Thursday Trader's Tip: Are Non-A+ Setups Worth the Risk?
Thursday Trader's Tip editions offer quick trading psychology advice that can be digested in 5 minutes.
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One question I hear all the time in my coaching sessions is: “What should I do with trades that are valid but aren’t my A+ setups? Should I skip them and focus only on the best ones? What’s the right move?”
Today, let's settle this question once and for all.
When it comes to entries, you’ve got two main categories:
Valid
Invalid
If one confluence is missing, it can change the setup's probability entirely! Either the criteria are fully met, or they’re not. There’s some nuance, of course, but thinking in binary terms here can simplify things and keep you more decisive.
Now, within that valid category, you probably see two types:
A+ setups – your bread and butter setup
Other valid setups – good but not quite A+.
So, what do you do with those second-tier setups?
First, it’s all about understanding them better. I suggest backtesting these “almost-A+” setups separately. Aim to collect 50 examples and analyze them on a few key factors: risk-to-reward, win rate, and any other patterns you spot. You’ll likely get some useful insights from this exercise.
Next, compare these setups to your A+ ones. If they consistently don’t perform as well, you’ve got a decision to make: keep trading them, or let them go?
This decision depends on four key aspects:
Frequency of these setups
Tolerance for variance
Market conditions
Your trading goals
Let’s break each one down.
Frequency of these setups
How often do these “B-quality” setups show up?
If they're frequent, they could add a nice boost to your overall performance as long as they’re managed well. However, if they’re rare and don’t add much value, they may not be worth the added complexity. Tracking this frequency can help you decide if they’re worth including.
Tolerance for variance
How comfortable are you with the potential ups and downs these setups might add?
If you find that switching gears between setups disrupts your flow, it may be best to remove the “B-quality” ones. But they might be a valuable addition if you’re okay with a bit more variance and can handle the mental flexibility.
Market conditions
Do these setups thrive in certain market conditions that differ from your A+ trades?
For example, if your A+ trades work best in trending markets but these setups do well in choppy conditions, you might choose to trade them selectively based on current market trends. This lets you adjust your strategy without forcing trades that don’t fit the market’s rhythm.
Your trading goals
What are you trying to achieve with your trading?
I met a trader who aimed to reduce the number of trades and screen time and maintain the same level of performance. That was it. He was not looking to make more money; he was more focused on optimizing his sessions while maintaining results. For him, this meant focusing solely on high-quality, A+ setups, while “B-quality” trades weren’t worth the distraction.
To figure out the best strategy for yourself, you need to understand how you want trading to fit into your life—not the other way around. Getting clear on this helps you build a trading style that aligns with what you actually want.
Final Words
The key is knowing how your B-setups impact your overall performance. As long as they’re valid and offer an edge, they’re tradeable — you just don’t want them affecting the performance of your A+ setups.
Track this dynamic and see how it feels in practice — you’ll find your own balance!
Peaceful trading,
Sara
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