions. I know where we are trading, and I know what that means for me; there is rarely any question when the market opens what I am going to be doing. If it turns out that my premise was incorrect, then I see that as information I can use to modify things as necessary. This also helps me more objectively determine how synchronized I am with the market I'm trading--if my primary thesis is correct often, then I am in tune with the market and that gives me more confidence to execute without hesitation. If I don't have a plan of some kind and have a great day, then it is still frustrating for me because I have no objective way to measure my trading and that good performance is not really repeatable. It can feel kind of like "whew, came out on top today... but what about tomorrow?"