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, breadth extensions, and the McClellan Summation Index (MCSI) to determine whether the market offers a favorable risk/reward window.
I focus on oversold breadth (ST/MT/LT) 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.
I avoid buying anything >1x ATR above the 21dma.
Everything revolves around structure, relative strength, and positioning context.
Concentration & Execution:
I typically trade 5–10 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., 2x ATR from 21dma, 5x ATR from 50dma) and on technical weakness (21dma 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.
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 into a rising 21dma — when the trend is strong and a pullback gives me a high R/R entry at structure.
Buying strength on the reclaim of a declining or curling-up 21dma — especially after a broader pullback. That reclaim often marks the start of a new wave.
Selling new exposure without cushion — positions added without prior trim or buffer get sold if price closes below the 21dma-structure. No hesitation. No ego. Just respecting structure.
The goal isn’t to predict — it’s to respond. Structure tells me when it’s safe. Price tells me when it’s time.
Breadth Extensions for Timing. MCSI for Confirmation.
In my process, price always leads. But once structure starts resetting, I turn to breadth extensions to time the opportunity, and to MCSI (McClellan Summation Index) to confirm that there’s real participation behind the move.
I use breadth extensions like a rubber band. When they stretch 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.
Here’s how I frame it:
Very short-term (VST): % of stocks above their 5dma
Short-term (ST): % above the 10 & 21dma
Mid-term (MT): % above the 50dma
Long-term (LT): % above the 200dma
When very short-term or short-term breadth drops below 25%, 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 VST 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 broader participation before committing size. Context always matters.
If very short-term or short-term breadth is oversold, and price retesting or reclaiming the 21-dma structure area, I prepare for pullback trades.
If mid or long-term breadth is washed out, I watch for deeper cycle reversals.
But timing isn’t enough — I need confirmation. That’s where MCSI comes in.
I look for MCSI to curl back up after a downtrend, ideally around the same time that price is reclaiming the 21dma. That’s not a go signal — that’s where I test the turn. Maybe I take some early positions, start building exposure, but stay measured.
If MCSI then reclaims its own 10dma, that’s the real shift. That’s the point where participation expands and I have confidence to press with size — not just react with feelers.
If MCSI flips down, especially after an extended run, 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 before I step back in.
The Flow
Breadth extensions oversold = 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.
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.
ENTRIES
21dma-structure Pullback
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.
Alex's scans (TradersLab)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.
Moving Averages (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.
21dma-structure TV script
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.
Most of my executions are done using market orders to prioritize speed and ensure I’m in the trade when conditions align.
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 use the 21dma-low EMA as my initial stop-loss reference when entering a trade.
Once in the trade, I trail the 21dma-low EMA as my stop, but allow intraday flexibility as long as price holds within the 21-day structure (above the 21 EMA low) by the end of day.
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 Rules
The core of my partial selling approach is to scale out in thirds: into strength near key ATR extensions and on technical weakness. While these rules provide structure, I stay flexible based on broader market extension and short- to long-term context.
1/3 Position: Into strength on a 21-day extension (2x ATR from 21-day moving average).
1/3 Position: At 50-day extension (5x ATR from 50-day moving average).
1/3 Position: On a break of the 21-day moving average structure.
I am flexible with those rules, I monitor the market short-term to long-term extensions to work around those rules if the market is extended and overbought.
I generally wait until the end of the day to execute trims, unless the stock is trading more than 1x ATR on the day, in which case I’ll look to trim intraday into that strength.
If a new position is not gaining traction while the market has already made a momentum push and is entering overbought territory, I won’t wait for my 21/50-day extension targets. I’ll look to trim into any short-term strength or exit flat/small loss. A stock that fails to push while the market is strong is showing early signs of relative weakness—it hasn’t earned the right to be held into extensions.
To help visualize this process, I’ve included the ATR Extensions indicator, which highlights key price extension levels based on average volatility. Here’s what each component means:
Grey dots = 2 x ATR from 21-day moving average
Pink lines = 5x ATR from 50-day moving average
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 (0.25% to 0.5% NER), often with 1-2 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)
500mil$/daily liquidity
Minimum 1mil shares avrg. daily volume.
7% > ADR > 2.5%
Price > 10$
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.
Veyr happy how I identified the trade as top liquid leader, and trading around earnings on this pullback. Let's see where this one goes.
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