Basics
The strategy will be named as TKM and follow by version number, for example, TKM v1, TKM v2 and etc. After a new version released, the predecessor will be archived for future references.
Each major version increment indicates one round of execution and system refinement. If a system is not refine nor improve, the subsequent execution will be noted in decimal format a.k.a minor version. For example, TKM v1.1, TKM v1.2, the number behind indicate the number of execution without major rework on the system.
Execution completion criteria is either one of the below.
- Account draw down to ZERO (unable to trade)
- Long term profit target hit (met expectation).
- The target for each execution is 100 % appreciation of the account, equivalent to RM 15,000.
- FKLI is trading at 1 index point equal to 2 ticks, each tick has value of RM25. In order to hit the long term profit target, 600 ticks are needed to gain.
- FCPO is trade at 1 point equal to 1 tick, each tick has value of RM25. In order to hit the long term profit target, 600 ticks are needed to gain.
The Product to trade
TKM v1 will be using FCPO and FKLI to apply the strategy, hence in every week, you will probably see analysis on these products. Also, we will be accessing the same strategy with Dow Jones Industrial Average but will not trade on it.
The Strategy
For TKM v1, we will be based on 2 MA lines overlay on Daily chart for trade setup. MACD histogram on Weekly Chart to identify the trend. Support and Resistance price level on Weekly Chart to identify Profit Taking and Cut Loss point. Very important notes, in all TKM strategy, Cut Loss will be designed to execute manually by the traders instead of setting Stop Order. Profit Taking target could be set with GTC limit order right after the order matched. Order will be place on the next day OPEN price, be it the LIMIT (entry) or STOP(exit) order.
Example:
