Rule Adherence and Rule Violations
Rule adherence is how closely you follow your written trading plan; a rule violation is any trade or action that breaks it. Tracking adherence separately from profit shows whether results come from the method or from luck.
Most trading plans fail not because the rules are wrong but because they are not followed. Rule adherence measures how often you do what your plan says; rule violations are the moments you do not. Tracking both turns discipline from a vague goal into a number you can improve.
- Reading time
- 3 min
- Also called
- Plan adherence, Rule compliance, Rule breaks
- Updated
Rule adherence in plain words
Stick to a disciplined, goal-based process that fits your needs.1
Rules only work if you follow them — and following them is much harder than writing them down.2
Following your rules consistently helps keep emotions out of decisions.3
How to track rule adherence
List your rules
Write each rule in your Trading Plan as a yes/no check.
Score every trade
After each trade, mark which rules were followed.
Log violations
Record the rule broken and why in a Trading Journal.
Compare results
Check the Expectancy of rule-following trades against rule-breaking ones.
Define discipline
Stick to your rules when it's uncomfortable, and when breaking them feels justified at that moment.2
Fix or drop rules
If a rule is always broken, rewrite it or remove it.
Worked examples
Example 1 — Moving the stop
Rule brokenA hypothetical trader moves a Stop Loss further away, breaking a rule.
| Planned loss | −1R |
| Actual loss | −2.5R |
Rules only help if you follow them; the violation more than doubled the loss.2
Example 2 — Adherence score
MeasuredOver 40 hypothetical trades, a trader follows every rule on 32.
| Adherence | 80% |
| Violations | 8 |
Scoring trades shows how often emotion beats the plan, which consistent rules aim to prevent.3
Example 3 — Following the plan
Plan executedA hypothetical trader takes a valid setup despite feeling nervous.
| Rule followed | Yes |
| Result | +2R |
Following rules even when it feels uncomfortable let the plan work.2
Rule-following vs rule-breaking trades
| Aspect | Rule-following | Rule-breaking |
|---|---|---|
| Decision basis | Plan | Emotion or impulse |
| Risk | As planned | Often larger |
| Reviewability | Clear | Messy |
| Learning value | Tests the plan | Tests nothing |
Where rule adherence matters
Stops
Never widening a Stop Loss mid-trade.
Sizing
Keeping to Position Sizing rules.
Daily limits
Respecting Daily and Weekly Loss Limits.
Entries
Only taking a planned Trade Setup and Entry Trigger.
Advantages and disadvantages
Advantages
- Turns discipline into a measurable number.
- Shows whether the plan or the execution is failing.
- Reduces emotional trades.
- Makes reviews honest.
Disadvantages
- Scoring takes effort.
- Vague rules are hard to score.
- Some traders score themselves too kindly.
- A perfect score does not mean a good plan.
Going deeper
Read as far as you need. Each level builds on the one before it.
Why it matters
Beginner
FINRA encourages a disciplined, goal-based process, and adherence is how you check that the process is really being used.1
Plan vs execution
Intermediate
Writing rules is easy; keeping them is the hard part.2 Comparing the Expectancy of compliant and non-compliant trades shows which one is the problem.
Consistency
Advanced
The main point of tracking violations is to keep emotion out of your decisions.3
Common mistakes
Rules too vague to score
Make them yes/no.
Not logging violations
Patterns stay hidden.
Blaming the plan
Check execution first.
Too many rules
Nobody follows forty rules.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- Rules only help if followed.
- Score each trade against the plan.
- Log every violation.
- Compare compliant and non-compliant results.
- Keep rules few and clear.
Frequently asked questions
What is a good adherence score?
Should I ever break a rule?
Is one violation a disaster?
Further learning
- Trading Discipline
The habit behind adherence.
- Trading Plan
Where rules are written.
- Trading Journal
Logging violations.
- Expectancy
Comparing results.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- FINRA. Following the Crowd: Investing and Social Media (opens in a new tab) Checked .
- CMC Markets. Trading psychology explained: The mental side of trading (opens in a new tab) Checked .
- IG. The Essential Trading Checklist (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.