27/10 – Daytrading routines & processes

Yesterday I was working with a professional hedge fund trader who is planning to move his trading from a daily timeframe to an hourly timeframe.  As part of our discussion, I conveyed to him that processes and routines become more important on the lower timeframes, as there will be more doing/trading and less analysis and research. cheklist Additionally, the pressures will be more intense due to timing pressures in making trading decisions much more quickly and higher trading frequencies, so it becomes more important to rely on set and structured processes and check lists.

During that discussion, I offered to post an example of my daily and weekly routines and processes here….

Additionally I also wanted to share this for the benefit of the members of the Veteran Traders Project (VTP) who were discussing a similar topic recently.

Breakfast time (around 5.30am)

  • Check Twitter feed for news items, developments & then cycle to trading office

Pre-Session Routine (6-7am)

  • Complete Psychology/Trader Assessment – example
  • Complete Volatility assessment – using a custom dashboard in MT4
  • Complete strength/weakness ratings for currency pairs on various timeframes – using a custom dashboard on MT4
  • Review overnight news (using squawk and my Twitter feed)
  • Double-check news schedule for the day
  • Double-check news schedule for critical items (e.g. FOMC, ECB, NFP) for remainder of week
  • Update position sizing sheet with latest GBP rates
  • Complete Market conditions assessment (various metrics)
  • Review 1H charts of 36 markets and determine short-list of instruments that could have valid setups today
  • Update templates in MT4 and FXCM Marketscope with the short-lists
  • Review/identify 4H & D timeframe support/resistance for short-listed instruments
  • Get ready for 7am setups

Trading Session (7am-2pm)

  • Check for potential setups at 10 minutes prior to the top of each hour execute trades at the top of the hour, if applicable (thus xx:50 to xx:10 is very focused time)
  • Use setups checklist for each potential setup
  • Double-check for setups within ten minutes of the top of the hour
  • Manage open positions according to my trade management rules

Breaks

  • Take at least one 10-15 minute break outside the office in the morning
  • Lunch of at least 30 minutes outside the office
  • Take break of 10-15 minutes in the afternoon

End of Day Review (around 3 or 4pm)

  • Document executed trades
  • Review charts to ensure no valid setups were missed
  • Rate strategy performance for the session
  • Rate trader (my) performance for the session
  • Complete brief psychology review for the day
  • Note Tier-1 news items for Asian session and the next day using forexfactory
  • Set up sheet for next day’s trading session
  • Plan next day’s trading assignments and non-trading tasks (if any)
  • Check position sizing for next session

 

A lot of the steps above have come into being thanks to coaching I received from Paul Wallace and ‘TraderDi’, and programming from ‘Trader Wayne’ – thanks a lot guys!

Hopefully that provides a good example of my typical trading day.

 

This entry was posted in Psychology, Risk & Money Management. Bookmark the permalink.

7 Responses to 27/10 – Daytrading routines & processes

  1. This is my day as an automated day trader.

    Before market open:
    1. Ensure all trading programs are up and running correctly before the markets ‘open’
    2. Prepare myself for a full losing day, assume all trades will be full losers.

    During market hours:
    1.Monitor systems to ensure all hardware/software/internet is functioning as expected.
    2.Keep myself as relaxed as possible.

    After market hours:
    1.Collect market data needed for next days trading (automated process).
    2.Compare actual trading results for today with backtest results for today (now that today is part of the backtest dataset). Both results should be the approximately the same.

    Thats my day in a nutshell.

    The levels of focus and work required to do what a trader like George is doing is immense, especially during a long losing streak, hard to do all that when the market is beating you up hard day after day.

    Liked by 1 person

  2. Pingback: ‘7 Habits’ application for traders! | Trick or Trade

  3. Pingback: 18/11 – Weekly Wrap: 2nd strategy finished & networking with other traders | Trick or Trade

  4. davidbellefx says:

    Nice process report. Key to this game is keeping everything regimented.

    Like

  5. Pingback: 5/12 – Trader Challenge: I trade best when…. | Trick or Trade

  6. Pingback: Stepping stones to successful forex trading | Trick or Trade

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s