Writing Clear Entry Criteria Rules

Entry criteria are the specific, objective conditions that must be present before a trade is taken. The more precisely these are defined in a trading plan, the less room there is for in-the-moment rationalization, which is often where discipline breaks down.

Strong entry rules typically combine several confirming conditions rather than relying on a single signal, since single-signal systems tend to generate more false positives. They also specify what invalidates a setup — the conditions under which a trade should be skipped even if it looks tempting.

• Define the exact technical or fundamental condition that triggers a valid entry, in language specific enough that another person could apply it the same way
• List conditions that disqualify an otherwise valid-looking setup, such as upcoming major news events or unusually thin liquidity
• Specify the timeframe and confirmation required — does the signal need to close, or is an intra-bar touch enough?