Dark Pool Print Reaction Scalp

Entry Logic

• Exact entry trigger: A large dark pool print is reported, and the price starts to move in the direction of the print.
• Confirmation requirements: The move is accompanied by an increase in volume on the lit exchanges.
• Timeframe required: 5-minute chart.
• Location context: N/A.
• Market condition requirement: Any market condition.

Exit Logic

• Profit target(s): 20-30 cents in the direction of the print.
• Scaling out rules: No scaling out.
• Trailing stop rules: No trailing stop.
• Exit on signal failure: If the price does not move in the direction of the print, exit the trade.
• Exit on opposite signal: If a larger print is reported on the other side, exit the trade.
• Exit on time expiration: Exit the trade after 30 minutes, regardless of the outcome.
• Exit on momentum loss: If the volume dries up, exit the trade.

Stop Loss Structure

• Hard stop location: 10 cents against the direction of the print.
• Soft stop rules: None.
• Maximum dollar loss per trade: $100.
• Maximum percent loss per trade: 1% of the account.
• Structural stop placement: N/A.

Risk Management Framework

• Risk per trade: 0.5% of the account.
• Maximum daily loss limit: 2 consecutive losing trades.
• Maximum weekly loss limit: 3% of the account.
• Maximum drawdown allowed: 5% of the account.
• Risk-reward ratio requirement: 2:1.

Position Sizing Model

• Recommended sizing approach: Fixed share size.
• Volatility-based adjustment: N/A.
• Conviction-based sizing (A+/A/B setup): N/A.
• Scaling in rules: No scaling in.
• Scaling out rules: No scaling out.

Trade Filtering

• Market conditions to avoid: N/A.
• Specific setups required: A large dark pool print.
• Stock/instrument requirements: Any stock.
• Time of day restrictions: N/A.
• Chop/news avoidance rules: Avoid trading around major news events.

Context Framework

• Trend direction assessment: N/A.
• VWAP relationship: N/A.
• Moving average relationship: N/A.
• Range location: N/A.
• Higher timeframe alignment: N/A.

Trade Management Rules

• When to move stop to breakeven: After the price has moved 15 cents in your favor.
• When to scale out: No scaling out.
• When to add size: No adding size.
• How to handle fast moves vs slow moves: In fast moves, take profits at pre-defined targets. In slow moves, be patient and let the trade work.

Time Rules

• Optimal trading window: N/A.
• Times to avoid: N/A.
• Session-specific notes: This strategy can be used at any time of the day.

Setup Classification

• A+ setup criteria: All entry criteria are met.
• A setup criteria: N/A.
• B setup criteria: N/A.
• C setup criteria: The print is not significant.

Market Selection Criteria

• Instrument requirements: Any stock.
• Volume/liquidity requirements: The stock must have sufficient liquidity to enter and exit the trade easily.
• Volatility requirements: N/A.

Statistical Edge Metrics

• Expected win rate: 60%.
• Average win size: $0.30.
• Average loss size: $0.15.
• Profit factor: 1.2.
• Expectancy per trade: $0.03.

Failure Conditions

• Market conditions where strategy fails: N/A.
• Specific scenarios to avoid: Trading against a strong trend.

Psychological Rules

• Key mental discipline requirements: The ability to interpret dark pool prints.

Advanced Components

• Market regime detection: N/A.
• Volatility/liquidity filters: N/A.
• Correlation filters: N/A.
• Multi-timeframe alignment: N/A.

Location

• Where this setup is strongest: When the print is in the direction of the prevailing trend.
• Where this setup is weakest: When the print is against the prevailing trend.
• Location changes outcome: N/A.