The Rejected-Trade Log: Measuring the Setups That Were Skipped
Posted: Wed Oct 28, 2026 1:30 am
A journal normally records only what was executed, which means every skipped setup vanishes from the data. A rejected-trade log fixes that gap by recording each valid-looking setup that was passed over, along with the reason: spread too wide, news nearby, loss limit reached, hesitation, or a filter failing.
Each entry needs the same fields as a live trade, including hypothetical entry, stop, target, and what price did next. Hypothetical outcomes are never perfect, since real fills would have differed, so the log is best read in broad terms rather than to the pip.
Two patterns repay the effort. If skipped trades labelled as hesitation win about as often as executed ones, hesitation is quietly costing expectancy and the cause deserves attention. If trades skipped because of a filter perform clearly worse than taken ones, the filter is earning its place. Without the log, both conclusions would rest on memory, and memory favors the vivid misses.
Honesty is the hard part. Marking only the skipped winners, and ignoring the skipped losers, produces a distorted record that argues for taking everything. The rule is to log every skip at the moment of the decision, before the outcome is known.
Each entry needs the same fields as a live trade, including hypothetical entry, stop, target, and what price did next. Hypothetical outcomes are never perfect, since real fills would have differed, so the log is best read in broad terms rather than to the pip.
Two patterns repay the effort. If skipped trades labelled as hesitation win about as often as executed ones, hesitation is quietly costing expectancy and the cause deserves attention. If trades skipped because of a filter perform clearly worse than taken ones, the filter is earning its place. Without the log, both conclusions would rest on memory, and memory favors the vivid misses.
Honesty is the hard part. Marking only the skipped winners, and ignoring the skipped losers, produces a distorted record that argues for taking everything. The rule is to log every skip at the moment of the decision, before the outcome is known.