Writing Entry Rules Another Person Could Follow
Posted: Sun Oct 04, 2026 10:20 am
Writing Entry Rules Another Person Could Follow
A rule you cannot write down is a feeling. Turning a setup into precise rules is the step that separates a strategy from a habit.
Test your rules with a simple question: if you handed the written instructions to another trader, would they identify exactly the same trades you do? If not, there is a gap filled by intuition.
Good rules are specific and observable. Instead of "price near support," write "price enters a zone defined by the last two swing lows, within 10 pips." Instead of "strong momentum," write "the candle body is larger than 1.5 times the average of the last 10 bodies."
Cover each element: market conditions required, the trigger, the order type, the stop location, the target or exit rules, and the position size. Include what disqualifies a trade, such as a news event within an hour.
Objective rules have a hidden benefit. They allow honest testing, since you can mark trades in the past without hindsight. They also reduce emotional interference, because the decision is already made.
You may still apply judgment, but write down what part is judgment, and keep it limited.
Review the rules after twenty trades and refine ambiguities you notice.
Practical step: take your main setup and write it as five numbered rules, each checkable by yes or no.
A rule you cannot write down is a feeling. Turning a setup into precise rules is the step that separates a strategy from a habit.
Test your rules with a simple question: if you handed the written instructions to another trader, would they identify exactly the same trades you do? If not, there is a gap filled by intuition.
Good rules are specific and observable. Instead of "price near support," write "price enters a zone defined by the last two swing lows, within 10 pips." Instead of "strong momentum," write "the candle body is larger than 1.5 times the average of the last 10 bodies."
Cover each element: market conditions required, the trigger, the order type, the stop location, the target or exit rules, and the position size. Include what disqualifies a trade, such as a news event within an hour.
Objective rules have a hidden benefit. They allow honest testing, since you can mark trades in the past without hindsight. They also reduce emotional interference, because the decision is already made.
You may still apply judgment, but write down what part is judgment, and keep it limited.
Review the rules after twenty trades and refine ambiguities you notice.
Practical step: take your main setup and write it as five numbered rules, each checkable by yes or no.