Breaking Down the Improved OTG Trade Plan | Part 1

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OTG Trade Plan

OTG Trade PlanWe have to face facts here my friends: Day trading is a challenging business and without a
“plan”, you will never succeed.  When the Denver Broncos went to the Super Bowl this year, do you think they showed up without a plan or a strategy?  Absolutely NOT!  The OTG Trade Plan is a tool to help guide your actions throughout your trading day and acts as a reminder of what the best course of action you can take for your success.  The core components of the OTG Trade Plan are simple: State of the market, Structure of the Market, and a Strategy and Tactics to navigate the trading day.  Every OTG Trade Plan will include Session Bias, a Strategy based on that Session’s Bias, Pivot Times, Retracement Zones, and critical news announcements to be aware of for the day.

OTG Trade Plan 

The first thing you will ALWAYS see on the OTG Trade Plan is always going to be the “Session Bias”, or State of the Market.  Market State is simply determining is it bullish, is it bearish, or is it sideways and choppy.  The State of the Market is derived from higher time frames, NOT a one minute chart; in determining the current Market State we want to have a “big picture” of what the market is ACTUALLY doing.  The best example is what may appear to be bearish on a five minute chart may in fact just be a correction in comparison to the bigger picture.

OTG Trade Plan

It’s from this “bigger picture” chart that we can determine current Market State which we see in this screen shot of the OTG Trade Plan.

OTG Trade Plan

In determining Market Structure we look at LARGER time frames to determine Market Structure and we try to get in sync with what the overall market is doing and we try to get in line with the context of the OVERALL TRADING STATE OF THE MARKET.

Once we have identified the State of the Market, we then provide a structure points, which are the key support and resistance levels that are identified for each trading day.  We break the market down into steps that not only provide us with higher probabilities of success, but these points can provide entry points, stop placement, and realistic profit targets to help us reach our goals.  The OTG Trade Plan Strategy is broken down into two components; a primary strategy based on the session bias for the day and a secondary strategy if the primary is not, or has already played itself out.  I am writing this post on May 18th, 2016; below is an example of the Strategy for the following day, May 19th, 2016 (by the way, the OTG Trade Plan is published by 9:00 P.M. every night for the NEXT trading session).  The example below is for the ES (S & P 500).

OTG Trade Plan

Within the Primary Strategy section of the OTG Trade Plan you’ll see significant price levels under “Level”, “Sweet Spots” for entries and exits, and even a bias under “Direction” for that entry.  The Secondary Strategy is no different, it still offers the same levels, sweet spots, and directional entry bias as well.  If you look close at the slide, you’ll see that at the bottom of both Primary and Secondary Strategies that there are instructions for both, in a nutshell what we’re saying is that “If the market does this, then do that”.  I can’t make it any easier!  In the Strategy section of the OTG Trade Plan you’ll notice the word “Tactic”….That my friends will be covered in the next post.  Just a hint though, those coded tactics like F1 and B2?  Those are the entries and they come complete with instructions as well.  I can’t make it any easier….or can I?

See you in the room,

 

Jason

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