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Playbook Design Guide

This page explains how to write playbooks professionally.

The main idea is simple: each section of a playbook should have one job.

When sections are mixed together, the AI gets a blurred strategy. When sections are clean, the AI gets a more disciplined operating framework.

SectionMain Job
Name and descriptionIdentify the strategy clearly
Market biasTell the AI what style of setup this is
Primary timeframeDefine where the broader structure is judged
Entry timeframeDefine where the trigger must appear
Setup conditionsDescribe what the market must look like
Entry conditionsDescribe what must happen before execution
Risk rulesDefine stop, target, and risk boundaries
Trade-management rulesDefine what to do after entry
Invalidation conditionsDefine when the setup is no longer valid
Preferred symbols and sessionsExpress where the playbook fits best

Use these fields to make the playbook understandable to a human reviewer first.

Good naming makes later journal review much easier.

Use this to classify the strategy style.

Examples:

  • trend following
  • mean reversion
  • breakout
  • range
  • news-driven

This is not where you explain the whole strategy. It is where you tell the AI what type of reasoning frame to apply.

Use the primary timeframe for the bigger structural read.

This is usually the chart where trend, structure, or broad regime should be judged.

Use the entry timeframe for the trigger.

This is where the setup becomes actionable.

The entry timeframe should usually be tighter than the primary timeframe.

This is the section for market context.

Use it for conditions like:

  • directional alignment
  • structure location
  • trend quality
  • volatility conditions
  • higher-timeframe agreement

Good setup conditions answer:

What must be true before we even care about an entry?

This is the section for timing.

Use it for:

  • trigger candles
  • retests
  • confirmation behavior
  • level reactions
  • final filters before the trade is allowed

Good entry conditions answer:

What must happen before the AI is allowed to act?

This section should explain how the trade is protected.

Use it for:

  • stop-loss logic
  • take-profit logic
  • minimum reward-to-risk rules
  • special risk boundaries or no-trade conditions tied to risk

Good risk rules tell the AI how to avoid low-quality trade framing, not only where to place a stop.

This section explains what happens after entry.

Use it for:

  • trailing rules
  • break-even rules
  • partial exits
  • conditions for holding or reducing exposure

Keep this section separate from the initial risk rules so the AI can distinguish pre-entry discipline from post-entry management.

This section explains when the whole idea should be abandoned.

This is one of the most valuable sections in a professional playbook because it gives the AI permission to stop forcing a setup that is no longer valid.

Use these to express fit.

They help the user and the system keep a playbook aligned with the markets and trading windows where it tends to make sense.

They should support the main logic, not replace it.

  • putting entry logic into setup conditions
  • mixing risk rules with management rules
  • writing invalidation as an afterthought or not at all
  • writing vague playbooks that sound intelligent but cannot be reviewed objectively later
  • making one playbook responsible for too many different market types

The cleanest playbooks usually follow this flow:

  1. describe the market context
  2. describe the trigger
  3. describe the risk box
  4. describe the management plan
  5. describe the invalidation path

What Good Playbook Documentation Does For The Customer

Section titled “What Good Playbook Documentation Does For The Customer”

Well-structured playbooks help the customer:

  • keep strategy logic understandable
  • review trades more objectively
  • improve AI consistency
  • separate strategic intent from execution timing