Written rules turn a chart habit into something you can test. This template gives you the headings to fill in for any indicator-based approach. The text includes example wording, not recommended settings, and a finished rule is only as good as the testing behind it.
TL;DR -- Key Takeaways
- A rule has to be specific enough that someone else could apply it and get the same trades.
- Fill in setup, trigger, filters, expiry, stake and stand-aside conditions.
- Keep one template per idea so results can be compared.
- Never edit a rule in the middle of a test; start a new version instead.
- Review each rule against its record after a fixed number of trades.
1. Why Use a Template
Rules written in your head change with your mood. A template forces each part to be named, which makes gaps visible and gives you a record to review. It also supports consistent testing, covered in how to backtest a binary options strategy. A shorter cheat sheet version is in indicator rules, templates and reversals.
2. The Template
Copy these headings and fill in each line.
- Name and version: a short name and a version number.
- Market and timeframe: one asset or group, one chart timeframe.
- Setup: the condition that must exist before you look for an entry (for example, the market type).
- Indicators and settings: each tool with its exact settings, and what question it answers.
- Trigger: the exact event on a closed candle that starts the trade.
- Filters: conditions that cancel the trade (news window, higher timeframe disagreement, low liquidity).
- Expiry: the expiry in candles or minutes, and the reason.
- Stake: a fixed share of the balance; see position size calculator.
- Stand-aside rule: when you do not trade at all.
- Stop-trading rule: the loss limit at which you finish for the day.
- Record fields: date, time, entry, expiry, payout, result, rule followed yes or no.
- Review date or trade count: when you will assess the rule.
3. A Worked Example of the Wording
The example below is about wording only. It is not a recommended strategy.
Setup: the fifteen-minute chart is above its chosen moving average. Trigger: a candle closes back above a short-term level after a pullback. Filter: no scheduled major release within the window set in the plan. Expiry: a fixed number of candles chosen before testing. Stand-aside: the trigger candle is unusually large compared with recent candles. Notice that every term can be checked on the chart.
4. Filling in the Numbers Honestly
Settings are choices to test, not facts. If you copy a setting from elsewhere, note that in the template and test it yourself. Use the actual payout shown on the platform when you record results, and calculate the break-even rate with the payout calculator.
5. Versions and Reviews
When a rule needs to change, copy the template, change one line and increase the version number. Reset the trade count, because the old record belongs to the old rule. After the planned number of trades, compare results with the break-even win rate and with simple alternatives such as random guessing. Keep reviews in a strategy journal.
6. What the Template Does Not Do
A template does not make a rule profitable. It makes the rule clear, testable and honest. Run it on a demo account first, and follow your platform's own terms and risk warnings.
Frequently Asked Questions
Can I use the same template for several strategies?
Yes. Use one copy per idea, with a version number, so you can compare their records.
How specific should the trigger be?
Specific enough that another person using only the chart would take the same trades.
Should the template include a stake?
Yes. A fixed share of the balance set in advance helps avoid changing stakes after wins or losses.
When should I change a rule?
After a planned review, not during a test. Record the change as a new version.
Related Reading
- Indicator Rules, Templates and Reversals -- a cheat sheet approach
- Strategy Journal Template -- recording trades
- Binary Options Risk Management Rules -- stake and loss limits
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