How to Create a Futures Trading Plan

If you want to trade futures successfully, having a solid trading plan is essential. A futures trading plan helps you stay disciplined, manage risk, and make decisions based on logic instead of emotions.

In this guide, we’ll show you how to build your own trading plan step-by-step. Whether you’re new to futures or refining your current approach, this article will give you a framework you can rely on.

What Is a Futures Trading Plan?

A futures trading plan is a written set of rules that outlines how you will trade. It covers your goals, the markets you’ll focus on, your entry and exit strategy, risk rules, and more. Think of it like a roadmap, guiding your decisions and keeping you focused during volatile market conditions.

A good trading plan takes the guesswork out of trading. Instead of acting on gut feelings or market hype, you stick to a strategy that you’ve thought through in advance.

Why You Need a Trading Plan

Here’s why experienced traders always use a trading plan:

• Consistency: You follow a process instead of gambling on gut feelings.

• Risk Control: You define your risk before entering a trade.

• Confidence: You trust your process even when markets get choppy.

• Fewer Mistakes: You reduce emotional decisions and overtrading.

• Improved Tracking: You can evaluate your results and refine your plan over time.

Without a plan, you’re just reacting. And in futures trading, that can get expensive fast.

Core Components of a Futures Trading Plan

Let’s break down the key elements of a strong plan.

1. Define Your Trading Goals

Start by setting clear, realistic goals. What do you want to achieve?

• Are you trading to generate income, grow capital, or gain experience?
• How much time can you dedicate each week?
• What’s your risk tolerance?

Set both short-term and long-term targets. For example:

• Short-term goal: Finish 50 simulated trades with a positive expectancy.
• Long-term goal: Earn 10% annual return with no more than 2% drawdown per trade.

2. Choose Your Markets and Timeframes

Not all futures contracts are created equal. Focus on markets that fit your style, budget, and risk appetite.

Popular categories include:

• Equity index futures (e.g. E-mini S&P 500)
• Energy futures (e.g. crude oil, natural gas)
• Metal futures (e.g. gold, silver)

Also decide whether you’ll be day trading, swing trading, or position trading. This will affect how often you trade and what setups you focus on.

3. Entry and Exit Strategy

Your plan should clearly explain:

• Entry conditions: What specific signals must happen for you to enter?
• Exit rules: When will you take profit or cut a loss?
• Trade duration: How long do you expect to hold?

Examples of entry rules:

• Buy when price breaks above previous day’s high with volume confirmation.
• Sell short after a failed breakout and bearish reversal candlestick.

Examples of exit rules:

• Target 2:1 reward-to-risk.
• Set stop-loss at 1% of account equity.

Write your rules so that anyone could read them and understand exactly when you would enter or exit a trade.

4. Position Sizing and Risk Management

This is where most traders fail.

Your trading plan must answer:

• What % of your capital will you risk on each trade?
• How much can you afford to lose in a day, week, or month?
• Will you use leverage? If so, how much?

Common rules include:

• Never risk more than 1–2% of your total account on a single trade.
• If you hit a 3-loss streak, pause and review.
• Avoid trading when market volatility exceeds a set threshold.

Use stop-loss orders and risk-reward ratios to protect yourself. If your strategy doesn’t control risk, it’s not a strategy, it’s a gamble.

5. Tools, Platforms, and Data Sources

A successful trader is prepared. Your trading plan should list the tools you’ll use:

• Charting platforms
• Economic calendars
• Futures market data
• Simulated accounts (like MetroTrader‘s)
• Order entry systems

Have a routine for checking news, economic events, and contract specs each day. Being caught off guard by a report like Nonfarm Payrolls can wreck an otherwise solid setup.

6. Daily Schedule and Trading Routine

Decide when you’ll trade and stick to it. A sample routine might be:

• 7:30am: Pre-market scan and review overnight headlines
• 8:00am: Define key levels for the day
• 8:30am–11:00am: Active trading window
• 11:00am: Stop trading, log trades, review notes

A routine builds discipline. And discipline beats motivation every time.

How to Write and Use Your Trading Plan

Once you’ve defined your strategy, put it in writing. Here’s how:

1. Use plain language: Avoid technical jargon. Be clear and specific.

2. Start small: You can add complexity later, but begin with simple rules.

3. Test it: Run your plan in a demo trading account before going live.

4. Stick to it: Discipline is what turns a plan into results.

Need help getting started? Create your plan in a spreadsheet, Google Doc, or even a printed checklist. The format doesn’t matter, what matters is that it’s easy to follow.

Simulate Your Trading Plan

Before you put real money on the line, you need to test your strategy. Here’s how:

Paper Trading

• Trade your plan in a simulated environment like a MetroTrader demo account.
• Focus on execution and sticking to your rules.
• Log every trade in a journal (see next section).

Paper trading helps you find weaknesses before they cost you real money.

Keep a Trade Journal

A trading journal is one of the most powerful tools you can use.

Record every trade you take, including:

• Entry/exit price

• Trade setup and reasoning

• Risk/reward ratio

• Outcome

• Emotional state (e.g. “hesitated,” “felt revengey,” “executed calmly”)

Review your journal weekly or monthly. Look for patterns both in the market and in yourself.

Common Futures Trading Plan Mistakes to Avoid

Here are some mistakes that commonly happen:

• No written plan: Keeping it “in your head” leads to inconsistency.

• Copying someone else: Your plan should match your goals, capital, and risk tolerance.

• Overtrading: Too many trades lead to sloppier decision-making.

• No risk controls: Trading without a stop-loss is asking for trouble.

• Lack of review: If you never look back, you’ll repeat the same mistakes.

Good trading comes from planning and discipline, not from reacting to every tick.

Final Tips for Staying Disciplined

Even with a plan, trading is hard. Here are a few habits to help you stay on track:

• Stick to your routine: Don’t deviate without a good reason.

• Take breaks: Avoid burnout by stepping away regularly.

• Limit screen time: More hours doesn’t mean better trades.

• Review weekly: Use your journal to spot what’s working and what’s not.
• Stay patient: Trading well once or twice a week beats forcing trades daily.

Conclusion: Start with a Plan, Then Test It

A futures trading plan is your foundation. It brings structure to a chaotic market. It helps you avoid emotional decisions, stick to your edge, and trade with confidence.

And the best part? You don’t have to risk a dollar to test it.

Try your futures trading plan in a free MetroTrader demo account and refine it before going live. Your future self will thank you.

Ready to build your futures trading plan?
Start paper trading with MetroTrader. It’s fast, free, and risk-free.

FAQs About Futures Trading Plans