Weekly Pivot + Daily Trend + Intraday Scalp

Entry Logic

• Entry trigger: 1-minute chart shows a micro-breakout in the direction of the daily trend.
• Confirmation: The daily chart is in an uptrend and price is trading above the weekly pivot point.
• Timeframe: Weekly for pivot, daily for trend, 1-minute for entry.
• Location: Entry taken near the weekly pivot point.
• Market condition: Trending market that is respecting pivot levels.

Exit Logic

• Profit target: 15-25 cents.
• Scaling out: Not used for scalping.
• Trailing stop: 7-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: 7 cents below the entry price.
• Soft stop: A close below the 1-minute 20 EMA.
• Max dollar loss: $70 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: 6 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 choppy markets.
• Setups: Only take trades in the direction of the daily trend and above the weekly pivot.
• Instruments: High-volume, tight-spread stocks.
• Time restrictions: First 2 hours of the trading day.
• Chop/news avoidance: Avoid trading during news events.

Context Framework

• Trend direction: Determined by the daily chart.
• VWAP relationship: Price should be above VWAP on the 1-minute chart.
• MA relationship: 1-minute MAs should be aligned with the trend.
• Range location: Entry taken on a pullback to the weekly pivot.
• Higher TF alignment: Daily and weekly charts should be aligned.

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 - 11:30 AM EST.
• Times to avoid: After the first 2 hours of trading.
• Session notes: High volume in the morning provides the best opportunities.

Setup Classification

• A+ setup: Clean daily trend, price at weekly pivot, strong 1-minute entry.
• A setup: Good daily trend, but price is slightly away from the pivot.
• B setup: Daily trend is weak.
• C setup: No clear daily trend.

Market Selection Criteria

• Instruments: BAC, C, JPM.
• Volume: Minimum 5 million shares traded daily.
• Volatility: High intraday volatility.

Statistical Edge Metrics

• Win rate: 65%.
• Avg win: 20 cents.
• Avg loss: 7 cents.
• Profit factor: 1.85.
• Expectancy: 8.85 cents per share.

Failure Conditions

• Strategy fails when the daily trend breaks down.
• Avoid using this strategy if price is far from the weekly pivot.

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: Daily and weekly charts should be aligned.

Location

• Strongest: At the weekly pivot point in a trending market.
• Weakest: Far from the weekly pivot.