By the end, you’ll have a written, testable trading plan that flips seamlessly between range and trend conditions, uses tight risk controls, and is prop-friendly. We’ll keep it simple, repeatable, and tough enough for real-world spreads and slippage.


Module 1 — Foundations (Why “2.0”)


Most plans break when the market flips—from trend to range or vice-versa. Trading Plan 2.0 solves that with a two-engine approach:



  • Engine A (Trend): Trade continuation after a clean pullback.

  • Engine B (Range): Fade extremes back to the mean only when proven ranging.


Core Idea: Detect which engine the market currently deserves, then execute a small set of rules… and stop forcing trades when the regime doesn’t match.


Outcome: You’ll stop over-trading chop and avoid shorting into strong uptrends (and the opposite).


Module 2 — Market Regime Detection (The Flip Trigger)




  1. Structure:





  • Trend: Higher highs & higher lows (HH/HL) for longs; lower highs & lower lows (LH/LL) for shorts.

  • Range: Price oscillates between a defined high/low box; no sustained higher or lower closes.




  1. Volatility:





  • ATR(14) rising → trending conditions likely.

  • ATR(14) flat/sinking + frequent wicks at the same levels → ranging.




  1. Momentum Confirmation:





  • 20 EMA vs. 50 EMA: separated and sloped = trend; tangled/flat = range.


Flip Rule: When 2 of 3 conditions change state for 3–5 candles, you officially switch engines.


Module 3 — Engine A (Trend Continuation)


Timeframes: Anchor H1/M30, execute on M15/M5.
Bias: Only trade with the anchor trend.


Entry (Long example):



  1. Identify uptrend (HH/HL, EMAs up).

  2. Wait for pullback to the 20 EMA or prior structure (minor demand zone).

  3. Look for a bullish trigger on execution TF: break of minor swing high, engulfing candle, or micro BOS.

  4. Enter on candle close or limit at the pullback if spread allows.


Stop: Below the most recent higher low (or ATR(14) × 0.8).
Take Profit:



  • Partial at 1R–1.5R, move stop to breakeven.

  • Runner trails under swing lows or ATR(14) × 1.0.


Invalidation: If price closes below 50 EMA and prints LH/LL on anchor, abandon longs (engine may be flipping).


Module 4 — Engine B (Range Mean-Reversion)


Timeframes: Anchor M30/H1 to mark range; execute on M15/M5.
Define the Box: Use the last 20–40 candles to mark a clear high (supply) and low (demand). Two or more solid rejections at each end = valid.


Entry (Long at Range Low):



  1. Price tags/flushes below range low and snaps back inside the box (wick rejection).

  2. Execution signal: bullish engulfing or micro BOS toward the midline.

  3. Enter near the low; avoid mid-box entries.


Stop: A few pips beyond the wick low (or ATR(14) × 0.6).
Take Profit:



  • TP1: Midline (range mean).

  • TP2: Opposite band if momentum persists.

  • Trail under higher lows once TP1 is hit.


Do Not Fade: During high-impact news or when EMAs start to slope & separate (trend birthing—flip engines!).


Module 5 — Risk, Sizing & Daily Guardrails


Per-Trade Risk: 0.25%–0.75% per position (prop-friendly).
Daily Max Loss: 2%–3% of equity; stop trading for the day if hit.
Max Concurrent Trades: 1–2 (avoid correlated stacking).
News Policy: Flat or reduced size 10–15 min around red-folder events.


Expectancy Math:



  • Win rate (W), loss rate (L = 1 − W), average win (AvgW), average loss (AvgL).

  • Expectancy per trade: E = W × AvgW − L × AvgL.
    Aim for E > 0 over 50+ trades. If E is negative, fix entries or R:R before scaling.


Module 6 — Execution Checklist (Print This)


Pre-Session (10 min):



  • Mark HTF structure (trend/range), key S/R, and news times.

  • Decide engine (A or B). No engine? No trade.


Per-Trade:



  • Bias matches engine rules.

  • Spread < your threshold; slippage acceptable.

  • Valid trigger candle/pattern printed.

  • Stop location logical (structure/ATR).

  • Position size = fixed % risk.

  • Place TP plan (TP1 + runner/exit rule).

  • Screenshot & note your reasoning.


Post-Trade:



  • Record result, R multiple, emotions (1–2 sentences).

  • Was the engine correct? If not, why?


Module 7 — Backtest → Forward Test → Go Live



  1. Backtest (visual): Scroll 6–12 months on your pair. Only take engine-correct setups. Log win/loss, R, drawdown patches.

  2. Forward Test (demo, 2–4 weeks): Execute the exact same rules. If live spreads wreck the edge, tighten filters or pick better sessions.

  3. Go Live (micro): 0.25% risk. After 40–60 trades with E > 0 and controlled DD, scale to 0.5%–0.75%. Never raise risk mid-drawdown.


Module 8 — Psychology & Discipline (The Real Edge)



  • One engine at a time: Don’t mix rules mid-trade.

  • No revenge trades: Hit daily loss? Close platform.

  • Boredom filter: If no engine aligns, you don’t trade. Period.

  • Confidence comes from samples, not vibes—log 50+ trades before judging.


Quickstart One-Pager (Copy/Paste Template)


Pair(s): EURUSD, XAUUSD
Anchor TF: H1 (backup M30)
Execution TF: M15 (backup M5)
Engine Selection: 2 of 3 (structure, ATR slope, EMA state) consistent for 3–5 candles
Risk: 0.5% per trade, Daily Max Loss 2.5%
Sessions: London + NY overlap; avoid first 5 min after major news
Engine A (Trend): Pullback to 20 EMA/structure → trigger → SL below swing → TP1 1.2R, trail runner
Engine B (Range): Rejection at box edge → trigger → SL past wick → TP1 midline, TP2 opposite band
Stop Trading When: 2 losses in a row and volatile news ahead, or Daily Max Loss hit
Review: Weekly—export stats, top mistakes, tweak only one setting per week


Capstone Assignment (Today)



  • Pick one pair and one session.

  • Write your engine rules on a sticky note.

  • Backtest the last 3 months visually and log 30 trades.

  • Move to demo for 2–3 weeks, then decide on micro live risk.


Final Notes


This plan is simple on purpose. The “2.0” is not fancy indicators; it’s regime awareness + tight execution + risk rules you’ll actually follow. Test it, tweak lightly, and let consistency—not hope—do the heavy lifting.


Happy Trading