Trading Insight #1

We run every style of short-term trade through a three-gate pre-flight before a single unit of capital is exposed.

Gate 1 · Structure (HTF clarity first)

• Higher-timeframe map (4H / D): Identify trend regime, key moving averages, and imbalance zones.
• Level stack: Pre-drawn swing highs/lows, session VWAP deviations, and reference opens.
• Liquidity picture: Seek resting stops or inefficiencies worth hunting—avoid vacuums with no incentive.

Gate 2 · Volatility (reward has to outrun risk)

• ATR-anchored sizing: Position size scales inversely with range—more volatility, less size.
• Minimum expected move: Target at least 1.5–3.0× the stop distance within a 72-hour window.
• Event filter: If the playbook does not explicitly handle a macro release, we stand down.

Operator reminder: Risk is a fixed budget. When volatility expands, we buy time and space, not more contracts.

Gate 3 · Alignment (confirm or pass)

• Momentum slope: RSI/MACD direction matches the idea and is not diverging.
• Session edge: Deploy when liquidity is cleanest for the instrument; skip off-hours noise.
• Tape feel: Spread, speed, and depth stay orderly. Thin books equal instant veto.

Risk Protocol that never flexes

• 2:1 minimum R:R locked in at entry.
• Stops to breakeven at TP1, then trail behind structural continuation.
• Max two concurrent themes so focus and execution stay sharp.

Execution hygiene

1. Document invalidation before the order is submitted.
2. Log every notable action with a timestamp and the reasoning (“because X, not despite Y”).
3. Weekly review separates setup quality from operator execution—only one variable changes at a time.

Precision beats prediction. Our job is to take good trades, not all trades.

Information current as of 2025-10-05.