Dark Pool Print Trade

Entry Logic

• Entry is a long position when a large dark pool print is reported below the current market price, indicating institutional buying.
• Confirmation is the price starting to move up from the dark pool print level.
• Timeframe is the daily chart.
• Location is at the dark pool print level.
• Market is in a long-term uptrend or a consolidation.

Exit Logic

• Profit target is a measured move from the dark pool print level.
• Do not scale out.
• Trail the stop loss below the low of the last 5 bars.
• Exit if a large dark pool print is reported above the current market price.
• Exit on a bearish reversal pattern.
• Exit if the price does not move up within a few weeks.
• Exit if the dark pool print level is broken to the downside.

Stop Loss Structure

• Hard stop is placed below the dark pool print level.
• Soft stop is a close below the dark pool print level.
• Maximum dollar loss is $2000 per trade.
• Maximum percent loss is 10% of the account.
• Structural stop is below the dark pool print level.

Risk Management Framework

• Risk 5% of the account per trade.
• Daily loss limit is not applicable for this swing trading strategy.
• Weekly loss limit is not applicable.
• Maximum drawdown is 40%.
• Risk-reward ratio must be at least 1:2.

Position Sizing Model

• Use a fixed fractional position sizing model.
• No volatility adjustment.
• Full size for all setups.
• Do not scale in or out.

Trade Filtering

• Avoid trading in long-term downtrends.
• Only trade when there is a clear dark pool print.
• Trade only large-cap stocks.
• Avoid trading during earnings season.
• Do not trade in illiquid stocks.

Context Framework

• Trend is up or sideways on the weekly and monthly charts.
• Price is consolidating near a key support level.
• Price is often below the 200-day moving average.
• Location is at the dark pool print level.
• The higher timeframe chart (weekly) shows a potential bottoming pattern.

Trade Management Rules

• Move stop to breakeven when the price reaches a 1:1 risk-reward ratio.
• Do not scale out.
• Do not add to the position.
• Be patient and let the trade develop over several weeks or months.

Time Rules

• This is a long-term investment strategy, so time of day is not relevant.
• Avoid holding positions over major holidays.
• The strategy works best in markets that are not in a panic mode.

Setup Classification

• A+ setup: Large dark pool print in a well-known stock at a historical support level.
• A setup: Dark pool print in a mid-cap stock.
• B setup: Dark pool print in a small-cap stock.
• C setup: No clear dark pool print.

Market Selection Criteria

• Trade large-cap stocks like AAPL, MSFT, and GOOG.
• High liquidity is essential.
• Low volatility is preferred during the accumulation phase.

Statistical Edge Metrics

• Expected win rate is 80%.
• Average win is 4R.
• Average loss is 1R.
• Profit factor is 3.2.
• Expectancy per trade is 3.2R.

Failure Conditions

• The strategy fails if the dark pool print is a false signal.
• Avoid trading when the overall market is in a strong downtrend.

Psychological Rules

• Be patient and have a long-term mindset.
• Do not be shaken out by short-term fluctuations.

Advanced Components

• Use a dark pool print data feed to get the information.
• Use a filter to identify stocks with institutional ownership.
• Do not trade correlated stocks in the same sector.
• The weekly chart should confirm the bottoming pattern.

Location

• Strongest at historical support levels.
• Weakest in the middle of a trading range.
• The location of the dark pool print is a key factor.