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GRADE
YOUR TRADE
HOW TO USE:
It’s always good to know what the
reward probability is for your
trade. Go through each checklist
item and know what type of trade
it is before you enter the market.
DO YOU SPOT AN
DO YOU SPOT A
UPTREND ABCD?
DOWNTREND ABCD?
1
2
Pre-Trade Checklist
Pre-Trade Checklist
1
Draw inner and outer
trendlines.
Draw inner and outer
trendlines.
Find and mark the latest A/B
Boundary.
Find and mark the latest A/B
Boundary.
Find and mark or anticipate
the next BULLISH candlestick
formation.
Find and mark or anticipate
the next BEARISH candlestick
formation.
Grade Your Trade
2
Grade Your Trade
Check off statements that are true.
Check off statements that are true.
40% - Are the candles in the
UP A/B Boundary?
40% - Are the candles in the
DOWN A/B Boundary?
20% - Are the candles ABOVE
the up trendline?
20% - Are the candles BELOW
the up trendline?
10% - Did a BULLISH
candlestick formation form?
10% - Did a BEARISH
candlestick formation form?
How Did You Do?
< 40%
Potential Sideways
Market
40% - 50%
Fair Trade
60%-70%
Good Trade
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The Grade Your Trade trader’s
checklist is intended to be used as a guide for educational purposes only and does not constitute investment advice or a solicitation to
buy or sell any Forex contract or securities of any type. No representation is being made that any account will, or is likely to, achieve profits
or losses based on the information as calculated on the checklist. No calculations, whether expressed or implied, are indicative of future
results. The content of the trader’s checklist is subject to change at any time, without notice, and is provided for the sole purpose of
assisting traders to make independent investment decisions. Market Traders Institute will not accept liability for any loss or damage,
including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
EQUITY MANAGEMENT
PLAN
RISK 1 : 1
RISK
-50 PIPS
Win 60% Trades
+300 PIPS
VS.
REWARD
+50 PIPS
Lose 40% Trades
-200 PIPS
RISK 1 : 3
-50 PIPS
Win 30% Trades
+450 PIPS
With proper equity management, even if you
lose more than you win, you can still come
out in the positive. Use our example equity
management plan example as a guide.
RISK 1 : 2
YOUR NET PROFIT: +100 PIPS
RISK
HOW TO USE:
RISK
-50 PIPS
REWARD
VS.
Win 40% Trades
+400 PIPS
+100 PIPS
Lose 60% Trades
-300 PIPS
YOUR NET PROFIT: +100 PIPS
RISK 1 : 5
VS.
REWARD
+150 PIPS
Lose 70% Trades
-350 PIPS
YOUR NET PROFIT: +100 PIPS
RISK
-50 PIPS
REWARD
VS.
Win 20% Trades
+500 PIPS
+250 PIPS
Lose 80% Trades
-400 PIPS
YOUR NET PROFIT: +100 PIPS
Equity Management Plan Example Disclaimer
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors.
The Equity Management Plan is a model that mathematically computes the potential earnings in the forex market given certain
parameters. This model is in no way a guarantee of performance, whether expressed or implied. Results are compounded. Certain
assumptions are made when using these estimates that include but are not limited to, not taking into account commissions,
deposits/withdrawals, spreads, slippage, and rollover. This model may not hold true or be relevant for your particular situation. It is NOT
intended to be your sole source of information when making financial decisions. Use your judgment as necessary. The information
contained in this model does not constitute financial advice or a solicitation to buy or sell any Forex contract or securities of any type. MTI
will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use
of or reliance on such information. All examples are hypothetical and are for illustrative purposes only.
BUYING OR SELLING
TRENDLINES
With Stochastic RSI Indicators
UPTREND BUYING
CHECKLIST
Define trend by drawing UPTREND
lines.
Stochastic RSI (aka Velocity Fuel Gauge)
in OVER-SOLD range in an UPTREND
(below 20)
DEFINE TRENDLINE
BUY ZONE STOCHASTIC RSI
FIND TRIGGER
FIND TARGET
Entry trigger is a counter-trendline
break in the direction of the trend. The
stop goes 10 pips BELOW the most
recent LOW in an UPTREND
Targets are levels of RESISTANCE that
makes equity sense or the Stochastic
RSI moving into the OVER-BOUGHT
(above 80) territory
DOWNTREND SELLING
CHECKLIST
Define trend by drawing DOWNTREND
lines.
DEFINE TRENDLINE
SELL ZONE STOCHASTIC RSI
Stochastic RSI (aka Velocity Fuel Gauge)
in OVER-BOUGHT range in a
DOWNTREND (above 80)
Entry trigger is a counter-trendline
break in the direction of the trend. The
stop goes 15 pips ABOVE the most
recent HIGH in a DOWNTREND
FIND TRIGGER
FIND TARGET
Targets are levels of SUPPORT that
makes equity sense or the Stochastic
RSI moving into the OVER-SOLD (below
20) territory.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The Grade Your Trade trader’s
checklist is intended to be used as a guide for educational purposes only and does not constitute investment advice or a solicitation to
buy or sell any Forex contract or securities of any type. No representation is being made that any account will, or is likely to, achieve profits
or losses based on the information as calculated on the checklist. No calculations, whether expressed or implied, are indicative of future
results. The content of the trader’s checklist is subject to change at any time, without notice, and is provided for the sole purpose of
assisting traders to make independent investment decisions. Market Traders Institute will not accept liability for any loss or damage,
including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
Get Empowered to Trade
the Financial Markets
FOR MORE TRADING TIPS, ATTEND A FREE WEBINAR:
1
Find out what strategies successful traders are using to see
2
Get a live market review with a market analyst that shows you
quicker returns on their investment.
simple techniques that have been proven profitable for over
77% of MTI’s students1.
3
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show you the returns to maintain your lifestyle.
REGISTER NOW
1 MTI 2014 Client Survey compared to the Profitability Analysis by Forex Capital Markets, LLC. for Quarter 4 in 2014.
© Market Traders Institute, Inc.
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For many, MTI is synonymous with high standards, effective teaching,
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For more information, visit MarketTraders.com.
Copyright ©2015 Market Traders Institute, Inc.
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Trading foreign exchange on margin carries a high level of risk, and may not be suitable for everyone. Past
performance is not indicative of future results. The high degree of leverage can work against you as well as for you.
Before getting involved in foreign exchange you should carefully consider your personal venture objectives, level of
experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial
deposit and therefore you should not place funds that you cannot afford to lose. You should be aware of all the
risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have
any doubts. The information contained in this web page does not constitute financial advice or a solicitation to buy
or sell any Forex contract or securities of any type. MTI will not accept liability for any loss or damage, including
without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such
information.
Please read our RISK DISCLAIMER, GENERAL DISCLAIMER and PRIVACY POLICY for more information.