Trading realityUpdated 2 min readBy the FXNOD team
How to write a trading plan (with a template)
A trading plan is a written document that states what you trade, when you trade, what counts as a valid setup, how much you risk, how you exit, and when you stop for the day. It turns decisions made under pressure into decisions made in advance. One page is enough. A plan you follow is worth more than a detailed one you do not.
The sections
| Section | Question it answers | Example |
|---|---|---|
| Markets | What do I trade? | EUR/USD only |
| Times | When? | 13:00 to 16:00 UTC, Monday to Thursday |
| Setup | What exactly makes a trade valid? | Pullback to a marked hourly level in the direction of the daily trend, with a rejection candle |
| Entry | How do I get in? | After the candle closes |
| Risk | How much per trade? | 1% of the account |
| Stop | Where am I wrong? | Beyond the level |
| Exit | Where do I take profit? | The next level, at least twice the stop distance |
| Daily limits | When do I stop? | After 3 trades, or a loss of 3% |
| Review | When do I check my results? | Sunday, from the journal |
Writing it
Start with risk and limits
They matter most and are the easiest to define.
Describe one setup
So exactly that another person would take the same trades.
Add what you will not do
No trading around major news; no adding to losers.
Keep it to one page
And put it where you can see it.
Test it on demo
A hundred trades, then revise once.
Rules for the plan itself
- Never change it during a session.
- Change it only at a scheduled review, from evidence in your journal.
- Change one thing at a time.
- If you break it, write down that you did, and why.
A plan for a bot
| Item | Decide before starting |
|---|---|
| Contract and market | Which, and why |
| Stake and stake rule | The amount, and whether it ever changes |
| Largest stake allowed | A number |
| Session stop loss and profit target | As money |
| Runs per day | How many, and what ends the day |
| Retirement rule | The result at which the bot is stopped and re-tested |
A bot's settings are a plan the machine keeps. The rows about runs per day and retirement are the part only you can keep.
Why most plans fail
Not because they are wrong, but because they are abandoned in the first losing stretch. A plan with a small enough risk is far easier to keep, since no single loss feels worth breaking it for.
Questions people ask
- What should a trading plan include?
- Markets, times, the setup, entry, risk per trade, stop, exit, daily limits and a review schedule.
- How long should a trading plan be?
- One page. If it is longer, you will not consult it when it matters.
- How often should I change my plan?
- Only at scheduled reviews, on evidence from at least fifty trades, one change at a time.
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