1. Why Every ICT Trader Needs a Trading Plan
📌 Successful traders don’t rely on luck—they follow a structured plan.
A trading plan is your blueprint for making consistent, disciplined trading decisions. It helps you:
✔️ Avoid emotional trading – No more guessing or impulsive decisions.
✔️ Stay consistent – Trade only high-probability ICT setups.
✔️ Manage risk effectively – Know your max loss before entering a trade.
✔️ Track your performance – Improve by analyzing past trades.
As Dave – No Nonsense Trader, I’ve seen traders struggle not because they lack knowledge, but because they lack a structured plan. This chapter will help you create a professional trading plan based on ICT principles.
📌 Image Guide:
2. Key Elements of a Strong Trading Plan
A proper ICT trading plan includes the following components:
1️⃣ Trading Style & Timeframe Selection
📌 What type of ICT trader are you?
✔️ Intraday Trader – Focuses on daily market sessions.
✔️ Swing Trader – Holds trades for multiple days/weeks.
✔️ Scalper – Enters/exits trades within minutes.
🔍 Example:
An intraday ICT trader focuses on New York & London Kill Zones, while a swing trader looks at daily liquidity levels & weekly trends.
📌 Image Guide:
3. Defining Your Trade Criteria & Entry Rules
📌 Before entering a trade, you need clear rules.
Your ICT Entry Checklist:
✔️ Market Structure – Is the trend bullish or bearish?
✔️ Liquidity Zones – Has price swept buy-side or sell-side liquidity?
✔️ Order Blocks & FVGs – Are there valid ICT entry zones?
✔️ Kill Zones Timing – Is price reacting during a high-liquidity session?
🔍 Example:
If price sweeps liquidity at NY Open and then retraces into a bullish order block, this is a high-probability ICT trade entry.
📌 Image Guide:
4. Risk Management Plan: Protecting Your Capital
📌 Your trading plan must include risk management rules.
Risk Management Guidelines:
✔️ Max Risk Per Trade: 1-2% of account balance.
✔️ Stop-Loss Placement: Beyond liquidity zones (avoid stop hunts).
✔️ Risk-to-Reward Ratio (RRR): Aim for at least 1:2 or 1:3 RRR.
🔍 Example:
A trader with a $10,000 account risks 1% ($100 per trade). With a 1:3 RRR, they target $300 in profit for every $100 risked.
📌 Image Guide:
5. Setting Trade Exit Rules (Take Profit & Stop-Loss)
📌 A good exit strategy protects profits and minimizes losses.
ICT Exit Strategies:
✔️ Target Liquidity Pools – Exit near buy-side or sell-side liquidity zones.
✔️ Use FVGs for Partial Profits – Lock in gains before price reverses.
✔️ Trail Stop-Loss at Structural Levels – Protect profits while letting trades run.
🔍 Example:
A trader enters long after a liquidity grab and targets the next buy-side liquidity zone for profit-taking.
📌 Image Guide:
6. Trade Journaling & Performance Review
📌 A trading plan is useless if you don’t track your performance.
What to Track in a Trading Journal:
✔️ Entry & Exit Details – Why did you take this trade?
✔️ Risk & Reward – Was your risk correctly managed?
✔️ Psychological Notes – Did emotions affect your decision-making?
✔️ Results & Adjustments – What can you improve?
🔍 Example:
After reviewing a trade journal, a trader notices they cut profits too early due to fear. The next step is to work on patience and letting trades reach full targets.
📌 Image Guide:
7. Example ICT Trading Plan Template
📌 Here’s an example trading plan layout to use:
📄 My ICT Trading Plan
1️⃣ Trading Style: (Intraday / Swing / Scalping)
2️⃣ Preferred Timeframes: (1H, 15M, 5M)
3️⃣ Entry Conditions:
- Market structure confirmation (BOS / MS).
- Liquidity grab at a key level.
- Price retracing into an FVG / OB.
4️⃣ Risk Management: - Max risk per trade: 1-2%.
- Minimum RRR: 1:2 or higher.
5️⃣ Exit Strategy: - Target next liquidity pool / FVG.
- Move stop-loss to break-even when price moves favorably.
6️⃣ Journaling & Review: - Log every trade and review weekly.
📌 Image Guide:
8. Conclusion & What’s Next
📌 Key Takeaways from This Chapter:
✅ Every trader needs a structured plan – Trading without one leads to failure.
✅ Set clear entry & exit rules – Follow predefined conditions for every trade.
✅ Risk management protects capital – Stick to max 1-2% risk per trade.
✅ Keep a journal to track progress – Identify mistakes & refine strategies.
✅ Consistency is key – Stick to the plan and don’t deviate under pressure.
📌 Next Up: Chapter Nine – Continuous Learning & Strategy Refinement 🚀