Trade Echo - turning opportunities into wins
Two practical playbooks plus sizing rules you can use with Trade Echo alerts today.
What we are doing here
- Apply portfolio sizing + risk rules to real Trade Echo alerts.
- Two approaches: (A) Tailing with discipline, (B) Active verification.
- Avoid common errors: chasing, blind copying, and emotion-driven sizing.
Playbook A - Tail with discipline (limited screen time)
Stick to 1-2 (maybe 3) proven traders. Study their patterns, then follow a ruleset.
- Pick 1-3 traders with consistent results that fit my style/timeframe.
- Review 20-30 of their past alerts (wins/losses) and tag patterns.
- Write rules for when I will tail and when I will skip.
- Use my own stops and targets unless I explicitly trust their risk plan.
Trader watchlist builder
| Trader | Strengths (setups/assets) | Weaknesses/pitfalls | Expectancy / win% | TAIL when… | SKIP when… | Notes |
|---|---|---|---|---|---|---|
Pattern study worksheet (per trader)
| Date | Setup type | Catalyst (Y/N) | Outcome (R) | Why it worked/failed | Keep or toss pattern |
|---|---|---|---|---|---|
Tailing rules (fill these in)
- I tail only these setup types: ________________________________
- I require at least one of: (a) catalyst, (b) level confluence, (c) flow confirmation.
- If the entry is gone (chasing), I skip and set an alert for the retest.
- I place MY stop at invalidation (_____% or level _____) and define targets (≈2-3R).
Playbook B - Active verification (able to monitor)
Scan alerts. Verify with a 3-box test. Size by conviction. Execute your script.
The 3-Box alert test
| Test | Question | Pass (✓) / Fail (✗) |
|---|---|---|
| Catalyst | Is there a clear catalyst (news, data, flow, level/time)? | |
| Analysis | Do I agree with the thesis after a quick review? | |
| Chart | Is the setup clean (trend, level, risk:reward ≥ 2R)? |
Score it: each ✓ = 1 point (0-3). Use the sizing matrix below.
Sizing matrix (align with your risk plan)
Example account: $10k - scale dollars to your account.
| 3-Box score | Position size ($10k example) | Stop (pos %) | Notes |
|---|---|---|---|
| 0 | $0 - PASS | - | No edge today. Save bullets. |
| 1 | $250 (≈2.5%) | 5-10% | Probe only; quick invalidation. |
| 2 | $500 (≈5%) | 5-15% | Decent; partial take-profit at 2R. |
| 3 | $750-$1,000 (7.5-10%) | 5-25% | A-setup; manage per script, target 2-3R. |
Execution checklist (use every alert)
- 3-Box Test score: ____/3
- Size selected: $_____ (or _____% of portfolio)
- Stop at: _____% / Level: _____ • TP1: _____ (≈2R) • TP2: _____ (≈3R)
- Time-based exit if not moving by: _____ (e.g., 15-30 min / candle close)
- Log reason + emotion score (≤2/5 to enter)
Common errors to avoid
- Blind copying size/stop - always fit risk to your plan.
- Chasing after the entry is gone - wait for your level/retest.
- Moving stops further away - invalidation is invalidation.
- Overtrading everything in the feed - quality over quantity.
- Ignoring your daily loss cap or the two-losses-stop rule.
Integrate with risk and script (recap)
- Core size: $750-$1,000 (7.5-10%); Risk shots: $250-$500 (2.5-5%).
- Stops: 5-10% (tight) or 15-25% (loose) on the position (not the portfolio).
- Targets: aim 2-3R; trim into strength; no hope trades.
- Guardrails: after two big losses or over daily cap, I am done.
Decision flow (fast path)
- Alert fires → Run 3-Box Test (Catalyst / Agree / Chart).
- Score 0 → Pass. Score 1 → Probe size. Score 2-3 → Core sizing.
- Preload stop and targets, then place the order with discipline.
Back to Risk management overview.