Institutional Volume Detection

Entry Logic

• Enter long after a large block trade is executed on the bid side.
• Confirmation: The price must hold above the block trade price.
• Timeframe: 1-minute chart with time and sales data.
• Location: Near the block trade price.
• Market Condition: Any market condition.

Exit Logic

• Profit Target: 1R.
• Scaling Out: Not recommended.
• Trailing Stop: A close below the block trade price.
• Signal Failure: A close below the block trade price.
• Opposite Signal: A large block trade on the ask side.
• Time Expiration: 15 minutes.
• Momentum Loss: A failure to move away from the block trade price.

Stop Loss Structure

• Hard Stop: Below the block trade price.
• Soft Stop: A close below the block trade price.
• Max Dollar Loss: $50 per trade.
• Max Percent Loss: 0.5% of account.
• Structural Stop: Below the block trade price.

Risk Management Framework

• Risk Per Trade: 0.25% of account.
• Daily Limit: 5 losing trades.
• Weekly Limit: 5% drawdown.
• Max Drawdown: 15%.
• R:R Requirement: Minimum 1:1.

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: Any market condition.
• Setups: Look for large block trades.
• Instruments: High-volume stocks.
• Time Restrictions: No restrictions.
• Chop/News Avoidance: Avoid trading around news.

Context Framework

• Trend Direction: Not applicable.
• VWAP Relationship: Not applicable.
• MA Relationship: Not applicable.
• Range Location: Near the block trade price.
• Higher TF Alignment: Not applicable.

Trade Management Rules

• Breakeven: Not applicable.
• Scale Out: Not applicable.
• Add Size: Not recommended.
• Fast vs Slow Moves: Take profits quickly.

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 very large block trade with a clear price reaction.
• A Setup: A large block trade with a good price reaction.
• B Setup: A questionable block trade or price reaction.
• C Setup: Avoid weak setups.

Market Selection Criteria

• Instruments: High-volume stocks.
• Volume: High volume.
• Volatility: Any volatility.

Statistical Edge Metrics

• Win Rate: 65%.
• Avg Win: 1R.
• Avg Loss: 1R.
• Profit Factor: 0.65.
• Expectancy: -0.35R per trade.

Failure Conditions

• The strategy fails if the block trade is not significant.
• Avoid trading if the price does not react to the block trade.

Psychological Rules

• Be quick to take profits and cut losses.
• Do not get attached to any single trade.

Advanced Components

• Regime Detection: Not applicable.
• Filters: Use a time and sales filter.
• Correlation: Avoid correlated instruments.
• MTF Alignment: Not applicable.

Location

• Strongest: At key support and resistance levels.
• Weakest: In the middle of a range.