The 3 Phases of Strategy Building

Every successful futures trader knows that consistency and structure are critical when building a reliable strategy. At the Elite Circle Trading Community, we believe in a process-driven approach to trading, especially when it comes to developing what we call a trading playbook. This playbook is your guide—a proven roadmap that helps you navigate the markets with confidence. 

In this email, I want to walk you through the three phases of building a successful futures trading playbook, and how Elite Circle can help you master this process. 

Phase 1: Visual and Machine Backtesting & Rules Development 

The foundation of any playbook starts with comprehensive backtesting. We use both visual and machine backtesting techniques to ensure that our strategies hold up under a variety of market conditions. 

• Visual Backtesting: This involves manually reviewing charts and applying potential strategies to see how they would have performed. It gives you a visual sense of how well your rules apply across different instruments. 
• Machine Backtesting: When possible, we can automate the testing process to see how the strategy would have performed with precise historical data. This allows for a much larger sample size and greater statistical confidence. 

During this phase, the focus is on rules development. We work to define entry and exit points, risk management parameters, and the types of trades that fit into the strategy. This is where your playbook’s DNA is created, combining both data and visual insights. 

Phase 2: Paper Trading and Rules Adjustment 

Once the rules are developed and backtested, it’s time to take them to the next level with paper trading. This is your chance to apply the strategy in real-time market conditions without risking capital. 

In the Elite Circle, we work closely alongside each other to fine-tune the strategies during this phase. We review trades, analyze performance, and adjust rules where necessary. Sometimes, small adjustments in your rules can lead to much better performance in live markets. 

Phase 3: Scale Up Live Trading 

Once your strategy has been validated through backtesting and fine-tuned through paper trading, it’s time to go live. But here’s where many traders falter: jumping into live trading at full scale too quickly. 

In the Elite Circle, we teach our members to scale up gradually. You start by trading with smaller position sizes, allowing you to get comfortable with the emotional and real-time challenges of trading with actual money. Over time, as your confidence and results improve, you can scale up to larger positions. 

This approach ensures that you remain disciplined and focused, maintaining control over your capital while growing your trading performance. 

Building a successful futures trading strategy is a journey, and it’s a journey you don’t have to take alone. In the Elite Circle, we guide you through every phase—helping you build, test, and execute your playbook for success. 

Ready to get started? For just $7, you can join us for a 7-day trial and experience live trading sessions, expert guidance, and a supportive trading community. 

See you in the Circle!