Businessplan - Tradingplan
- Thread starter paulus
- Start date
I would say you need both imo. You need the business plan to have a plan to build your overall business and career, and you need a trading plan that specifies your EXACT trading rules on a per system basis. It will be a single or combination of trading methods (and written plans) that will be the core of your business plan objectives.
Comprehensive business plans have about 10 to 12 sections. See the standard texts on the matter. Convention rules for business plans.
Usually two of the sections relate to "trading plans". The past plan, then the contemporary and future trading plan are broken out separately to demonstrate how the breakpoints of the business are justified or realized. You have past breakpoints and planned breakpoints than depend upon performance and measuring and meeting those objectives.
Thus, trading plan information has a lot to do with performance and how performance increases in effectiveness and efficiency over time.
Performance improves in many ways. By having these each detailed out, you also define how you measure their advent and the tangible nature of improvements. I handle about 8 facets in this area.
It is best to allow for many rows of coefficients, etc., above the main body of the spread sheet part. Here you can quantify how each aspect (how and when) the measurables are planned and then actualized. A lot of footnoting to do here regarding connecting the trading plan to the business aspects.
Usually two of the sections relate to "trading plans". The past plan, then the contemporary and future trading plan are broken out separately to demonstrate how the breakpoints of the business are justified or realized. You have past breakpoints and planned breakpoints than depend upon performance and measuring and meeting those objectives.
Thus, trading plan information has a lot to do with performance and how performance increases in effectiveness and efficiency over time.
Performance improves in many ways. By having these each detailed out, you also define how you measure their advent and the tangible nature of improvements. I handle about 8 facets in this area.
It is best to allow for many rows of coefficients, etc., above the main body of the spread sheet part. Here you can quantify how each aspect (how and when) the measurables are planned and then actualized. A lot of footnoting to do here regarding connecting the trading plan to the business aspects.
One of Van Tharp's books (as coauthor) has what you seek.
http://www.elitetrader.com/vb/showthread.php?s=&postid=1257634#post1257634
There are other helpful ideas and links in that thread.
http://www.elitetrader.com/vb/showthread.php?s=&postid=1257634#post1257634
There are other helpful ideas and links in that thread.
FYI... Basic Starter kit/outline.
www.stocktrading.com/TradingPlan2005.htm
After this is completed the "harder" work of products and methods and goal setting takes place.
Don
Unfortunatley the feasability study would be worthless 