Investment Plan for Retirement

Instruments

Trading Instruments

All indicators are designed to be used on charts of 1X 24x5 trading instruments, but use 3X ETF to trade to manage risk.

Using the indicators on charts of 3X ETF is ok but it won't be as smooth as a 1X instrument due to volatility decay of the 3X ETF.

For precise higher timeframe analysis, use only Futures data to evaluate ICD PD arrays on D/W/M charts. However, free Futures data quote comes with 10 minute delay. So do use real time (e.g. CFD, 1X ETF, or paid Futures) data for precise entry/exit in the lower timeframes.

For liquidity and risk management, only trade widely held asset classes with at least 10 trillion USD market capitalization. The currently tradeable asset classes are listed below.

Trade at most 30% of the capital in any asset class, so the max loss is limited to 30% even if the asset crashes 90% suddenly.

Trade at most 2 distinct assets at the same time because at times of stress, uncorrelated classes may become highly correlated.

Most of capital should be kept in safe money market or short term bond funds, such as BOXX, BIL, or SGOV. In the event of potential US debt default or USD/banking crisis, keep more capital in 1X Gold ETFs, such as GLD, GLDM, or IAU.

Equity asset class

SP500: chart on ES (Futures) or SPX500 (CFD), and trade SPXL (3X ETF)
Nasdaq 100: chart on NQ (Futures) or NAS100 (CFD), and trade TQQQ (3X ETF). TQQQ is about 5X volatility of SP500.
Semi SOX Index: chart on SOXX (ETF), and trade SOXL (3X ETF). SOXL is about 10X volatility of SP500, it is prudent to reduce the position size when trading it.

Commodity asset class

Gold: chart on GC (Futures), and trade GLD (1X ETF) or GDXU (3X ETN without K-1). GDXU is a mining stock ETN, not a gold ETF, so trade it with caution and strict stop since it could behave like equity in some situation. SHNY is the corresponding 3X Gold ETN, but it has low trading volume currently.

Bond asset class

US T Bond: chart on ZB (Futures) or US30YUSD (CFD), and trade TMF (3X ETF).

Indicators

ICT Indicators

ICT0

ICT0 is used to identify long term and intermediate term trends from 1W, 1D, 4H to 1H

ICT1

ICT1 is used to pinpoint all the potential turning times and levels on all timeframes

ICT2

ICT2 is used to pinpoint the potential turning levels on the short term timeframes.

ICT3

ICT3 is used to pinpoint all the potential turning points on the lowest timeframes for precise entries and exits.

Direction

Market Direction

Market can be in one of the 3 different directions determined by ICT0 indicator:

Uptrend
Sideway
Downtrend

UD [EXTREME UP DOWN (OVERBOUGHT / OVERSOLD)] in ICT0 gives a head up for potential direction change on different timeframes for both short term day trading and long term swing trading.

Sequences of Market Direction Change

Price crosses below 1W SR Line or above 1W SR Line: early indicator but could flip flop a lot. Can use this as a trailing stop for a long running trend
1D TC Label or 1D TC Label appear: early indicator but could be reversed by the opposing label to start another leg of the existing trend
1D SR Line crosses below 1W SR Line or 1D SR Line crosses above 1W SR Line: early indicator but could be reversed by the opposing crossover to start another leg of the existing trend
Color changes from/to 1W SR Line to/from 1W SR Line: indicator of severe trend developing and frequently lasting until 1W UD Circle or 1W UD Circle

Uptrend

Sideway

Downtrend

Trading

Trading Plan for Retirement

Long term swing trading of the uptrend

1

Entry

2

Exit

3

Re-Entry

Important:

4

Exit for Re-Entry

5