Part 2 · Set up and apply the rules

04Practice rules

Turn the idea into decisions you can repeat and record.

Check	Buy	Sell
Direction	Close above SMA50	Close below SMA50
Slope	SMA50 above its value five closed candles ago	SMA50 below its value five closed candles ago
Level	Nearest grid level above ask	Nearest grid level below bid
Separation	Level at least 10 pips from SMA50
Order	Buy stop 3 pips above level	Sell stop 3 pips below level
Exit	30-pip stop, 50-pip target from fill

Management rules

One order or position at a time.
Cancel an unfilled order after two completed H1 candles, at the end of the review window, or when conditions fail.
Never chase.
No break-even moves or partial profits in the first test.
Close any open position at 16:00 Europe/London.
Risk ceiling 0.25% of equity per trade; stop after two losses in a day.

Honest note

These thresholds were chosen for consistent testing. They have not been optimised or validated, and the limits constrain exposure without making trading safe.

Key takeaway

If a rule is not written down before the trade, it does not exist during the trade.

Try it

Print this table and keep it next to your screen for your first ten demo reviews.

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