Pro Investor Business Plan.pdf

PROFESSIONAL INVESTOR Business Plan TABLE OF CONTENTS Introduction.................................................................. 3 1. Executive Summary.............................................. 4 2. Income Objectives and Vehicles........................... 5 3. Routine & Wo...

PROFESSIONAL INVESTOR Business Plan TABLE OF CONTENTS Introduction.................................................................. 3 1. Executive Summary.............................................. 4 2. Income Objectives and Vehicles........................... 5 3. Routine & Working Hours..................................... 7 4. Trading Log.......................................................... 9 5. Money Management........................................... 11 6. Milestone Planning............................................. 14 7. Retirement Planning........................................... 15 8. My Trading Rules............................................... 17 What makes markets move.................................. 17 Step 1 Location on HTF (technical set up)............ 19 Step 2 Direction on HTF (technical set up)........... 19 Step 3 Campus Indicators (fundamental set up)... 20 Campus COT Index............................................. 20 Campus True Seasonality.................................... 22 Campus Valuation................................................ 23 Best fundamental set ups..................................... 24 Step 4 HQ Zoning on LTF (market timing)............ 25 Step 5 Trade Management................................... 26 9. My Investing Rules............................................. 28 It takes Time........................................................ 28 Fundamentals...................................................... 28 Campus Equity Index........................................... 30 Campus Comparative Strength Index................... 31 Other Stocks........................................................ 32 Crypto Portfolio.................................................... 32 ii Professional Investing Business Plan INTRODUCTION Creating an extensive business plan is essential for most traders and investors. Creating a business plan offers several benefits that more than outweigh the investment of time.  The process of thinking and writing the plan provides clarity and a clear set of rules for your business  You will gain understanding of your capital requirements to reach your monthly income objectives as well as retirement plans  This plan should help you prioritize certain tasks  The plan should provide monthly, quarterly feedback on your growth trajectory The business plan for your start up trading and investing business should be simple, understandable, and realistic. It is a living document that changes over time. This template is divided into 9 sub-categories: 1. Executive Summary 2. Income Objectives and Vehicles 3. Routine and Working Hours 4. Trading Log 5. Money Management 6. Milestone Planning 7. Retirement Planning 8. My Trading Rules 9. My Investing Rules It is important to keep the plan updated to see progress, celebrate success, and adjust where issues arise. This is best done on a quarterly, if not monthly basis. Or in line with your milestone settings. Professional Investing Business Plan 1. EXECUTIVE SUMMARY What it takes to be a good trader A good trader is a good decision maker. They make future predictions based on a study of the past. They understand the fundamental drivers of the markets they trade and above all they are a good money manager. To me a good trade consists of two elements 1. The fundamental condition of the market: (am I expecting a large rally or decline in the market)  Campus Commitment of Traders (COT) Index  Campus True Seasonality  Campus Valuation 2. A way of timing the market with a good risk to reward proposition: (can I enter the market with a solid risk to reward ratio: at least 1:2)  Supply and Demand  Price Action & Signature The Strategy My goal is to align my investment with the billion-dollar institutional players. We will not only be looking at the price charts but also paying close attention to the actual condition that affects price change. Expectations Trading is not a perfect game. We live in an imperfect world. At times, we are going to be at the wrong side of the market. The future is fragile and very hard to forecast. Because we can be wrong, we need tools, techniques, or protocols in place to protect our hard-earned money. Professional Investing Business Plan 2. INCOME OBJECTIVES AND VEHICLES Income Objectives and Vehicles I trade Futures, Forex, Stocks and Crypto currencies. I understand that each market comes with their unique set of characteristics. Before trading those markets, I make sure to have studied the All-Asset Mastery course material, provided by Online Trading Campus.  Daily Income I trade Forex and Futures markets using daily income timeframes  Weekly Income I trade Forex and Futures markets using weekly income timeframes  Monthly Income I trade Stocks and Crypto currencies using monthly income timeframes  Retirement Plan I buy and hold Equity Indices, Stocks, or Crypto Currencies.  Real Estate Income HTF Location HTF Direction LTF Zoning Daily income Daily Daily 240 min Weekly income Weekly Weekly Daily Monthly income Monthly Monthly Weekly Retirement Plan Monthly Monthly Monthly Devices, Platforms and Software There is no one shop all solution for trading and investing. I use the below platforms and software:  Physical Tradestation / on the go solution  Tradestation I use Tradestation for charting, screening, and Campus Indicators. I use Tradestation to also execute Futures trades and Retirement Plan investments  Equiti I use Equiti to execute most trades. I know there are some limitations in terms of product offering (grains, softs, livestock, treasuries, other stocks)  IG I use IG to execute grains, softs, livestock, and treasuries Professional Investing Business Plan  Interactive Brokers I use IBKR for my retirement plan  ICMarkets I use ICMarkets to execute other stocks, analyzed with Tobias  Binance I use Binance for my Crypto currency Investments. I also have my own wallet  Trading Log I have a professional trading log, which I use to track, log, and analyze my trading performance  Online Trading Campus is my professional trading and investing partner / mentor  Tradingview I use Tradingview to access charts on the go Professional Investing Business Plan 3. ROUTINE & WORKING HOURS Monday Tuesday Wednesday Thursday Friday Saturday Sunday 6 am – 8 am 6 am – 8 am 6 am – 8 am 9 am – 5 pm 9 am – 5 pm 9 am – 5 pm 9 am – 5 pm 9 am – 5 pm Family Time Family Time Job Job Job Job Job I commit to creating myself a weekly calendar, with set working days / hours. Weekly Routine On Sundays I commit to do the following  review all my open position  review my watchlist  screen time to update charts  plan the week ahead  Log my trades if exited On Mondays and Thursdays, I will commit time to  mentoring sessions  watch new course material  read investing books / mental game (Trading in the Zone – Mark Douglas) Professional Investing Business Plan Daily Routine Daily I will (if applicable)  check my watchlist/ weekly plan before and after work. I can use my phone or TradingView for on-the-go solutions.  watch DMOs, attend live trading sessions The Blessing and the Curse 35 $33,600 30 25 in hours 20 $16,800 15 10 $9,600 5 $4,800 $0 0 Beginner Milestone 1 Milestone 2 Milestone 3 Milestone 4 Return / year $0 $4,800 $9,600 $16,800 $33,600 Hours invested / month 30 30 20 10 5  In the beginning I must show up to work without getting paid  As a well-seasoned trader, I can scale up my business, with spending less time on the business Professional Investing Business Plan 4. TRADING LOG I will create my own trading log with the help of Clemens’ or Thanu’s pre-coded logs. Below are some key pillars of what a Trading log could entail. Depending on the trades I take, I can add, remove certain parameters. My trading log is designed to give me instant, objective, and clear feedback on my trading performance, whether I am on track with my milestone plan, and if not, what I may need to change to get back on track. Maximizing profitability means focusing on what I do extremely well and sidestepping what I am not very good at. General Parameters  Trade Number  Own Trade / Campus Trade  Current Milestone (1,2,3,4)  Market (Futures, Forex, Stocks, Crypto)  Instrument (Gold, Silver, S&P500, Apple, Bitcoin)  Income Objective (daily, weekly, monthly, retirement plan) Technical Set Up  HTF Coverage (yes, no)  Monthly Coverage (yes, no)  Direction (up, down, sideways, anticipatory)  My LTF Rules (yes, no) Fundamental Set Up  Campus COT Index Long Term (bullish, bearish, neutral)  Campus COT Short Term (bullish, bearish, neutral)  Campus Valuation (overvalued, undervalued, neutral)  Campus True Seasonality (bullish, bearish, neutral) Professional Investing Business Plan Market Timing  Entry Style (SET, Confirmation)  Entry  Stop  Target  Win/Loss  Risk/Reward  Profit in USD Trade Management  Trailing (advanced, beginner)  Maximum R without trailing (-1, 1, 5, 10) Critical Questions  Was I on the wrong side of the trade, if so why? Were the major technical and fundamental conditions met? (If price takes you out quickly without even going into a 1:1)  Was the trade idea directionally right?  If my trade was directionally right, and I still got stopped out what did I do wrong? My timing was off, my trailing was off?  If my trade was directionally right, could I have taken more profit or were my targets accurate? Was my trailing approach accurate?  What if I always took set targets of 1:4, 1:3, 1:2? How would this affect my KPIs?  What if I always protect my trades with B/E once price hits 1:1? How would this affect my KPIs?  Can I create my own rules / protocols, which could help me increase profitability, avoid mistakes? Professional Investing Business Plan 5. MONEY MANAGEMENT Money Management is the kingdom to wealth. As I am winning, I am going to increase the risk size, or my commitment in the market. As I am losing I am going to decrease the risk size, or my commitment in the market. Scaling up my business is important, but if things don’t go well. I need to make sure to stay in the game until I have the skill to scale up. I will review my trade performance after every 10 trades. Money Expectations My main goal is to run a consistent and profitable business. My goal is not to pick out the winning horse. But rather to make conservative and consistent gains in the marketplace. I do not risk big to win big. Rather I will risk small relative to my reward. My KPI settings are conservative as per the below. They allow me to achieve an average of 2 Rs per month. My KPI settings Sum of Winning Trade Rs  Average risk to reward ratio: 1:2 Number of Winning Trades Number of Winning Trades  Average win to loss ratio: 40:60 Number of Winning and Losing Trades Account Size x risk parameter* = risk per trade  Risk size calculation $2,000 x 10% = $200 *Risk parameter can be anywhere between 10% - 20%. My default risk settings $200 per trade – my trading account is $2,000 I am in Milestone #1. Therefore, I will risk around $200 per trade. This means that I maybe limited to trading some products, that come with higher margin, and contract or lot size requirements. My log will still include those trades, as I have plan with being able to trade all markets regardless those specific requirements. Professional Investing Business Plan My overleveraged risk settings $400 per trade During certain times of the year, I am allowed to be overleveraged in the market. These represent highly probable trade set ups. There are designed to  give me a chance to get a head start into the new calendar year  finish the calendar year on a strong note  getting used to higher risk sizes 1. Equity Indices (S&P500, Dow Jones, Nasdaq) – October, November buy point 2. Precious Metals (Gold, Silver, Platinum, Palladium) – December, January buy point 3. The following trade set ups: COT long term extreme + seasonal pattern + HTF I understand that these trades are not guaranteed to be winners all the time, however, they do have the best track record. Risk limitations to avoid large drawdowns Trades that are highly positively correlated will not be traded as separate trades, but rather as one trade set up, where I divide my planned risk size (default risk setting or overleveraged risk setting) into the various markets. (e.g. major U.S. Equity Indices, Precious Metals) In the event of a large drawdown, I will only credit additional funds to my account with “spare” money that I can afford to lose. I will not commence Trading again until I have identified the cause of the drawdown and have re-tested Chasing price If I missed an entry I will only be allowed to chase price within my price action, signature set of rules. Opportunities come and go, and the world goes on, even if I miss a trade. Rather than dwelling on it, I ask myself why I missed this trade and put in place protocols to not repeat the same mistake. I shall work on my trading routine if I consistently miss good trades. My golden rules on risk management 1. Until I am a well-seasoned trader, I stay at Milestone 1, and only trade with very little risk or using a demo account. 2. Until I am a well-seasoned trader, I will not trade more than my maximum risk size and do not overleverage my trades Professional Investing Business Plan 3. I will not risk big to win big. This idea has been invented by casinos to make money. The way to win big is to be CONSISTENT over TIME. Play this game with even a small advantage and you can become a large winner over time. 4. As my level of skill, experience and account balance grows, I will look to scale up my business. If I consistently lose, I will reduce my risk size, or move to a demo account. 5. I will not compare myself with others. Many of us have been trading for years, and some of us for almost a decade. I have not. The sane approach is starting out with a minimum exposure to monetary risk. Winning streaks and losing streaks I need to be a consistent participant in the market. Consistency > Intensity Average performance Risk to reward 1:2 Win to loss 60:40 This is where most Winning streak people lose interested This is where most Losing streak people get interested Professional Investing Business Plan 6. MILESTONE PLANNING Patience is key – progress is a slow process The below table should be integrated into my trading log HOW AND WHEN DO I PLAN TO REACH MONETARY OBJECTIVES Milestone February 4th, 2022 TOTAL TOTAL LEVEL RISK PER TARGET RISK TO WIN TO MONTHLY YEARLY TRADE ACHIEVED REWARD LOSS PROFIT PROFIT 1 $200 Yes 1:2 40/60 $400 $4,800 2 $400 $800 $9,600 3 $700 $1,400 $16,800 4 $1,000 $2,800 $33,600 5 $2,000 $4,000 $48,000 6 $4,000 $8,000 $96,000 7 $5,000 $10,000 $120,000 Scaling up my business Scaling up my business is important, but if things don’t go well, I need to make sure to stay in the game until I have the skill to scale up. I will review my trade performance after every 10 trades.  If I achieve my conservative target setting after 10 trades, I will move to the next milestone.  If I am breakeven or slightly in the loss, I will stay in the same milestone for 5 more trades and then re-evaluate based on the 10 most recent trades  If I have large drawdowns, I will decrease my risk size and move to the previous milestone for 5 more trades and then re-evaluate based on the 10 most recent trades Professional Investing Business Plan 7. RETIREMENT PLANNING Long-term wealth and retirement can only be achieved by time in the market. I need to deploy my capital into stocks, cryptocurrencies to make use of the natural updrift of asset prices. Campus Equity Index Buy the 5 lowest prices relatively low P/E stocks within the Dow  Market Commitment: I will commit 40% of my idle cash into this strategy Campus Comparative Strength Buy at least 5 stocks that are comparatively stronger than the major U.S. equity Indices  Market Commitment: I will commit 20% of my idle cash into this strategy Other Stock Picks Media & Games, Clinuvel etc. and / or your own choices  Market Commitment: I will commit 10% of my idle cash into this strategy Crypto Currencies My own crypto portfolio  Market Commitment: I will commit 30% of my idle cash into this strategy Expectations Long-term investing comes with great risks as the future is unknown and hard to predict. However, to achieve long-term wealth we must have our capital deployed at almost all times. Long-term investing buy and hold strategies benefit most from time in the market as opposed to timing the market. MY RETIREMENT FUND SHOULD RUN FOR AT LEAST 26 YEARS February 4th, 2022 CAPITAL YEARLY TOTAL YEARS INVESTED GROWTH TARGET YEARLY (APPROX) TARGET ACHIEVED PROFIT (APPROX) 1 $100,000 10% $10,000 2 $110,000 10% $11,000 3 $121,000 10% $12,100 5 $146,000 10% $14,600 10 $235,000 10% $23,500 15 $380,000 10% $38,000 20 $611,000 10% $61,100 26 >$1M 10% >$100,000 Professional Investing Business Plan “I wish someone had told me 10 years ago to – just start regardless of your capital” – JS If I invest $10,000 and I make 20% per annum instead of 10%, I will achieve the same goal of >$1M in just 27 years. Performance reviews At the end of each year, I will compare the performance of each strategy. A year is not representative of a lifetime of holding. And some “other stock picks” may take longer to grow. Therefore, a change and focus to the strategies that perform the best is not mandatory but could be argued over time. Professional Investing Business Plan 8. MY TRADING RULES What makes markets move Finite markets vs. infinite markets There is a fundamental difference between the markets we trade. There are finite and infinite markets. Finite markets are commodities, like sugar or wheat and infinite markets are markets like stocks. Finite markets The lifespan of a commodity is quite short. It goes from producers to users, and then it’s all over. Sugar and cacao are made into chocolate, Wheat is made into flour, gold and silver are used for computer chips or nice jewelry. The key players for commodities are exactly these people. The so-called commercials, the users, and producers of commodities. These are the institutional powerhouses of the marketplace, so powerful they are required, by law, to report their buying and selling actives once every week. Therefore, we do not just look at charts but also at the key players that move those charts. Infinite markets What moves infinite markets like Stocks? Well, the most consistent key driver for infinite markets like stocks is anticipation of increased earnings (forward P/E ratios) and interest rates (Bonds). And at the center of all of that are stories, or news. Stocks do not rally or drop because of real physical supply and demand. A company can always print more shares, and you can live your entire life without owing one. In fact, millions of people do. Fundamental vs technical analysis It boils down to the right analysis, which one should we follow? Technical analysis is most of what you have learned in the blueprint course. Supply and Demand is a technical analysis because it is based on price, and chart patterns or formations. Technical analysis can also be based on volume or moving averages. All of that is called technical analysis. It does not look at fundamentals. Technical analysis should be used mostly to find good entries and stops and targets. In other words, technical analysis should be used to time the markets. What you have learned and mastered in the blueprint course, is the art of timing the market. And supply and demand is the most powerful technical analysis tool we can use to do that consistently. Supply and demand, however, does not tell us what the best market may be to focus on right now. Professional Investing Business Plan There are more predictive tools than technical analysis, and I believe these tools are found when looking at the fundamental condition of the market. Fundamentals will help us in determining whether we can expect a substantial move or not. Some ways of fundamental analysis are taught in the all-asset mastery classes. In summary The technical chart analysis is objective, and it is powerful for market timing. Fundamentals lack market timing and objectivity. But they are more predictive of where major market moves may take place in the future. Fundamentals drive price. We want to combine the best of both worlds. To me a good trade consists of two elements. The underlying fundamental condition of the market. The so-called fundamental set up. When a market sets up fundamentally, it will not tell us at which price to buy or sell or when to buy or sell. After a market sets up fundamentally, we want to time the market with a quality risk to reward proposition before it completely takes off. We then use our market timing tools to tell us when and at which price to buy and sell. Professional Investing Business Plan Step 1 Location on HTF (technical set up) Step 1: Identify first fresh level of demand below current price and first fresh level of supply above current price.  Freshness based on preferred version 25% rule  Leg out decisive only Step 2: Identify favorable location in terms of potential buying opportunities (low and very low) and selling opportunities (high and very high)  Alternative Rule: If HTF levels cannot be identified close by, I use “everything that looks like a level is a level” rule.  Advanced Steps: check multiple levels, flip zone, originality, monthly coverage, zone quality Step 2 Direction on HTF (technical set up) Step 1: From right to left, identify at least 6 pivot points with approximately equal %changes. (at least 3 lows, and 3 highs)  Uptrend: at least 2 consecutive HLs  Downtrend: at least 2 consecutive LHs Step 2: Identify longer-term trends, momentum, and correction.  A daily downtrend can be part of weekly correction within a weekly uptrend  A daily uptrend can be part of weekly correction within a weekly downtrend  Step 3: Identify chart patterns, cup and handle, trend lines, bull or bear flags, head and shoulders  Advanced: Identify potential anticipatory trend change scenarios o Monthly HQ opposing supply and demand o 4/5 pivots with anticipating the 2nd HL or LH Professional Investing Business Plan Step 3 Campus Indicators (fundamental set up) Campus COT Index Explanation the data we are going to be following is provided by the Commodity Futures Trading Commission (CFTC). This is the agency that governs and regulates the futures and options trading in the US market. The COT report contains historical records of futures contract traded under the US market and US exchanges, and it is broken down by the position type: either a long position, a short position, and it’s listed for three distinct groups of traders. Commercials, Non-Commercials and Speculators Commercials – users and producers The Commercials are institutional superpowers. They are using the futures market to facilitate their business activities. They rely on selling high and buying low to run a profitable business. Therefore, they have the best research analysts on staff. They are the biggest and smartest participant in the game. Our advantage as speculators for finite markets (commodities, or manmade commodities, like Treasuries, Equity Indices, or the Japanese Yen) is that we can learn to understand what their actions in the market mean and align ourselves with them. That is what the COT Index is all about. Making sure we trade side by side with these true trading powerhouses. Commercials are trend changers / trend enders when commercials are accumulating at multiyear highs, expect a longer-term bull market and when commercials are distributing at multiyear lows, expect a longer-term bear market. When the trend change occurs in the price chart the Campus COT Index will oftentimes abandon the extreme reading rather quickly. That is because Commercials will begin to hedge off their large positions in the market. Long Term Campus COT Index – 3-year cycle periods – anticipatory trade  Bullish: Index above 80%ile (green line)  Bullish: Index shows a one year / multiyear high + index above 40%ile range  Bearish: Index below 20%ile (red line)  Bearish: Index shows a one year / multiyear low + index below the 60%ile range Short Term Campus COT Index – 6-month cycle periods – trend trade  Bullish: Index above 80%ile (green line)  Bearish: Index below 20%ile (red line) Professional Investing Business Plan Advanced Golden Rules – COT Net positions – anticipatory trade  Super bullish: COT net positions at historical levels  Super bearish: COT net positions at historical lows  Precious Metals: When commercials go net long we can predict the beginning of major bull markets Expectation: This is a fundamental set up tool and not a timing tool. It can be in extremes for a long time until price starts to move. It can also abandon the extreme rather quickly. The commercials are not always right, but they are the most consistent player in the game. The commercials work best on our finite markets, such as commodities, but they also should be looked at for other manmade commodities such as British Pound or the Indices. Speculators – retailer The retailer is a representation of the public, small speculators that are just trying to make an extra buck in the financial marketplace. I have seen estimates from brokers that state between 80-90% of this group are net losers. The problem is that we are hardwired to buy at market highs and to sell at market lows. Our instinctual buying and selling behavior is to buy after a large rally and to sell after a large decline. We must reprogram ourselves to avoid buying when they are buying and avoid selling when they are selling. In fact, we must learn to do the exact opposite of the retailers. When they are bearish we look to go long and when they are bullish we look to go short Long Term Campus COT Index – 3-year cycle periods – anticipatory trade  Bearish: Index above 80%ile (green line)  Bearish: Index shows a one year / multiyear high + index above 40%ile range  Bullish: Index below 20%ile (red line)  Bullish: Index shows a one year / multiyear low + index below the 60%ile range Short Term Campus COT Index – 6-month cycle periods – trend trade  Bearish: Index above 80%ile (green line)  Bullish: Index below 20%ile (red line) Expectation: This is a fundamental set up tool and not a timing tool. It can be in extremes for a long time until price starts to move. It can also abandon the extreme rather quickly. The retailers are not always wrong, but they have the worst track record in the game. For some assets, like livestock markets, the retailers sometimes track the commercials. That is because Professional Investing Business Plan (a) very few retailers trade these markets and (b) the ones that are listed as retailers are commercials, but their position sizes are not large enough to be categorized as commercials. Non-Commercials – large funds and other large traders Non-Commercials represent large traders or large managed pools of money. This group of trader makes money by following the trend. This means that the more a market rallies, the more contract this group is going to add on top of their original position, this is because they constantly must deploy cash in the financial markets. When the funds have committed a lot of longs, relatively speaking, it means that as a group they have no more longs left to commit to the market. Which then means, that there is no one left to drive the market in the same direction. What we then see is a trend change occurring. Therefore, when the non- commercials are heavy buyers we look to sell and when they are heavy sellers we look to buy. Long Term Campus COT Index – 3-year cycle periods – anticipatory trade Bearish: Index above 80%ile (green line) Bearish: Index shows a one year / multiyear high + index above 40%ile range Bullish: Index below 20%ile (red line) Bullish: Index shows a one year / multiyear low + index below the 60%ile range Short Term Campus COT Index – 15-week cycle periods – trend trade Bearish: Index above 80%ile (green line) Bullish: Index below 20%ile (red line) Expectation: This is a fundamental set up tool and not a timing tool. It can be in extremes for a long time until price starts to move. It can also abandon the extreme rather quickly. The non- commercials are not necessarily wrong. What we see is the total amount of contracts in the market. Not when they started buying, and therefore we do not know their average price. It is very interesting though, to understand when they have fired all their firepower, because when they run out of ammo, there is no one left to drive the market into the same direction. Campus True Seasonality A lot of markets show some very strong and dominant seasonal time periods or seasonal patterns. In other words, there are certain times of the year when certain markets are most likely to rally or decline. Campus True Seasonality: Our Campus True Seasonality allows us to always project the most up-to date and relevant future projection of when the next major seasonal lows and highs take place. Professional Investing Business Plan How to interpret Seasonality:  Strong Seasonal patterns are 5yrs, 10yr and 15 yrs. Ideally we see an overlap on the major seasonal highs and lows, when aligning the periods.  Seasonality is not indicative of the amplitude of the move, in other words, the size of the expected rally or decline, rather the COT report would be more predictive here.  Seasonality is not to be used to argue trend, HLs or LHs. Rather it tells us when are potentially better or the best times to be a buyer and potentially better or the best times to be a seller in the future  The strongest seasonal periods of the year are found in Equity Indices and Precious metals as per the following October / November buy point in Equity Indices End of December, January buy point in Gold / Silver Expectation: Seasonality is not a be all end all. Usually, markets tend to rally and decline about the same time every year, but not necessarily. Therefore, we will be using seasonality as an additional layer to get a better understanding of the underlying fundamental condition of the market, or in other words we will be using our Campus true seasonality as a fundamental set up tool but also as a timing tool. Campus Valuation Campus Valuation allows us to get a sense of value for all sorts of stocks and equity indices, our infinite markets. To do this we look at the relationship of a stock and interest rates. What usually happens is that there is a specific spread in terms of how close together or far apart these are. I believe that interest rates have an extreme influence on the prices of stocks. Therefore, I want to compare the price of any stock on a ratio to interest rates. And this would give us indication of whether a stock is priced relatively low compared to interest rates (undervalued) or if a stock is priced relatively high compared to interest rates (overvalued). Valuation against: Stocks and Equity Indices, we value against Interest Rates (@US). Commodities, and the USDollar we value against Gold (@GC) and our Majors we value against the US Dollar ($DXY). On Forex, I use the 2 out of 3 rule. Cycles: When it comes to under and overvalued, there is no magic number to the cycle periods that work best on each market. For some market, it seems like a 10 day works better than 30, and for others it is the opposite. For most stocks we use a 13-week cycle period. Daily cycles are to be used with the trend. And weekly cycles are to be used to argue a trend change. Professional Investing Business Plan Best fundamental set ups Finite markets (Commodities) Forecasting a major rally: bullish COT + seasonal low Forecasting a major decline: bearish COT + seasonal high Infinite markets: (Equity Indices and Stocks) Forecasting a major rally: undervalued + seasonal low Forecasting a major decline: overvalued + seasonal high Manmade Commodities (Forex and Treasuries) Forecasting a major rally: undervalued and/or COT + seasonal low Forecasting a major decline: overvalued and/or COT + seasonal high Professional Investing Business Plan Step 4 HQ Zoning on LTF (market timing) Step 1: Identify Supply and Demand zones that are located within the right fundamental context (fundamental indicators) and technical context (HTF Direction and HTF Location) Step 2: Validate zone qualifiers – they must all be met for me to be able to take a trade  Leg out explosive candles, or abnormally bigger decisive followed by at least one more decisive / explosive candle  Profit margin price must have travelled at minimum 1:3 away from the zone  Freshness must be fresh based on wider version  Base duration approximately 1-6 ideally indecisive candles (pin bars) in the base  Arrival for counter trend trades only. Arrival should consist of decisive candles where there is no opposing zone created  Beginners rule these rules are objective and mechanic and as a beginner I try to stick to these rules in favor to train my eyes  Advanced rule with growing experience I am allowed to create my own, alternative zone qualifier set of rules, where not all rules need to be in place Step 3: Check for advanced zone qualifiers and SET the trade  Level on top of level SET the lower level based on the wider version for demand and SET the higher level based on the wider version for supply  Flip zone, originality not having a flip zone, or the zone not being original does not invalidate my zone Alternative Step 3 Check for advanced zone qualifiers and wait for confirmation  Price action & signature: Hammer, shooting star, hanging man, bearish engulfing, bullish engulfing, trend lines, head and shoulders.  Advanced: Enter above prior days high or low  When do I use confirmation: Multiple or large levels which makes a SET difficult. Professional Investing Business Plan Step 5 Trade Management Some key points on trade management 1. Know when to hold’em and know when to fold’em 2. Learning how to hold on to winning trades 3. Natural tendency is to take small profits to pay off recent losses 4. Our fear of losing profits exceeds our hope of holding on 5. These are emotional decisions not based on logic Basic trade management rules Move SL to breakeven  Trend: Move SL to breakeven once price hits a 1:2 risk to reward  Counter Trend: Move SL to breakeven once price hits a 1:1 risk to reward  Anticipatory: Move SL to breakeven once price hits a 1:1 risk to reward Targets  Trend: target always at 1:4 risk to reward  Counter trend: target always at 1:2 risk to reward  Anticipatory: target always at 1:4 risk to reward Trailing: Advanced trade management rules Step 1: Identify technical risk  Is price approaching opposing Supply or Demand zones?  Has price left large price gaps on the way up or down? Step 2: Identify fundamental risk  Has the fundamental condition changed (COT?, seasonality? valuation?) Step 3: Identify targets that should be reached based on your analysis Step 4: until target is met trail using the following rules Technical risk & running risk to reward >1:1  SL to B/E Professional Investing Business Plan Technical risk & running risk to reward >1:3  aggressive technical trailing, tight SL below one-, two- or three-day lows, with potential LTF level coverage Technical risk & fundamental risk regardless of risk to reward  aggressive technical trailing, tight SL below one-, two- or three-day lows, with potential LTF level coverage Exemption to the rule: On certain trades that meet the “best fundamental set up rules”, analyzed on trade-by-trade basis, I am allowed and can decide to not trail unless I see the fundamental condition to change. If overleveraged I have a monetary target of x dollars. If price hits my target amount, I will exit the trade. A well-executed overleveraged trade gives me double the Rs and can make a big difference in my trading log. Professional Investing Business Plan 9. MY INVESTING RULES It takes Time It takes time for your trading career and your money to grow. A small investment can become a big investment but only with time and time alone. Time creates growth. Huge profits do not come overnight. Guess what else takes time. Growing a business, climbing up the corporate ladder, a degree, heck even growing crop takes a long time. Think of what you can achieve in 5-10 years rather than what you want next month. Why Investing  Most efficient use of your capital  The believe in revolutionary economics  Retirement  Emotional barriers in trading take a long time to overcome  The time of acquiring a skill in trading  Is trading for you Fundamentals Fundamental Indicators help us determine and time market bottoms and tops, so we have an idea when to get in and out of the markets. We need a lot of confidence to deploy most of our idle cash. And therefore, we need tools that help us identify recessions so we can potentially sidestep them, as well as bull markets so we can timely re-deploy and get back on the bull train. For this we use a variety of tools that cover most aspects of the economy, ranging from future GDP projections, employment trends, interest rates, and P/E valuations. Step 1 understanding fundamentals Online Trading Campus provides me with a yearly roadmap, which does this for me, however, I will track the following indicators myself, at least once a quarter.  The dynamic yield curve  The anxious index  The conference board employment trends index Professional Investing Business Plan  S&P500 P/E valuations Step 2 understand market cycles  What is the decennial year? 2, and 3 are usually the beginning of bull markets. phenomenal 5. Years 7 and 0 are usually bad years.  What is the election cycle and the decennial cycle in terms of best buy points? Step 3: choosing the strategy that fits my capital and performance requirements and buying with the cycle lows and/or HTF demand Professional Investing Business Plan Campus Equity Index The Strategy: Buy the 5 lowest priced relatively low P/E stocks within the Dow Jones Industrial Average. Entry strategy: Time in the market > timing the market Buy around the cycle lows determined in the yearly roadmaps. (Buy in monthly demand, if possible) Exit strategy: we only exit if we see a fundamental warning sign Rollover: Perform rollover once a quarter, or at the next cycle low, if the list has changed. Expectations: Historically, this strategy has achieved an average of 20% ROI per year, including the bad years. This strategy consistently and comfortably outperforms the best U.S. equity indices Dow Jones and S&P500 (10% per annum). This is the most objective, mechanic and least time-consuming strategy I know of to outperform the market. This strategy is for you if you  Want to deploy large capital with little volatility, but low to medium upside potential  You are new to long-term investing  Everyone else 😊 Performance from 2nd of November 2021 to today, 27th March 2022 Campus Equity Index Company Rank Fwd P/E Entry Date of Entry Invested Weight Current Price ROI Total Capital WBA 1 9.23 $ 47.5 2021-11-02 $ 20,000 20% $ 47.1 -0.9% $ 19,823 INTC 2 9.68 $ 49.6 2021-11-02 $ 20,000 20% $ 51.8 4.5% $ 20,895 VZ 4 9.88 $ 53.1 2021-11-02 $ 20,000 20% $ 51.3 -3.3% $ 19,333 CSCO 5 15.66 $ 56.4 2021-11-02 $ 20,000 20% $ 55.0 -2.4% $ 19,510 DOW 6 9.23 $ 57.6 2021-11-02 $ 20,000 20% $ 64.7 12.2% $ 22,450 Campus EI 2.0% $ 102,011 Dow Jones $ 35,797 2021-11-02 $ 100,000 100% $ 34,759.0 -2.9% $ 97,100 S&P500 $ 4,605 2021-11-02 $ 100,000 100% $ 4,536.5 -1.5% $ 98,512 Nasdaq $ 15,891 2021-11-02 $ 100,000 100% $ 14,755.8 -7.1% $ 92,856 Professional Investing Business Plan Campus Comparative Strength Index The Strategy: Buy at least 5 stocks that are comparatively stronger than the Equity Indices Entry strategy: Time in the market = timing the market Monthly Demand, Monthly Uptrend, Campus Buy Signal, 13-week cycle Campus Valuation, Yearly Roadmap Cycle Low Exit strategy: we only exit if we see a fundamental warning sign Rollover: Performing rollover is not mandatory but if you must, perform a rollover at the next cycle low, if applicable. Expectations: This strategy is the powerhouse of investing strategies, but with great power comes great responsibility. For this strategy we must deploy our full arsenal of tools, market knowledge and skill set. We are investing in the markets that have the most volatility in the game. Therefore, timing the market becomes equally important to minimize the potential risk to the downside. This is less of an objective strategy, and sometimes, our market bias can hurt us. We must follow our rules strictly. This strategy is for you if you  Want to deploy large capital with high to very high upside potential, but also high volatility  You are a well-seasoned investor and have the gut for market heat  This strategy comes and goes and every year there are new opportunities, therefore, if you are new to investing try with a smaller amount first before you deploy most of your capital. Performance from 1st of February 2022 to today, 27th March 2022 Campus Comparative Strength Company Buy Opened Entry Date of Entry Invested Weight Current Price ROI Total Capital AMD Now yes $ 107.9 2022-01-31 $ 11,111 0.11% $ 119.7 10.9% $ 12,320 DIS Now yes $ 138.5 2022-01-31 $ 11,111 0.11% $ 139.1 0.5% $ 11,165 FB $240 yes $ 240.0 2022-02-04 $ 11,111 0.11% $ 221.8 -7.6% $ 10,269 NFLX Now yes $ 402.0 2022-01-31 $ 11,111 0.11% $ 373.9 -7.0% $ 10,333 PYPL $124 yes $ 124.0 2022-02-04 $ 11,111 0.11% $ 113.8 -8.3% $ 10,194 AMZN Now yes $ 2,895.0 2022-01-31 $ 11,111 0.11% $ 3,295.5 13.8% $ 12,648 JPM Lower no $ 128.56 $ 11,111 0.11% $ 141.92 10.4% $ 11,111 SBUX Lower Yes $ 88.00 2022-02-25 $ 11,111 0.11% $ 87.47 -0.6% $ 11,044 WMT Lower no $ 11,111 0.11% 0.0% $ 11,111 1.3% $ 100,195 Dow Jones $ 34,570 2022-01-31 $ 100,000 100% $ 34,759.0 0.5% $ 100,547 S&P500 $ 4,421 2022-01-31 $ 100,000 100% $ 4,536.5 2.6% $ 102,613 Nasdaq $ 14,454 2022-01-31 $ 100,000 100% $ 14,755.8 2.1% $ 102,088 Professional Investing Business Plan Other Stocks Build yourself your own portfolio of other Stocks. Learning about the company and its future earnings projections, as well as other fundamentals are advised. Learn about some of the Online Trading Campus Stocks Clinuvel – CUV Media and Games – M8G VolitionRX – VNRX Santhera – SANN Expectations: These stocks come with extreme volatility and extreme upside potential. Because they are small cap, they may take a longer time to work out. They can be part of your portfolio but only if you learn about these companies. Online Trading Campus also identifies other stocks frequently that could be part of my list, like Zoom, NIO, BABA. These stocks must be timed with monthly Demand. Crypto Portfolio Build yourself your own crypto portfolio. Questions you may want to ask for investing: Rule: Comparative strength + Monthly Demand Benefits of blockchain technology?  What problem or pain point is being solved for stakeholders? For a company?  What value is being created or captured?  What are competitors doing to address similar pain points?  Why is blockchain technology the best solution? What are the specifics of the blockchain use case?  Which costs of verification or networking can be reduced?  Which transactions need recording?  Which stakeholders need write and read access to ledgers? Professional Investing Business Plan  What is the customer interface and how is it better than current interface? Costs of technical challenges and transition?  What tradeoffs of scalability, performance, privacy & coordination are necessary?  Can permissioned blockchain adequately address use case?  How can broad adoption be realized? Are net Benefits sufficient? Professional Investing Business Plan