Risk management · Rookie
Trading plan
What does Trading plan mean?
A trading plan records the conditions for entering, sizing, managing and exiting trades. It also sets the circumstances in which the trader will stay out.
Example
A plan names permitted sessions, signals, maximum risk and a stopping condition for the day.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Make the plan compatible with the account rules before evaluating the strategy’s performance.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.