Sentiment + Technical Combo

Entry Logic

• Long entry: A stock has been beaten down, and social media sentiment is extremely negative. Look for a bullish divergence on the RSI on the daily chart and enter on a breakout of a downtrend line.
• Short entry: A stock has been on a parabolic run, and social media sentiment is euphoric. Look for a bearish divergence on the RSI and enter on a break of a key support level.
• Confirmation: A spike in volume on the entry day.
• Timeframe: Daily chart.
• Location: At sentiment extremes.
• Market Condition: A market driven by retail sentiment.

Exit Logic

• Profit Target: A 50% retracement of the previous move.
• Scaling Out: Not recommended.
• Trailing Stop: Not recommended.
• Signal Failure: If the stock makes a new low (for longs) or a new high (for shorts).
• Opposite Signal: Not applicable.
• Time Expiration: Hold for several days to weeks.
• Momentum Loss: Not applicable.

Stop Loss Structure

• Hard Stop: A 10% stop loss.
• Soft Stop: If sentiment does not begin to shift.
• Max Dollar Loss: $500 per trade.
• Max Percent Loss: 2.5% of account.
• Structural Stop: Below the recent swing low (for longs) or above the recent swing high (for shorts).

Risk Management Framework

• Risk Per Trade: 2.5% of account.
• Daily Limit: Not applicable.
• Weekly Limit: Not applicable.
• Max Drawdown: 20%.
• R:R Requirement: Minimum 2:1.

Position Sizing Model

• Sizing Approach: Fixed fractional.
• Volatility Adjustment: The wide stop requires a smaller position size.
• Conviction Sizing: Not recommended.
• Scaling In: Not recommended.
• Scaling Out: Not recommended.

Trade Filtering

• Market Conditions: Only trade stocks that are heavily discussed on social media.
• Setups: Must have a clear sentiment extreme combined with a technical signal.
• Instruments: