Lessons › AI tools for traders › Writing a trading plan with AI

World 8 · AI tools for traders · lesson 6 · level 3

Writing a trading plan with AI

You decide the rules; the AI helps you write them down clearly and points out what is missing.

In one line

Your trading rules live in your head. What happens when an AI turns them into a checklist anyone could follow?

Explained simply

Think of the AI as a tidy friend who helps you write up your own recipe. You tell it what you cook and how, and it arranges the steps and asks, 'What if you run out of eggs?' It does not invent the dish for you.

The lesson

A trading plan states what you trade, which setups you take, how you enter, where your stop and target go, how much you risk and when you do not trade. An AI assistant can turn rough notes into a clean template and point out gaps, such as what you do around big news. Every rule should be testable, meaning two people reading it would take exactly the same trade. The rules must come from your own testing, not from an AI inventing a strategy for you.

A worked example

Illustrative example: your notes say 'Trade pullbacks in uptrends, risk 1%, stop under the swing low.' The AI formats them into a plan card and flags two gaps: no target rule and no news rule. You add a 2R target and 'no new trades 15 minutes before high-impact news'. Then you check the size rule. With a 20,000 dollar account, 1% risk is 20,000 x 1 / 100 = 200 dollars. Entry 50 and stop 48 give a stop distance of 50 - 48 = 2, so the size is 200 / 2 = 100 shares. The 2R target is 50 + 2 x 2 = 54.

The same idea at four levels

1. Beginner. A trading plan is a written list of your trading rules.
2. Foundation. It covers market, timeframe, setup, entry, stop, target, size and when not to trade.
3. Intermediate. Ask the AI to format your notes into that template and to list anything missing or vague.
4. Advanced. Make every rule testable, like 'enter on a daily close above the range high' instead of 'enter on strength', so you and a backtest would take exactly the same trades.
5. Expert. Never let the AI supply the edge itself, because rules it invents have no testing behind them, so use it to organize and question your plan, then test the plan on past charts.

Mistakes to avoid

• Letting the AI invent your strategy instead of formatting your own rules.
• Writing rules too vague to test, like 'enter on strength'.
• Leaving out no-trade rules, such as what you do before big news.

Goal of this lesson: Use an AI assistant to turn your ideas into a clear written trading plan and check it for gaps.