All-Time High Breakout

Entry Logic

Enter on a close above the all-time high (ATH). Confirm with above-average volume. Use a 5-minute timeframe. The ATH must be a clear resistance level. Market condition: strong uptrend.

Exit Logic

Target 1: 1.5R. Target 2: 2.5R. Scale out 50% at Target 1. Trail remaining position with a 10-period EMA. Exit entire position if price closes below 10-period EMA. Exit entire position after 60 minutes if no significant momentum.

Stop Loss Structure

Place hard stop 0.5% below the breakout candle's low. Max dollar loss: $200. Max percent loss: 0.75%. Structural stop: below the prior swing low.

Risk Management Framework

Risk 1% of capital per trade. Daily loss limit: 3%. Weekly loss limit: 7%. Max drawdown: 10%. R:R requirement: minimum 1.5:1.

Position Sizing Model

Size based on 1% risk of capital. Adjust for volatility using Average True Range (ATR). Higher conviction trades increase size by 0.5R. Scale in on pullbacks to the ATH retest, if confirmed.

Trade Filtering

Only trade stocks with clear ATH resistance. Avoid choppy markets. Do not trade during major news releases. Focus on instruments with high relative strength.

Context Framework

Confirm daily and weekly trend is up. Price must be above VWAP. Price must be above 20-period and 50-period moving averages. Breakout must occur from a range near the ATH.

Trade Management Rules

Move stop to breakeven after 1R profit. Scale out 50% at 1.5R. Add size on confirmed retest of ATH, if momentum persists. Manage fast moves with immediate partial profits.

Time Rules

Optimal entry window: 9:30 AM - 11:00 AM EST. Avoid entries after 2:00 PM EST. Session notes: increased volatility in morning session.

Setup Classification

A+: Clean ATH, high volume breakout, strong market. A: Clean ATH, good volume breakout, stable market. B: ATH breakout, average volume, moderate market. C: Weak ATH, low volume, volatile market.

Market Selection Criteria

Trade NYSE/NASDAQ listed stocks. Volume above 1 million shares daily. Average daily range above 2%. Avoid illiquid instruments.

Statistical Edge Metrics

Expected win rate: 55%. Average win: 1.8R. Average loss: 0.8R. Profit factor: 1.5. Expectancy: 0.25R.

Failure Conditions

Strategy fails if the market enters a strong downtrend. Strategy fails if breakouts consistently fake out. Strategy fails if volume is consistently low.

Psychological Rules

Maintain discipline. Follow the plan. Avoid emotional decisions. Accept losses. Focus on process.

Advanced Components

Regime detection: only trade in bullish regimes. Filters: relative strength filter. Correlation: avoid highly correlated assets. MTF alignment: daily and weekly charts must support bullish sentiment.

Location

Strongest: strong bull markets. Weakest: bear markets or sideways consolidations.