STRATEGY PLAYBOOK

● STRATEGY GOALS
○ During the first stages developing a new strategy, you should outline what the
goals of the strategy are, being specific as possible.

Examples:
-Win Rate 50%+
-2R Minimum
-Psychological Goals
-Style (Scalping, Mid-Intervals, Swing)

● STRATEGY THEORY
○ What is the theory or logic behind why the strategy should work?
○ What is the logic behind the indicators and charts that you use?
○ The more descriptive you can be the better.
Example:
-Cumulative Volume Delta displays the aggression of local buyers and sellers. When examping
CVD relative to price, especially swing highs and lows, we can gain insight into OTFP activity.

● SECURITIES
○ Describe the characteristics of the securities you intend to trade the strategy on.

Examples:
-Low Float, High Short Interest, Tight Spread, Average Volume Min/Max, Market Cap Min/Max

● CONTEXT
○ Outline how you’re going to build context and the theory behind it.

Examples:
-Double Bottoms/Tops
-Head & Shoulders
-High Volume Nodes

Note: All of the logic behind your context should have been explained in Strategy Theory

● TRIGGERS
○ Outline what triggers you’re going to use, as well as exactly how you will enter.

Examples:
-Pin Bars
-Bull/Bear Flags
-Wedge Breakout

● TRADE MANAGEMENT
○ Outline how you will manage your open positions.

Example:
-Trail Swings till 50% of Target 1 hit
-Exit on a extreme tick reading
-Stay in position as long as Delta is tracking

● SIZING
○ When defining your sizing you should explain the different tiers you will use
based on the setup, time of day, volatility, etc.
○ If you scale into position or trade around a core, here’s where you would define
how you do it.

Examples:
-Midday reduce risk by 50%
-Trading Around a Core Position: Exit 50% of core at Target 1. Add to position at tick extremes.

● TRACKING
○ In order to progress as a trader you have to track everything. Here's where I
define the acronyms I will use to track the Context, Trigger, Trade Management,
and Risk Management techniques that were used on a given trade.

Examples:

P = Pin Bar (Trigger)

DB = Double Bottom (Context)
DT = Double Top (Context)
TC = Trail Candles (Trade Management)
1/2 = Half standard tier size

● QUESTIONS
○ As you spend more time learning and trading a strategy, you’re going to find
times where you're unsure what you should do.First and foremost, do what is
most logical, which is typically pass on the trade or exit your position. Take a
screenshot and track in your playbook. After the session or maybe the week is
over, do some testing to determine the action you will take next time.

Example:
-I took a short in a retrace off of lows of day, and got run over. There was a tick extreme at lows
of day. Wonder if this ist a sign of capitulation?

● IDEAS
○ This is a great place to map up future things you want to test.

Example:
-I feel I’m missing out on a large portion of moves. May want to look at last couple weeks of
trade and see how I would have performed with a runner trailing just swings.