A complete day-trading routine on paper
Combine preparation, execution, limits, news rules and review into one written routine and rehearse a full hypothetical session on paper.
What you will learn
- How to write a one-page day-trading routine with fixed times
- How to rehearse a complete hypothetical session and log it in R
- How to check a day's log against your rules
- How to decide, from paper results, whether to continue, adjust or stop
Explanation
This lesson uses the tools of the whole course. Writing a general trading plan is covered in the "Trading" course; here the plan becomes a time-based routine for one session. Paper trading means recording planned and simulated trades without real money, either on paper or in a demo account. It trains the process; it does not prove that real trades will produce the same results, because real fills and emotions differ.
The routine: five blocks
Times below are examples for German shares traded on Xetra, whose regular session runs from 09:00 to 17:30 Central European Time; check current trading hours and holidays for your venue.
- Preparation (08:15–08:50): levels, overnight news and release times for the day, a short watchlist of 2–4 instruments, and if-then scenarios (lesson 3). Write down 1R, the daily limit and the maximum number of trades.
- Opening phase (09:00–09:05): no new entries; observe spreads and the opening range (lesson 5).
- Main trading window (09:05–10:30): only setups from lessons 5–7, each with a 5/5 setup score (lesson 12), orders as in lesson 8.
- Management block (10:30–close): manage open positions; new entries only in a second tested window, if you have one. Flat 5 minutes before any release (lesson 10).
- Review (after the session, 20 minutes): log gross and net results, costs, R, plan adherence, MAE and MFE (lesson 11), and one improvement for tomorrow.
Stop conditions
Stop for the day when any of these is reached: daily loss limit, give-back limit, maximum trades, three consecutive losses, or two fatigue signs (lessons 9 and 12).
Evaluating a paper period
Rehearse at least 20 sessions. Then compare net expectancy per trade with the break-even win rate including costs, and check plan adherence. If net results are negative or adherence is below your target, adjust the rules or stop; do not move to larger size. Completing this course is education, not a qualification or proof of trading skill.
Worked example
Hypothetical example: account €20,000; 1R = 0.4% = €80; daily limit 3R = €240; maximum 4 trades; notional cap 1× equity; costs €8 per trade. Taxes excluded.
- Trade 1, 09:12: long share A at €40.00, stop €39.80 (€0.20). Size €80 ÷ €0.20 = 400 shares (notional €16,000, within the cap). Exit at €40.36: gross 400 × €0.36 = €144 = 1.8R; net €144 − €8 = +€136.
- Trade 2, 09:41: short share B at €25.00, stop €25.10 (€0.10). Size €80 ÷ €0.10 = 800 shares (notional €20,000, exactly the cap). Stop fills at €25.12: gross −800 × €0.12 = −€96 = −1.2R; net −€104.
- Trade 3, 10:05: long share A at €40.50, stop €40.30. Size 400 shares. Exit at €40.70: gross +€80 = 1R; net +€72.
- Day net: €136 − €104 + €72 = +€104 = 1.3R. Costs: 3 × €8 = €24.
- Rule check: 3 of 4 trades, no limit reached, all trades inside the window, adherence 3 ÷ 3 = 100%. Review note: trade 2 slipped 0.2R; check the spread of share B before shorting.
Common mistake
Practice activity
On paper, check this hypothetical log against the rules: 1R = €50, daily limit €150, maximum 4 trades, no entries in the first 5 minutes, flat from 5 minutes before to 15 minutes after a release scheduled at 10:30, slippage factor 1.5. Net results:
| Trade | Entry time | Net result |
|---|---|---|
| 1 | 09:03 | −€55 |
| 2 | 09:40 | −€50 |
| 3 | 10:20 | +€90 |
| 4 | 10:28 | −€70 |
| 5 | 11:15 | −€80 |
- Which trades broke a rule, and which rule?
- What was the day's net result, and how did it compare with the limit?
Show solution
1. Trade 1 entered at 09:03, inside the first 5 minutes. Trade 4 entered at 10:28, inside the news window (10:25–10:45). Trade 5 was the fifth trade (maximum 4). It also broke the budget rule: after trade 4 the net result was −€55 − €50 + €90 − €70 = −€85, leaving €150 − €85 = €65, which allows at most €65 ÷ 1.5 = €43 of planned risk, less than 1R.
2. Net result: −€85 − €80 = −€165, which exceeds the €150 daily limit by €15.
Limitations: a paper log cannot fully reproduce real fills, partial fills or the emotions of real money.
Key takeaways
- Write the routine as time blocks: preparation, opening phase, trading window, management, review.
- Define stop conditions in advance and check every log against them.
- Rehearse at least 20 sessions on paper and judge on net results and plan adherence.
- Paper results train the process; real trading with leverage or volatile products can lose money quickly.
Next step
Continue with the course "Swing Trading Strategies", where you will apply these execution and risk skills to positions held for several days, including overnight risk.
Self-check
Answer the questions, then check your answers. You can retry as often as you like.
Automatic self-check for your own revision. Your answers are checked in your browser and are not seen or assessed by us. It is not an exam and not a qualification.
Your progress
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