Sweep Detection Trade

Entry Logic

• Entry is a long position when a large sweep order is detected, indicating an urgent buyer.
• Confirmation is the price moving in the direction of the sweep.
• Timeframe is the 1-minute chart.
• Location can be anywhere, but preferably at a breakout level.
• Market is in a volatile state.

Exit Logic

• Profit target is a quick scalp for a few ticks or points.
• Do not scale out.
• Use a time-based stop of 2 minutes.
• Exit if the price reverses.
• Exit on a bearish candle.
• Exit if momentum stalls.

Stop Loss Structure

• Hard stop is placed 5 ticks below the entry price.
• Soft stop is a mental stop if the momentum dies.
• Maximum dollar loss is $50 per trade.
• Maximum percent loss is 0.5% of the account.
• Structural stop is not applicable for this strategy.

Risk Management Framework

• Risk 0.25% of the account per trade.
• Daily loss limit is 1% of the account.
• Weekly loss limit is 3% of the account.
• Maximum drawdown is 10%.
• Risk-reward ratio is not the primary concern; speed is.

Position Sizing Model

• Use a fixed lot size.
• No volatility adjustment.
• Same size for all setups.
• Do not scale in or out.

Trade Filtering

• Avoid trading in slow markets.
• Only trade when there is high volatility.
• Trade only highly liquid instruments.
• Trade only during the first hour of the market open.
• Do not trade in choppy markets.

Context Framework

• Trend is not a major factor.
• Price is moving fast.
• The market is in a state of high activity.
• Location is at a breakout level.
• The higher timeframe chart is not relevant for this strategy.

Trade Management Rules

• Take profits quickly.
• Do not hold the trade for more than a few minutes.
• Do not add to the position.
• Get out if the trade is not working immediately.

Time Rules

• Optimal trading window is from 9:30 AM to 10:00 AM EST.
• Avoid trading after the first hour.
• The strategy is designed for the opening volatility.

Setup Classification

• A+ setup: Large sweep at a key breakout level.
• A setup: Moderate sweep.
• B setup: Small sweep.
• C setup: No clear sweep.

Market Selection Criteria

• Trade ES, NQ, and RTY futures.
• High liquidity is essential.
• High volatility is required.

Statistical Edge Metrics

• Expected win rate is 60%.
• Average win is 1R.
• Average loss is 1R.
• Profit factor is 0.6.
• Expectancy per trade is -0.4R.

Failure Conditions

• The strategy fails if the sweep is a fakeout.
• Avoid trading when the market is quiet.

Psychological Rules

• Be extremely quick and decisive.
• Do not hesitate to take the trade or the exit.

Advanced Components

• Use a sweep detection tool.
• Use a filter to measure the size of the sweep.
• Do not trade correlated instruments at the same time.
• The 1-minute chart is the only relevant timeframe.

Location

• Strongest at breakout levels.
• Weakest in the middle of a range.
• The location of the sweep is important for the follow-through.