Synthetic Short Day Trade

Entry Logic

• Entry Trigger: Sell a call and buy a put at the same strike price.
• Confirmation: Bearish outlook on the underlying.
• Timeframe: 5-minute chart.
• Location: N/A.
• Market Condition: Downtrend.

Exit Logic

• Profit Target: 30% gain.
• Scaling Out: N/A.
• Trailing Stop: 15% trailing stop.
• Signal Failure: N/A.
• Opposite Signal: N/A.
• Time Expiration: Close by end of day.
• Momentum Loss: N/A.

Stop Loss Structure

• Hard Stop: 15% loss.
• Soft Stop: N/A.
• Max Dollar Loss: $150 per trade.
• Max Percent Loss: 15% of the premium.
• Structural Stop: N/A.

Risk Management Framework

• Risk Per Trade: 1% of account balance.
• Daily Limit: 3 losing trades.
• Weekly Limit: 5% drawdown.
• Max Drawdown: 15% of account balance.
• R:R Requirement: Minimum 2:1.

Position Sizing Model

• Sizing Approach: Fixed dollar amount per trade.
• Volatility Adjustment: N/A.
• Conviction Sizing: N/A.
• Scaling In: N/A.
• Scaling Out: N/A.

Trade Filtering

• Market Conditions: Downtrend.
• Setups: Bearish.
• Instruments: Any.
• Time Restrictions: Any.
• Chop/News Avoidance: N/A.

Context Framework

• Trend Direction: Down.
• VWAP Relationship: Below VWAP.
• MA Relationship: Below the 9 and 21 EMAs.
• Range Location: N/A.
• Higher TF Alignment: N/A.

Trade Management Rules

• Breakeven: Move stop to breakeven after 15% gain.
• Scale Out: N/A.
• Add Size: N/A.
• Fast vs Slow Moves: N/A.

Time Rules

• Optimal Window: Any.
• Times to Avoid: N/A.
• Session Notes: N/A.

Setup Classification

• A+ Criteria: Strong downtrend with technical confirmation.
• A Criteria: Downtrend.
• B Criteria: Weak downtrend.
• C Criteria: Avoid.

Market Selection Criteria

• Instruments: Any.
• Volume: High.
• Volatility: Any.

Statistical Edge Metrics

• Win Rate: 50%.
• Avg Win: 30%.
• Avg Loss: 15%.
• Profit Factor: 1.0.
• Expectancy: Neutral.

Failure Conditions

• Strategy Fails: In an uptrend.
• Specific Scenarios: A sudden reversal.

Psychological Rules

• Mental Discipline: Be bearish.

Advanced Components

• Regime Detection: N/A.
• Filters: N/A.
• Correlation: N/A.
• MTF Alignment: N/A.

Location

• Strongest: In a strong downtrend.
• Weakest: In an uptrend.