Trading rules as Ulysses contracts: tying yourself to the mast
Ulysses had his crew bind him to the mast so the sirens couldn't sink him. Trading rules do the same: written in calm moments, binding in tempting ones. The rules are the mast.
What's your mast?
- the rule you wrote for your own protection
- the siren it protects you from
- the time you were grateful for the ropes
The stop-loss guide is the classic Ulysses contract.
Background: How to build a forex trading plan that survives losing streaks
A trading plan is the difference between a system and a mood. Here is exactly what belongs in one, how to write it in an afternoon, and why the losing-streak test decides whether it is real.
What is the difference between a trading plan and a trading strategy?
A strategy is the setup — when to enter and exit. A plan contains the strategy plus risk rules, routines, no-trade conditions and review procedures. The plan decides how the strategy is executed.
How long should a trading plan be?
Long enough to be unambiguous, short enough to be read before every session. One to two pages is typical; every rule should be specific enough that a stranger could follow it.
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