Daily Pivot Point Breakout

Entry Logic

Price breaks daily pivot point. Volume confirms break. Enter on 1-minute chart. Entry occurs within 15 minutes of break. Market shows clear trend.

Exit Logic

Profit target is R1 or S1. Scale out 50% at 0.5R. Trail stop below prior 1-minute low. Exit entire position if price retests pivot. Exit by market close.

Stop Loss Structure

Hard stop 10 pips beyond pivot point. Max dollar loss $100 per trade. Max percent loss 0.5% of capital. Structural stop below prior swing low.

Risk Management Framework

Risk 1% of capital per trade. Daily loss limit 3%. Weekly loss limit 8%. Max drawdown 15%. R:R minimum 1.5:1.

Position Sizing Model

Size to risk 1% of capital. Reduce size by 20% during high volatility. Increase size by 10% for A+ setups. Scale in 50% on initial break, 50% on retest confirmation.

Trade Filtering

Avoid choppy markets. Avoid news releases. Trade only trending setups. Focus on ES, NQ, YM futures. Optimal timeframe 9:30 AM - 11:00 AM EST.

Context Framework

Trend aligns with daily chart. Price above VWAP for long, below for short. Price above 20 EMA for long, below for short. Range location favors breakout. Higher timeframe confirms trend.

Trade Management Rules

Move to breakeven after 0.5R. Scale out 50% at 1R. Do not add to losing trades. Fast moves require immediate stop adjustment. Slow moves allow more buffer.

Time Rules

Optimal window 9:30 AM - 10:30 AM EST. Avoid 12:00 PM - 1:00 PM EST. Avoid last hour of trading.

Setup Classification

A+: Strong trend, high volume break, clear retest. A: Moderate trend, good volume, slight retest. B: Weak trend, average volume, no retest. C: Choppy market, low volume, false break.

Market Selection Criteria

Instruments: ES, NQ, YM. Volume: Above 20-day average. Volatility: ATR above 1.5x average.

Statistical Edge Metrics

Win rate 55%. Avg win $150. Avg loss $100. Profit factor 1.5. Expectancy $27.50.

Failure Conditions

Price fails to hold pivot. Price immediately reverses. Volume is low on breakout. Market becomes range-bound.

Psychological Rules

Follow the plan. Do not chase trades. Accept losses. Maintain emotional control.

Advanced Components

Regime detection confirms trend. Volume profile confirms support/resistance. Intermarket correlation confirms direction. Multi-timeframe alignment of trend.

Location

Strongest near market open. Weakest during lunch hours.