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Plan followed

Trading plan adherence is the share of your trades you marked yourself as matching your trading plan. It is a binary question asked on every trade, and it is probably the best predictor of an account's survival, far ahead of win rate.

Out of 100 trades

62 / 100
The green squares are the trades you marked yourself as matching your plan. It is the only statistic in this glossary you declare rather than undergo.

Key takeaways

  • The measure: trades marked compliant ÷ total trades, as a percentage.
  • Its prerequisite: a written plan. Without it, the question has no possible answer.
  • What it predicts: the account's survival, better than any result statistic.
  • The useful crossing: the P&L of off-plan trades, which is almost always negative.
  • Its nature: declarative, like trade grading, but as yes or no.

1. What is Plan followed?

A trading plan is the set of conditions you gave yourself before entering: which market, which setup, what size, what hours, what loss limit. Plan adherence measures one thing only, the share of your trades that ticked all those boxes.

The question is binary, and that is intended. A nuance invites negotiating with yourself, a yes or no does not. A trade taken outside your time window is off plan, even if it was excellent otherwise, and it is precisely that rigidity that makes the measure useful.

The prerequisite is unavoidable: you need a written plan. That is why this statistic is missing for almost everyone, and also why it predicts so well: a trader who can answer this question has already done most of the work.

2. The calculation formula

The basic formula

Plan adherence = trades marked compliant ÷ total number of trades × 100

Unlogged trades are not compliant trades. Counting them as such turns a forgetting rate into a discipline rate.

Compliance covers the entry conditions, not the management afterwards. A compliant trade can be badly managed, and trade grading will say so.

Without a written plan, this percentage measures what you remember deciding, which varies with the trade's result. So it has to be written beforehand, once.

Interpreting the result

Adherence rateWhat it describes
over 90%Rare. Either real discipline, or a plan so broad everything fits in it.
70 to 90%Good. Deviations are exceptions, and they can be spotted one by one.
50 to 70%A third of your activity sits outside what you had decided.
under 50%The plan does not describe what you do. Either the plan needs rewriting, or the practice needs taking back in hand.
no written planThe question has no answer, and that is the only job that counts before everything else.

The first row contains a trap worth stating: a very high rate can describe a plan that is too broad. A plan allowing every market, every hour and every size is respected 100% without constraining anything. So the rate is always read with the question 'what exactly does this plan forbid me?'.

The fourth row calls for a decision, and not always the one you expect. Under 50%, it is not necessarily discipline that is missing: sometimes it is the plan describing a trader you are not. Rewriting the plan so it matches what you deliberately do is a legitimate option, as long as it stays a decision and not a capitulation.

A worked example

  • 100 trades in the quarter.
  • 62 marked compliant with the plan.
  • 38 off plan.
  • P&L of the 62 compliant: +$6,900.
  • P&L of the 38 off plan: −$4,200.

62% adherence, and above all: off-plan trades cost $4,200. The quarter ends at +$2,700 while the plan alone would have returned $6,900. No method improvement produces such a gap, and it requires nothing but not taking the trades you had forbidden yourself.

3. What it is used for

Quantifying what off-plan trades cost

It is the most profitable calculation in a whole journal, and it fits in one line: the P&L of off-plan trades. It is negative for the vast majority of traders, and often by an amount exceeding anything a method improvement could produce.

That figure has a rare property: it points at a gain requiring no new skill. There is nothing to learn in order not to take a trade you had forbidden yourself.

Deciding whether the plan or the practice should change

A low rate asks a question with two answers. If off-plan trades lose, the practice needs taking back in hand. If they win regularly and have for a long time, perhaps the plan is too narrow, and rewriting it is legitimate.

The difference between the two reads in the P&L, not in intentions. It is also the only protection against a plan you widen every time you break it.

4. Why the generic calculation misleads

The first flaw is the plan being too broad. A 95% rate obtained with a plan forbidding nothing measures nothing at all. The question to ask alongside the figure is always the same: what does this plan stop me doing? If the answer is vague, so is the percentage.

The second is counting unlogged trades as compliant. It is the default setting in many tools, and it turns a forgetting rate into a discipline rate. A trader who ticks the box only when proud of their trade mechanically gets an excellent score.

The third is the plan widened after the fact. It is tempting to rewrite a rule so a profitable trade becomes compliant, and it happens almost without thinking. A plan adapting to trades already taken measures nothing: it is a report disguised as a rule.

5. Advantages and limitations

Advantages

  1. It predicts an account's survival better than any result statistic, because accounts empty through indiscipline rather than lack of setups.
  2. It points at a gain with no learning. Not taking a trade you had forbidden yourself requires no new skill.
  3. It is binary, so it cannot be negotiated. A nuance invites accommodating yourself, a yes or no does not.

Limitations

  1. It assumes a written plan, which almost everyone lacks, and without one the question has no stable answer.
  2. A broad plan makes it flattering without constraining anything, and the percentage alone does not show it.
  3. It is declarative, so sensitive to what gets filled in and when, like every statistic in this group.

The classic mistake. Widening the plan after an off-plan trade that won. The rule then becomes a report of what you already did, and the percentage rises with no discipline having changed. If a kind of trade deserves entering the plan, that is decided cold, not on the evening of a gain.

6. Comparison with related indicators

IndicatorFormulaWhat it measuresWhen to use it
Plan adherencecompliant trades ÷ totalCompliance, as yes or noQuantifying what indiscipline costs
Trade gradingmean of the grades givenQuality of the act, scaledSeparating bad luck from error
Trades with a stoptrades with a stop ÷ totalOne single rule, verifiableMeasuring baseline protection
Win ratewinners ÷ totalThe result, without the processDescribing a frequency of gains

The differences that matter

  1. Plan adherence and the share of trades with a stop are two discipline measures, and only one is verifiable. The stop is in the broker's data, plan compliance is declared. The second says more, the first cannot lie.
  2. Plan adherence covers the entry, trade grading covers the whole trade. A perfectly compliant trade can be badly managed afterwards, and the reverse does not exist: an off-plan trade is already badly executed from the start.
  3. No result statistic replaces this one. An undisciplined trader's win rate can be excellent for months, and their account disappear anyway. That is exactly what this percentage sees and win rate does not.

7. How to improve it

1. Write the plan in five lines, not five pages

Market, setup, hours, size, loss limit. A plan you cannot reread in ten seconds before entering is not consulted, so not respected, and the percentage that follows measures nothing.

2. Look at the P&L of off-plan trades, once

It is the most profitable calculation in a journal. If it is negative, you have just found a gain requiring no new skill: simply do not take those trades.

3. Never widen the plan after a winning trade

That is the exact moment a rule dies. If a kind of off-plan trade wins regularly and has for a long time, rewrite the plan cold, on a Sunday, not on the evening of a gain.

8. Frequently asked questions

What is trading plan adherence?

It is the share of your trades you marked as matching your trading plan, that is the conditions you set yourself before entering: market, setup, hours, size, loss limit. The question is binary, compliant or not.

Why does this figure predict better than win rate?

Because accounts empty through indiscipline rather than lack of setups. A trader can show an excellent win rate for months and lose their account on a few off-plan trades taken too large. Win rate does not see those trades as a group, this percentage does.

What if my rate is under 50%?

Look first at the P&L of off-plan trades. If it is negative, the practice needs taking back in hand. If they win regularly and have for a long time, your plan may be too narrow, and rewriting it is legitimate, provided it is done cold and not on the evening of a gain.

Is a 95% rate necessarily good?

Not necessarily. A plan allowing every market, every hour and every size is respected almost always without constraining anything. The question to ask alongside the figure is simple: what exactly does this plan stop me doing?

Do you need a written plan to measure this?

Yes, and that is the real prerequisite. Without a written plan, compliance is judged on what you remember deciding, and that memory adjusts to the trade's result. Five lines are enough: market, setup, hours, size, loss limit.

9. In Tradoshi

In Tradoshi, plan compliance is ticked in the Trade Review screen, next to the trade grade and the free review note. It is a box, not a nuance, and unlogged trades are not counted as compliant.

The calculation described above happens in the Reports screen with nothing to type: Plan followed is a metric there, and net P&L crossed with it directly gives what off-plan trades cost. The Discipline screen handles what comes next, by following the rules you set yourself while you trade rather than afterwards.

10. In summary

  1. Plan adherence is the share of your trades matching your plan, as yes or no. It is probably the best predictor of an account's survival.
  2. Its most useful calculation is the P&L of off-plan trades, almost always negative, pointing at a gain requiring no new skill.
  3. It assumes a written plan, and a very high rate can describe a plan so broad it forbids nothing.

To go deeper on this: read the full guide. Every term is gathered in the glossary.

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