Set 7 — Strategy Building and Readiness

What makes a strategy rule-based?

Two different people could follow the written rules and take roughly the same trades.

What must a complete strategy define?

Context, trigger, entry, stop, target, invalidation, and no-trade conditions.

What is a trigger?

The exact event that tells you the setup is ready to enter.

What is invalidation?

The condition showing the trade idea is no longer valid.

Why should stop placement be based on structure, not just comfort?

Because random stops get hit without meaningfully proving the trade wrong.

What is structural stop placement?

Placing the stop beyond a level that would invalidate the trade idea if broken.

Why is a fixed dollar stop sometimes dangerous?

It may ignore market structure and either be too tight or too loose.

Why should ORB continuation and ORB failure be tracked separately?

Because they are different setup types with different behavior and edge.

What is setup confluence?

Multiple factors supporting the same trade idea, such as level, session, and VWAP alignment.

Why is too much confluence sometimes a trap?

Because traders can use it to justify vague or inconsistent entries.

What is a no-trade filter?

A rule that keeps you out of conditions where your setup performs poorly.

What is the purpose of journaling screenshots?

To review context, execution, and whether the trade actually matched the plan.

What is the difference between analysis and execution?

Analysis decides the idea; execution decides the actual trade location and management.

Why is one clean setup better than five vague ones?

Because one measurable edge can be tested and repeated.

When are you ready for a prop evaluation?

When you understand the rules, know your risk math, and have one tested repeatable setup.

When are you not ready to scale to multiple accounts?

When your single-account process is still vague, inconsistent, or unproven.

What should be learned before copy trading multiple accounts?

Stable execution, hard rules, clean statistics, prop rule mastery, and disciplined risk.

What is the goal of your first phase as a trader?

To build one repeatable setup with controlled risk and measurable edge.

What is the goal of your second phase as a trader?

To refine performance under prop rules without changing the core system impulsively.

What is the goal of your third phase as a trader?

To scale only after the process is stable, documented, and consistently executed.