What does a trading strategy look like?

A trading strategy looks like a set of specific rules that explains when to enter a trade, when to exit, how much to risk, and what market conditions are required. A complete strategy normally includes the asset, timeframe, entry signal, stop-loss, take-profit, position size, and conditions that invalidate the trade.

For example, a crypto trading strategy could require a particular RSI reading combined with increased trading volume before entering a BTC position on a 4-hour chart. The strategy would also define where the stop-loss goes and what price movement would confirm or invalidate the original idea.

Clear rules make a strategy easier to test and review. A trading journal can then group trades by strategy and show statistics such as win rate, average R, profit factor, and total P&L for each one.