How to Compile a Strategy Template?

How to Compile a Strategy Template?

Anya Mei 21 Nov 2022 263 views

An important tool to enter and exit the market, a strategy template is a plan to analyze and execute trades with a certain method. It usually includes the date of the trade, reasons to enter the market, as well as the price levels of trade executions.

A basic strategy template starts with a few lines that describe the overall trading strategy, followed by a checklist that consist of the following elements:

  1. Date of the trade
  2. Currency pair
  3. Entry position (buy or sell)
  4. Reason to enter the market
  5. Entry level
  6. Stop loss
  7. Target profit
  8. Stop distance

By the parameters above, this is what a strategy template could look like:

Date November 20, 2022
Currency pair
EUR/USD
Entry position
Buy
Reasons to Trade
  • Pullback from key support
  • Bullish reversal candlestick
  • RSI rising from oversold area
Entry Level 0.9750
Stop Loss 0.9700
Target Profit 0.9800
Stop Distance 50
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