1. Moving Average Retest After Cross

Entry Logic

Price closes above/below 20 EMA. Price retests 20 EMA within 5 candles. Confirmation is a bullish/bearish candle at the retest. Timeframe is 5-minute. Location context is within a trending market. Market condition is trending.

Exit Logic

Profit target is 1.5x initial risk. Scale out 50% at 1R. Trail stop below prior swing low/high. Signal failure if 20 EMA breaks and closes opposite. Time expiration at 30 minutes if no movement. Momentum loss if volume drops 50% from entry candle.

Stop Loss Structure

Hard stop is 0.5% below retest candle low. Soft stop is a close below the 20 EMA. Max dollar loss is $100 per trade. Max percent loss is 0.25% of capital. Structural stop is below the swing low preceding the cross.

Risk Management Framework

Risk 0.5% per trade. Daily limit is 2% loss. Weekly limit is 5% loss. Max drawdown is 10%. R:R requirement is 1.5:1 minimum.

Position Sizing Model

Size to risk 0.5% of capital. Adjust for volatility using ATR. Conviction sizing increases size by 25% for A+ setups. Scale in 25% on strong confirmation.

Trade Filtering

Only trade established trends. Avoid chop zones. Avoid news events. Trade only NASDAQ 100 stocks.

Context Framework

Trade with the higher timeframe trend (30-minute). Price must be above/below VWAP. 20 EMA must be above/below 50 EMA. Entry must be in the first 30% of the daily range.

Trade Management Rules

Move to breakeven at 1R. Scale out 50% at 1.5R. Do not add size. Manage fast moves aggressively. Manage slow moves with wider stops.

Time Rules

Optimal window 9:35 AM - 11:00 AM EST. Avoid lunch hours 12:00 PM - 1:30 PM EST. Avoid last hour of trading.

Setup Classification

A+: Strong trend, high volume, clear retest. A: Moderate trend, good volume, clear retest. B: Weak trend, moderate volume, less clear retest. C: Avoid.

Market Selection Criteria

Instruments: SPY, QQQ, AAPL, MSFT, GOOGL. Volume must be > 2 million shares. Volatility must be > 1.5% daily range.

Statistical Edge Metrics

Win rate 55%. Avg win 1.5R. Avg loss 1R. Profit factor 1.25. Expectancy 0.125R.

Failure Conditions

Strategy fails in choppy markets. Strategy fails during low volume periods. Strategy fails on false breakouts.

Psychological Rules

Adhere to rules. Do not chase trades. Accept losses. Maintain focus.

Advanced Components

Regime detection uses ADX > 25. Filter for 30-minute MA alignment. Correlation check with index.

Location

Strongest near daily open. Weakest during lunch.