Background
Mike Bellafiore is the co-founder of SMB Capital, one of New York's most well-known proprietary trading firms. He developed the 'PlayBook' method — a systematic approach to cataloguing and refining individual trade setups. His books 'One Good Trade' and 'The PlayBook' document the prop firm training methodology used to develop traders at SMB.
Core Methodology
The PlayBook method requires traders to document their best setups in a structured format: the trade's name, the market conditions it works in, the specific entry trigger, risk management rules, and the expected holding period. By building a 'PlayBook' of 20+ setups with documented statistics, traders develop pattern recognition while maintaining discipline. It's less about a specific strategy and more about a framework for systematic self-development.
Key Trading Rules
- Build a PlayBook of 20+ setups, each with specific entry criteria, risk rules, and documented win rates
- Focus on 2-3 'A+' setups at a time — don't try to trade everything
- Every trade must have a defined risk (stop loss) before entry
- Review every trade: what setup was it? Did it meet all PlayBook criteria? What could be improved?
- Scale up slowly — increase size only after consistent profitability with smaller positions
- The 'One Good Trade' philosophy: focus on process, not P&L. Execute well and results follow.
Key Concepts
Books & Resources
One Good Trade by Mike Bellafiore. The PlayBook by Mike Bellafiore. SMB Capital training programme ($595–$3,495/year). SMB Capital YouTube channel (free).