Elite athletes don't improvise every play. They run plays from a playbook-designed, practiced, and perfected until execution becomes automatic.
Elite traders work the same way.
A trading playbook is a collection of specific trade setups that you've studied, practiced, and proven. When market conditions match a play in your book, you execute. No hesitation. No second-guessing. The thinking happened when you wrote the play-not when you're running it.
Most traders don't have a playbook. They have a vague sense of "good-looking charts" and make it up as they go. That's why most traders lose.
This guide gives you complete playbook examples you can study, adapt, and implement. Each play includes exact entry conditions, position sizing, stop placement, targets, and trade management rules.
A playbook is only useful if it's specific enough to be executed consistently. Each play needs:
- Clear Context
- What market conditions make this play valid?
- What should the higher timeframe look like?
- What should NOT be happening?
- Precise Entry Criteria
- Exactly when do you enter?
- What confirmation do you need?
- What disqualifies a setup?
- Stop Loss Rules
- Where does the stop go?
- Why that level?
- Is there a max stop size?
- Target Rules
- Where is the target?
- How was it determined?
- Are there multiple targets?
- Trade Management
- When do you move stops?
- How do you trail?
- When do you take partials?
- Position Sizing
- What percentage of account to risk?
- Any adjustments based on setup quality?
If you can't specify all six, you don't have a play-you have a suggestion. Let's look at complete examples.
This play captures explosive moves when price breaks out of consolidation with strength.
| Requirement |
Specification |
| Higher timeframe trend |
Aligned with breakout direction |
| Consolidation duration |
Minimum 5 days, preferably 10-20 |
| Volatility context |
ATR compressed below 20-day average |
| Volume context |
Volume declining during consolidation |
Invalid when:
- Breaking out against higher timeframe trend
- Major resistance immediately above breakout level
- During major news event (within 30 minutes)
- Trigger: Price closes above consolidation high (for long) with volume exceeding 150% of 20-day average
Confirmation requirements:
-
Close must be above the high, not just a wick
-
Volume confirmation on the breakout candle
-
RSI(14) > 50 for longs, < 50 for shorts
-
Entry method: Market order on candle close that confirms breakout
- Initial stop: Below the consolidation midpoint
Calculation: (Consolidation high - Consolidation low) / 2, placed below this level
Maximum stop: 3× ATR(14). If stop would be wider than this, reduce position size accordingly
Example:
- Consolidation range: $90,000 - $95,000
- Midpoint: $92,500
- Stop: $92,000 (below midpoint with small buffer)
Target 1: 1× the range width from breakout level (take 50% off)
Target 2: 2× the range width from breakout level (take remaining 50%)
Example:
- Breakout at $95,000
- Range width: $5,000
- T1: $100,000 (take 50%)
- T2: $105,000 (exit remaining)
- Move stop to breakeven when T1 is hit
- Trail stop below each new higher low after T1
- If price returns to breakout level without hitting T1, cut 50% immediately
- Time stop: If no 1× ATR movement in your direction within 3 days, exit
- Standard risk: 1.5% of account
- A+ setup (perfect consolidation, strong volume, perfect trend alignment): 2%
- B setup (good but imperfect): 1%
This play profits from price reversing at range extremes during sideways markets.
| Requirement |
Specification |
| Higher timeframe trend |
Neutral (ranging) |
| Range definition |
Clear support and resistance tested 2+ times each |
| Range duration |
Minimum 7 days |
| ADX |
Below 20 (confirming no trend) |
Invalid when:
- ADX > 25 (market trending)
- Price has just broken and held above/below range
- Major news catalyst expected
Long entry (at range bottom):
- Price enters bottom 10% of range
- RSI(14) < 35
- Bullish candlestick reversal pattern (hammer, engulfing, etc.)
Short entry (at range top):
-
Price enters top 10% of range
-
RSI(14) > 65
-
Bearish candlestick reversal pattern (shooting star, engulfing, etc.)
-
Entry method: Limit order at reversal candle close, OR wait for next candle to confirm and enter
Maximum stop: 1.5× ATR(14). If range is very wide, this play may not be appropriate.
-
Target: Opposite side of range (take 75% off) or middle of range (take 100%)
-
Conservative approach: Take 100% at range midpoint
-
Aggressive approach: Take 50% at midpoint, 50% at opposite extreme
- If price returns to entry area after moving favorably, tighten stop to breakeven
- No adding to position in range trades
- Time stop: If no movement to range midpoint within 5 days, exit at current price
- Standard risk: 1% of account
- Maximum two range trades open simultaneously
- Reduce to 0.5% if recent range trades have been losers (false breaks happening)
This play enters existing trends after healthy pullbacks, riding the next leg.
| Requirement |
Specification |
| Higher timeframe trend |
Clear trend (higher highs/lows for up, opposite for down) |
| Trend strength |
ADX > 25 |
| Pullback depth |
38.2% - 61.8% Fibonacci retracement of last leg |
| Moving averages |
Price above 20 EMA, 20 EMA above 50 EMA (for uptrend) |
Invalid when:
- Pullback exceeds 61.8% (trend may be reversing)
- Volume increasing significantly on pullback (distribution)
- Breaking structure (lower low in uptrend)
Entry trigger:
- Price pulls back to 38.2-61.8% Fib zone
- RSI(14) reaches 40-50 area (oversold enough but not broken)
- Price shows reversal signal (bullish engulfing, hammer, higher low on LTF)
Additional confirmation:
-
Volume declining on pullback, increasing on reversal
-
20 EMA holding as support
-
Entry method: On confirmation candle close, or limit order at pullback support level
- Initial stop: Below the 61.8% Fib level OR below the most recent higher low
Use whichever is tighter while still providing logical invalidation
Target 1: Previous swing high (100% extension) - take 50%
Target 2: 161.8% Fib extension of previous swing - take remaining 50%
- Alternative: Trail with stops below each higher low after T1
- Move stop to below entry when price makes new higher high
- Trail below each subsequent higher low
- If price consolidates for >5 days without progress, tighten stop to most recent swing low
- Never add to position unless at designated add zone (rare)
- Standard risk: 1.5% of account
- Reduce to 1% if pullback is shallow (less conviction)
- Increase to 2% if pullback perfectly touches 50% Fib with volume confirmation
This play captures reversals when breakdown attempts fail-often violent moves as trapped shorts cover.
| Requirement |
Specification |
| Structure |
Clear support level that has been tested and held |
| Breakdown attempt |
Price breaks below support intraday but fails to hold |
| Timeframe |
4H or Daily breakdown failure most reliable |
| Volume |
High volume on breakdown attempt, higher volume on reclaim |
Invalid when:
- Support has broken and held below for multiple closes
- Broader market in confirmed downtrend
- Low volume breakdown (less likely to trap shorts)
- Trigger: Price breaks below support, closes back above within same candle or next candle
Confirmation:
-
Volume on reclaim candle exceeds volume on breakdown candle
-
RSI(14) showing bullish divergence (price making lower low, RSI making higher low)
-
Entry method: Market order on close that reclaims support level
-
Initial stop: Below the wick low of the breakdown candle
-
Logic: If price goes back below the failed breakdown low, the failure pattern itself has failed
Maximum stop: 2× ATR(14)
Target 1: Next resistance level or 2× risk distance (whichever is closer) - take 50%
Target 2: Major resistance or 3× risk distance - take remaining 50%
- Expectation: Failed breakdowns often produce 3-5× risk moves due to short covering pressure
- Move stop to breakeven after 1× risk distance achieved
- Aggressive trailing: Below each 4H higher low
- Be prepared for fast move-have targets set in advance
- If move stalls at minor resistance, consider taking more off
- Standard risk: 1.5% of account
- A+ setup (high volume, clear divergence, multiple support touches): 2%
- Reduce if broader market sentiment is bearish
This play capitalizes on extreme positioning shown by funding rates.
| Requirement |
Specification |
| Funding rate |
Extreme reading (>0.1% per 8h for bullish reversal setup, <-0.05% for bearish reversal) |
| Duration |
Extreme funding sustained for 12+ hours |
| Price context |
Price at or near key support (for long) or resistance (for short) |
| Open interest |
Elevated (lots of positions to unwind) |
Invalid when:
- Funding extreme but price in middle of range (no technical level)
- Low open interest (fewer positions to create reversal)
- Major trend aligned with funding direction (trend can continue despite extreme funding)
Long setup (negative funding):
- Funding rate below -0.05% for 12+ hours
- Price at or bouncing from support
- Technical reversal signal on 1H or 4H
Short setup (positive funding):
-
Funding rate above 0.1% for 12+ hours
-
Price at or rejecting from resistance
-
Technical reversal signal on 1H or 4H
-
Entry method: On technical trigger confirmation, not just funding alone
Funding is context, not trigger: The stop is technical, not based on funding normalizing
Target 1: When funding normalizes (returns to 0.01-0.03%) - reassess position
- Monitor funding throughout trade
- If funding normalizes quickly and price hasn't moved, trade thesis is weakened-tighten stop
- If funding stays extreme while price moves your direction, potential for continuation
- Take partial profits aggressively in funding plays
- Standard risk: 1% of account
- This is a higher-uncertainty play-keep sizing conservative
- Never more than 1.5% even on "perfect" setup
This play fades exhaustion moves caused by liquidation cascades.
| Requirement |
Specification |
| Liquidation event |
Large liquidation cluster ($50M+ in short period) |
| Price move |
Sharp, fast move (>5% in under 1 hour) |
| Technical context |
Move into key support/resistance zone |
| Funding spike |
Funding should spike in direction of liquidation (confirms leverage wipeout) |
Invalid when:
- Liquidations in direction of major trend (continuation likely)
- No clear technical level for reversal
- Fundamental catalyst driving the move (not just positioning)
Counter-trend setup after long liquidation cascade:
- Price dropping sharply with long liquidations >$50M
- Reaches major support level
- Selling pressure shows exhaustion (volume declining, candles getting smaller)
- RSI(14) oversold (<30)
Counter-trend setup after short liquidation cascade:
-
Price spiking sharply with short liquidations >$50M
-
Reaches major resistance level
-
Buying pressure shows exhaustion
-
RSI(14) overbought (>70)
-
Entry method: Wait for first reversal candle (engulfing, hammer, etc.) then enter on next candle
-
Initial stop: Beyond the liquidation spike extreme (the wick low/high)
-
Logic: If price continues past the liquidation spike, more liquidations incoming and no reversal
Target 1: 50% retracement of the liquidation move - take 75%
Target 2: Full retracement of liquidation move - take remaining 25%
- Expectation: Liquidation cascade fades often retrace 50-75% of the move
- This is a fast trade-have all orders ready before entry
- Move stop to breakeven quickly (after 25% of move recovered)
- Don't overstay-liquidation fades are quick reversals, not new trends
- If no movement in your favor within 2 hours, trade thesis is likely wrong
- Standard risk: 0.75% of account
- High-risk/high-reward play-keep sizing small
- Maximum one liquidation cascade trade per day
This play enters when price reclaims a key moving average after trading below it.
| Requirement |
Specification |
| MA tested |
20 EMA, 50 SMA, or 200 SMA |
| Prior action |
Price spent minimum 3 candles below the MA |
| Reclaim |
Price closes back above MA with conviction |
| Higher MA alignment |
Reclaiming 20 EMA when 50/200 still above is strongest |
Invalid when:
- MA is flat or declining (no trend to reclaim)
- Price has repeatedly whipsawed through MA recently
- Reclaim occurs with no volume increase
- Trigger: Candle closes above the MA after minimum 3 candles below
Confirmation:
-
Volume on reclaim candle is above 20-day average
-
Candle body is largely above MA (not just a wick reclaim)
-
Entry method: Market order on close that reclaims, OR limit order on first pullback to MA
- Target: Previous swing high or resistance level formed before the breakdown
Expectation: MA reclaims often test the high that preceded the breakdown
- Expect price to retest the MA as support-don't panic if this happens
- If MA retest holds, strong signal to add OR trail stop tighter
- If MA breaks again with conviction, exit immediately (thesis invalidated)
- Trail stop below MA once profit is 1× risk
- 200 SMA reclaim: 1.5% (most significant)
- 50 SMA reclaim: 1.25%
- 20 EMA reclaim: 1% (most frequent, less significant per occurrence)
This play requires alignment across three timeframes for highest-probability entries.
| Timeframe |
Requirement |
| Higher (Daily) |
Clear trend direction established |
| Trading (4H) |
Setup forming in trend direction |
| Trigger (1H) |
Specific entry trigger present |
All three must align. If any timeframe conflicts, skip the trade.
Daily timeframe:
- Uptrend: Higher highs, higher lows, price above 50 EMA
- Currently in pullback (not extended)
4H timeframe:
- Price at support (previous resistance, trendline, Fib level)
- RSI(14) showing bullish divergence or recovering from oversold
- Structure intact (not breaking recent lows)
1H timeframe entry trigger:
- Stop placement: Below 4H support level being tested
Logic: 1H provides timing, but invalidation is on the 4H structure
Target 1: 4H resistance (previous swing high) - take 50%
Target 2: Daily resistance (major level) - take remaining 50%
- Monitor 1H for early warning signs of reversal
- If 4H support breaks, exit immediately-don't wait for stop
- Trail on 4H timeframe (below 4H higher lows)
- Add to position only if new 1H trigger occurs at higher level
- Standard risk: 2% of account
- This is highest-conviction setup-deserves larger size
- Reduce to 1.5% if any timeframe alignment is imperfect
A trading playbook isn't meant to be used randomly. Plays should fit together into a coherent system.
| Market Regime |
Best Plays |
Avoid |
| Strong uptrend |
Pullback (#3), MA Reclaim (#7), Breakout (#1) |
Range Fade (#2) |
| Strong downtrend |
Short versions of above |
Long-biased plays |
| Range-bound |
Range Fade (#2), Failed Breakdown (#4) |
Trend plays |
| High volatility |
Liquidation Fade (#6), Funding Reversal (#5) |
Breakout (#1) |
- Maximum 2 plays from same category active simultaneously
- If one play is losing, don't immediately take another of same type
- Track which plays perform best for you-emphasize those
All plays must work within your overall risk framework:
- Maximum total portfolio risk: 6-8% across all open plays
- If adding a new play exceeds portfolio risk, skip it or close existing position
- Correlation check: Don't run three long altcoin plays simultaneously
These examples are templates. Your playbook should be personalized.
You probably have setups you trade intuitively. Write them down. Make them specific. Identify what was vague.
- Minimum 30 occurrences per play
- track win rate, average win, average loss, expectancy
- Identify any modifications that improve results
- Trade each new play for 20+ paper trades
- Verify that execution matches your rules
- Identify practical issues with the play
- Half position size for first 10-20 live trades
- Confirm live results match paper results
- Scale up only when confident
- Monthly review of each play's performance
- Remove plays that consistently underperform
- Add new plays based on observed opportunities
Start with 3-5 plays. Master them before adding more. Many successful traders use fewer than 10 plays for years. Quality and execution beat quantity.
Yes. Memory is unreliable. Written plays ensure consistency. Review them before each session.
Define "not working" objectively. Five losses in a row might be normal variance. Underperformance over 30+ trades suggests the play or market has changed. Consider pausing the play, reviewing conditions, and modifying if necessary.
No. Plays are modified between sessions based on data, not during trades based on feelings. In the moment, you execute as written.
Log every play with notes on execution. Compare actual entry/exit/management to what the play specified. Where are the gaps?
Amateur traders react. Professional traders execute plays.
Your playbook transforms trading from an emotional roller coaster into a professional practice. Each setup is studied, backtested, and refined until execution becomes automatic.
When you see a setup from your playbook, you don't think. You execute. The work happened when you built the play-not when you're running it.
Build your playbook. Practice your plays. Execute with precision.
Knowing your plays and consistently executing them are two different challenges. Thrive bridges the gap:
- Play-based trade tagging - Log every trade by which playbook setup it represents
- Play performance analytics - See win rate, R-multiple, and expectancy broken down by play
- Execution tracking - Compare your actual trades to your playbook specifications
- AI pattern recognition - Discover which plays work best in which conditions
- Play refinement data - Get the statistics you need to optimize each play
Your playbook is only as good as your execution data. Thrive captures everything.
Stop trading without a playbook. Start executing plays.
→ Build Your Trading Playbook with Thrive
