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Guided Process Workbook: Building Your 2-Lot Mean Reversion Day Trading Plan

by Tom B. & Greeny (Synthesized from 6 Van Tharp Books) (2026)

Quick summary - an in-depth PhD-level extended summary (10-30 pages) for this book is coming soon.

Guided Process Workbook: Building Your 2-Lot Mean Reversion Day Trading Plan

Author: Tom B. & Greeny (Synthesized from 6 Van Tharp Books) | Categories: Day Trading, Trading Psychology, Position Sizing, Risk Management, Trading Systems, Mean Reversion

Executive Summary

A 10-step guided workbook for building a complete 2-lot mean reversion day trading plan on ES futures, grounded entirely in frameworks from Van Tharp's six major works read cover to cover. Each step includes Objective, Why It Is Critical, How to Accomplish, Milestones, and Self-Evaluation. The workbook follows Tharp's hierarchy -- 60% psychology, 30% position sizing, 10% system development -- and starts where Tharp starts: with you.

Core Thesis & Arguments

Most traders fail because they spend 95% of their time on entries (the 10% piece) and almost nothing on psychology and position sizing (the 90% that determines results). This workbook inverts that pattern by walking through Tharp's frameworks in the order he prescribes: self-work first, then objectives, then market classification, then system design, then position sizing, then the business plan, daily process, mistake tracking, and continuous improvement.

The 10 Steps

Step 1: Belief Examination -- Surface and evaluate your beliefs using Tharp's 17-point self-assessment (Super Trader Part 1), the Belief Examination Paradigm from Trading Beyond the Matrix Ch 7, the 8 stored charges with 3 release exercises, and parts identification from Ch 9.

Step 2: Trading Objectives -- Define return targets, drawdown tolerance, time commitment, and capital using Tharp's framework from Trade Your Way Ch 3 (Tom Basso interview) and the Financial Freedom Number from Safe Strategies Ch 1.

Step 3: Market Type Classification -- Learn Tharp's 6 market types (Super Trader Part 2, Table 2-1) and define explicit on/off rules for MR trading. D.R. Barton's band trading framework from Trade Your Way Ch 5 only works when the market is range-bound.

Step 4: System Design -- Define setup, entry, stop, and 2-lot exit structure based on Dick's half-position approach from Trade Your Way Ch 12, D.R. Barton's countertrend vs. retracement entries from Ch 5, and the random entry experiment with Tom Basso from Ch 9 proving exits matter more than entries.

Step 5: R-Multiples & Expectancy -- Track every trade in R, calculate expectancy, and compute SQN using Tharp's scale from Super Trader Part 4. The snowball fight metaphor from Trade Your Way Ch 7 explains the 6 keys to a great trading system.

Step 6: Position Sizing -- Apply the percent risk model (CPR formula: Position Size = C/R) from Trade Your Way Ch 14 and Super Trader Part 4. The marble game from Safe Strategies Ch 14 proves position sizing -- not the system -- determines outcomes.

Step 7: Business Plan -- Write a complete trading business plan using the 11-section Checklist for Trading Business Handbook from Trading Beyond the Matrix Ch 18 (Table 18.1) with 100+ items, and score readiness using the Preparation and Commitment Checklist (Table 18.2, target 130+ points).

Step 8: Daily Process -- Establish pre/during/post routines drawing from Super Trader Part 1 ("Vitamins for Your Soul"), Brian June's daily preparation from Financial Freedom Through Electronic Day Trading Ch 7, and the 5-step debrief process from Ch 12.

Step 9: Mistake Tracking -- Distinguish rule-following losses from mistakes and self-sabotage. Calculate trading efficiency (target 95%+). The 10-mistake example from Trading Beyond the Matrix Ch 18 (Table 18.4) shows average mistake cost of 2.7R. Gabriel achieved 132.5R in one month with 100% efficiency.

Step 10: Continuous Improvement -- Weekly/monthly/quarterly reviews following Tharp's three levels of transformation from Trading Beyond the Matrix: Level I (Tharp Think), Level II (belief reprogramming), Level III (consciousness). Track equity curve and reduce size when below its moving average.

Key Frameworks Referenced

  • 60/30/10 Hierarchy (Super Trader, Introduction)
  • Belief Examination Paradigm (Trading Beyond the Matrix, Ch 7; Super Trader, Part 1)
  • 6 Market Types with Table 2-1 (Super Trader, Part 2-3)
  • Band Trading / Mean Reversion (Trade Your Way, Ch 5 -- D.R. Barton)
  • Dick's Half-Position Exit (Trade Your Way, Ch 12)
  • Random Entry Experiment (Trade Your Way, Ch 9)
  • Snowball Fight / 6 Keys (Trade Your Way, Ch 7)
  • R-Multiples and SQN Scale (Super Trader, Part 4; Trade Your Way, Ch 7)
  • CPR Position Sizing Formula (Trade Your Way, Ch 14; Super Trader, Part 4)
  • Marble Game (Safe Strategies, Ch 14; Super Trader, Part 4)
  • Financial Freedom Number (Safe Strategies, Ch 1)
  • Drawdown Recovery Math (Safe Strategies, Ch 13)
  • 14-Component Business Plan (Super Trader, Part 2)
  • 11-Section Trading Business Handbook Checklist (Trading Beyond the Matrix, Ch 18, Table 18.1)
  • Preparation and Commitment Checklist (Trading Beyond the Matrix, Ch 18, Table 18.2)
  • Daily Routine and 5-Step Debrief (Financial Freedom Through Electronic Day Trading, Ch 7, 12)
  • Trading Efficiency Metric (Super Trader, Part 5; Trading Beyond the Matrix, Ch 16, 18)
  • 10 Mistake Examples with Table 18.4 (Trading Beyond the Matrix, Ch 18)
  • Three Levels of Transformation (Trading Beyond the Matrix, Introduction)
  • Nine Steps to Mastering Yourself (Trading Beyond the Matrix, Ch 12)

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