My Trading Rules & Approach

 

I trade S&P 500 ES futures on a 5-minute chart using pure price action, with a focus on structure, context, and risk control. I moved from mechanical PATS rules to a more flexible Al Brooks-style framework — fewer rigid signals and a deeper understanding of market behavior.

I use only two indicators: the 20 EMA and the 1-hour 20 EMA. I also mark key support and resistance levels such as the prior day high/low, market open, prior week high/low, and other major reference points.

​

​​​

📈 Trade Selection

I only trade when context, structure, and risk/reward align.

​​

Core setups include:

• Major Trend Reversals (MTR)

• High 2 / Low 2

• High 1 Buy / Low 1 Sell

• Second Entry Buy / Second Entry Sell

• Bull & Bear Flags

• Breakouts and Breakout Pullbacks

• Failed Breakouts

• Higher Low (HL) / Lower High (LH)

​

Signal bars alone are never enough — context leads every decision.

​

​​

🎯 Daily Objective​​

• 1–4 high-quality swing trades per day

• Quality over quantity

• Discipline over activity

​

​

⚖️ Risk & Reward Framework

 

Every trade must satisfy the Trader’s Equation:

​

(Probability × Reward) – ((1 – Probability) × Risk) > 0

​

This ensures a mathematical edge over time, not just good-looking setups.

Guidelines:

• Minimum R:R = 1:1

• Lower probability → aim for 1:2 or better

• Edge comes from consistency across many trades, not single outcomes

​

​

🎯 Position & Target Structure

I trade PA accounts in groups using 1–3 MES contracts per account to control exposure.

Typical scaling:

​

• 1st contract → ~5 points or ~0.5R

• 2nd contract → ~10 points or ~1R

• Runner → structural levels such as HOD/LOD, measured moves, or major S/R

​

Targets are based on R:R first, then aligned with market structure.

​

​

🛑 Stop-Loss Philosophy

I use structural stops, not comfort stops.

Stops may be placed beyond major swings or key levels. They can appear wide, but:

 

The full stop is not the intended loss.

 

It is a structural fail-safe.

Real risk control comes from:

• Monitoring price action

• Exiting early if the trade premise weakens

• Scratching trades without follow-through

​

​

🔄 Trade Management

Management decisions come from new price action information, not emotion.

​

I may:

• Tighten stops as structure develops

• Exit early if momentum fades

• Reduce exposure when context changes

​

​

📊 Scaling Rules

I may scale:

✔ Into winners when probability improves
✔ Into pullbacks only if the original premise remains valid

​

I never scale in simply because a trade is losing.

​

​

🔒 Capital Protection Rule

I trade a probability edge — not a single trade.

​

• No trade should meaningfully damage the account

• Early exits are strength

• Survival > Perfection

​

​

🧠 Market Condition Filter

 

I trade more when:

✔ Structure is clean
✔ Follow-through is strong

​

I reduce size or skip trades when:

✖ Structure is messy or range-dominant
✖ Context is unclear

​

​

​

Clarity creates edge. Forcing trades destroys it.

​

Finding balance is key:
Let a valid trade play out if the premise remains intact,
but exit quickly if context changes or the setup clearly fails.

​​
 

🚨 Most Important Rule!
DON’T GET GREEDY.

I stick to the plan. I follow the rules.
Discipline > Everything.