How to Identify Grade (A) vs Grade (B) Trades - Master Pattern Training
Use a repeatable rubric to classify setups: Grade A = clear confluence, clean risk, aligned context; Grade B = one key element missing. Size and focus accordingly, and track results by grade to compound your edge.
Why this matters
- Eliminates ambiguity so you can act faster and more consistently.
- Guides position sizing and risk allocation toward the highest-quality edges.
- Reduces emotional overrides by replacing vibes with a checklist.
- Produces measurable data you can iterate on each week.
Step-by-step
Step 1: Define your grading rubric
List 4-6 objective criteria such as higher timeframe bias, location at key level, timing/session, trigger pattern, and minimum reward-to-risk. Grade A requires all essentials; Grade B is one element short but still valid.
Step 2: Build the pre-trade checklist
Turn the rubric into yes/no checks you can tick in seconds. If every essential is yes, it is Grade A; if one is no, it is Grade B or a pass.
Step 3: Confirm A-grade confluence
Require at least three confluences: higher timeframe bias, location, and a clean trigger. If any are missing or messy, downgrade.
Step 4: Execute and size by grade
Predefine risk per grade, for example A = 1R baseline, B = 0.5R or skip in choppy conditions. Do not upgrade a live trade.
Step 5: Tag, review, and update stats
After each trade, tag A or B and record setup, context, R multiple, and outcome. Review weekly to refine criteria and sizing.
Templates
- Grading rubric template: Bias (Y/N), Location at level (Y/N), Timing window (Y/N), Trigger pattern (Y/N), Min R multiple >= 2R (Y/N). Grade A = all essential Y.
- Pre-trade checklist prompt: What evidence confirms bias, location, and trigger? What contradicts it? If any essential is weak, downgrade.
- A-grade execution rule: Enter only at the preplanned trigger with defined stop; target at least 2R; full size; no chase.
- B-grade execution rule: Half size or skip; require extra confirmation or better R; tighten invalidation.
- Journal tag fields: Grade (A/B), Setup name, Context notes, Risk (R), Result (R), Screenshot link, Lesson.
Powered by TradingGrader
- Track verified performance by grade and asset class with live updates and community analytics.
- Visualize win rate, expectancy, and drawdown for A vs B to tune sizing.
- Create a shareable, auditable profile at https://www.tradinggrader.com to align your plan with results.
FAQ
Q: What defines a Grade A trade?
A: It meets all essential criteria: aligned higher timeframe context, clean location, clear trigger, and minimum 2R potential with a well-defined stop. It should be obvious and repeatable.
Q: Should I ever take Grade B trades?
A: Only if your plan allows them and conditions are favorable. Consider half size, tighter invalidation, and stricter management—or skip when volatility or clarity is poor.
Q: How many criteria should my rubric include?
A: Use 4-6 measurable items. Too few invites subjectivity; too many slows you down.
Q: How do I avoid upgrading a trade mid-setup?
A: Lock the grade before placing the order, and write it in your journal. If conditions change, cancel and reassess rather than re-label.
Q: What timeframe should I grade on?
A: Grade the setup using the context timeframe that drives your edge, then execute on your entry timeframe. Be consistent day to day.