Playbooks

Creating and using trading playbooks

Playbooks

Playbooks are trading checklists and strategy templates that help you trade consistently and review which strategies work best.

What is a Playbook?

A playbook is a documented trading strategy that includes:

  • Entry criteria - When to get in
  • Exit criteria - When to get out
  • Risk rules - Position sizing, stop loss
  • Checklist - Items to verify before trading

Think of it as a recipe for a specific type of trade.

Why Use Playbooks?

1. Consistency

Following a documented plan removes emotional decision-making: - "My playbook says I need 3 confirmations. I only have 2. No trade."

2. Performance Tracking

Attach playbooks to trades to see which strategies work: - "My breakout playbook has 65% win rate, but my reversal playbook only has 40%."

3. Learning & Improvement

Review and refine your strategies over time: - "I'm adding a volume requirement to my breakout playbook after noticing low-volume breakouts fail."

4. Discipline

Pre-trade checklists prevent impulsive trades: - "Did I check the checklist? No? Then I don't take this trade."

Creating a Playbook

Step 1: Navigate to Playbooks

  1. Go to Playbooks from the sidebar
  2. Click + New Playbook

Step 2: Fill in Details

Field Description Example
Name Short, memorable name "VWAP Reclaim"
Description Brief explanation of the strategy "Long when price reclaims VWAP after morning sell-off"
Strategy Type Category Momentum, Breakout, Reversal, etc.
Timeframe Typical hold time Day trade, Swing, Position

Step 3: Define Entry Criteria

Add the conditions required to enter a trade:

Entry Criteria:
- Price below VWAP in first 30 minutes
- Price reclaims VWAP with volume > 1.5x average
- RSI crossing above 50
- No major resistance within 2%

Step 4: Define Exit Criteria

Specify when to close the trade:

Exit Criteria:
- Take Profit: 2% gain or previous day's high
- Stop Loss: Below VWAP reclaim candle low
- Time Stop: Close by 3:00 PM if neither hit

Step 5: Add Risk Rules

Define how you size and manage risk:

Risk Rules:
- Max position size: 5% of account
- Risk per trade: 1% of account
- Max daily loss: 3% of account
- No averaging down

Step 6: Create Checklist

Add items to verify before entering:

Pre-Trade Checklist:
[ ] Market direction aligns (SPY green)
[ ] No earnings within 2 days
[ ] Volume confirms the move
[ ] Risk/Reward at least 2:1
[ ] Not already in 3+ positions

Step 7: Save

Click Save Playbook to create it.

Using Playbooks

Attaching to Trades

When logging a trade:

  1. Find the Playbook field
  2. Select from your playbooks dropdown
  3. The trade is now linked to that playbook

During Trade Entry

Before entering a trade:

  1. Open the playbook
  2. Review the entry criteria
  3. Go through the checklist
  4. If all items pass, take the trade
  5. Log the trade with playbook attached

Filtering by Playbook

  1. Go to Journal page
  2. Use the Playbook filter
  3. See all trades using that strategy

Playbook Analytics

View performance by playbook:

  1. Go to Analytics page
  2. Filter by playbook
  3. See metrics for that strategy:
  4. Win rate
  5. Profit factor
  6. Average P&L
  7. Total trades

Comparing Playbooks

Compare strategies side by side:

Playbook Trades Win Rate Profit Factor Avg P&L
VWAP Reclaim 45 62% 2.1 $125
Gap & Go 32 55% 1.8 $180
Earnings Drift 18 44% 1.2 $95

This helps you focus on your best strategies.

Example Playbooks

Momentum Breakout

Name: Momentum Breakout
Type: Momentum / Day Trade

Entry Criteria:
- Stock up 5%+ premarket on news/catalyst
- Price consolidating near highs
- First 5-min candle breaks consolidation
- Volume 2x+ average

Exit:
- TP: 10% from entry
- SL: Below consolidation low
- Trail stop after 5% gain

Risk:
- 1% account risk
- Max 500 shares

Checklist:
[ ] News catalyst confirmed
[ ] Float under 50M shares
[ ] No resistance for 10%
[ ] Market not selling off

Swing Reversal

Name: Swing Reversal
Type: Reversal / Swing Trade

Entry Criteria:
- Stock down 20%+ over past 5 days
- RSI below 30 (oversold)
- Bullish candlestick pattern (hammer, engulfing)
- Volume increasing on reversal day

Exit:
- TP: 10-20% or 50 EMA
- SL: Below reversal candle low
- Time: Exit after 5 trading days

Risk:
- 2% account risk
- Hold overnight only with SL in place

Checklist:
[ ] Fundamentals still intact
[ ] No upcoming earnings
[ ] Sector not in downtrend
[ ] Not catching falling knife (1 day of stability)

Editing Playbooks

  1. Go to Playbooks page
  2. Click on the playbook to edit
  3. Make changes
  4. Click Save

Changes don't affect previously attached trades.

Deleting Playbooks

  1. Go to Playbooks page
  2. Click on the playbook
  3. Click Delete
  4. Confirm

Previously attached trades keep a reference but the playbook details are removed.

Tips for Effective Playbooks

  1. Start simple - 2-3 playbooks max when beginning
  2. Be specific - Vague criteria lead to inconsistent execution
  3. Use numbers - "RSI below 30" not "RSI oversold"
  4. Include failures - Define what disqualifies a trade
  5. Review monthly - Update playbooks based on results
  6. Grade your trades - A/B/C setups within each playbook