Every successful futures trader has one thing in common: a well-defined trading plan. Your trading plan is your personal playbook—a written set of rules that outlines how, when, and why you enter and exit trades. It removes emotion, promotes discipline, and gives you structure in a chaotic market.
In this post, we’ll show you how to build your own futures trading plan from the ground up.
Table of Contents
- What Is a Trading Plan?
- Why Every Futures Trader Needs One
- Step 1: Define Your Trading Goals
- Step 2: Choose a Market and Timeframe
- Step 3: Select a Trading Strategy
- Step 4: Define Entry and Exit Rules
- Step 5: Build a Risk Management System
- Step 6: Create a Trading Schedule
- Step 7: Journal and Review Every Trade
- Final Thoughts
1. What Is a Trading Plan?
A trading plan is a documented blueprint of your trading approach. It includes your market focus, strategies, risk rules, and execution protocols. It’s the roadmap that keeps you grounded, consistent, and accountable.
Think of it as your checklist for every trade.
2. Why Every Futures Trader Needs One
Without a plan, you’ll:
- Trade emotionally
- Over-leverage your account
- Chase losses or FOMO entries
- Lose confidence quickly
With a plan, you’ll:
- Trade with confidence and discipline
- Manage risk properly
- Learn from your mistakes
- Stay focused on long-term growth
3. Step 1: Define Your Trading Goals
Be specific:
- How much capital are you starting with?
- What’s your monthly or quarterly income target?
- Are you looking to trade part-time or full-time?
- What’s your risk tolerance?
Set realistic and measurable goals that reflect your personal situation.
4. Step 2: Choose a Market and Timeframe
Futures contracts are available on:
- Indexes (e.g., E-mini S&P 500)
- Commodities (e.g., crude oil, gold)
- Currencies (e.g., Euro FX, Yen)
- Bonds and interest rates (e.g., 10-year notes)
Pair that with your preferred timeframe:
- Intraday (5–15 minute charts)
- Swing (1–4 hour or daily charts)
- Position (weekly or longer)
Focus on one market and one timeframe until you’re consistently profitable.
5. Step 3: Select a Trading Strategy
Your strategy defines how you enter and exit trades. Examples include:
- Trend following: Entering in the direction of the trend using moving averages or breakouts
- Mean reversion: Fading extremes with Bollinger Bands or RSI
- Breakout trading: Buying/selling when price breaks support or resistance levels
Define your strategy and learn its strengths and weaknesses.
6. Step 4: Define Entry and Exit Rules
Be precise:
- What triggers your entry? (Candle pattern, breakout, moving average cross?)
- Where do you place your stop-loss?
- What’s your target or exit signal?
Your rules should be repeatable, testable, and simple.
7. Step 5: Build a Risk Management System
The most important part of your plan. It should include:
- Max risk per trade (usually 1–2% of your account)
- Position sizing formula
- Daily or weekly loss limits
- Risk-to-reward ratio minimum (2:1 is common)
Never risk your entire account on one trade. Protecting capital is your #1 job.
8. Step 6: Create a Trading Schedule
Decide:
- Which days and hours you’ll trade
- How much screen time is ideal for you
- When you’ll review and journal trades
Structure reduces overtrading and burnout.
9. Step 7: Journal and Review Every Trade
Track:
- Entry and exit prices
- Chart screenshots
- Setup type
- Result (win/loss and P&L)
- Emotions and discipline (did you follow your plan?)
Review weekly to spot strengths, weaknesses, and improvement areas.
10. Final Thoughts
A trading plan won’t guarantee success, but it will prevent you from self-sabotage. It’s your compass in a volatile market and your foundation for consistency.
At Pilot Traders, we help you create, test, and refine your plan so you can trade with structure and confidence. Whether you’re just getting started or ready to level up, your plan is the key to longevity in the futures market.
