A trading plan is the set of rules you trade by, written down before the market opens. Without one, every decision is made in the moment, under pressure, and that's when traders break the rules they never wrote down.
The best plans are short. If yours doesn't fit on one page, you won't read it before you trade.
The 7 sections of a trading plan
1. Markets and sessions
What you trade and when. For example: "MNQ and MGC only, London open and the first two hours of New York." Fewer markets means more reps on the same price behaviour.
2. Your setups
Describe each setup precisely enough that someone else could spot it: the context, the trigger and what it looks like. Add a screenshot of a textbook example. Two or three setups is plenty.
3. Entry rules
Exactly what has to happen before you click. "Price looks strong" isn't a rule. "A 5-minute close above the level after a retest" is.
4. Exit rules
Where your stop goes (where the idea is wrong), where you take profit, and whether you move to breakeven or take partials. Decide this before the trade, never during it.
5. Risk rules
- Risk per trade, such as 0.5% of the account or $200
- Maximum trades per day
- Daily loss limit, after which you stop for the day
- Rules for after a losing streak, such as halving size after three losses in a row
Not sure what numbers to use? See how much to risk per trade.
6. When not to trade
Major news releases, the first minutes of the open, when you're tired or upset, or after hitting your daily stop. This section saves more money than any setup.
7. Review routine
When you review and what you check. A plan that never gets reviewed never gets better. Use the weekly review checklist.
Free trading plan template
SETUP A: context ____ · trigger ____ · stop ____ · target ____
SETUP B: context ____ · trigger ____ · stop ____ · target ____
RISK: ____ per trade · max ____ trades/day · stop for the day at ____ loss
AFTER 2 LOSSES IN A ROW: ____
NO TRADING: ____ minutes either side of major news · when ____
REVIEW: every ____ at ____ · one rule change per week, max
Print it or pin it next to your screen. Read it before every session.
Let VOLERON keep the journal for you
Trades sync in automatically, stats by setup and session build themselves, and VIOLA, your AI coach, tells you what to change next.
Try VOLERON free for 7 daysTurn your plan into something you can measure
A plan is only a guess until your results test it. In your journal, tag every trade with:
- Which setup it was (or "none", for impulse trades)
- Whether you followed the plan, yes or no
- The session
After 30–50 trades, compare results when you followed the plan with when you didn't. For most traders this one comparison is the most eye-opening number in their journal. If your plan's setups have negative expectancy, change the plan. If they're positive and you're still losing, the problem is discipline, not the plan.
How often should you change your plan?
Rarely, and one thing at a time. Change one rule per week at most, based on your review, never in the middle of a session. If you change everything after every bad day, you'll never collect enough trades to know what works.