Ratio Spread Day Trade

Entry Logic

• Entry Trigger: Buy one call and sell two higher strike calls.
• Confirmation: Neutral to slightly bullish outlook.
• Timeframe: N/A.
• Location: N/A.
• Market Condition: Range-bound or slowly rising market.

Exit Logic

• Profit Target: 50% of the credit received.
• Scaling Out: N/A.
• Trailing Stop: N/A.
• Signal Failure: N/A.
• Opposite Signal: N/A.
• Time Expiration: Close by end of day.
• Momentum Loss: N/A.

Stop Loss Structure

• Hard Stop: N/A (undefined risk).
• Soft Stop: Exit if the underlying moves too fast.
• Max Dollar Loss: N/A.
• Max Percent Loss: N/A.
• Structural Stop: N/A.

Risk Management Framework

• Risk Per Trade: N/A.
• Daily Limit: N/A.
• Weekly Limit: N/A.
• Max Drawdown: N/A.
• R:R Requirement: N/A.

Position Sizing Model

• Sizing Approach: N/A.
• Volatility Adjustment: N/A.
• Conviction Sizing: N/A.
• Scaling In: N/A.
• Scaling Out: N/A.

Trade Filtering

• Market Conditions: Range-bound or slowly rising market.
• Setups: N/A.
• Instruments: Any.
• Time Restrictions: Any.
• Chop/News Avoidance: N/A.

Context Framework

• Trend Direction: Sideways or up.
• VWAP Relationship: N/A.
• MA Relationship: N/A.
• Range Location: N/A.
• Higher TF Alignment: N/A.

Trade Management Rules

• Breakeven: N/A.
• 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: N/A.
• A Criteria: N/A.
• B Criteria: N/A.
• C Criteria: N/A.

Market Selection Criteria

• Instruments: Any.
• Volume: High.
• Volatility: Low to moderate.

Statistical Edge Metrics

• Win Rate: N/A.
• Avg Win: N/A.
• Avg Loss: N/A.
• Profit Factor: N/A.
• Expectancy: N/A.

Failure Conditions

• Strategy Fails: In a strong uptrend.
• Specific Scenarios: A massive breakout to the upside.

Psychological Rules

• Mental Discipline: Be comfortable with undefined risk.

Advanced Components

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

Location

• Strongest: In a range-bound market.
• Weakest: In a strong uptrend.