The classical model of strategic and tactical development used by martial strategists can be seen in sidebar Figure 1.
Many traders use something similar without realizing it.
Further, it is left to the discretion of the user of this paradigm to decide what constitutes strategy, operations, or tactics. In general, stepping away from the metaphor of chess and into one of war, one might consider strategy as a viewing of the map of the battlefield, operations as the positioning of forces on the battlefield, and tactics as the final attack. Gray areas in the first paradigm can cause problems in a market environment. In the second part of sidebar Figure 1, we have re-formed the paradigm under strategic guidelines more suited to trading. The logic flows naturally through the model, accumulating added advantages.