Trade Management

Everything after entry and before exit.

Stop Loss

Hard stops will always be applied. There is no room for a trade with out some form of hard stop. Stops should not violate the risk management parameters and market volatility must be taken into consideration. If stops need to be a pushed farther out consider scaling down risk.

Location

On entry, the stop loss will be placed at the swing high of the rotation entered on.

Maximum stop size is 15T.

Balance In a rotational setup, the stop loss will never be moved.

Imbalance In a imbalanced/trend play, the stop can be moved to trail a position using the previous swing low to the current rotation or DVA H/L. Rhythm should allow for a reasonable rotation to still occur with out hitting the stop.

Reasons to Scratch

This should be a rare occurrence.

  • Order Execution Error

  • Realization post entry you do not have all the entry components required.

  • Rhythm dramatically and substantially shifts after entry. For example, you enter on a imbalance up move and it makes a small rotation up goes back to your entry and starts to compress and hold. Identification of a bearish flag on a long entry, etc.

  • Entry is too close to a high impact news event and you need to exit before the event.

If you find yourself scratching multiple trades in a row, consider that trade idea invalid and step away. Take a break.

Scale

Regardless of market condition, a scale is primarily based off the harmonic rotations/rhythm of the market at that specific time. If the markets rhythm is confluent with DVA then DVA should be used as a tool to scale using the directions below. However rhythm will take precedence over DVA looking to catch a baseline or larger rotation.

In that average rotation I will wait for the Heikin Ashi bars to start showing signs of rotation exhaustion.

Balance

In a rotational setup, your scale should be an other extreme of DVA. Most likely, the DVA H/L. Based on market energy/rhythm and momentum a scale can be taken in the VWAP area. The scale must be at least 1R.

Imbalance

In a trend play, you should aim to scale at the 1.5 or 2 standard deviations of VWAP. This is all dependent on rhythm respecting those rotations. Scale must be at least 1R. Single Lot Exception Imbalanced single lot play is to set stop at break even and run to the target. Exit can be taken at the 2 if rhythm in down rotations shift. (Sellers stop pushing)

Core

Balance

In a balanced market, you are looking for the market to complete its auction. The core positions will be held to that VAH or VAL. As we approach the core target if we begin to fall short of the target DVA and OF will be used to determine if it is a more viable option to take off the trade immediately or push for the final core target. For example, if we are in a RPB of VAL and we start to see massive rejection at the DVAH prior to the VAH target the core can be taken off or a second scale can occur.

Imbalance

In an imbalanced market the core take profit will be set at the next contextually driven upper location. (Ie. Prior CVA's TPOC) However, DVA will be used as the guiding principal to define when imbalance has ended. Once we start to see acceptance back into DVA we will define that imbalance state as ended and take off the core position.

Re-Entry

If you are stopped out of a trade and the setup re-qualifies you may take that trade again, it will be treated as a new trade and nothing from the prior trade is relevant. One trade qualification/idea can only be executed or attempted three times before re-entry is prohibited.