Eight steps between an idea and a written review

Index structure, breadth and distribution decide how much capital is allowed at risk. Bullish means full size on A-grade setups; Neutral halves exposure; Defensive means cash is the position.

• Index vs rising 21 / 50 DMA
• % of universe above 50 DMA
• Distribution days in a 25-session window

Capital rotates in groups. We rank all sectors on one, three and six month relative performance and only fish in the top quartile unless a name is exceptional on every other pillar.

• Sector RS ranking
• Number of leaders per group
• Institutional accumulation footprints

The RS line is the single most predictive pre-breakout tell. We want it making new highs before price does — leadership confirmed, not hoped for.

• RS line vs 52-week high
• RS above its own 50 DMA
• RS behaviour inside the base

Count the contractions, measure each depth, and check that volume dries into the final one. Two contractions is acceptable, three is ideal. Bases under five weeks rarely qualify.

• Contraction count and depth ratio
• Base duration
• Final contraction volume vs 50-day average

No position before the trigger prints. The pivot is the price at which demand has demonstrably overwhelmed supply — anticipating it converts a confirmed setup back into a hypothesis.

• Pivot break on a closing basis
• Volume above 150% of average
• No wide-and-loose reversal bar

The chart sets the stop, arithmetic sets the size. Risk per idea stays between 0.5% and 1% of equity, and total open risk is capped regardless of how good the screen looks.

• Stop at final contraction low
• Size = (equity × risk %) ÷ (entry − stop)
• Portfolio heat cap

Stop to breakeven after 1R. Partial into strength around 2R. Trail the balance under a defined moving average. Exits are rules, not reactions.

• Breakeven trigger
• Partial exit band
• Trailing reference (21 DMA / 10 WMA)

Every closed trade is scored on process adherence, not profit. A profitable trade taken outside the rules is logged as a failure; a losing trade taken correctly is logged as a success.

• Selection quality
• Execution quality
• Management quality