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Trading Plan

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  • This document outlines our structured trading plan — detailing the operational framework and mindset that guide our daily execution.
  • There are many trading plans out there, and you can certainly create your own without copying this one.
  • This document provides an overview of what we do — refer to the detailed framework pages in this academy for implementation specifics.
  • Use this as a template to develop your own plan that suits your personality and lifestyle.

Type of Trading​

  • At AlgoStorm.com, we exclusively focus on day trading. We never keep trades open for more than 12 hours.
  • This approach eliminates overnight risk and allows us to start each day with a clean slate.

Markets​

Market Focus: E-mini S&P 500 Futures (ES)​

We specialize exclusively in one high-performance market:

MarketProduct CodeBrokerPrimary Trading Hours (EST)
E-mini S&P 500 FuturesESCME9:30 AM – 4:00 PM

Why Trade ES (CME E-mini S&P 500 Futures)?​

  • Unmatched Liquidity & Tight Spreads – Deep institutional participation and constant price discovery.
  • Centralized Volume – All trades occur through the CME, providing transparent, regulated market data and true price discovery — free from the fragmentation seen in OTC markets.
  • Clear Gamma Exposure Analysis – Options on ES are centralized at CME, providing accurate and interpretable gamma and delta positioning — unlike decentralized markets such as Forex or Gold. This allows for coherent gamma and delta exposure mapping, enabling more reliable interpretations of dealer positioning — a key edge in intraday volatility forecasting.
  • Efficient Execution – High-frequency-ready infrastructure and low-latency order routing.
  • Regulatory Integrity – CME’s regulated environment ensures robust market oversight and participant protection.
  • Strong Correlation to the Broader Market – ES directly tracks the S&P 500, providing pure equity index exposure.

Our edge lies in understanding this single market with absolute clarity — extracting consistency from focus.

CFD Alternative for Futures

While we analyze ES futures for our setups and order flow analysis, traders can execute trades on SPX500 CFDs if their broker or prop firm does not support futures trading.

Key Points:

  • SPX500 CFDs and ES Futures Move Together: Highly correlated price action.
  • Same Analysis Applies: All our frameworks, value areas, and order flow concepts work on SPX500 CFDs.
  • Lower Capital Requirements: CFD brokers and prop firms often have lower minimum account sizes than futures brokers.
  • Access: Opens trading to prop firms that offer CFDs or retail brokers without futures access.

Important Considerations:

  • Slight Quote Variations: SPX500 CFDs may show minor price variations from ES — typically negligible for intraday trading.
  • Contract Specifications: Verify your CFD contract size, pip/point value, and commission structure.
  • Rollover: Be aware of CFD rollover dates and any associated costs (different from futures rollover mechanics).
  • Spread: CFD spreads can be marginally wider than ES futures, especially during lower liquidity periods — factor this into your risk calculations.
  • Execution: Use the same stop placement and risk management rules, but adjust position size calculations for your specific CFD contract value.

Bottom Line: Whether you trade ES futures or SPX500 CFDs, the strategies, frameworks, and order flow principles remain identical. Choose the instrument that fits your broker, prop firm, and capital situation.

Our Trading Approach​

  • We conduct top-down analysis and implement AlgoStorm Trading Concepts (ATC) as our foundation.
  • We utilize the order flow frameworks and strategies detailed throughout this academy.
  • Our primary focus is institutional value areas and order flow confirmation.

Risk Management​

Capital-Based Risk Allocation​

Capital SourceRisk Per TradeRationale
Prop Firms0.25%Conservative approach due to evaluation rules
Personal Capital0.50%Slightly more aggressive with personal funds

Position and Risk Standards​

  • Risk-to-Reward Ratio: Typically 1:2 to 1:2.5, depending on market state.
  • Maximum Account Risk per Day: 1% (regardless of capital source).
  • Position Size Formula: Risk Amount ÷ Stop Loss Distance = Contract Size

Daily Loss and Stop-Trading Protocols (Strict Enforcement)​

We cease trading for the session after:

  1. Two consecutive losses (even if under the daily loss limit).
  2. Achieving one winning trade that meets our target (preserve capital and mental clarity).
  3. Hitting -1% daily drawdown (immediate stop, even if under two losses).

Why these rules?

  • Prevents emotional decision-making after losses.
  • Protects profits and reduces overtrading.
  • Ensures we return tomorrow with full capital and a clear mindset.

Position Management Rules​

  • Maximum Concurrent Positions: 2 trades.
  • No Averaging Down or adding to losing positions.
  • No New Entries within 30 minutes before high-impact news (NFP, CPI, FOMC, etc.).
  • Zero Trading During:
    • U.S. bank holidays.
    • FOMC meeting days.
    • Major economic events (check calendar daily).

Stop Loss Management​

  • Always use hard stops placed in the market.
  • Never move stop loss away from entry (only toward breakeven or profit).
  • Move to breakeven when trade reaches predefined criteria.
  • Trailing stops may be used per specific strategy requirements.

Account Requirements & Scaling​

Minimum Capital​

  • Prop Firm Accounts: Follow the specific firm's requirements.
  • Personal Accounts: Minimum $5,000 recommended for proper position sizing on ES (or trade MES for smaller accounts).

Scaling Approach​

We scale position size based on account growth and demonstrated consistency at current levels.

Core Principle: Scale up only after demonstrating consistent profitability at your current level for a minimum period.

Trading Psychology​

Discipline and Mindset​

  • Rule Adherence: Our trading plan is our contract with ourselves. Deviations introduce unquantified risk and undermine our edge.
  • Emotional Control: Fear, greed, and overexcitement are natural — but they must not dictate our decisions.
  • Avoid Revenge Trading: The market doesn’t owe us anything. Attempting to “get back” at the market after losses is a guaranteed path to larger losses.
  • Accept Losses as Business Expenses: A well-executed trade that hits our stop is a good trade, not a failure.
  • Quality Over Quantity: Two well-executed trades beat ten impulsive ones.

We treat our behavior as a system — consistency in process ensures consistency in results. Our focus is on process fidelity, not prediction. We trade probabilities, not certainties. Our only control is over execution — not outcome.

Mental and Emotional Well-Being​

  • Pre-Trade Rituals: Establish a grounding routine before each session to center your mind.
  • Physical Health: Regular exercise (minimum 30 minutes, 4×/week) enhances cognitive performance.
  • Nutrition & Hydration: Maintain stable energy and hydration; avoid trading on an empty or overly full stomach.
  • Sleep: Aim for 7–8 hours. Sleep deprivation impairs judgment and risk assessment.
  • Breaks: Step away from screens between trades to reset mental state.
  • Continuous Learning: Dedicate time weekly to education and skill refinement.
  • Seek Support: Engage with the trading community or professional resources if needed.

Warning Signs (Stop Trading Immediately)​

If you experience any of these, close your platform and step away:

  • Feeling desperate to “make back” losses.
  • Ignoring your trading plan.
  • Taking trades without clear setups.
  • Oversizing positions.
  • Trading while angry, anxious, or distracted.
  • Physical symptoms: racing heart, sweating, or nausea.

Proactive Measures​

Trading Journal (Required)​

We meticulously document every trade.

Core Requirements:

  • Trade details (date, time, market, direction, entry/exit, P&L).
  • Strategy and setup used.
  • Execution quality (Did we follow our plan?).
  • Emotional state before entry.
  • Lessons learned and improvements.
  • Market context and conditions.

Review Schedule:

  • Daily: Quick 10–15 min post-session review.
  • Weekly: Deep dive every Sunday — analyze patterns, mistakes, and performance.
  • Monthly: Comprehensive statistical review; adjust plan only if supported by evidence.

Key Metrics Tracked:

  • Win rate.
  • Average win vs. average loss.
  • Profit factor (gross profit ÷ gross loss).
  • Maximum drawdown.
  • Rule adherence %.
  • Best/worst performing setups.

Important: We make plan changes only based on statistical evidence (minimum 30–50 trades), never on emotion or recency bias.

Backup Plans​

Technology Failures

  • Primary Setup: Main computer with dedicated internet.
  • Backup Setup: Laptop + mobile hotspot ready.
  • Emergency Access: Mobile trading app tested.
  • Power Protection: UPS with 20 min backup.
  • Monthly Test: Verify all backup systems.

Broker Issues

  • Emergency Contact: Broker phone number saved.
  • Secondary Broker: Maintain funded backup account.
  • Alternative Platform: Know how to access via web if software fails.

Emergency Exit Protocol

  1. Call broker directly while attempting platform access.
  2. Use “Flatten All” or “Close All Positions” function.
  3. Use market orders — accept slippage to guarantee exit.
  4. Confirm closure via email/phone with broker.
  5. Document the event and reason in journal.

Performance Review & Continuous Improvement​

Weekly Review (Sundays)​

  • Analyze all trades from the week.
  • Calculate key metrics.
  • Identify recurring patterns.
  • Note any rule violations.

Monthly Assessment​

  • Compare actual results to targets.
  • Evaluate if adjustments are warranted.
  • Update plan only with statistical justification.

Quarterly Deep Dive​

  • Evaluate overall profitability and consistency.
  • Review strategy effectiveness across market regimes.
  • Adjust risk parameters as needed.
  • Define measurable goals for the next quarter.

Accountability​

We maintain discipline through:

  • Community Engagement – Active participation in AlgoStorm discussions.
  • Trading Partner – Regular accountability check-ins.
  • Mentor Review – Scheduled performance evaluations.
  • Self-Review – Session recordings and reflection.

Final Reminders​

  • ✅ Protect Capital First — we can’t trade without money; preservation before aggression.
  • ✅ Trade the Plan, Not Feelings — emotions are information, not instructions.
  • ✅ Process Over Outcome — judge by execution quality, not P&L.
  • ✅ Consistency Beats Perfection — following an imperfect plan consistently beats random excellence.
  • ✅ Our Edge Comes from Discipline — the strategies work when we do.

We execute with focus, protect capital relentlessly, and let consistency compound the edge.

Where to Go from Here​

New to the academy? Start here:

  1. Review AlgoStorm Trading Concepts (ATC).
  2. Study the Order Flow Frameworks.
  3. Learn indicator settings and tool configurations.
  4. Practice in simulation using progressive learning paths.
  5. Develop your personalized version of this plan.

This trading plan establishes our operational discipline, risk management, and mindset principles. The technical strategies and setup details are covered in the framework documents — refer to those pages for implementation.