Elder Ray Bull/Bear Power

Entry Logic

• Exact Entry Trigger: For a long entry, Bull Power must be positive, and Bear Power must be negative but rising. Enter when Bear Power crosses above the zero line.
• Confirmation: The 13-period EMA must be rising.
• Timeframe: Daily.
• Market Condition: Uptrend.

Exit Logic

• Profit Targets: Exit when Bull Power makes a new high and then turns down.

Stop Loss Structure

• Hard Stop: Place stop below the most recent swing low.

Risk Management Framework

• Risk Per Trade: 1.5% of account capital.

Position Sizing Model

• Sizing Approach: Fixed fractional.

Trade Filtering

• Market Conditions to Avoid: Downtrends.

Context Framework

• Trend Direction: Only take long signals when the 13-period EMA is in a clear uptrend.

Trade Management Rules

• Breakeven: Move stop to breakeven after a 1R move.

Time Rules

• Session Notes: A swing trading system.

Setup Classification

• A+ Setup: The entry signal occurs with a bullish divergence on Bear Power (price makes a lower low, but Bear Power makes a higher low).

Market Selection Criteria

• Instruments: Liquid stocks and indices.

Statistical Edge Metrics

• Win Rate: 55-65%.
• Profit Factor: 1.8.
• Expectancy: 0.4R.

Failure Conditions

• Strategy Fails: If used against the primary trend.

Psychological Rules

• Discipline: Patience to wait for all conditions to align.

Advanced Components

• Filters: Use the weekly chart to confirm the primary trend direction.

Location

• Strongest: As a confirmation for buying pullbacks in a strong uptrend.