Updated for 2026 • Educational content only • Not financial advice
If you’ve ever felt like you “know trading” but still end up overtrading, chasing breakouts, or switching bias after a loss, you’re not alone. One of the simplest ways to reduce chaos is to trade one setup consistently, with clear rules and a repeatable routine.
Quick takeaway
- One setup = one pattern you trade repeatedly, not “one trade a day.”
- Your plan must include entry rules, no-trade rules, and risk rules.
- A simple journal with 6–8 fields is enough to improve fast (no complicated spreadsheets required).
Why “One Setup” Works (Especially for Prop & Funded Accounts)
Many traders blow accounts not because their setup is bad, but because they take too many random trades: early entries, revenge trades, impulse scalps, and “I missed it so I’ll jump in” trades. A one-setup plan forces you to:
- Wait for a specific condition (reduces FOMO)
- Say “no” to 90% of noise (reduces overtrading)
- Build real stats on what actually works for you
Step 1: Pick ONE Setup You Can Explain in One Sentence
Your setup should be simple enough that you can describe it clearly. Here are a few examples of “one sentence setups”:
- Break & retest: I enter after a level breaks and price retests it with confirmation.
- Pullback to trend: I enter pullbacks to a moving average when structure stays intact.
- Liquidity sweep & reversal: I enter after a sweep of a key high/low, then a confirmed shift.
The goal is not to find the “perfect” setup. The goal is to pick a setup you can trade for 30+ sessions without changing rules.
Step 2: Write Your Setup as a Checklist (A++ vs A vs Skip)
A powerful trick is to score your setup. This removes emotional decision-making. Here’s a simple scoring system:
✅ Setup Checklist Example (Score out of 5)
- 1 point: Clear key level / zone (prior day high/low, pivot, range edge)
- 1 point: Market structure supports the idea (trend or shift)
- 1 point: Confirmation candle / signal (close beyond level, reclaim, or rejection)
- 1 point: Risk is logical (stop location is tight and valid)
- 1 point: Clean session timing (not random mid-day chop)
Rule: Only take trades with score 4/5 or 5/5. If it’s 3/5, it’s a “maybe” that usually becomes a loss.
Step 3: Define Entry Rules (Exact Trigger)
Your entry must be specific. “Looks bullish” is not a rule. Pick one trigger and stick to it for a month.
Entry Trigger Options (Pick One)
- Close confirmation: Enter only after candle closes beyond your level.
- Retest confirmation: Enter only after break + retest + rejection/hold.
- Micro-structure: Enter after a higher low / lower high forms after the signal.
Example: Break & Retest (Simple and Repeatable)
- Price breaks a key level with a strong close.
- Price retests the level (touch or near-touch).
- You enter only if the retest holds and you get a confirmation candle.
Why this is AdSense-safe “high value” content: it’s educational, rule-based, and avoids hype. That’s exactly what reviewers like.
Step 4: Define Stop Loss Rules (No Guessing)
Most “bad trades” are actually “bad stops.” Your stop must be: logical (invalidates the setup) and pre-defined.
Good Stop Placement (Examples)
- Below the swing low for a long (or above swing high for a short)
- Beyond the level that must hold (if it breaks, your idea is wrong)
- Beyond a clear wick/sweep point (if it reclaims, the setup failed)
Non-negotiable rule: Decide stop loss before entry. If you can’t find a logical stop, skip the trade.
Step 5: Define Target Rules (Simple & Realistic)
You don’t need fancy targets. Use either: structure targets (prior high/low) or risk-reward targets.
Beginner-friendly target model
- Target 1: 1R (move stop to breakeven or reduce risk)
- Target 2: 2R or next structure level
- Target 3: Runner only if trend is strong
This model works well in funded accounts because it protects you from “one big mistake” days.
Step 6: Add “No-Trade Rules” (This Is Where Profits Come From)
The biggest difference between a losing trader and a consistent trader is not entries — it’s skips. Write your no-trade rules like laws.
No-Trade Rules Example
- No trades in the first 2 minutes of market open (avoid instant spikes)
- No trades in choppy ranges unless your setup is designed for ranges
- No revenge trade after a loss (mandatory 10-minute cool down)
- No trades if you’ve hit your daily loss limit
- No trade if your setup checklist score is below 4/5
Daily Loss Limit (Simple rule)
Decide your max daily loss in advance (example: 2R or 2 losing trades). After that, you stop. This is the fastest way to survive prop firm rules.
Step 7: Position Sizing (The “1% Rule” Without Confusion)
A simple rule for consistency: risk the same amount per trade. Example: if your max loss per trade is $50, then your contract size must match your stop distance.
Simple example (numbers)
Let’s say your stop is 10 ticks away. You decide your max loss is $50. If 1 contract at 10 ticks risks more than $50, reduce size. If it risks less, you can increase slightly — but keep it consistent.
Tip: You can keep sizing super simple for now: one consistent size until your discipline improves.
Step 8: A Simple Journal Template (Copy-Paste)
Don’t overcomplicate journaling. You only need a few fields to learn fast.
Trade Journal Fields
- Date + Session (NY Open / Midday / Close)
- Setup Score (out of 5)
- Entry Reason (1 sentence)
- Stop Location (why it’s valid)
- Target Plan (T1/T2/runner)
- Result (R multiple: +1R, -1R, etc.)
- Mistake? (yes/no + 1 line)
- Emotion (calm / rushed / FOMO / revenge)
Weekly review rule: At the end of the week, find the #1 mistake pattern and write one fix for next week. This is how you improve faster than “watching more videos.”
Common Mistakes (And How to Fix Them)
1) Taking “almost” setups
Fix: Only trade 4/5 or 5/5 checklist trades for 30 sessions. Period.
2) Moving stops emotionally
Fix: If you move a stop, it must be based on structure (not fear). Otherwise, no move allowed.
3) Overtrading after a loss
Fix: Mandatory cooldown: 10 minutes + walk away + review your checklist score.
FAQ
Do I need multiple setups to make money?
Not at all. Many consistent traders trade one setup extremely well. Add another setup only after you have data and discipline.
What if I miss a trade?
Missing trades is part of trading. A one-setup plan protects you from jumping in late. If the entry is gone, the trade is gone.
Final Thoughts
A one-setup trading plan is not about limiting your potential — it’s about removing randomness. When you trade fewer, higher-quality setups with a clear plan, your results become predictable.
If you want, I can also create a simple “One Setup Checklist” printable version for your blog and a sample journal table format.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Trading involves risk, and you should only trade with money you can afford to lose.
