Hourly Structure + 1-Min Scalp

Entry Logic

• Entry trigger: 1-minute chart shows a micro-breakout of a small consolidation.
• Confirmation: Hourly chart shows a clear support or resistance level.
• Timeframe: Hourly for structure, 1-minute for entry.
• Location: Entry taken near the hourly support or resistance level.
• Market condition: Ranging market on the hourly chart.

Exit Logic

• Profit target: 10-20 cents.
• Scaling out: Not used for scalping.
• Trailing stop: 5-cent trailing stop.
• Signal failure: Exit if the 1-minute chart shows an immediate reversal.
• Opposite signal: Exit on a strong opposite move on the 1-minute chart.
• Time expiration: Exit if the trade is not profitable within 5 minutes.
• Momentum loss: Exit if volume dries up on the 1-minute chart.

Stop Loss Structure

• Hard stop: 5 cents below the entry price.
• Soft stop: A close below the 1-minute 20 EMA.
• Max dollar loss: $50 per trade.
• Max percent loss: 0.25% of account.
• Structural stop: Below the 1-minute consolidation.

Risk Management Framework

• Risk per trade: 0.25% of account.
• Daily limit: 5 losing trades.
• Weekly limit: 3% drawdown.
• Max drawdown: 10%.
• R:R requirement: Minimum 2:1.

Position Sizing Model

• Sizing approach: Fixed share size, e.g., 1000 shares.
• Volatility adjustment: Not used for scalping.
• Conviction sizing: Not used for scalping.
• Scaling in: Not used for scalping.
• Scaling out: Not used for scalping.

Trade Filtering

• Market conditions: Avoid strong trending markets.
• Setups: Only take trades near clear hourly support or resistance.
• Instruments: High-volume, tight-spread stocks.
• Time restrictions: First hour of the trading day.
• Chop/news avoidance: Avoid trading during news events.

Context Framework

• Trend direction: Not a factor in this ranging strategy.
• VWAP relationship: Price can be above or below VWAP.
• MA relationship: Not a primary factor.
• Range location: Entry taken at the edge of the hourly range.
• Higher TF alignment: Not required for this strategy.

Trade Management Rules

• Breakeven: Not used for scalping.
• Scale out: Not used for scalping.
• Add size: Not used for scalping.
• Fast vs slow moves: Take profits quickly on fast moves.

Time Rules

• Optimal window: 9:30 AM - 10:30 AM EST.
• Times to avoid: After the first hour of trading.
• Session notes: High volume in the morning provides the best opportunities.

Setup Classification

• A+ setup: Clean hourly level, tight 1-minute consolidation, high volume.
• A setup: Clean hourly level, but 1-minute consolidation is less defined.
• B setup: Hourly level is not as clear.
• C setup: No clear hourly level.

Market Selection Criteria

• Instruments: AMD, NVDA, TSLA.
• Volume: Minimum 5 million shares traded daily.
• Volatility: High intraday volatility.

Statistical Edge Metrics

• Win rate: 65%.
• Avg win: 15 cents.
• Avg loss: 5 cents.
• Profit factor: 1.95.
• Expectancy: 6.75 cents per share.

Failure Conditions

• Strategy fails when the hourly range breaks down.
• Avoid using this strategy in a strong trending market.

Psychological Rules

• Quick decision-making is essential for scalping.
• Discipline is needed to take small profits and cut losses quickly.

Advanced Components

• Regime detection: Not applicable for this strategy.
• Filters: Only trade stocks with a spread of 1 cent or less.
• Correlation: Not a primary factor.
• MTF alignment: Not required.

Location

• Strongest: At well-defined hourly support and resistance levels.
• Weakest: In the middle of the hourly range.