Trading playbook

By Jarosław Wasiński • Published: Jan 23, 2026 • Updated: Oct 11, 2026

A working catalogue of trading scenarios: which setups are used, in what conditions, with which entry, exit, sizing and position-management rules. Cards have an identifier, version and evidence status and should be accessible at the decision point. The playbook describes scenarios, while the trading plan establishes overarching account and working constraints; both can form parts of one clear document. Updates follow reviews of journals, tests and material changes in conditions rather than the latest trade’s outcome alone. There is no mandatory quarterly review schedule.

Example.

A playbook contains “BRK-01 v1.2” for breakouts and “MR-02 v1.0” for mean reversion. Each specifies its market conditions, entry, invalidation, exit and testing status. At 09:00 UTC, EUR/USD meets preliminary conditions for both cards, but the plan permits only one exposure to that instrument. Without a previously defined conflict rule, do not choose a card using the subsequent result. Record the skipped signal, then develop and test a priority rule outside the immediate decision.

A working card that can be applied

A card should have an ID, version, date and status: hypothesis, testing, observation or approval for a specified trading mode. Record more than an ideal chart example: include rejection conditions, the maximum entry price, horizon and management rules. Add invalid and borderline cases. A readable structure provides answers before an order is placed; a long description without decision criteria does not become a useful playbook merely through its length.

Responsibilities of the plan and system

The plan sets permissible risk, mandate and working arrangements. The system defines the complete operating rules; the playbook presents them as cards for specific scenarios. All can reside in one document if the structure remains clear. There is no mandatory card count or quarterly review schedule. Numerous variants of the same exposure do not guarantee strategy diversification; specify their conflicts and common constraints.

Version control and evidence limits

Changes need a reason and implementation date. Preserve the previous card so its historical sample is not attributed to new rules. Journals, tests and changes to contract conditions inform reviews; one profit or loss does not establish a setup’s promotion. Distinguish discretionary guidance from mandatory conditions. An A-plus card can still lose, and “tested” does not guarantee the next trade or the persistence of an edge.

Further learning and sources

15.2 Trading plan and setup playbook — rules, risk and review; 15.10 Strategy Audit — When to Fix the System, When to Fix Yourself.

FAQ

Must a playbook be a separate file?

No. It can sit within a plan or knowledge base. Clearly separate scenario cards from the overarching constraints.

When should a card change after losses?

After a scheduled evidence review or a material change in conditions. A run of outcomes alone does not justify rewriting rules during trading.

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