This short YouTube monologue (Kardec Trader, Jan 8, 2024) gives procedural trading advice focused on building a trading playbook: identify the market conditions where a strategy works, define clear entry and exit rules, backtest those rules and refine the system, then start trading the refined system with small position sizes.
The first thing which is the most important thing is have a playbook, have a strategy, right? You need to have a well defined system, well defined edge in the market that allows you to make money. If you don't have this, it will make it very, very difficult for you to be profitable. So in order to develop a playbook you must do the following things. Number one, you have to identify the market criteria where the playbook or strategy will work. Number two, you need to have entry and exit rules for this strategy that tells you that based on these criteria you can enter exit. Now once you have these rules early on you have to understand that the rules will not really make sense. You don't have real backing for these rules and in order to back these and make sense of them, you must backtest. You have to back test the strategy, you have to back test the rules, you have to refine that system. Once you back test and you refine that system, jump into trading with small size.
