Volume Oscillator Trade

Entry Logic

• Enter long when the Volume Oscillator crosses above the zero line.
• Confirmation: The price must be in an uptrend.
• Timeframe: 60-minute chart.
• Location: In an uptrend.
• Market Condition: A trending market.

Exit Logic

• Profit Target: 2R.
• Scaling Out: Not recommended.
• Trailing Stop: The 20-period EMA.
• Signal Failure: The Volume Oscillator crosses back below the zero line.
• Opposite Signal: A bearish reversal candle with high volume.
• Time Expiration: End of the day.
• Momentum Loss: A failure to make a new high.

Stop Loss Structure

• Hard Stop: Below the low of the entry candle.
• Soft Stop: A close below the 20-period EMA.
• Max Dollar Loss: $90 per trade.
• Max Percent Loss: 0.9% of account.
• Structural Stop: Below the most recent swing low.

Risk Management Framework

• Risk Per Trade: 0.45% of account.
• Daily Limit: 3 losing trades.
• Weekly Limit: 4% drawdown.
• Max Drawdown: 12%.
• R:R Requirement: Minimum 2:1.

Position Sizing Model

• Sizing Approach: Fixed fractional.
• Volatility Adjustment: No adjustment needed.
• Conviction Sizing: Full size on A+ setups.
• Scaling In: Not recommended.
• Scaling Out: Not recommended.

Trade Filtering

• Market Conditions: Only trade in trending markets.
• Setups: Look for Volume Oscillator crossovers.
• Instruments: High-volume stocks.
• Time Restrictions: No restrictions.
• Chop/News Avoidance: Avoid trading around news.

Context Framework

• Trend Direction: Must be in a clear uptrend.
• VWAP Relationship: Price should be above VWAP.
• MA Relationship: Price should be above the 50-period SMA.
• Range Location: Not applicable.
• Higher TF Alignment: The daily chart should be in an uptrend.

Trade Management Rules

• Breakeven: Move stop to breakeven after a 1R move.
• Scale Out: Not recommended.
• Add Size: Not recommended.
• Fast vs Slow Moves: Let fast moves run.

Time Rules

• Optimal Window: Any time during the day.
• Times to Avoid: None.
• Session Notes: Works well in all sessions.

Setup Classification

• A+ Setup: A Volume Oscillator crossover in a strong uptrend.
• A Setup: A Volume Oscillator crossover in a good uptrend.
• B Setup: A Volume Oscillator crossover in a weak uptrend.
• C Setup: Avoid weak setups.

Market Selection Criteria

• Instruments: Stocks with a daily volume of over 1 million shares.
• Volume: High volume.
• Volatility: Moderate volatility.

Statistical Edge Metrics

• Win Rate: 50%.
• Avg Win: 2R.
• Avg Loss: 1R.
• Profit Factor: 1.0.
• Expectancy: 0.0R per trade.

Failure Conditions

• The strategy fails in choppy, sideways markets.
• Avoid trading if the trend is not clear.

Psychological Rules

• Be patient and wait for the right setup.
• Do not force trades.

Advanced Components

• Regime Detection: Use a trend filter.
• Filters: Use the Volume Oscillator as a filter.
• Correlation: Avoid correlated instruments.
• MTF Alignment: Ensure higher timeframe alignment.

Location

• Strongest: In a strong trend.
• Weakest: In a choppy market.