Your Complete Trading System Blueprint
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(e.g., "S&P 500 stocks above $20, avg volume 1M+")
| # | Criterion | Specific Rule |
|---|---|---|
| 1 | ||
| 2 | ||
| 3 | ||
| 4 | ||
| 5 | ||
| 6 |
| Exit # | % of Position | Target | Stop Adjustment |
|---|---|---|---|
| 1 | |||
| 2 | |||
| 3 |
| Filter | My Rule |
|---|---|
| VIX Level | |
| Market Trend (SPY vs 200MA) | |
| Earnings | |
| Economic Data | |
| Time of Day | |
| Other |
Risk per trade: %
Formula: Position Size = (Account × Risk%) / (Entry - Stop)
Max open positions:
Max portfolio heat: %
Max correlation:
Daily loss limit: %
Weekly loss limit: %
| Drawdown Level | Action Required |
|---|---|
| -10% | |
| -15% | |
| -20% | |
| -25% |
Lesson 84 prices six habits one at a time and finds that two of them together take the share of your accepted rules that is real from 43.2 per cent to 6.0. Every one of the six is defeated by writing a number down before you start rather than deciding it on the day. Module 11 ranks that against the other three freedoms the course did not have and it comes first, worth a factor of 7.16, and it costs nothing.
| Number | Mine | Where it comes from |
|---|---|---|
| Horizon: the trade count at which I will judge this, decided now | trades | Lesson 65. Judging after every trade instead takes a dead system’s pass rate from 5.05 per cent to 24.25. |
| Depth: the drawdown I will sit through without switching it off | R | Lesson 67. An eight-R line switches off 59.5 per cent of the systems that genuinely work. |
| Settings searched: how many variants I tried before choosing this one | Lesson 64. Twenty configurations already cost 70 per cent of a single test’s bar; 15,000 over 156 trades manufacture 0.317 of an R a trade before the market has done anything. | |
| Position limit: the most I will hold at once | positions | Lesson 75. Three per cent of heat over two per cent a trade permits 1.5 positions, which is one. |
Filled in before the first trade, these four are a decision made once. Filled in afterwards, they are a description of what you already did.
I profit because:
The measurement this rests on: what I counted, on how many observations, and on which instrument:
If that second box is empty, the first is a story. Lesson 62 is the difference between the two.
I commit to following this plan until the horizon in section 10 is reached, without deviation and without judging it early. I will modify it on evidence rather than on a run of results, and I will write down what changed and why, because a rule changed mid-sample restarts the count.
Horizon from section 10: tradesat my pace that is years. Lesson 76 measures a four-rule book asking for 56.5 round trips a year, at which lesson 67’s 589 trades is 10.42 years rather than the 1.23 an assumed pace gives.
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