Tr

adeBookSt
rat
egi
es
CHEATSHEET

Br
eakofHi
ghofDaySt
rat
egy
5-
Minut
eOpeni
ngRangeBr
eakout
 Br
eakofHi
ghofDay
NAMEOFTHESTRATEGY:HI
GH-
OF-
DAY(
HOD)BREAK
Fort
radi
ngs
oft
war
e,Ius
eDASTr
aderPr
o.DAShast
hreekeyadv
ant
ages
:Si
mpl
ici
ty,
Cus
tomi
zat
ion,
andLowLat
ency
.Ihav
eus
edmul
ti
plet
radi
ngpl
atf
ormsandDASi
sby
f
art
hemos
tsi
mpl
e.I
thasal
lthemos
tpopul
arf
eat
uresr
equi
red bys
eri
ousday
t
rader
s,and al
l wi
thout any unneces
sar
yfunct
ional
it
y.I
tis al
so ext
remel
y
TECHNOLOGY cus
tomi
zabl
e and l
it
eral
ly al
lowsyou t
osi
ze and pos
iti
on ev
ery wi
ndow i
n any
moni
torl
ocat
ion.And,mos
timpor
tant
ly,DASof
fer
sext
remel
ylow-
lat
encyquot
es
andor
der
sduet
othei
rdi
rectmar
ketacces
s.Forhar
dwar
e,Iut
il
izeanOr
bit
alTr
ader
000des
X1 ktopandt
hree24”moni
tor
spl
acedhor
izont
all
yands
idebys
ide.

Des
cri
pti
onoft
heSt
rat
egy:
Exact
lyasi
tsounds
,theHODBr
eakSt
rat
egys
eekst
otake
adv
ant
ageofv
olumedr
ivenpr
icemov
ementi
ntoapr
icer
angeabov
ethei
ntr
aday
hi
gh(
thehi
ghs
ets
incet
hes
tar
tofr
egul
art
radi
nghour
s,9:
30AM ET)
.TheHODf
ora
s
tocki
sacont
ent
iousl
evelwhi
chi
scl
osel
ymoni
tor
edbymanyt
rader
s.Ther
efor
e,
STRATEGY pr
iceact
ionatt
heHODi
sof
tenv
olat
il
eandcanbebot
hanar
eaofr
api
dcont
inuat
ion
orr
ever
sal
.Howev
er,wi
thpr
opert
radeexecut
ionandr
iskmanagement
,itcanyi
eld
r
eli
abl
ypos
iti
ver
esul
tsThi
. sst
rat
egys
houl
dnotbeus
edi
nthef
irs
t10mi
nut
esoft
he
t
radi
ngday
,buti
tisval
idf
ort
her
estoft
heday
.

St
ockSel
ect
ionPr
oces
s:Ipr
efert
otr
adeexpens
ives
tocks
,gener
all
yabov
e$1
00i
n
pr
ice.Ther
eas
onf
ort
hisi
sthatIf
indt
heLev
el2f
ort
hes
est
ockst
obes
impl
erand
eas
iert
oint
erpr
et.
Expens
ives
tockst
endt
ohav
elar
geras
ksont
heLev
el2,
mos
tlyat
hal
f-dol
larl
evel
s,andes
peci
all
yatdol
larl
evel
s.Thes
elar
geas
ksal
soof
tenpr
ovi
de
ar
easofr
esi
stanceandar
egoodpl
acest
oincr
ement
all
ysel
lof
f(par
tial
)thepos
iti
on.
Les
sexpens
ives
tockst
endt
ohav
elar
geas
ksal
lov
ert
hepr
icer
angeandi
trequi
resa
l
otmor
econcent
rat
iont
odet
ermi
nehow f
art
hepr
icecanr
un.
 

Ri
skManagement
:Ius
ethe“
R”met
hodf
orr
iskmanagement
,wher
einIr
iskt
hes
ame
amountofmoneyon ev
erys
ingl
etr
ade.Thus
,anyt
radet
hats
topsoutcompl
etel
y
r
esul
tsi
nthel
ossoft
hes
ameamountofmoney
,whati
sref
err
edt
oas1
R.Li
kewi
se,a
s
ader

t
radet
hatmakest
wicet
heamountofmoneyIr
iskedi
sknownasa2Rt
rade.
Howev
er,
lTr

myr
iskmanagements
trat
egyi
sabi
tuni
quei
nthatIdonots
tayi
nat
radef
orei
ther
ght2021-BearBul

s
omepr
edet
ermi
nedRpr
ofi
tora1
Rlos
s.TheHODBr
eakSt
rat
egyr
eli
esonv
olumeand
moment
um and,
ifi
twor
ks,
its
houl
dwor
kqui
ckl
y.So,
wheni
tdoesnotwor
kqui
ckl
y,I
am of
tenexi
ti
ngt
het
radewi
thas
mal
llos
s(e.
g.
,0.
2R)orper
hapsev
enas
mal
lgai
n.The
1
Rlos
sesr
esul
twhent
het
radev
iol
ent
lyr
eject
stheHODandIam s
toppedouti
nthr
ee
i
Copyr

1
-mi
nut
ecandl
esorl
ess
.Thi
shappensonabout1
0% oft
heHODBr
eakt
rades
.Ical
lmy
1
Rst
opt
he“
fai
l-
saf
est
op”
. 
1
/4
 Ent
ryManagement
:Theent
rymet
hodol
ogyf
ort
hiss
trat
egyhast
hreeopt
ionsandal
lof
t
hem ar
eval
idundert
heappr
opr
iat
econdi
ti
ons
:Ent
erbel
owHOD,
Ent
eratHOD,
Ent
er
abov
eHOD.Ent
eri
ngbel
ow t
heHOD i
sappr
opr
iat
eear
lyi
nthemor
ning(
i.
e.,1
0-1
5
mi
nut
esaf
tert
heOpenorwhens
urgi
ngv
olumeandas
trongupwar
dpr
icemov
ement
i
soccur
ring)
.Nev
ert
hel
ess
,ev
enwi
ths
urgi
ngv
olume,
iti
sbes
ttoent
ernof
urt
hert
han
$0.
10bel
ow t
heHOD.
Ent
eri
ngatt
heHODi
sres
erv
edf
orones
peci
alcondi
ti
on:
when
t
heHODi
satanexactdol
larl
evel(
e.g.
,$220.
00)
.Int
hiscas
e,t
her
eisof
tenal
argeas
k
att
hedol
larl
evel
.Thegoali
stogetanent
ryaspar
toft
hatas
kasi
tbegi
nst
oget
“
boughtup”
.Conf
ir
mat
ionofbuyi
ngcanbeobs
erv
ed ont
heLev
el2.I
nmos
tot
her
cas
es,i
tiswi
set
otakeanent
ryj
ustabov
etheHOD.Agoodmet
hodi
stol
ett
hebi
d
br
eakt
heHOD andt
hent
akeanent
ry.Thi
sshowst
hatt
her
eisabuyerwi
ll
ingt
opay
mor
ethanany
oneel
sehaspai
dal
lday
. 
  
 
g1
Fi :Tr sl
deasGapper
adeI s
it

Tr
adeManagement
:Asment
ionedabov
e,t
hiss
trat
egys
houl
dwor
k“qui
ckl
y”andy
ou
s
houl
dbewi
ll
ingt
oexi
ttr
adesatornearbr
eak-
even.Thi
sist
ime-
of-
daydependent
.
Gener
all
yspeaki
ng,anHOD Br
eakt
radet
hati
snotwor
kingout1
0mi
nut
esaf
tert
he
Opens
houl
dbeexi
tedwi
thi
n1mi
nut
e.I
ntheaf
ter
nooni
tispos
sibl
etowai
tasl
ongas
5mi
nut
es,
butl
ongert
hant
hati
snotr
ecommended.
Ius
eanaggr
ess
ive50% par
tial
ing
met
hodol
ogy becaus
eso many HOD Br
eak t
radespop and t
hen come back t
o
br
eak-
even.Wi
tht
hes
eexpens
ives
tocks
,myf
ir
st50% par
tiali
snear1
R,orneara$1
mov
einpr
ice.It
hen50% of
fateachaddi
ti
onalnear$1mov
e.Howev
er,mor
evol
ati
le
s
tockscanbehel
dfor$2mov
es(
ormor
e)bet
weenpar
tial
s.
s
ader

Thebi
gges
tps
ychol
ogi
caladv
ant
ageIhav
eiss
trat
egyf
ocus
.95% ofmyt
radesar
e
lTr
ght2021-BearBul

HOD Br
eaks
.Oneoft
hebenef
itsoft
radi
ngal
mos
tent
irel
yones
trat
egyi
sfor
ced
pat
ience.A common pr
obl
em among new t
rader
sisov
ert
radi
ng.The mar
keti
s
PSYCHOLOGY
cons
tant
lymov
ing,appear
ingt
o of
feroppor
tuni
ty,and i
nexper
ienced t
rader
sar
e
of
tendr
awni
ntot
radest
hathav
enopr
obabi
li
sti
cadv
ant
age.
Rigor
ouss
trat
egyf
ocus
(
what
everyours
trat
egyi
s)mi
ti
gat
est
hisdanger
.Youneedt
ofocusonwhatyoudo
i
Copyr

bes
tandpat
ient
lywai
tfort
hev
erybes
toppor
tuni
ti
es.
2/
4
 5-Minut
eOpening
RangeBreakout
NAMEOFTHESTRATEGY:5MI
NUTEOPENI
NGRANGEBREAKOUT

Des
cri
pti
onoft
heSt
rat
egy:The5-
Minut
eOpeni
ngRangeBr
eakoutSt
rat
egys
tar
ts5
mi
nut
esaf
tert
hemar
ketOpen.Thef
irs
t5-
minut
ecandl
ecr
eat
est
her
angewhi
chi
s
def
inedbyt
hehi
ghandt
hel
ow oft
hecandl
e.Oncet
her
angei
sdef
ined,yous
houl
d
bel
ooki
ngf
orabr
eakoft
her
anget
owar
dthet
op orbot
tom i
n or
dert
o ent
era
STRATEGY pos
iti
oni
nthedi
rect
ionoft
hebr
eakout
.

Keepi
nmi
ndt
hatt
hebr
eakoutcanoccuraf
ew mi
nut
esaf
tert
her
angehasbeen
def
ined.
Itwi
llnotal
wayshappeni
mmedi
atel
y.Thepr
iceact
ionmi
ghtpul
lbacki
nthe
1
-mi
nut
ecandl
esbef
oret
hebr
eakoutt
akespl
ace.

St
ockSel
ect
ionPr
oces
s:St
ockst
hathavehi
ghvol
umeandhavegappedupordown
ar
egr
eatcandi
dat
esf
ort
he5-
minut
eOpeni
ngRangeBr
eakoutSt
rat
egy
.You can
al
sol
ookats
tockswi
thas
trongcat
alys
t.I
tisi
mpor
tantt
ogetacont
inuat
ionaf
ter
t
he br
eakout t
akes pl
ace.St
ocks i
n Pl
ay can cr
eat
e gr
eat oppor
tuni
ti
es f
or
br
eakout
s.

Fi
g3:Tr
adeI
deasConf
igWi
ndow
lTr
ght2021-BearBul s
ader

Fi
g2:Tr
adeI
deasGapper
sli
st
i
Copyr

3/
4
 I
ndi
cat
or(
s):The mai
nindi
cat
orf
ort
hiss
trat
egyi
sVWAP.VWAP i
scr
iti
calt
othe
Openi
ng Range Br
eakoutSt
rat
egy asi
tal
lowsyou t
o det
ermi
ne i
fthe s
tock i
s
ext
endedandt
husnotagoodf
itf
oranOpeni
ngRangeBr
eakout
.Youcanal
sous
e
VWAP t
o acces
sa pul
lback t
hati
spr
ovi
ding a bet
terent
ry oppor
tuni
tyf
oran
ant
ici
pat
edbr
eakoutoft
her
ange.

r
EntySi
gnal
:Af
tert
her
angei
scr
eat
ed,t
hes
ignalf
orent
ryi
sthebr
eakoft
her
ange.
Ent
ert
het
radei
nthedi
rect
ionoft
hebr
eak(
topors
hor
t).I
fyougetapul
lback,you
canal
soent
ert
het
radeonapul
lbackt
oat
echni
call
evell
ikeVWAP.

St
op Los
s:The s
top l
osswi
llbe t
he l
ossorbr
eak ofVWAP.The Openi
ng Range
Br
eakoutSt
rat
egywi
llhav
eat
ights
topasyous
houl
dnotbet
ooext
endedf
rom VWAP
whenyouent
ert
het
rade.I
fyouent
eratVWAPonapul
lback,t
hent
hes
topl
osswi
ll
ei
therbet
henextt
echni
call
evelors
light
lybel
ow orabov
eVWAP.

Tar
get
:Thet
argeti
sthenextt
echni
call
evel
.Thi
scanbemov
ingav
erages
,pr
evi
ousday
c
los
e,ort
hehi
ghandl
owf
rom ei
theroft
hel
ast2t
radi
ngdays
.Youcanal
sous
eanydai
ly
s
uppor
torr
esi
stancel
evelf
rom t
hedai
lychar
tthaty
ouhav
emar
ked.

Fi
g4:5-
Minut
eOpeni
ngRangeBr
eakout

Rul
es: Donotent
eri
ntoapos
iti
oni
nthes
amedi
rect
ionasal
ongwi
ck.
Itdoes
n’t
us
ual
lygowel
l.
s
ader

PSYCHOLOGY Ent
eront
hepul
lbackONL
Yift
hes
tockpul
lsbackt
ocl
ears
uppor
tor
lTr

r
esi
stancel
evel
s.
ght2021-BearBul

Pl
aces
topl
oss
esatt
echni
call
evel
s.

Don’
tst
opyour
sel
fear
lywhenawi
nni
ngt
rades
tar
tst
orev
ers
e.Makes
ure
yout
akeenoughgoodpar
tial
s.
i
Copyr

4/
4
 Fal
lenAngel&Rs
ingDevi
l
NAMEOFTHESTRATEGY:FALLENANGEL/RI
SINGDEVI
L

Myt
radi
nghar
dwar
eisaDel
lAl
ienwar
eAur
oraR9wi
thquadI
nteli
7-9700CPUsand
t
woAMDRadeonRX570XGPUsr
unni
ngs
ix27”moni
tor
s.

Fort
radi
ngs
oft
war
e,Ius
eDASTr
aderPr
oasmyt
radi
ngpl
atf
orm,wi
thI
nter
act
ive
Br
oker
s(I
B)asmybr
oker
.Il
ikeDASbecaus
eiti
sfas
t,hi
ghl
ycus
tomi
zabl
e,l
owl
atency
,
TECHNOLOGY
andl
ow bandwi
dth.
Whi
lei
tsl
ookandf
eeli
sdat
ed,
iti
sthebes
ttoolont
hemar
ket
f
ort
rader
swhor
equi
reaqui
ckr
espons
eont
radeexecut
ion.I
Bismybr
okerast
hey
ar
erel
iabl
eandhav
ethel
arges
tav
ail
abl
eshor
tinv
ent
ory
.Asas
hor
t-bi
asedt
rader
,I
f
indv
aluei
ntheoppor
tuni
tyI
Baf
for
dsmet
oshor
tmos
toft
he6,
000s
tocksi
nthe
USmar
ket
s.

Ass
etoutbel
ow,Ii
npar
tus
etheGapper
sli
stf
rom Tr
adeI
deasi
nor
dert
odeci
de
uponmyt
argets
tocksf
ort
heday
.

Des
cri
pti
onoft
heSt
rat
egy:Thi
sisanOpeni
ngRangeBr
eakup/
down(
ORBU/
ORBD)
St
rat
egyt
hatcanbeexecut
edwhenas
tockr
ever
ses(
pul
lsback)f
rom i
tsov
eral
ltr
end
i
ntot
heOpen,andt
henbouncesandr
esumesi
tsmov
ementi
ntheov
eral
ldi
rect
ion
oft
hemaj
ort
rend.Thi
str
adei
stakenwi
tht
hemaj
ort
rend,t
aki
ngadv
ant
ageoft
he
STRATEGY pr
icei
mpr
ovementandexcel
lentr
isk-
to-
rewar
dpot
ent
ialpr
ovi
dedbyt
hepul
lback
and bounce.Thi
sisahi
gh pr
obabi
li
tyt
radet
hatl
ever
agest
heov
eral
ltr
end.The
r
ever
sali
sgener
all
y caus
ed by peopl
etaki
ng pr
ofi
tsf
rom t
he pr
e-mar
ketgap,
r
esul
ti
ng i
n as
hor
t-t
erm r
ever
salbef
oret
he s
trengt
h oft
he or
igi
nalmov
eis
r
e-engaged.TheFal
lenAngeli
sal
ongt
radewhi
let
heRi
singDev
ili
sit
soppos
ite,a
s
hor
ttr
ade.

St
ockSel
ect
ionPr
oces
s:Is
electmys
tocksf
rom acombi
nat
ionofmys
tat
ics
tockl
ist
(
whi
chhasabout50s
tocksIwat
chev
eryday)andt
hes
tockst
hatar
eont
heTr
ade
I
deasGapper
sli
stt
hati
srev
iewedev
erymor
ningi
ntheBBTPr
e-Mar
ketTr
adi
ngPr
ep
s
how.
Atabout9:
25am ET,
Ius
ethef
oll
owi
ngcr
iter
iat
onar
rowdownmyt
argets
tocks
t
obet
ween0and5opt
ions
:

Pr
e-mar
ket
,thes
tocki
smov
ingi
nthedi
rect
ionoft
hegap.
s
ader

Thev
olumei
sei
thercons
ist
entorgr
owi
ngont
her
ever
sal(
shoul
dther
ever
sal
lTr
ght2021-BearBul

s
tar
tint
hepr
e-mar
ket
).
Thes
tockmus
tnothav
ewi
ldpr
ices
wingsi
nthepr
e-mar
ket
.
Thepr
icemov
ementmus
tbei
ncr
eas
ingcompar
edt
obef
ore9:
20am ET,but
notbymor
ethan50% oft
hegap.
i
Copyr

1
/4
 Copyr
ight2021-BearBul
lTr
ader
s

2/
4
 Ent
ryManagement
:Par
tial
sar
etobet
akenat2R(
2ti
mesmyr
isk)
,anyar
easofpr
ice
hes
itat
ion,4R,and ar
easofs
uppor
torr
esi
stancet
her
eaf
ter
.Do not
ethatt
hisi
sa
f
ast
-mov
ingt
rade.DO NOTUSEt
he“
b/es
topl
oss
”Hot
key
.Thi
str
adei
sal
wayst
obe
managedmanual
ly.
Ofcour
se,
onceapar
tiali
staken,
mys
topl
ossi
mmedi
atel
ymov
es
t
obr
eak-
even,andi
fthet
radet
henmov
esagai
nstme,Iwi
llf
ull
yexi
tatmydef
ined
s
topl
oss
.

Thi
sisav
eryf
ast
-mov
ingt
radet
hatr
equi
resqui
ckdeci
sion-
maki
ng.Thebi
gges
tri
sk
f
rom us
ingt
hiss
trat
egyi
sthatyouf
orceat
radewhenyous
houl
dact
ual
lybeabor
ting.
I
tist
empt
ingt
ofor
ceat
radei
nthef
earofmi
ssi
ngout(
FOMO)
.Itt
akespr
act
icet
o
PSYCHOLOGY f
oll
ow t
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