Operating Instrument · I of VI
The Pre-Trade Card
Four layers. Most traders write layer one and stop.
Date: ________Instrument: ________Log #: ________
A · The Setup
where most checklists stop
1Instrument & Structure
Exact strikes, expiry, lots — precision before you're emotionally committed to a fuzzy idea.
2One-Sentence Thesis
If it takes two sentences, you have a hope, not a thesis.
B · Edge & Invalidation
where serious traders stop
3Edge Source
Name the mechanism — IV rich-to-realised, OI-confirmed build-up, mean reversion. Not "it looks good."
4Invalidation Level — set now, not later
Written pre-entry vs. post-entry isn't cosmetic. Post-hoc levels get silently moved.
C · Portfolio Context
where institutional desks stop
5Risk, % of Net Worth
Not margin. Margin hides regime risk.
6Correlates With
One risk factor, not five costumes.
D · Operator & Exit
where almost nobody stops
7State Check — circle one
Doesn't stop you trading on emotion. An unnamed one drives the decision invisibly.
8Kill Criteria
The exit event — DTE trigger, delta breach, IV-crush target. Not just a price.
top10percenttrader.com · educational only, not investment advice.