Now that you have learned each part of the trading plan, this lesson will review the whole strategy and how to set up your charts to begin your training.
SRC Trading Plan
The Set up: Identify the major support & resistance levels on the Daily chart for trading on the 4-hour chart, and 4-hour levels for trading on the 1-hour chart. Establish whether the market is trending or in consolidation and if the setup is with the trend or counter trend.
Entry: Enter trades on the 4-hour chart from Engulfing bar or Kangaroo Tail reversal patterns. Enter trades on the 1-hour chart from double bottom/top formation with an engulfing bar or any simple pattern. Enter the trade with 2 positions equal to your total position size.
Exits: Set the Stop Loss 1 ATR above/below the recent swing on both positions. The risk on the trade is called R. Set the Profit Target on position 1 at 1R, and no profit target on position 2. Take profit on position at the next SR level if a reversal pattern completes.
Risk Management: Remember that trades shouldn’t have to get through many obstacles in order to reach the first target. Use a pull back entry if needed, and be sure to follow the rules for trading while in a drawdown. Don’t have more than 3 open trades at risk at one time. Also, don’t take multiple trades in the same direction if the same currency.
Money Management: Start trading with 1% risk per trade, and increase it or change money management strategies only after you have confidence in your trading and the plan. Staying in the game is the key to becoming successful so let’s walk before we fly.
That is the whole strategy in a nutshell. Keep your execution and trade management as simple as possible and fewer things can go wrong. Remember, it is impossible to win every trade and each trade has no bearing on the next. Only through a large sample of trades can you see how you and the strategy is performing. Probability only works that way and not day to day, trade to trade. Accepting risk completely will free you from the fears and anxiety many traders experience while in a trade. We are confident that working with Crush Pro Teams will help you rise to the trader you desire.
Setting up your charts: MT4 Trading Platform
Even though the SRC strategy focuses on price action, below are some indicators we find useful in implementing the strategy. They are not required so you are welcome to use them if you like. Some indicators are already listed in the MT4 platform.
To download the Crush SRC Template for MT4 click here crushsrc_template
To install the indicator and template files, extract the files, go into the MT4 File Menu, and click Open Data Folder. Once it is opens, place the template in the templates folder and the indicators in the Indicators folder which is found by clicking on the MQL4 folder.
Average True Range (14): ATR measures the bar size of the last () bars and then averages it. It will rise and decline based on the volatility of the market. List in the indicators.
ADR_custom & SmartMoney_DailyHiLo: These indicators display on your chart window and measure the average daily range. SmartMoney_DailyHiLo draws lines for the ADR high & low and automatically adjusts based on where the high and low prices are that day. ADR_Custom shows the information in the top right corner of the chart. A market that reaches the ADR isn’t likely to continue unless it is a very strong move.
B-clock: This is a count down clock which sits next to the current bar. You see exactly when the current candle will close and the next one opens.
CrushSRTemplate: This template will install all the chart settings to help you get started but feel free to change any of them to your preferences. To add it to your chart, right click on the chart and scroll over Template. Then click on CrushSRC and the template will be applied to your charts.
Communication is critical to your progress. There are many ways to get help from us, your teammates, or anyone on Team Blue through the forums, course discussions, slack or any of the traditional methods. The time to get your questions answered is now.
This is the end of the SRC Strategy details. Once you have marked each lesson complete, go ahead and take the final quiz to test yourself that you understand the strategy and what it takes in order to successfully implement the plan.