Read The ReasonTools & field guides

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Trading thesis and invalidation worksheet

Write down what would have to be true, what could disprove it and when you will review the evidence. The worksheet organizes your own reasoning without generating a trading recommendation.

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Work it out

The starting values are an illustration, not a suggested trade or allocation.

Your inputs are not sent to a server or stored by this calculator.

Worked example

The tool returns the six supplied fields for printing. It does not decide whether condition A is true or produce an approval score.

Make the statement testable

A thesis needs an observable condition and an observable implication. A sentence such as “the market feels strong” can be reinterpreted after any outcome, making it difficult to review honestly.

Use the instrument and timeframe field to define the scope. A daily observation and an intraday execution rule are separate statements, even when they refer to the same asset.

Separate evidence from interpretation

Record a primary source and the time at which the information was available. Then state which part is your interpretation. A later revised data release should not be silently substituted into an earlier decision record.

The worksheet stores only the text you enter in the current calculation. It does not fetch the source or verify that the evidence supports the claim.

Define invalidation before the outcome

An invalidation condition describes an observation that would contradict the thesis. It can concern data, timing or market behavior. A price stop is an execution instruction and is not automatically the same thing.

Make the condition specific enough that another reader could tell whether it occurred. If evidence is ambiguous, write the ambiguity rather than retroactively broadening the rule.

Set a review trigger and record uncertainty

A review trigger prevents an undated idea from becoming an indefinite belief. It may be a scheduled observation, an elapsed period or a condition you can verify.

Use the uncertainty field for missing data, alternative explanations and execution limitations. Listing uncertainty is part of describing the model, not a numerical rating of safety.

Use the exported record honestly

Print the completed fields or export them as a worksheet. Keep the original record alongside any later update, including the reason for a revision. Six completed fields mean six fields were written, not that the thesis passed independent review.

Avoid entering account numbers, credentials, personal financial documents or private third-party information. The tool has no account connection and cannot place an order.

What this tool does not calculate

  • User-authored record only, with no external verification or trading recommendation.
  • Print or download to retain a copy; no automatic monitoring or reminder is created.

Common questions

Is an invalidation condition the same as a stop?

No. One concerns whether the reasoning still holds; the other concerns order handling or exit execution. They may be related, but should be documented separately.

Will the worksheet check the source?

No. You must inspect the source yourself. The tool only organizes the supplied text.

Does a complete worksheet approve a trade?

No. Completeness is not truth, suitability or a prediction of performance.

Sources & method

An original calculation tool built with AI assistance. Its method and limits are documented here, and calculation examples are checked with automated tests.

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10 services for researching a trading thesis and its limits

Compare research, data, public ideas and author explanations using a thesis with an explicit challenge condition.