Process Plan vs. Trading plan

min6485

Junior member
44 1
I would like to hear from traders your thoughts on a process plan, or format Vs. a trading plan. The reason I ask I understand that the process of trading is very important for the results, but sometime I get it confused. Sure would like to hear from other trader and there viewpoint on this subject.


Thank You
 

tomorton

Legendary member
7,162 932
What I mean is, you must have it in mind that the "process plan" has a purpose, otherwise why would you conclude you need one.

I'm assuming by "trading plan" you mean strategy, and that this must therefore be different to the process plan. What does a process plan do in trading?
 

FXX

Experienced member
1,138 187
The plan and the process are the same thing. The plan defines the process
 

min6485

Junior member
44 1
From what I understand the process plan are things that you the trader control which is different from the trading plan.
 

NVP

Legendary member
36,297 1,789
From what I understand the process plan are things that you the trader control which is different from the trading plan.
... I thought the trading plan included everything ? ....if a trader diverts from their trading plan thats heresy ?

maybe you are talking about perhaps discretionary elements of a trading plan (if included)....

for example some of us here inject quite a bit of discretionary decision making into our trading based on experience .....something (or a combination of things) that cannot be programmed into a computer ?

I have a fair bit of this .......especially around how i read my strengthmeters showing 8 currencies in play .......stuff like that can be relatively simple re patterns and "feel".....but ridiculously hard to programme ......and is deemed discretionary


N
 

malaguti

Senior member
2,278 428
does the trading plan not cover how to get in and out of a trade?
whereas the process might cover:
what time to get up in the morning
how to do your pre-market analysis
how to control your emotions
how to evaluate how well you have done
what to do about it
how to record your losing trades
etc etc etc

is THIS what you mean by a process plan?
 

min6485

Junior member
44 1
does the trading plan not cover how to get in and out of a trade?
whereas the process might cover:
what time to get up in the morning
how to do your pre-market analysis
how to control your emotions
how to evaluate how well you have done
what to do about it
how to record your losing trades
etc etc etc

is THIS what you mean by a process plan?
You basically hit it on the head
Thanks
 

FXX

Experienced member
1,138 187
I'm struggling to see the separation. For me the trading plan outlines the processes and rules needed to extract profit. They are inseparable.
 

min6485

Junior member
44 1
The process are things you the trader control
entries, exit, risk management, before trade, during the trade, and after the trade.
Where as the trading plan or strategy is just that a way to extract from the market.
 

malaguti

Senior member
2,278 428
The process are things you the trader control
entries, exit, risk management, before trade, during the trade, and after the trade.
Where as the trading plan or strategy is just that a way to extract from the market.
Now I think you’re getting it wrong or my definition of the process isn’t quite what you had in mind
The entry, risk management, during the trade, what you trade, how much, exit IS the trading plan

Before you’ve begun, after you exit.. that’s the process, of which the trading plan is a part of the overall proces. What you do at the weekend to review how you did during the week, how you executed the trading plan is my interpretation of the process
Of which I think is important, but as far as I’m concerned the trading plan once you’re confident you have one you can follow without fear of getting into the next trade after a string of losses is where it’s at
Until then, it’s just a lovely idea

Again, I feel my interpretation may not have been what you had in mind. But that’s no great thing. We all see things differently, that’s what makes us all unique 🤗
 
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Akinozragore

Junior member
21 2
When I was just learning trading I read a lot of literature, including management related, trading process organization, planning. And for a few times, I came across such a concept as "trading plan". This is not the same thing as a trading strategy, this is different stuff. It is expected, that trader should write in the morning what kind of deals he wants to close during the day and then strictly follow this plan.
I think, that the purpose behind this plan - to organize a trader and make him avoid impulsive decisions. But! How can you make a plan in the morning, if you have no clue what's going to happen by lunchtime, and how your strategy will react on this? Maybe, it will signal, but maybe not. But if in the morning you have enabling environment to enter the market, then why you need to write the plan on a piece of paper, if you can just open the deal? :)
This is the only case, when I bumped into the "trading plan" concept in other meaning than "strategy". And still, I couldn't understand the meaning of such plan :)