How do you document a strategy so you can actually follow it?

FTC Community TeamStaff17 Sept 202615 views

A strategy that lives in your head drifts. A documented one — setup definition, entry, stop, target, filters, when not to trade — can be followed, tested and handed to a journal. The document is the discipline.

How do you document a strategy so you can actually follow it? — drawdown and recovery diagram — An equity curve during a drawdown and its recovery

What does yours contain?

the sections you include
how precise the rules need to be
how often you revise it, and under what conditions

How do you document a strategy so you can actually follow it? — risk-reward diagram — A risk-reward ratio of 1 to 2

The journal guide pairs with the strategy document.

Background: How to keep a trading journal that actually improves your trading

A journal turns a pile of trades into evidence. What to record, the numbers worth calculating and a weekly review routine that takes less than an hour.

What should a trading journal include?

For each trade: the pair, direction, size, entry, stop, target, risk, the reason for the trade, how you felt, the result in money and in R, whether you followed your plan, and chart screenshots.

How do I calculate expectancy?

Multiply your win rate by your average win, then subtract your loss rate multiplied by your average loss. Measured in R, a positive result means the approach has made money per trade on average.

Read the full guide

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