Market Conditions
- Narrow range pre-break with rising ATR on higher timeframe.
- Clean structure; avoid erratic whipsaw phases.
- Liquidity evident around box boundaries.
VIX 75 — Momentum Breakout
Trade expansion from tight consolidation on the synthetic VIX 75 index using structure boxes, retests, and ATR-based stops.
Timeframe & Session
- M5 primary; H1 for context and regime.
- 24/7 synthetic but prefer liquid periods aligned with activity spikes.
Setup & Tools
- Draw consolidation box (range high/low).
- ATR(14) on M5 for stop sizing.
- Optional: session markers to avoid dead hours.
Entry Rules
- Wait for a strong range break with momentum.
- Enter on retest of broken boundary (flip) or micro pullback.
- Invalidate if price returns inside and closes within the box.
Stop & Target
- SL: ATR multiple beyond the broken boundary (e.g., 1–1.5× ATR).
- TP: Measured move equal to box height; scale at 1R/2R and trail.
- Exit on loss of momentum or re-entry into the box.
Risk & Management
- Risk per trade: 0.2–0.5% typical due to high volatility.
- Hard daily loss limit; stop after 2–3 consecutive losses.
- Use a VPS and verify latency/connection stability.
Backtesting Plan
- Collect samples of tight ranges followed by expansion.
- Record box height, break strength, retest quality, and R outcomes.
- Assess expectancy and robustness by time-of-day and ATR regimes.
Execution Checklist
- Define box precisely; avoid subjective highs/lows.
- Confirm momentum candle and clean retest.
- Pre-set orders, SL/TP, and trailing logic.
Common Mistakes
- Buying/selling the first spike without waiting for retest.
- Oversizing risk on a highly volatile instrument.
- Ignoring whipsaw risk during low-liquidity hours.
Disclaimer
Educational content only. Trading involves significant risk. Never trade money you cannot afford to lose. Past performance does not guarantee future results.