Strategy Rules [first draft]

It’s Day 1.  I have decided to begin by creating the first draft of my personal rules for discovering trading strategies:

1. a. Write a statement describing the strategy objectives including the target timeframe.
   b. Strategies are to be based on logic and group psychology.
2. a. Define what constitutes the presence of opportunity, or lack thereof.
   b. Only enter positions in the direction of greatest probability, or do not participate.
3. a. Define rules for exiting losing positions.
   b. Define rules for taking profits.
4. Write a summary of lessons learned during the creation & testing of the strategy.

This is not meant to be a trading plan or business plan.  It is the foundation that I plan to build on – but would be happy to change if influenced by a more profitable opinion

“If somebody had told me my method would not work I nevertheless would have tried it out to make sure for myself, for when I am wrong only one thing convinces me of it, and that is, to lose money.  And I am only right when I make money.” – Reminiscences of a Stock Operator