Creating a Personal Playbook — Your Trading Bible 📖

Your Personal Playbook is a comprehensive, centralized manual that answers every trading question before you open the chart.

1. Eliminates Discretion

The Problem:

• Market moving fast
• 10 seconds to decide
• Emotion clouds judgment
• Analysis paralysis or impulsive action

The Solution:

• Pre-approved decision sequence
• Check: Does price meet criteria A, B, C?
• Yes → Execute per rules
• No → Do nothing
• No thinking, only checking

2. Facilitates Review

The Problem:

• Can't improve what you don't measure
• Can't measure undefined rules
• "I think I followed my strategy" = not data

The Solution:

• Playbook = static benchmark
• Compare every trade against rules
• Journal: "Rule 1 followed? Yes/No"
• Data: 85% vs. 100% adherence
• Quantifiable improvement

3. Anchors Psychology

The Problem:

• Emotions fluctuate daily
• Fear after losses, overconfidence after wins
• Forget lessons learned
• Drift from what works

The Solution:

• Review Playbook daily (5-10 min)
• Primes mind for discipline
• Reminds: Edge is mathematical
• Verbal commitment
• Psychological anchor

1. Technical (What to Trade)

• Entry criteria (OB, FVG, MSS)
• Exit criteria (TP, trailing stops)
• Market structure requirements
• Timeframe analysis rules

2. Money (How Much to Risk)

• 1% Fixed Percentage Rule
• Position sizing calculation
• Maximum drawdown limits
• Scaling rules

3. Mind (How to Behave)

• No revenge trading rules
• Drawdown policy (when to stop)
• Psychological gates (pre-trade checklist)
• Session preparation routine

This section defines the foundational environment and schedule of your trading business.

Trading Identity:

"I am a Day Trader executing on M15 timeframe, focused on London/New York overlap (8:00 AM - 12:00 PM EST)."

Profit Target:

"Target: 1.5% weekly profit, using conservative 1:2 Risk-Reward ratio."

Trading Style:

"I trade Smart Money Concepts (SMC) using Order Blocks, Fair Value Gaps, MSS. Technical trader with fundamental awareness."

Risk Tolerance:

"Maximum drawdown: 12%. At 10%: reduce to 0.75%. At 12%: halt trading for strategy audit."

Time Commitment:

"Trading hours: 8:00 AM - 12:00 PM EST daily. Chart review: 7:00 AM. Journal: 5:00 PM."

Why This Matters:

• Prevents strategy hopping
• Realistic, measurable goals
• Clear time commitment
• Prevents overtrading/neglect

Approved Currency Pairs:

"EUR/USD, GBP/USD, Gold (XAU/USD) only. Sufficient liquidity, clear structure, aligned with London/NY volatility."

Forbidden Pairs:

"No exotics (wide spreads). No JPY crosses (overnight gaps). No crypto pairs (too erratic)."

Analysis Platform:

"TradingView Premium:

• Daily/H4 for trend bias
• H1 for market structure
• M15 for entry timing"

Execution Platform:

"MT5 via ECN Broker:

• VPS hosted for 24/7 uptime
• Max 2-pip slippage tolerance
• Spreads monitored weekly"

Required Tools:

• Economic Calendar (ForexFactory)
• COT Report (weekly)
• Retail Sentiment (DailyFX)
• Trading Journal (Excel)

Daily Routine:

7:00 AM GMT: Market structure review (Daily/H4)
7:30 AM GMT: Mark liquidity pools, OBs, FVGs
8:00 AM GMT: Trading session begins
4:00 PM GMT: All trading stops
5:00 PM GMT: Journal review

Days Off:

"No Mondays (low liquidity). No Dec 20 - Jan 5 (holidays)."

High-Impact News:

"Flat 15 min before/after red-folder events (NFP, CPI, Rates). If in position: close 80%, SL to BE on 20%."

Maximum Daily Trades:

"Max 3 entries per day. Quality over quantity. Never force setups."

Why This Matters:

• Prevents trading low-probability times
• Protects during news volatility
• Establishes professional routine
• Prevents overtrading

This section contains the visual, detailed blueprints of your trade setups—the heart of your technical edge.

Before Entering ANY Trade, Confirm:

☐ Rule 1: Trend Bias Established

• H4 trend clearly defined?
• HH + HL (bullish), OR LL + LH (bearish)
• If ranging → No trade

☐ Rule 2: Liquidity Cleared

• Price swept liquidity pool?
• BSL above equal highs, OR SSL below equal lows
• Sweep = institutional fuel

☐ Rule 3: Structure Confirmed

• MSS or CHoCH on H1/M15?
• Clear break of swing high/low
• Without MSS → No entry

☐ Rule 4: Entry Zone Identified

• Un-mitigated Order Block, OR Fair Value Gap
• Located in OTE zone (62%-79% Fib)
• Entry at discount (buy) or premium (sell)

☐ Rule 5: Risk Parameters Defined

• SL beyond OB/structural invalidation
• TP at liquidity pool or 1:2 minimum
• Lot size for exactly 1% risk
• Never enter without pre-calculated risk

If ALL 5 = YES → Execute
If ANY = NO → Do NOT trade

Build visual reference with 10-15 annotated examples:

Include:

• 5 perfect winning setups
• 3 perfect losing setups (followed rules, market invalidated)
• 2 breakeven trades
• 3-5 "almost" setups that failed checklist

Each Screenshot Must Show:

• Full chart with all timeframes
• Clear OB/FVG, MSS, liquidity sweep markings
• Entry point with arrow
• SL and TP clearly labeled
• Trade data below (date, pair, R:R, outcome)
• Key learnings

How to Use:

• See potential setup in live market
• Open Trade Gallery
• Compare current chart to proven patterns
• Match? → High confidence entry
• No match? → Wait

This section ensures capital discipline and machine-like execution.

Primary Rule:

"1% maximum risk per trade. Lot size calculated using SL distance BEFORE execution. No exceptions."

Position Sizing Formula:

Lot Size = (Account Balance × Risk %) ÷ (SL Pips × Pip Value)

Example:

• Balance: $10,000
• Risk: 1% = $100
• SL: 20 pips
• Pip Value: $10/pip
• Lot Size: $100 ÷ (20 × $10) = 0.50 lots

Verification:

1. Identify entry and SL
2. Measure exact pips
3. Calculate lot size
4. Verify risk = exactly 1%
5. Then place order

Forbidden:

• ❌ Eyeballing lot size
• ❌ Same lot every trade
• ❌ Increasing after wins
• ❌ Decreasing after losses
• ❌ Any risk > 1%

Break-Even Rule:

"At 1:1 R:R, move SL to entry (break-even). No exceptions."

Partial Profit (Scaling Out):

"Scale out 50% at T1 (first structural target/liquidity pool). Remaining 50% runs to T2 or trailing stop."

Trailing Stop:

"Once 1.5R reached, activate 15-pip trailing stop. Let winners run while protecting profit."

Early Exit (Only When):

• MSS opposite direction on entry timeframe
• Major news < 15 minutes away
• Unexpected fundamental shock
• Never exit on "feeling"

Daily Loss Limit:

"Max 3 consecutive losses OR -2% daily loss. Hit either → stop for day."

Action:

1. Close platform
2. Don't watch charts
3. Review all 3 trades
4. Rules followed? Bad variance, resume tomorrow
5. Rules broken? Identify violation, write correction

Weekly Loss Limit:

"Max -4% weekly loss. Hit → reduce to 0.75% risk for next 20 trades OR 3-day break."

Monthly Drawdown:

"At -10% from peak: reduce to 0.5% risk, audit Playbook. At -12%: halt trading until strategy re-validated."

Revenge Trading Prevention:

"Forbidden: Trade within 30 min of losing trade. Mandatory cool-down. Use time to journal."

Pre-Trade Ritual:

"Before ANY trade, state verbally: 'I am risking 1% on this trade because it meets all Playbook rules. This is high-probability based on my proven edge.'"

Your Playbook is not static—it's a Living Document that evolves based on data, not emotions.

Every 3 Months (or After 100 Trades):

Step 1: Gather Performance Data

• Export all trades from journal
• Calculate: Win Rate, Avg R:R, Expectancy, Max DD, Profit Factor

Step 2: Analyze Rule Adherence

• What % followed ALL rules?
• Which rules most often broken?
• When broken (time, emotional state)?

Step 3: Evaluate Setup Performance

• Which setups positive expectancy?
• Which negative or zero?
• Any consistently failing?

Step 4: Make Data-Driven Decisions

If setup negative over 50+ trades:

• Remove from Playbook (even if you "like" it)
• Document why removed
• Re-add only after successful re-test

If poor execution (rule violations):

• Rules stay same
• Problem is discipline
• Add psychological gates
• Consider smaller size temporarily

If rules followed AND expectancy positive:

• Change nothing
• Reinforce existing rules
• Increase confidence

Step 5: Update Document

• Document changes with date
• Explain reasoning (data-based)
• New version number (v1.0 → v1.1)
• Print new version

Update Playbook When:

• ✅ 50-100+ trades show rule failure
• ✅ Market regime change (trending → ranging)
• ✅ Consistent violations reveal unrealistic rule
• ✅ New edge discovered and validated
• ✅ Risk tolerance changes

Do NOT Update When:

• ❌ Lost 3 in a row (normal variance)
• ❌ "Feels wrong" (emotion, not data)
• ❌ Friend suggests different strategy
• ❌ Saw YouTube "better" method
• ❌ One bad week (too small sample)

Version 1.0 (March 2024)

• Initial based on backtesting
• 3 setups: OB, FVG, Liquidity Sweep
• 1% risk all setups

Version 1.1 (June 2024)

• Removed FVG (negative expectancy, 50 trades)
• Added trailing stop rule (improved R:R)
• Updated DD threshold -15% to -12%
• Reason: Journal data showed FVG 0.35% WR

Version 1.2 (September 2024)

• Added GBP/USD to pairs
• Removed Monday restriction (data showed profitable)
• Refined OB to require OTE only
• Reason: 100-trade validation

Keep all versions for reference and learning.

Summary & Conclusion

The Personal Playbook is the final, essential document for any serious forex trader.

Call to Action

📖 Your trading success is defined by your adherence to a system. Make it official.

The difference between knowing what to do and actually doing it consistently is documentation. Your Playbook transforms scattered knowledge into unified, executable system.

Your Next Steps:

1. Create Playbook document (physical binder or digital PDF)
2. Document complete system using three-section framework
3. Build Trade Gallery with annotated screenshots
4. 30-day challenge — Only trades meeting 100% criteria
5. Review daily before every session

For next 30 days, trade ONLY what's in Playbook. No discretion. No exceptions.