Trading Framework 2026 – System, Risk & Checklist
Goal: Protect capital, exploit edge, and eliminate emotional decision-making.
1) Setup Overview
A) Index Day Trading – Intraday Alpha
- Broker: Pepperstone
- Markets: NASDAQ, Dow
- Timeframe: 5m / 15m
- Holding: Intraday only (flat EOD)
- Edge: VWAP-based strategies (Breakout–Retest, Reversal)
B) Commodity Swing Trading – Structural Edge
- Broker: AvaFutures
- Markets: Agricultural & selected commodities
- Timeframe: Daily
- Holding: Days to weeks
- Edge: COT positioning, seasonality, event-based trades (e.g. WASDE)
C) Seasonal Trading – Systematic Exposure Engine
- Broker: Capital.com
- Markets: Indices & Commodities (CFDs)
- Timeframe: Daily
- Holding: Fixed seasonal windows
- Edge: Statistically proven seasonal patterns
- Rules: Pre-planned entries & exits, no discretion
Seasonals are not trades – they are scheduled exposures.
2) Risk Matrix (Summary)
- Index Trading: Risk per trade 0.25–0.5% | Daily loss limit max. 1% | Max. 2 trades per day
- Commodities: Risk per trade 1–2% | Max. 1–2 concurrent trades
- Seasonals: Risk per trade 0.5–1% | Predefined max concurrent seasonals
- LOW opportunity environment: No trading
- Account drawdown > 5%: Cut risk by 50% and mandatory review
3) Capital Flow Rules
- Index → Commodities: After 2 consecutive profitable months, transfer 25–40% of index profits
- Commodities → Index: After a large winner, transfer max. 20–30% of commodity profits
- Seasonals: Capital allocated upfront – no reactive transfers
- Forbidden: Moving capital to compensate losses or trading out of frustration
4) Absolute No-Gos
- Trading out of boredom or revenge
- Increasing risk because a setup looks ‘perfect’
- Trading long and short on the same day (index trading)
- Mixing strategies or breaking rules ‘just for today’
- Adding funds to recover losses
5) Daily Checklist (Before Every Trade)
- Is the market tradable today? (structure & volatility present)
- Is exactly one strategy active?
- Is the VWAP / seasonal / structural context valid?
- Is risk within predefined limits?
- Have major news/events been checked?
- If in doubt: No trade
This framework reflects how I approach risk, structure, and execution across different trading styles. The tools and scripts published on this website are designed to align with these principles.
Key principle:
Discipline beats intelligence. Structure beats emotion.