Alex's Swing Trading System
A Quick Note Before You Dive In
What you're about to read is my system — built entirely around my personality, my risk appetite, my emotions, my lifestyle, and how I want to approach the market long term.
The rules I follow… the types of setups I trade… how I trim and manage positions… the frequency and pace I operate at — it’s all tailored to me. It works because it fits who I am, both as a trader and a person.
So don’t come here expecting something to copy and paste into your own process.
Instead, use this system as a starting point — something to learn from, test, get inspired by, and adapt as you figure out what actually fits you. That’s the real goal. Over time, your own system will take shape — one that aligns with your mindset, your life, and your long-term goals.
This is mine. Go build yours, but I'm here to help ;)
Alex
CORE PRINCIPLES
Core Philosophy: Trading the Market Waves with Intentionality
In my approach, trading starts with the market — not the stock. It’s about aligning with the psychology of market cycles and understanding how capital flows shape trends. The goal isn’t to catch random setups in isolation — it’s to ride the right wave, with the right names, at the right time.
That wave is the core. The stocks I trade? They’re simply vehicles. Once I determine the phase of the market — whether it's the early stages of a trend reversal, a continuation setup, or a correction — I build a concentrated basket of liquid leaders that reflect that environment.
This mindset — seeing things at the Market Cycles + Portfolio level — allows me to stay detached from any single stock's noise. It helps me operate systematically, without emotional interference from individual P&L swings. I’m not chasing every breakout or swing setup. I’m positioning within context — the broader market structure, relative strength flows, and internal breadth.
A big part of that edge comes from only trading the top liquid leaders — and trading them the best I can. By choice, I remove the noise of everything else. It’s impossible to catch everything that’s moving, and I’m not trying to. These names offer the highest probability setups, the cleanest structure, and the strongest institutional backing. That’s where real performance comes from — and that’s where I stay focused.
Mental Models That Drive My System
This is not about chasing confirmation. In fact, the edge comes from acting before it feels easy — before everyone else sees it. The system is built around a few critical mental anchors:
Market > Setups: Always respect the market’s phase. A good setup in a bad tape is not worth your capital.
Price First: Ignore the noise. Structure and price action override everything — news, indicators, sentiment.
No Breakouts: My edge is in pullbacks to structure — usually around the 21dma. I don't chase highs. I wait for price to come to me.
Cushion Is Leverage: The profit cushion on current positions gives me the flexibility to test new exposure — it’s my tactical edge.
Defense Is Offense: In corrections, survival and mental clarity are alpha. I protect capital and wait for new alignment.
Play the Odds, Not the Outcome: I treat every exposure as a probability — not a guarantee. That mindset makes it easier to adjust quickly. If the setup doesn’t develop or the odds shift away, I reduce or exit exposure without hesitation. I’m not here to prove a point — I’m here to allocate risk where the edge is. It’s not about being right, it’s about staying aligned with probability.
You Can’t Catch Everything: In strong markets, there will be hundreds of names moving. Trying to chase them all leads to scattered execution and underperformance. Focus on the strongest setups out of pullbacks, trade them well, and add only when there’s room, not from FOMO.
It’s Not About Being Right — It’s About Playing the Odds
Once you’ve been through enough cycles, you stop expecting clean cause-and-effect. Some days, your best name gaps down 2–3% on no news. Other days, everything you touch sticks and gaps up. That’s just how markets work — random in the short term, but structured and repeatable over time.
I trade with a win rate around 40% on average. And I’m completely at peace with that — because this game isn’t about being right all the time. It’s about knowing that when the right setup shows up, the odds have shifted in your favor, even if that doesn’t guarantee a win.
Think of it like counting cards in blackjack. You're not predicting the exact outcome of the next hand — you're reading the environment, understanding when the odds lean in your direction, and sizing your bet accordingly. I do the same with each trade.
That mindset shift is huge. You start to see losses not as failures, but as part of the math. You stop expecting every trade to work — and that helps detach from outcome, manage emotion, and stay consistent.
Because at the end of the day, this game is about playing your edge, not chasing perfection. And if you do that with discipline, the winners take care of the rest.
The High-Level Structure of My System
Market Timing First:
I use price, and the McClellan Indicator (MCSI/MCO) to determine whether the market offers a favorable risk/reward window.
I focus on oversold breadth (MCO) for entries and avoid new positions when the MCSI is in a confirmed downtrend.
No market confirmation = no portfolio risk.
Position Building via 21dma Structure:
I trade pullbacks into the 21dma-structure, either on weakness into the zone or on strength when reclaiming structure.
After a market pullback or correction, I like to get the weekly 10wma-structure confluence as well for added confirmation.
I avoid buying anything >1x ATR above the 21dma.
Everything revolves around structure, relative strength, and positioning context.
Concentration & Execution:
I typically trade 5–15 liquid names at a time.
Full position size is entered early — risk per trade is between 0.25% and 0.5% of total capital, up to 1% on high-conviction setups.
I don’t scale blindly. Adds are treated as new trades, with structure, risk, and separate stops.
Selling Rules:
I trim into strength (e.g., 2R) and on technical weakness (21dma-structure break).
Stops are based on closing behavior around the 21 EMA low, not intraday noise.
I don’t use hard stops — it’s a discretionary but disciplined approach.
Earnings Management:
Position sizing into earnings is managed based on cushion vs. implied move.
I never hold full size into earnings. At most, 1/3 or 1/6, depending on extension and risk.
Exposure Management:
Out of Correction: Start light. Engage leaders. Use cushion to add.
Confirmed Trend Pullback: Add back exposure at support, only if cushion permits.
Overbought: Stop adding. Trim strength. Protect gains.
Breakdown: Cut risk. Sit out. Reassess. Watch MCSI and breadth for re-entry signal.
Summary Mindset: Structure Over Emotion
This is not a fast-paced, scalp-the-open kind of system. It’s intentional, framework-based, and psychologically resilient.
I operate exclusively on daily charts — no intraday noise.
Focus time: first hour and final 30 minutes.
My edge is in selection and timing, not in sitting at the screen all day.
I don’t care about hitting every move. I care about putting size behind the right move, within the right wave, with risk fully defined.
If I’m trading without a map — just reacting to candles or alerts — I know I’m operating at a disadvantage. That’s why I built this system: to bring structure to my trading, clarity to my decisions, and longevity to my edge.
10 Golden Rules
1. Respect the trend, not your cushion. Don’t let short-term P&L fluctuations shake your confidence. Focus on structure, not fear. Let your selling rules guide the trade.
2. Engage early, not late. Edge comes from recognizing early shifts in trend — not chasing consensus. The best moves begin before it feels comfortable.
3. Manage Open Heat actively. Your unrealized gains are not safe by default. Use trims and trailing stops to stay in control of your equity curve.
4. Ride strength, don’t guess tops. Strong trends often run further than expected. Stay aligned with price, and let structure—not opinion—tell you when it’s time to exit.
5. Small drawdowns are the real edge. Progress isn’t about big winners — it’s about keeping the down periods shallow so you’re ready when the tide turns.
6. Position smartly, not emotionally. You don’t have to catch every move. If it’s the start of a real trend, you’ll get your chance. Focus on where you want to buy, not on FOMO.
7. Survival is a position. In bad markets, your best trade might be going flat. Capital and mental clarity are more valuable than a forced trade.
8. Wait for confirmation, not pride. You don’t need to be first. Let price prove it — reclaim key moving averages, see the RS, then engage with structure.
9. Master inactivity. Not trading when there’s no edge is just as important as knowing when to push. Use quiet markets to build edge, not to burn capital.
10. Patience compounds. Swing and position trading requires emotional detachment and time. Let setups work. Focus on weeks and months — not minutes.
THE 21DMA STRUCTURE PLAYBOOK
THE 21DMA-STRUCTURE
As an intermediate-term swing trader, the 21-day moving average is the backbone of my system. Over time, I’ve simplified my approach to the point where this is really the only indicator I keep on my charts — aside from a few key lines to help define structure and pivots.
To give that moving average more context and flexibility, I use a 21-day EMA structure, built from the lows, highs, and closing prices. This creates a dynamic zone — not just a single line — that helps me visualize trend, momentum, and risk. It gives enough room for natural volatility, while still keeping me anchored to the trend.
Everything I do — from entry to trimming to holding — revolves around this structure. When price is above it, I lean in. When it’s below and declining, I stay out or manage risk tighter. Simple, clean, and consistent.
THE PLAYBOOK
A practical framework for reading trend strength, momentum, and risk.
The 21dma-structure sits at the center of my process. It’s not something I use because it’s popular or because it works for everyone — it’s simply the framework that has consistently made the most sense to me. It gives me clarity. It simplifies the noise. It helps me understand the rhythm of the market in a way that aligns with how I trade.
For me, the 21dma isn’t about signals or formulas. It’s about behavior. The slope of the 21dma, the reactions around it, the pivots, the reclaims, the failed retests — that’s what I pay attention to. Those details tell me how demand is evolving in the short-term trend, and that’s where most of my decisions come from.
I use this playbook in two ways:
first, to assess the overall market environment and understand whether conditions are supportive or hostile, and
second, to evaluate individual stocks for setups and entries. Both work together in my system — a stock setup means nothing to me if market structure isn’t aligned, and strong market structure means nothing if the stock can’t confirm its own behavior. The 21dma-structure ties the two sides together.
And sometimes, after a pullback or correction, leading stocks will form reclaim & backtest setups before the market does. When the broader market is still working through its own higher low (#3 scenario), the strongest names often reveal themselves early. When I see that — leadership setting up while the market structure is starting to turn constructive — I allow myself to test the waters with caution. It’s not full aggression yet, but it’s a place where I start leaning in because leaders tend to move first.
When price is above a rising 21dma-structure, I generally feel more comfortable being involved. It tells me the trend is behaving well and that weakness into structure is usually healthy. When price is below it, especially if the 21dma is flattening or rolling over, that’s where I naturally pull back and get more cautious. That’s where I tend to see more chop, hesitation, and failed attempts at strength.
After a deeper pullback or corrective phase, the key moment for me is always the reclaim of the 21dma-structure. That reclaim tells me structure is beginning to repair itself. If it holds, and I see the 21dma starting to curl back up, that’s usually when I start paying closer attention for new setups. I don’t try to guess bottoms — I just wait for structure to rebuild.
So most of my short-term read on the market comes down to one simple question: How is price reacting to the 21dma-structure right now?
I don’t try to forecast anything. I just observe the behavior that’s unfolding. And over time, I’ve noticed that the same five patterns keep repeating themselves.
These are the four behaviors I track in my own trading:
1. Pullback Into a Rising 21DMA-Structure (Uptrend pullback)
This appears in a confirmed uptrend. The trend is already established, and price is pulling back in a healthy, normal way.
Behavior
In a confirmed uptrend, price pulls back into a rising 21dma-structure. Two bullish variations typically appear:
a clean bounce on first touch, or
an initial bounce followed by a retest that forms a new higher low.
Structural Meaning
This is the uptrend maintaining control. A rising 21dma means the sequence of higher highs and higher lows is intact, and the pullback is simply price resetting after an extension. When price reacts well at structure — either through the first bounce or a retest/higher low — it confirms that buyers are still setting the rhythm of the trend. There’s no shift in character, no loss of demand, and no structural warning.
Why it matters for positioning
This is one of the most reliable places for me to get involved in an existing trend. The market is already trending up, the pullback is normal, and the rising 21dma gives me clean, defined risk. Instead of chasing breakouts, I can buy weakness into structure with the trend on my side. If the uptrend continues, I’m already in at structure; if it fails, the structure gives me a clear line to step aside.
How I play it
This is where I’m most aggressive. It’s historically where my win rate is the highest. I either buy the weakness into the rising 21dma-structure, or I wait for the daily reversal pivot reclaim to buy early strength that confirms the short-term structure shift. Both approaches keep me aligned with a strong trend without chasing extended moves.
2. Reclaim & Backtest (Structure Higher Low Confirmation)
This shows up after a pullback or correction. The market has weakened, structure broke down, and now price is attempting to rebuild and transition back toward an uptrend.
Behavior
Price reclaims the 21dma-structure, then pulls back for a clean retest that forms a structure higher low.
Structural Meaning
This is the point where the downtrend loses control. A higher low forms after the reclaim, breaking the sequence of lower lows/lower highs and signaling that the the structure is beginning to shift from corrective → constructive.
Why it matters for positioning
This is usually the earliest and cleanest moment to position for a potential new trend. Buyers defend where they should, the pullback has likely completed, and the risk is well-defined. If the trend continues, you’re already in; if it fails, the structure gives you a clear line to manage risk.
How I play it
After a pullback or correction, this is one of my favorite spots to get involved. I’m not chasing strength — I’m buying the retest with structure in my favor. My win rate is high here because I let the structure confirm before acting.
3. Reject & Higher Low (Early constructive action)
This typically appears during the transition phase, when the market is trying to repair structure but isn’t ready to reclaim the 21dma yet.
Behavior
Price rejects the 21dma-structure, but instead of breaking down, it forms a higher low underneath.
Structural Meaning
Even though price couldn’t reclaim structure yet, sellers failed to push to a lower low. Demand is showing up early, and the downtrend rhythm is weakening.
Why it matters for positioning
I treat this as a potential setup forming. If price later reclaims the 21dma-structure, the move is usually stronger because buyers were already defending underneath.
How I play it
I don’t act here. I simply take notice. This is where I start paying attention for a future reclaim of the 21dma-structure. If that reclaim happens, I’m ready — but the higher low on its own is never my trigger.
4. Reject & Lower Low (Rollover/ Downtrend re-confirmation)
This can show up in two places of the market cycle:
deep inside a downtrend, where structure is already broken and weakness continues, or
at the very start of a pullback, where the initial rejection of the 21dma-structure signals that more weakness is likely ahead.
Behavior
Price rejects the 21dma-structure and makes a lower low, continuing the sequence of lower highs/lower lows.
Structural Meaning
The downtrend remains in full control. Structure isn’t repairing — it’s progressing. Sellers are setting the rhythm, and demand isn’t strong enough to shift the pattern.
Why it matters for positioning
I avoid forcing longs here. The structure gives me no reason to try to anticipate a turn, and the risk of continuation lower is high.
How I play it
I stay on the sidelines. Nothing here suggests opportunity for me. I preserve capital, stay patient, and wait for structure to eventually rebuild.
MARKET TIMING
Timing the market windows is the foundation of my system—that’s the priority. I use TradersLab’s TLMM dashboard for that.
Over time, I determined my edge, where buying a pullback setup has the highest probability or working and leading to a sustained move. I buy early in the market move, but I am still waiting for the Price and Breadth confirmation to increase the odds.
I do buy on weakness in an uptrend, if a leading stock is into support, even if short-term breadth is not oversold. But that's not the bulk of my positioning, as I recognize that the odds are not as high as if the market is oversold.
Price Structure Comes First
The 21-day moving average isn’t just a line on the chart — for me, it’s a core structure that keeps me grounded in what matters most: price.
Price reflects everything. Every belief, every forecast, every position — it's already baked in. You don’t need to guess where things are headed when you can simply follow what’s happening. Price tells the truth. And when you trust that, trading becomes a lot simpler. Be dumb — follow price.
That’s why I anchor so much of my process around the 21dma-structure. When the market is trading above a rising 21dma, that’s my safeguard. It means the short-term trend is intact, the structure is clean, and conditions are favorable. If we’re below it — especially after a strong move — that’s when I stay cautious. That’s where chop lives. That’s where traders give back gains.
After a larger pullback or correction, I want to see price reclaim the 21dma. That reclaim is everything — especially if the 21dma starts to curl back up. That’s what resets the structure and gives me a green light to look for entries again.
From there, I focus on two main types of action:
Buying weakness or early strength confirmation into a rising 21dma — when the trend is strong and a pullback gives me a high R/R entry at structure.
Buying strength or weakness just after on the reclaim of a curling-up 21dma — especially after a broader pullback. That reclaim and initial backtest often mark the start of a new wave.
The goal isn’t to predict — it’s to respond. Structure tells me when it’s safe. Price tells me when it’s time.
Understanding Character Change Around the 21dma-Structure
One of the most important aspects of my system is recognizing character change — those subtle shifts in behavior that signal whether the market is strengthening or weakening around the 21dma-structure.
Back in early September 2025, the price action showed constructive behavior: we were still forming higher lows, and each rejection of the 21dma-structure was getting weaker and weaker. That’s exactly what I want to see during a healthy uptrend — the market absorbing supply, respecting structure, and starting to build the conditions that lead to higher highs. The environment was improving, and the structure was supportive.
But the recent action in November 2025 is different.
We have now broken the higher-low structure, and the last two sessions showed a strong rejection of the declining 21dma-structure. That’s a meaningful change. The market is no longer absorbing selling pressure the same way; instead, sellers are starting to show presence around the moving average. That shift tells me the rhythm has changed, and the environment I depend on for clean, high-probability setups is no longer in place.
This is why observing how price behaves around the 21dma-structure is so central to my process. I’m not simply looking at whether price is above or below a line — I’m tracking how the market interacts with it:
Is the 21dma acting as a platform for constructive behavior?
Or is it acting as resistance that rejects price sharply?
Are higher lows forming and tightening the structure?
Or is the market starting to break those early supports?
For me, that interaction — the character around structure — is what defines my edge. It tells me whether the environment is shifting toward opportunity or caution, and it helps me align my timing with the actual behavior of the market rather than predictions or emotions.
Why I use QQQE for market health
For market timing, I don’t use QQQ — I use QQQE. And that’s intentional.
QQQ is heavily weighted toward a handful of mega-caps. Those names can mask what’s actually happening under the surface. A few giants can drag the index up while the rest of the market is weakening, or hold the index flat while most stocks are breaking down. That’s not useful for the type of trading I do.
QQQE, on the other hand, is equal weight.
Every component counts the same, so it gives me a much cleaner read on broad participation. It tells me whether the average stock in the tech/growth space — the liquid leaders I actually trade — is healthy, pulling back, tightening, or breaking down.
This matters because my setups don’t come from mega-caps holding up the index. They come from broad strength, breadth, and structure across the names that make up the real trading universe: liquid growth, second-tier leaders, and core tech.
QQQE allows me to see:
whether the market is supporting the types of stocks I trade
whether strength is widespread or concentrated
whether pullbacks are healthy resets or signs of weakness
whether the average leader is respecting or breaking its 21dma-structure
This is why QQQE is my main reference for market health — it aligns directly with my process, my universe, and my setups. It filters out distortions, eliminates the noise from mega-cap weighting, and shows me the true condition of the environment I’m trading in.
When QQQE is strong and respecting structure, I know the backdrop is supportive. When it’s breaking down, rolling over, or failing reclaims, I know it’s time to stay cautious — even if QQQ itself still looks fine.
MCO for Timing. MCSI for Confirmation.
What MCO and MCSI Actually Are
Before using MCO and MCSI in my process, it’s important to understand what they truly measure. They’re both breadth indicators based on advancers vs. decliners, but they track different layers of the market’s internal health.
MCO — McClellan Oscillator (Timing Tool)
MCO is a short-term breadth momentum indicator, built from the relationship between advancing issues and declining issues on an exchange (for me: NDX components, not NYSE).
How it’s calculated (simple version):
Take the daily advancers minus decliners
Smooth it with two exponential moving averages (19-day and 39-day EMAs)
Subtract the two EMAs from each other
The result is the MCO
In simple terms, MCO measures how strong or weak participation is on a short-term basis.
When MCO drops deeply negative, it means:
too many stocks declined vs. advanced
breadth has been washed out
we’re in an oversold condition
fear is elevated
conditions are shifting from “selling climax” → “snapback potential”
This is why I compare it to a rubber band — stretches too far, and odds shift toward a bounce or reset. Not guaranteed, but the risk/reward improves.
MCSI — McClellan Summation Index (Confirmation Tool)
MCSI is the longer-term breadth trend indicator, and it’s essentially the cumulative “running total” of the MCO.
How it’s calculated (simple version):
Take the MCO reading each day
Add it to yesterday’s MCSI value
This cumulative line becomes the MCSI
Compare it to its own moving average (I use the 10dma)
So where MCO is short-term momentum, MCSI is long-term breadth trend and participation.
When MCSI curls up, it tells me:
the underlying trend of participation is improving
more stocks are beginning to join the move
breadth is supporting the structure repair
When MCSI reclaims its 10dma, that’s the moment breadth actually turns — a structural shift in participation, not just a bounce.
This is why I use MCSI after MCO:
MCO gives the timing.
MCSI gives the confirmation.
When they align with the market reclaiming the 21dma-structure, that’s when I have the backdrop I want to start pressing.
Why I Use Them Together
MCO = tells me when conditions are washed out enough to pay attention.
MCSI = tells me whether real participation is supporting the move.
21dma-structure = tells me whether price action agrees.
When all three line up, I get the highest probability window of the cycle — oversold → repair → participation → structure reset.
That’s where I want to be aggressive.
My Process
In my process, price always leads. But once structure starts resetting, I turn to MCO (McClellan Indicator) to time the opportunity, and to MCSI (McClellan Summation Index) to confirm that there’s real participation behind the move.
I use MCO like a rubber band. When it stretches too far to the downside — especially after a correction or a hard pullback — it doesn’t guarantee a reversal, but the odds begin to shift in our favor. Every strong move starts from a state of stretch and fear.
When MCO drops below -1σ, I’m on alert. That’s where fear peaks and the market gets washed out — often creating the conditions for a snapback. But how I act on that depends on where we are in the broader market cycle. If we’re in a strong market early in a new trend, those quick washes might be all you get — and you have to be ready to step in fast. Later in the cycle, or during deeper resets, I tend to wait for more confirmation and oversold readings in the -2σ area. Context always matters.
If MCO is oversold in the -1σ or lower, and price retesting or reclaiming the 21-dma structure area, I prepare for pullback trades.
If MCO is oversold in the -2σ or lower I watch for deeper cycle reversals.
But timing isn’t enough — I need confirmation. That’s where MCSI comes in.
I’m looking for MCSI to curl back up after a downtrend — ideally right as price is starting to reclaim the 21dma-structure. That’s not a green light. That’s where I test the turn. Maybe I take a small starter, start leaning in, but keep it light and measured.
If MCSI then pushes higher, reclaiming its own 10dma, that’s the real shift. That’s when participation starts to broaden, and I get the confidence to size up. That’s not feelers anymore — that’s when I press the gas.
If MCSI flips down, especially after an extended run in the +1 to +2σ, it signals that breadth is contracting — and when that happens, I stop looking to add. No new trades. I’m not cutting all exposure, but I hold off on committing new risk. In this kind of environment, structure isn’t breaking yet, but the wind is shifting — and pressing here is how you end up getting chopped to pieces.
I want to see participation stabilize and breadth contracts before I step back in.
The Flow
MCO and/or MCSI oversold (-1 to -2σ) = timing window opens
MCSI curl-up + 21dma reclaim/retest = early confirmation, test the turn
MCSI 10dma reclaim = press with conviction
MCSI curl-down → caution, participation fading.
MCSI curl-down from overbought area (+1 to +2σ) → Late stage trend weakening. Trim into strength.
That’s when I stop hesitating. I don’t need to know the bottom — I just need to know when the wind has started to shift in our favor.
That’s when I size in. That’s when I press.
Why I Don’t Try to Pick Bottoms
One of the biggest improvements in my trading came when I stopped trying to pick bottoms during downtrends. Catching the exact low looks great from the outside, but in practice it usually leads to frustration, repeated small losses, and unnecessary drawdowns. Downtrends are structurally built to trap traders who try to anticipate reversals. Support levels break, bounces fail, and every “promising reversal” ends up giving back its gains the next day. After living through that cycle enough times, it became clear to me that bottom-fishing offers a terrible risk/reward profile.
That’s why I anchor my timing around how the market behaves relative to the 21dma-structure. I’m not trying to guess where the low is; I’m looking for confirmation that structure is actually beginning to repair. Below a declining 21dma-structure, the market is still in breakdown or repair mode, and any strength is unreliable. At the 21dma-structure, I shift into observation mode to see whether volatility tightens, sellers lose control, or a potential higher low forms. And once the market begins trading around and above a rising or curling 21dma-structure, that’s where the tone finally shifts, and where the risk/reward becomes favorable again.
The reclaim of the 21dma-structure isn’t just a line crossing—it’s the structural transition from lower highs and lower lows to the early stages of higher lows and higher highs. That’s the moment where the behavior of the market actually changes, and that’s where I want to start taking exposure. It removes the need to predict; I simply align myself once the structure confirms that the downtrend is ending.
I also want to highlight something important in my process: the periods where the market is trending below a declining 21dma-structure are not wasted time. Those phases give me space to recharge mentally after an extended uptrend, step away from the constant pressure of managing exposure, and study, refine, and reset without feeling the need to act. Even though I’m not day trading, carrying risk for long stretches still takes a toll, and those repair-phase periods allow me to disconnect a bit and be fully prepared for the next opportunity.
So instead of guessing bottoms, I focus on three things:
Structural confirmation: I wait for the market to show a reclaim or constructive behavior around its 21dma-structure instead of reacting to every rebound in a downtrend.
A shift in rhythm: I want to see the pattern of lower highs/lower lows break before I commit capital, because that’s when the environment begins supporting my style again.
Favorable risk/reward: I’d rather enter slightly “late” but with structure behind me, than enter early with no confirmation and get chopped up repeatedly.
I’m not trading to impress anyone or prove I can nail the exact bottom. I’m trading for my own account, and I want to put on risk when the environment is giving me the best probability and the cleanest structure. For me, that moment almost always appears after the market starts trading constructively around the 21dma-structure—not before.
Why I Don’t Play Market Rotation During Downtrends
Another key evolution in my process was deciding to stop chasing market rotation when the environment I trade — QQQE and the top liquid leaders — is in a confirmed downtrend. On paper, rotation looks tempting: money flows out of tech and into energy, financials, industrials, defensives, and suddenly those sectors start showing relative strength while growth is breaking down. It creates the illusion that “there’s always something working,” and if I just pivot fast enough, I can keep squeezing profits out of the market even when my universe is under pressure.
But in practice, it works exactly like shorting for me — it shifts my focus away from where the real opportunities appear in every cycle.
When I rotate into pockets of relative strength during a correction, I anchor myself to names that almost never become true leaders when the next uptrend begins. I get mentally tied to a group that is showing strength only because the market is weak. Those sectors don’t lead the real recoveries. They don’t deliver the multi-week, multi-month structural runs that define my edge. Tech and growth liquid leaders do — historically, reliably, repeatedly.
And once I’m committed to a rotating sector trade, my entire lens changes. Instead of observing the market objectively, I’m filtering everything through the position I’m trying to squeeze a few percent from. I’m no longer studying how growth is repairing. I’m not watching early RS behavior in the names that actually matter. I’m not recharging. I’m not preparing. I’m busy managing something that will most likely fade the moment the true leaders start turning.
That’s the real cost of rotation for me — not the P/L, but the opportunity cost and psychological drift. It drags me away from the names I should be paying attention to.
Over time, I realized something:
The next cycle never comes from the rotational sectors that look good when the market is weak — it comes from the same place it always does: the top liquid leaders.
Those names begin tightening first. They reclaim structure early. They start pulling in dollar flow long before the index itself looks constructive. And if I’m busy rotating into whatever is “working” temporarily, I’m almost guaranteed to be late on the leaders — and late on leaders is one of the biggest disadvantages a growth/RS trader can impose on themselves.
That’s why I stopped playing rotation during corrections. It wasn’t a lack of ability. It was alignment with my system and my edge. The small hit of dopamine I get from extracting a few bucks out of a temporary RS pocket isn’t worth the distraction, the mental shift, or the opportunity I might miss on the names that actually matter.
So instead of chasing rotation, I use that time for three things:
Recharge & reset: I let the correction unfold and use the quiet to mentally reset, reduce cognitive load, and step back from the pressure of constantly managing exposure.
Study structure: I watch how QQQE and the leaders behave around key moving averages, how volatility contracts, and which names start to show the earliest signs of constructive repair.
Prepare for the turn: I want to be ready when the market transitions from lower highs/lower lows to the early stages of higher lows and higher highs around the 21dma-structure. That’s where my real edge lives — not in squeezing rotation trades when the environment is poor.
My goal isn’t to trade every pocket of strength the market offers. My goal is to be aligned with the strongest trends when they emerge. And that means staying out of rotation when my universe is in a downtrend, using that time to sharpen my edge, and showing up ready to strike with intent when the leaders begin reclaiming structure — because that’s when the real opportunity begins.
Why I Don’t Short During Pullbacks or Corrections
Another important shift in my evolution as a trader was making the decision to stop shorting during market pullbacks and corrections. It wasn’t because I couldn’t do it or because I never had success on the short side. It was because, over time, I realized that shorting added very little to my overall edge while simultaneously dragging my focus, mindset, and timing away from where the real opportunities consistently show up.
Shorting during pullbacks locks you into a particular mindset: the belief that the market is going lower for longer. Once you’re committed to that position, everything you see starts filtering through that lens. Instead of observing the market objectively, you start looking for evidence that supports your short, and you naturally underweight any early signs of strength, relative strength, or accumulation. The market begins to turn, leaders start tightening, strong names begin reclaiming structure, and instead of preparing to get long, you’re busy managing short exposure that’s suddenly working against you.
That’s the real cost of shorting for me — not the P/L outcome, but the opportunity cost and mental shift it creates. While I’m tracking a short, I’m not tracking emerging relative strength the way I should. I’m not mentally recharging through the correction. I’m not scanning with a neutral eye. I’m not aligned with the idea that the strongest stocks will often turn before the index does. I’m simply too focused on a position that’s tied to a deteriorating environment that is already in the late stages of its weakness.
Over the years I realized something: the best opportunities of the next cycle often reveal themselves during the correction, long before the market itself has repaired. If I’m tied to short exposure and emotionally committed to lower prices, I’m almost guaranteed to be late on those leaders. And being late on true leaders is one of the biggest disadvantages you can impose on yourself as a growth/RS trader.
That’s why I decided to stop shorting altogether. It wasn’t about ability. It was about alignment with my edge. The small incremental edge I could gain from catching a short move simply wasn’t worth the mental distraction, the bias it created, or the opportunity cost it carried. My entire system is designed around recognizing emerging leadership, staying mentally sharp, and positioning early in the names that will become the next cycle’s drivers. Shorting takes me away from all of that.
So instead of trying to profit from every downside swing, I focus on three things during corrections:
Protect capital: I step aside, let the correction unfold, and avoid the emotional drain of trying to time downside continuation.
Track leadership: I watch which names hold structure best, which ones show early RS, and which ones tighten while the market weakens. These names almost always lead the next wave.
Recharge and reset: I use the correction to recover mental capital, review previous trades, reset expectations, and avoid getting tunnel-visioned into bearish bias.
My goal is not to trade every movement of the market. My goal is to be aligned with the strongest trends when they emerge. And for me, that means staying out of short exposure, staying neutral during corrections, and showing up ready when the market starts reclaiming its 21dma-structure — because that’s when the real opportunity begins.
ENTRIES
Over the years, I went from trading 10 different setups, to only focusing on the variation of a single setup. The market, relative strength, and group strength context is more important than a technical setup.
I keep it simple — when a stock pulls back into its 21dma-structure, I look for one of two entries: either weakness into support, or strength through a reclaim, reversal, or tight range setup.
Buy on weakness against the 21dma right into structure. No confirmation it will bounce, but R/R is best and risk taken is minimal. I like those on red-to-green moves right off the open. They can be incredibly powerful, especially in strong tapes.
Wait for the daily reversal (prior day's high pivot reclaim in a pullback), and 21dma-structure high reclaim, a R2G move, or a DTL or base level breakout to engage on strength around the 21dma-structure. R/R is less, but the odds of working is higher due to trend re-confirmation.
While I wait and look for those ideal conditions, I want to be clear — relative strength and intraday action still drive a lot of my decisions. I pay close attention to how the market behaves in real time, and how the specific names on my focus list are trading. That ultimately dictates whether I take a trade.
Even though I have preferred entry techniques, I’m not rigid. If there’s a high-quality setup unfolding, I’ll get involved — even if it’s not a perfect textbook entry.
There’s still a good amount of discretion in my system, and I’m good with that. It lets me adjust without breaking structure.
That said, my foundation doesn’t change: I want to trade liquid leaders first, and I wait for them to pull back into their 21dma-structure area. My buyable zone starts as long as price is within 1xATR of that structure — ideally where we see a tight range or a daily reversal develop just above it. From there, I adjust based on context: market breadth, recent stock behavior, and my current portfolio cushion.
Reiterating My Core Approach
For me, everything starts with the market — its 21dma-structure, its leadership behavior, and the overall health of the environment. My focus isn’t on finding the most precise trigger or the perfect candle. My focus is on positioning myself in the strongest, most liquid leaders as they retest their rising 21dma-structure, especially when:
the market itself is showing constructive behavior around its own 21dma-structure,
my MCO / market condition models are oversold or supportive, and
the leaders I track are pulling back into buyable zones.
I’m not trying to outsmart the market. I simply want exposure when both the market and the leaders are giving me the best R/R window.
My buyable zone starts as long as the stock is within 1xATR of the 21dma-structure, ideally where a tight range, daily reversal, or constructive intraday behavior develops just above it. From there, I adjust based on context: market breadth, leadership behavior, and my own portfolio cushion.
My goal isn’t precision — it’s alignment.
I want to be involved when the market is healthy, when structure is supportive, and when leaders are giving me opportunities to build exposure.
ENTRIES EXAMPLES
Daily Reversal example
HOOD entry on May 6th off the 48.34$ pivot that confirmed a daily reversal off prior day's high.
21dma-structure high reclaim example
SE entry on April 24th 2025 as it reclaimed the 21dma-structure high, and the bar turned black on my charts.
DTL or base level breakout example
MBT (Bitcoin futures) entry on April 21st as it reclaimed the 21-dma structure high, but also broke out of a DTL structure.
I usually use a mix of these techniques to build a position into a leading stock around the 21dma-structure.
I don't engage if price is above 1xATR-21dma extension. I want them as close to their 21dma-structure as possible. Not short-term extended.
TECHNICAL CHARACTERISTICS
Relative Strength
I developed my own RS ranking system, that I use via TradersLab.io to filter my ideas and focus on the top RS liquid leaders of the market.
RS Rank (From Tlab doc)
This is Alex's proprietary score that takes into account a stock’s performance over multiple timeframes, including 1 month to 1 year, along with the stock’s distance from its 52-week high and low.
Other considerations:
I focus on Liquid Leaders with high 1 /12-month Relative Strength (RS).
Once the trend is confirmed, transition to recent Leaders (1/3-month RS leaders).
After significant correction (deep MT & LT oversold) focus on short-term RS and first to consolidate and reclaim kma’s. (21dma structure and 50dma)
Volume
I use volume mainly as a contextual tool — not a core input in my decision-making. Low volume during pullbacks often signals healthy digestion, while sudden high-volume spikes — especially in the form of exhaustion gaps — can hint at potential reversals or shakeouts.
That said, I don’t rely heavily on volume to make trading decisions. I monitor it, take note of the story it tells, but rarely let it drive the trade. It’s secondary — useful for color, not for conviction.
Previous trend
I focus on names showing high Relative Strength — the liquid leaders. But I also want to see a strong uptrend on the left side of the chart. Ideally, it’s either the start of a new uptrend out of a correction, or a strong, extended move followed by a clean base or pullback.
That prior leadership matters to me. I want to see names that have already shown they can lead.
And just as important — I look for clean, predictable price action. If a name trades choppy or keeps reverting to the mean, I’m not interested. I want smooth, directional strength — not noise.
Higher Lows
Structured higher lows are part of my process, as I like to see that right-side pullback being defended a bit higher, proving that buyers are more aggressive and/or sellers are getting exhausted and not looking to push the stock down as much.
I am looking for these higher low structures on a larger or smaller timeframe.
(1) - Bigger structure within the intermediate base to build the larger setup.
(2) - Micro structure to setup an entry setup above the 21dma-structure as we retest it.
BUYING PROCESS
Position sizing
Position sizing in my system is fully rules-based but context-sensitive. Every trade is entered with a defined risk, sized as a percentage of total capital. My default approach is to enter with full position size right away, using clear structural levels (primarily the 21EMA) to define stop-loss risk.
Base Risk Allocation
0.25% of capital risked per trade when entering on weakness — typically during a retest of the 21DMA-structure area, where R/R is most favorable and risk is clearly defined against the 21EMA.
0.5% of capital risked per trade when entering on confirmation — such as a clean daily reversal or reclaim of structure after the pullback, offering more evidence but slightly reduced R/R.
Up to 1% risk on high-conviction setups — where everything aligns: strong relative strength, group leadership, favorable market conditions, and clean structure.
Managing risk starts with how I size positions and pace my exposure. My goal is to keep losses under control and avoid situations where I’m forced to act before the end of day, since patience is built into my system.
If I size too heavy near the lows of structure (e.g., 40%+), I increase the odds of getting stopped out or taking a loss so large it forces me to sell before EOD. That goes against the discipline I want my system to enforce.
Instead, I keep initial entries in the 10–20% range of my risk budget. This keeps me flexible and prevents oversized losses.
I prefer to build positions with 2–3 adds as confidence in the setup grows and the structure holds. Each new add is treated with its own logic and risk, rather than simply averaging up or down.
Near the bottom of structure: win rates are lower, so I size small — around 0.125–0.25% NER per entry.
Near the top or slightly above structure: conviction is higher, so I can size more — 0.5–1% NER per entry.
This tiered approach means I’m adding risk only when conditions are stronger, while keeping exposure small when the probabilities aren’t in my favor.
By structuring entries this way, I:
Control the size of my losses if the setup fails.
Stay patient by letting end-of-day rules dictate exits, not position size pressure.
Let conviction guide scaling, instead of fear or urgency.
This discipline keeps me consistent across trades and aligned with the edge my system is designed to capture.
Contextual Adjustments
Position sizing is dynamic. While my base structure is consistent, sizing is adjusted based on market context, portfolio traction, and performance feedback:
When the market is coming off a deep oversold condition and I already have open positions working well, I will scale up:
0.5% risk on strength-based entries right away.
0.25% risk on weakness, with the option to add an additional 0.25% risk if strength confirms in the following sessions.
When the market is extended (e.g., breadth and price action are overbought) and not emerging from an oversold zone, I reduce both position sizing and overnight exposure. My priority shifts to protecting capital and preserving open profit cushions.
Performance-Based Modulation
Aggressiveness is also influenced by recent trade performance and YTD equity curve status:
If my system is in sync and recent trades are working well, I give myself permission to press harder with larger initial risk or layered exposure.
If I’m out of rhythm, or in a drawdown, I automatically scale back size and shift focus toward execution quality and base hits.
This built-in performance modulation ensures I’m pressing when conditions are most favorable and protecting myself during periods of lower edge.
Adding to a position
When it comes to adding, I don’t just average up into strength. I wait for the stock to set up again — as if it were a brand-new trade. That means a clean structure, a defined entry, and solid risk-reward.
Since I usually get my first entry low in the base or near key support, I’m not eager to raise my cost basis without a good reason. I’ll consider adding if the stock pulls back into that original buy zone, or if it forms a higher low structure that’s still within the broader buy area. Both setups give me defined risk and allow me to stay in control.
And when I add, I treat that entry as a separate position — with its own stop-loss, its own profit target, and its own exit plan. It keeps me objective and prevents emotional decision-making around the full position size.
SELLING PROCESS
Stop-Loss
I also use the 21dma-structure as my structural stop, from the moment I enter until the moment the trade is complete. My initial stop loss is placed at the low band of that structure, and I trail the position using that same structure as long as the trend behaves. Even after I take my first trim, nothing changes — the 21dma-structure remains the reference point.
Why this works so well for me is simple:
As long as price respects the structure, the trend is intact. The moment it closes below the low band — and my bar turns pink — that’s my signal that structure has broken. I don’t negotiate with that. I take the loss or take whatever gains remain. It keeps me disciplined, objective, and aligned with the actual behavior of the trend rather than my emotions or opinions.
Using the 21dma-structure as a trailing stop keeps me in the winners longer, gets me out of the losers early, and removes a huge amount of guesswork. Price either respects structure — or it doesn’t.
Initial protective stop (daily): use the 21-DMA structure (I anchor to the 21-EMA low band). Intraday flexibility is allowed as long as the daily close holds the structure.
After the 2R trim is taken, From that point, the trade is managed off the 21DMA-structure (daily close below and failure to reclaim = exit on the following session or EOD). This widens room for a bigger multi-weeks trend while position risk is already neutralized and the position proved itself.
I use soft stop-losses, meaning I don’t place hard stop orders with my broker—instead, I manage exits manually based on structure and closing behavior.
Partial selling (R-multiples)
I scale out into strength using fixed R targets:
At 2R: sell ⅓ of the position.
Final 2/3 (“runner”): hold until the 21DMA- structure breaks on the daily chart (see stop rule above).
What is “R” and how I calculate targets
R = my initial risk per share.
Long: R=Entry−Initial Stop
2R target (long): Entry+2R
Example (long): Entry $100, initial stop $95 ⇒ R = $5.
2R = $100 + 2×$5 = $110 → sell ⅓.
Last 2/3 rides the 21DMA-structure until that daily structure breaks.
Why the 2R trim matters
Taking ⅓ off at 2R banks +0.67R. If price later hits the original stop, the remaining ⅔ would lose −0.67R → net ≈ breakeven on the trade. That de-risks the position, removes a lot of stress, and lets me hold through normal reactions while aiming for the multi-month leg.
Discipline & automation
Using fixed R target lets me stage limit order at the broker (OCO/brackets): a profit-limit (⅓ at 2R). This makes the whole “trim-into-strength” process fully systematic.
Execution notes
I prefer end-of-day decisions for stop/structure checks; intraday only if there’s an abnormal move (e.g., gap far beyond targets or a decisive break of structure).
If 2R is gapped through at the open, the ⅓ fills at best available; I still treat the trade as de-risked and switch the stop framework to the 21DMA-structure.
Bottom line: fixed 2R trim + daily 21DMA-structure management after 2R is hit gives me better R:R at entry, larger initial size, and a clear path to capture the bigger trend once the trade proves itself.
Earnings Management
I manage earnings exposure based on the relationship between the implied move (from options pricing) and the cushion I’ve built in the trade — but it’s not a rigid rule. I also factor in my conviction on the name, the current market cycle, and how earnings reactions have been playing out overall in the broader tape.
To gauge potential volatility, I use Optionslam.com to get the expected implied move — a quick way to understand the market’s pricing for post-earnings swings.
Then I weigh that against my cushion:
If cushion > implied move:
Not extended: I may hold up to 1/3 position through earnings.
Extended: I typically reduce further, holding no more than 1/6 position.
If cushion < implied move:
I usually close the position — unless I have unusually high conviction or a very specific reason to hold.
There’s flexibility built into this — it’s not a formula, it’s a framework. The goal is always the same: protect open gains, respect risk, and only size through earnings when the setup, context, and cycle all align.
https://www.optionslam.com/earnings/stocks/NET
EXPOSURE & PORTFOLIO MANAGEMENT
My execution framework revolves around price structure, breadth extensions, and the McClellan Summation Index (MCSI). These three tools help me time when to engage, when to press, and when to trim. It's a flexible system, but built on consistent principles.
Out of a Correction (Trend Reset)
After a correction, I look for alignment across multiple signals before committing risk:
Price must reclaim the 21dma, showing early strength.
Medium- or long-term breadth extensions (stocks >50dma or >200dma) should curl up from oversold.
MCSI (McClellan Summation Index) must turn upward, signaling internal market participation.
That’s when I start engaging — testing exposure in high RS names with clean structure. It’s not about going all-in — it’s about building traction with controlled risk.
Goal: Stay nimble, test exposure, and get traction.
Exposure: Start light (1% to 2% NER), often with 2-3 pilot positions.
Approach:
Prioritize leaders showing early RS and clean structure.
Tightly manage risk. No margin used unless traction develops.
Use cushion on open positions to justify adding.
Pullback Within a Confirmed Uptrend (Trend Continuation)
Different playbook here:
The trend is confirmed — price above key MAs, structure intact.
Market pulls back toward the 21dma, and short-term breadth (stocks >21dma) reaches oversold levels.
Approach:
Hold core with trailing stops.
Avoid adding unless it's a clean retest setup or short-term breadth extensions are oversold and the market is back into a support area.
These pullbacks present a strong opportunity to re-engage — either by adding back exposure to core positions, or entering new leaders that are setting up near the 21dma structure.
Unless we're in the late stages of a larger trend, this is typically where you want to get aggressive again.
Only test new exposure if open profit cushion allows it.
That’s when I get aggressive again — either by adding back exposure to core names or stepping into new leaders that held well.
Breakdown / Full Correction
Goal: Protect capital, reset.
Exposure: Cut to cash. May test short-side trades with tight risk.
Conditions: Loss of trend, MCSI flip down, indices below declining key moving averages. (21 & 50dma)
Approach:
Avoid guessing bottoms.
Focus on preservation of mental and financial capital.
Prepare watchlists, observe RS, and wait for signal to re-engage.
Summary Flow
Correction → MCSI turns up, breadth ext. curls up from oversold, 21dma reclaimed → Start engaging.
Confirmed Uptrend + Pullback → ST breadth oversold, 21dma test, MCSI hooking up → Add back exposure.
Uptrend + Overbought → Trim into strength, stop adding, protect gains.
Breakdown / Full Correction → MCSI flips down, trend lost, indices under key MAs → Cut to cash, focus on capital preservation.
EXECUTION
Timeframe for Analysis
Exclusively daily charts — they offer the clearest perspective on trend structure, key moving averages, and actionable risk-reward zones. I don’t use intraday charts at all, as they introduce unnecessary noise that can lead to hesitation, second-guessing, or poor decision-making. The daily timeframe keeps me aligned with the bigger picture and reduces emotional interference.
Optimal Timing for Trades:
Prefer entries during the first hour, mid-day pullback (lunch hour) or the final 30 minutes of the session.
These are periods where the morning emotion has settled, and you can gauge whether a breakout or setup is holding.
When we get a gap down open followed by an early reversal, that’s different for the open. Those red-to-green moves right off the open can be incredibly powerful, especially in strong tapes. That shift in sentiment, right out of the gate, often sets the tone for the day.
The final 30 minutes is key for decision-making: it’s where I confirm closing strength, breakout validity, or make risk adjustments.
Order Types:
Market orders are used to ensure fast execution when the setup is valid and structure is in place — especially important when dealing with liquid leaders during breakout or retest zones.
I’ll use limit orders only when I have clear structural levels and liquidity to justify more precision, such as when bidding during a mid-day pullback into support.
Speed of execution matters more than saving a few cents — the goal is to secure position in a clean spot, not to time the absolute low tick.
Gap Up Open:
Avoid chasing gap-ups at the open — early strength can often fade or trap late entries.
Let the stock settle and observe how it behaves after the open.
If the gap pushes into exhaustion zones, use that strength to trim into strength, not to add.
I only consider adding if the gap is clean, supported by volume, and confirms a breakout setup I was already prepared for — never on impulse.
Gap Down Open:
Reassess the setup immediately. If the structure is still intact, I usually hold — especially if the move looks like part of a broader market shakeout.
Avoid panic exits right at the open — often the worst time to make a judgment.
But if a key level is breached and my stop is hit, I exit — no hesitation.
If the name stabilizes and reclaims structure later in the session, I’m always ready to reload with fresh context and tighter risk.
UNIVERSE
Universe List Criteria
Why I Only Trade the Top Liquid Leaders
In my system, I only trade the top liquid leaders — and I’m strict about it. During a strong market cycle, this universe typically narrows down to 30 to 40 names, and that’s more than enough. These are the stocks that consistently show leadership in price, volume, and structure — and that’s exactly where I want to be.
Liquidity is a critical filter. When a stock trades with high daily volume and strong dollar flow, it tells me that institutions are involved. That institutional support brings order to the price action — setups are cleaner, structure holds more often, and risk is easier to manage.
These names don’t just behave better — they also tend to deliver the largest percentage moves. That’s because real trends are built on sustained institutional accumulation. Leaders get stronger as they pull in capital and attention. They lead sectors, then indices, and often run much further than people expect. I want to be in those names early, and I want to manage them with size and clarity.
My Universe Filter
To stay focused, I use a scan inside TradersLab that filters for only the highest-quality names. These are the criteria that define my trading universe:
Goal: Find the top liquid leading stocks
Top RS Rank (Alex’s RS composite rating)
250mil$/daily liquidity
Minimum 1mil shares avrg. daily volume.
8% > ADR > 2.5%
Price > 10$
Market cap > 1bil$
Exclude China & HK
Exclude Biotech, Materials, Defensive, Energy, Utilities, Real Estate, Healthcare, Industrials
Earnings in 7+ days
ROUTINE
Focuslist
Each day, I build a Focuslist of ~5 names, ideally the night before when the market is closed and there’s no noise. Every name should have:
A clear entry alert
A well-defined structure-based stop
This keeps me selective and focused — I’m not trying to catch everything, just the best setups with real potential.
That said, I’m flexible. If the Focuslist isn’t performing — especially in a strong market — I’ll pull from my PB Scan in TradersLab, which captures names that meet my core setup criteria in real time.
If the list gets too crowded (more than 5 names), I filter using the following priorities:
Relative Strength: Both RS Rank and short-term (1M) RS
Sector/Theme Leadership: Strong setups within leading groups
Volume Profile in the Pullback: Lower volume = healthy digestion
Price Tightness: Compression often precedes expansion
Structure Distance: Closer to structure = more size
ADR: Higher ADR improves portfolio leverage and efficiency
The goal is to stay sharp and actionable. Fewer, higher-quality names. Clear plans. No guessing. Let the setups come to you.
Screentime
I aim to limit screentime to what actually matters. My edge is defined by where, how, and when I engage — not by constantly watching the tape.
The only times I want to be active during the session are:
The first hour, where setups may trigger or early strength confirms.
The final 30 minutes, when decisions are made: entries confirmed, trims executed, or risk adjusted.
Outside of those windows, I act only if:
An entry alert is triggered from my Focus List.
A stop-loss level is hit.
The rest of the time is intentionally quiet — less exposure to noise means better decision-making and less emotional fatigue.
Sleep
I target at least 7 hours of sleep every night. If I’m underslept or mentally off, I acknowledge it and scale back.
No aggressive trading if I’m tired — alertness is non-negotiable for execution and discipline.
Health
Minimum 3 hours of exercise per week, to maintain energy and focus.
No alcohol during the week, to preserve sleep quality and mental sharpness.
TRADE EXAMPLES
HOOD (5/5/2025)
PLTR (4/22/2025)
Pretty happy with how I traded PLTR around my core. It was my first position out of this correction, as it was sticking out like a sore thumb. Clear leader. I was able to put a good initial trade and holding only 1/3 into earnings after my extensions trim did put me in a good mental place to add back even more on the 21dma structure retest on 5/7.
Very happy how I identified the trade as top liquid leader, and trading around earnings on this pullback. Let's see where this one goes.
Last updated