“Be more disciplined” isn’t a rule. A good trading rule is specific enough that you can look at any trade afterward and say, without arguing with yourself, whether you followed it.
The test for a good rule
A measurable rule has three parts:
- A clear condition: a time, a number, or an event
- A clear action: what you do or don’t do
- A yes-or-no check: you can tell from your trade record whether you followed it
Turning vague rules into measurable ones
| Vague | Measurable |
|---|---|
| Don’t overtrade | No more than 3 new trades per day |
| Don’t chase the open | No new trades before 10:00 ET |
| Cut losses | Close any trade once it loses $150 |
| Don’t revenge trade | Wait 60 minutes after a losing trade |
| Keep size reasonable | No more than 2 contracts per trade |
| Respect news days | No new trades on Fed announcement days |
How to track them
- Start with one or two rules. Too many at once makes it hard to tell what’s working.
- Count from the day you start. Judge a rule by trades made after you adopted it, not by your past.
- Compare results. Look at your average result on trades that followed the rule versus trades that broke it.
- Tag the ones you can’t check automatically. For a rule like “no trading on Fed days,” tag the trades where you broke it.
Review them monthly
Once a month, ask three questions for each rule: How often did I follow it? What did breaking it cost? Is it still the right rule? Keep the ones that clearly help, and adjust or drop the ones that don’t.
Quillstrike checks every new trade against your rules automatically, counting from the day you add each one, and shows your results when you followed a rule versus when you broke it. Custom rules can be tracked with a tag.
Put your trades on the record
Import your broker CSV and see every multi-leg trade grouped, your patterns, and your key findings. Free during the beta.
Start freeThis guide is for education only and isn’t investment advice. Options involve significant risk and aren’t suitable for every investor. Examples are hypothetical.