Dark Pool Level + Technical Trade

Entry Logic

• Long entry: A very large dark pool print is reported. If the stock is trading above the print level, wait for a pullback to the print level and enter long on a bullish reversal signal.
• Short entry: If the stock is trading below the print level, wait for a rally to the print level and enter short on a bearish reversal signal.
• Confirmation: High volume on the reversal candle.
• Timeframe: 5-minute chart.
• Location: At the price of a large dark pool print.
• Market Condition: Any.

Exit Logic

• Profit Target: 2R or the next key technical level.
• Scaling Out: Not recommended.
• Trailing Stop: Trail a stop on the 5-minute chart.
• Signal Failure: If the stock closes decisively beyond the print level.
• Opposite Signal: Not applicable.
• Time Expiration: End of day.
• Momentum Loss: If the move stalls.

Stop Loss Structure

• Hard Stop: A few cents beyond the print level.
• Soft Stop: If the stock is accepted beyond the print level.
• Max Dollar Loss: $150 per trade.
• Max Percent Loss: 0.75% of account.
• Structural Stop: Not applicable.

Risk Management Framework

• Risk Per Trade: 0.75% of account.
• Daily Limit: 3 losing trades.
• Weekly Limit: 5% drawdown.
• Max Drawdown: 10%.
• R:R Requirement: Minimum 2:1.

Position Sizing Model

• Sizing Approach: Fixed fractional.
• Volatility Adjustment: Not a primary concern.
• Conviction Sizing: Not recommended.
• Scaling In: Not recommended.
• Scaling Out: Not recommended.

Trade Filtering

• Market Conditions: Only trade on stocks with very large, significant dark pool prints.
• Setups: A clean test of the print level.
• Instruments: Any stock, but it is more common in large-cap stocks.
• Time Restrictions: Any.
• Chop/News Avoidance: Not a concern.

Context Framework

• Trend Direction: The print can act as a support or resistance level, so the trade can be with or against the trend.
• VWAP Relationship: Confluence with VWAP adds strength.
• MA Relationship: Confluence with a key MA adds strength.
• Range Location: The print can define a key level within a range.
• Higher TF Alignment: Not required.

Trade Management Rules

• Breakeven: At 1.5R.
• Scale Out: Not recommended.
• Add Size: Not recommended.
• Fast vs Slow Moves: Let the trade play out.

Time Rules

• Optimal Window: Any.
• Times to Avoid: Illiquid hours.
• Session Notes: A strategy based on institutional activity.

Setup Classification

• A+ Setup: A massive print at a key technical level, with a perfect test.
• A Setup: A large print with a good test.
• B Setup: A smaller print or a messy test.
• C Setup: No clear setup.

Market Selection Criteria

• Instruments: Any stock with dark pool activity.
• Volume: The dark pool print must be a significant percentage of the daily volume.
• Volatility: Any.

Statistical Edge Metrics

• Win Rate: 60%.
• Avg Win: 2R.
• Avg Loss: 1R.
• Profit Factor: 1.2.
• Expectancy: 0.2R per trade.

Failure Conditions

• Market Conditions: A very strong trend that ignores the print level.
• Specific Scenarios: The dark pool print was part of a larger order that is being worked, and the level does not hold.

Psychological Rules

• Mental Discipline: Requires patience to wait for the test of the level.

Advanced Components

• Regime Detection: Not needed.
• Filters: Use a service that provides dark pool data.
• Correlation: Not a concern.
• MTF Alignment: Not required.

Location

• Strongest: When the print coincides with other technical levels.
• Weakest: When the print is in the middle of nowhere.