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trading plan generator

6 min read

How to build a rules-based trading plan

A trading plan is a decision document written before risk is taken. It should make the next action clear without relying on confidence, fear, or a last-second prediction.

Format
GUIDE
Practical education
Reading time
6 min
Focused lesson
Framework
RULES FIRST
Repeatable definitions
Risk
DISCLOSED
No guaranteed outcomes
Rules-basedSource labeledUser configuredRisk disclosed

Start with the setup definition

Name the market, session, pattern, and conditions that must be present. For an ORB plan, include the range window, break direction, confirmation candle, retest requirement, and the latest time a new entry is allowed.

Define risk before reward

Write the invalidation price, maximum account risk, position-sizing method, and daily loss limit before choosing profit targets. A plan that cannot state where it is wrong is not ready for execution.

Pre-write management decisions

Decide what happens at TP1, after a failed retest, inside the midpoint chop zone, and when the move extends without an entry. This reduces the number of emotional decisions made while price is moving.

  • Entry trigger
  • Invalidation and stop
  • Position size
  • Target ladder
  • Late-entry rule
  • End-of-day review

Review execution separately from outcome

A well-executed loss can be better process than an impulsive win. Journal whether the written rule was followed, then review the result over a meaningful sample instead of rewriting the plan after one trade.

Educational use and risk

Historical patterns and target hit rates do not guarantee future results. This guide is general education, not personalized investment advice. Confirm market data with your broker and define risk before entering a trade.