Specify contract, session and excluded conditions

THE IDEA~8–12 MINUTES

Understand it

Record exact contract symbols and expiration handling, the hours when setups are valid, economic releases you exclude, liquidity conditions and maximum overnight exposure. For each quantity, record its source and last verification date. If an idea depends on a particular session, its tests must use that session's historical data. Reject trades when key conditions are unavailable or unverifiable.

WORKED EXAMPLE

A plan designed for a highly liquid regular-session market should not silently apply overnight. The spreads, participation and news environment may differ.

Watch for this misconception

Using one backtest for all hours without testing whether the strategy's session assumptions hold.

PRACTICE EXERCISE

Draft a concise 'eligible market and hours' section for a hypothetical strategy.

Trading plan builder ↗

KNOWLEDGE CHECK

What should happen when today's market violates a plan's no-trade condition?

Check the sources

Hypothetical educational examples. Verify current product specifications and rules before making decisions.