Download this free trading rules template — a one-page PDF with a blank fillable version and a pre-filled momentum trading example. It covers the six sections that turn a trading strategy into a repeatable session checklist: market filter, setup criteria, entry trigger, position sizing, exit rules, and a post-trade logging requirement.
What’s Included
- Blank fillable rules sheet — One page, designed to be printed or filled digitally before each session. Fields are structured so the template functions as a literal checklist during the trading day.
- Pre-filled momentum trader example — A complete example for a day trader using a VWAP pullback strategy on gap-up stocks, with every field populated using realistic $30,000 account parameters.
- Market conditions filter block — Fields for index level, VIX threshold, and event calendar. Example: “No trades if VIX is above 30 or SPY is more than 2% below prior-day close at open.”
- Setup criteria section — Pattern name, required volume, timeframe, and pullback condition. Requires specificity — “gap up above 3% with pre-market volume above 500K shares” rather than “strong open.”
- Entry trigger field — Single-sentence format: the exact candle or signal that pulls the trigger. Forces traders to distinguish between seeing a setup and having a confirmed entry.
- Position sizing formula row — Pre-printed formula: Risk = Account Balance × 1% ÷ (Entry Price − Stop Price) = Share Count. Traders fill in the numbers for that session; the math is built in.
- Exit rules block — Three required fields: hard stop price, profit target, and time-based exit rule. All three must be completed before the position is opened.
- Rule violation log — Four columns: date, rule broken, reason, outcome. Tracks deviations systematically so patterns surface over weeks, not just individual sessions.
How to Use
Step 1: Fill Out the Market Conditions Filter the Night Before
Complete the market filter section before the next session opens — not at 9:28 AM while watching pre-market. Write specific, measurable conditions. A valid filter looks like: “SPY above its 5-day EMA, VIX below 22, no Fed announcements.” An invalid filter looks like: “Market looks okay.” If conditions are not met at the open, mark the session as no-trade and move on. This section alone prevents an entire category of losses that come from forcing trades in unfavorable environments.
Step 2: Specify the Setup and Entry Trigger
In the setup criteria block, describe the pattern with exact parameters — gap percentage, volume threshold, and the price level where the pullback must hold. Then in the entry trigger field, write a single sentence beginning with “I enter when…” Example: “I buy the first 1-minute candle that closes above VWAP after a red candle has touched it, provided this occurs in the first 30 minutes.” If the trigger has not fired, there is no trade — the template enforces this by requiring the trigger condition before any position size is calculated.
Step 3: Calculate Position Size Using the Formula
The position sizing section includes the formula pre-printed: Risk = Account Balance × 1% ÷ (Entry Price − Stop Price). For a $30,000 account, that is $300 risk. If the stop is $0.25 below VWAP, the share count is $300 ÷ $0.25 = 1,200 shares. Write in a notional cap — for example, $15,000 maximum regardless of formula output — to prevent oversizing on low-priced stocks. A trader risking 1% per trade at a 2:1 reward-to-risk ratio needs only a 34% win rate to break even, but this math only holds when position sizing is formula-driven, not intuitive.
Step 4: Pre-Set All Exit Rules Before Placing the Order
Fill in three fields in the exit block: the hard stop price (e.g., $0.25 below VWAP entry), the profit target (e.g., $0.50 above entry, representing 2× risk), and the time-based exit rule (e.g., “Close all intraday positions by 3:45 PM ET”). If the profit target and stop are not written before order entry, the exit decision gets made while the position is moving — the worst possible time. The time-based exit prevents holding positions into the close for intraday strategies.
Step 5: Complete the Rule Violation Log After Each Trade
After each trade closes — before opening the next — record whether every rule was followed. If a rule was broken, write which rule, the reason, and the trade outcome in the violation log. Over four to six weeks, this log reveals which rules are hardest to follow and under what conditions violations cluster. Prop firm evaluation programs such as FTMO report that more than 60% of account failures occur from rule violations, not from unprofitable strategies — the violation log converts that problem from anecdotal to measurable.
Key Benefits
- One-page, session-ready format — Unlike generic trading plan PDFs that cover biographical background and market philosophy, this template covers only the per-trade decision logic needed for the next session.
- Formula-driven position sizing — Removes the guesswork from share count by tying every trade to a defined account risk percentage and stop distance, not a habit or gut feel.
- Pre-session completion requirement — The template is designed to be filled out before market open, so during the session the trader executes decisions already made rather than deliberating with a live P&L on screen.
- Violation log as feedback loop — Tracking rule deviations converts inconsistency from a vague frustration into data that can be analyzed, discussed with a coach, or addressed with targeted practice.
- Works alongside any strategy — The six-section structure accommodates momentum, mean reversion, options, and futures strategies. The template does not prescribe a strategy; it structures how any strategy is applied.
Template vs JournalPlus App
| Feature | This Template | JournalPlus App |
|---|---|---|
| Rule Tracking Per Trade | Manual violation log | Linked to trade entries with rule tags and filters |
| Position Sizing | Manual formula each session | Automatic from account balance and stop distance |
| Entry/Exit Compliance | Self-reported checkbox | Verified against imported broker data |
| Rule Violation Trends | Scroll through log manually | Dashboard with violation frequency by rule type |
| Trade Import | Manual entry | Automatic from 50+ brokers |
| Performance vs. Compliance | Manual cross-reference | Automatic correlation in report card |
| Price | Free | $159 one-time |
This template is a complete, functional system for any trader who wants to impose structure on their decision-making. When you are ready to correlate rule compliance with actual P&L data automatically — and stop transferring numbers by hand — JournalPlus connects your written rules directly to your trade history.
Download
Download the free Trading Rules Template and fill it out before your next session. No account required — the PDF opens in any browser or PDF reader.
Frequently Asked Questions
What is a trading rules template?
A trading rules template is a pre-structured document where traders write the exact conditions for entering, sizing, managing, and exiting trades before a session begins. It functions as a one-page operating system for the trading day, replacing ad-hoc decision-making with a written checklist checked against live market conditions.
What should a trading rules template include?
A complete trading rules template should cover six sections — a market conditions filter (e.g., VIX threshold, index position), setup criteria (pattern and volume parameters), an entry trigger (specific candle or signal condition), a position sizing formula tied to account risk percentage, exit rules (stop-loss, profit target, time-based exit), and a post-trade logging requirement. Templates missing any of these sections leave critical decisions unmade until you are already in a trade.
How is a trading rules template different from a trading plan?
A trading plan is a long-form document covering trader background, risk tolerance, markets traded, and general strategy — it is written once. A trading rules template is a short, session-specific checklist filled out before each trading day with exact parameters for that session. Most traders benefit from both, but the session template is what actually prevents rule violations in real time. Pair this template with the trading plan worksheet for a complete system.
How do I use a trading rules template for position sizing?
Use the formula — Share Count = (Account Balance × Risk%) ÷ (Entry Price − Stop Price). For a $30,000 account risking 1% ($300) with a $0.25 stop, the calculation is $300 ÷ $0.25 = 1,200 shares. Write this calculation into the template before the session opens, along with a notional cap to prevent oversizing. The position sizing calculator can help automate this step if you prefer a spreadsheet format.
Why do traders break their own rules even when they know them?
According to trading psychologist Brett Steenbarger, rule-following consistency is the single strongest predictor of long-term trading survival among discretionary traders — yet most traders never write their rules down. A 2021 FINRA study found fewer than 20% of retail traders maintain a written trading plan. Without a written template checked before each session, rules exist only as intentions, which dissolve under the pressure of a moving position. The trading psychology tracker can supplement this template by surfacing emotional patterns behind recurring violations.
