Playbook by @slashclone · updated 8 Nov 2026
Test a trading idea before risking money
Backtest it honestly, size positions so a loss costs what you planned, paper trade it, keep a journal, and learn why it beat or lagged the market.
- Goal
- Know if a strategy works before real money is on the line
- For
- Hobby and independent traders
- Steps
- 5
- About
- 180 minutes
5 steps, in order. Sign in to keep track as you go.
Step 1: Backtest a trading strategy on your price data
Test the idea on past prices with slippage, commissions, and no look-ahead.
Passes on: Backtest results you can trust
Step 2: Calculate how many shares to buy for a trade
Work out how many shares to buy and where the stop goes for each trade.
Passes on: Position sizes and stops
Step 3: Check positions and place paper trades with Alpaca
Paper trade the strategy through Alpaca's paper account.
Passes on: Live paper trades to learn from
Step 4: Keep a trading journal and review it weekly
Log each trade with its setup and mistakes, and review the week.
Passes on: What is working and what is losing money
Step 5: Explain why your portfolio beat or lagged its benchmark
Explain why the portfolio beat or trailed its benchmark.
Passes on: Where the return really came from