CMT study plan

Construct daily and weekly bar charts for 5 different markets and label each with its current trend structure (higher highs/higher lows, lower highs/lower lows, or range)

Recite the core tenets of Dow theory from memory and write a one-page summary linking each tenet to a chart example

Classify 20 historical price swings as trending or ranging using a written, repeatable rule set

Identify and annotate 10 support/resistance zones and mark the reaction at each

Identify 10 reversal patterns and 10 continuation patterns across a set of 25 printed charts and state the volume behavior expected for each

Apply volume confirmation rules to 15 breakouts and record whether each was confirmed or unconfirmed

Interpret 8 candlestick formations in context (trend location plus volume) rather than in isolation

Explain three sentiment indicators and describe what a divergence in each implies

Compute RSI, MACD, and stochastics by hand for a 30-day price series and reconcile the results against a spreadsheet implementation

Compare a simple moving average system against an exponential moving average system on the same data and document where signals diverge

Calculate mean, standard deviation, skew, kurtosis, and correlation for a series of asset returns

Test a return series for stationarity and explain in writing why the result matters for strategy design

Design a fully specified rule-based trading system with explicit entry, exit, filter, and position-sizing rules

Backtest that system over at least 5 years of data and compute Sharpe ratio, MAR ratio, maximum drawdown, and hit rate

Diagnose three specific overfitting risks in your own backtest and propose a walk-forward or out-of-sample fix for each

Compare trend-following and mean-reversion rule sets on the same dataset and state which regime each suits

Solve 10 position-sizing problems using both fixed-fractional and volatility-based (ATR) methods

Compute Value at Risk for one portfolio using three distinct approaches and reconcile the differences

Distinguish market, credit, liquidity, and operational risk with a concrete example of each drawn from trading

Build a stop-placement rule that accounts for volatility and explain when a fixed-percentage stop is inappropriate

Write a personal risk policy stating maximum drawdown tolerance, per-trade risk limit, and rules for reducing size after losses

Explain how loss aversion and the disposition effect cause traders to break their own stop rules

Contrast the Kelly criterion with fixed-fractional sizing and describe the practical risk of full-Kelly betting

Analyze three documented trader blow-up narratives and attribute each failure to a specific risk-management breach

Define 15 cognitive and emotional biases and give a trading example of each

Map every bias to at least one concrete rule or checklist item that mitigates it

Explain prospect theory, mental accounting, and anchoring and show how each distorts a trading decision

Identify behavioral explanations for three market anomalies (momentum, post-earnings drift, herding)

Complete two full-length timed practice exams under exam conditions and log every missed question by domain

Re-study the two weakest domains using the error log rather than re-reading everything

Re-derive from memory the key formulas for Sharpe ratio, maximum drawdown, VaR, and position sizing

Build a one-page formula and definition sheet you can review in the final 48 hours