Session 4-11.8.18 PDF

Day Trading Strategies
Day Strategies
and Examples
& Risk
Management
A N D R EW A ZI Z
S ESSI O N 4
COPYRIGHTED MATERIAL: ANDREW AZIZ (C) WWW.BEARBULLTRADERS.COM

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Class Overview
Class 1: Before Start Trading: Trading Platform
Class 2: Before Market Opens: Finding the Stocks in Play and Trading Levels
Class 3: Technical: Orders: Market, Limit, Marketable limit, Understanding Level 2, Price Action and Trade Management
Class 4: Trading Strategies
Class 5: Risk Management

Class 4: Strategies
Day Trading Strategies
1. Opening Range Breakouts (ORB)
• 5-min, 10-min, 30-min, 1 hr ORBs
• Good entries based on 5-min and 1-min charts
2. ABCD Pattern / Reverse ABCD Pattern

• Good entries based on 5-min and 1-min charts
3. VWAP Trading
• VWAP Reversals
• VWAP False Breakout
• VWAP Trend Trades
4. Extreme (Booty) Reversals (by Robert H)

5. Bearish and Bullish Engulfing Crack Strategies (Video in Education Center, by Robert H).

Float and Market Cap
Float Price Range
Low float Under $10 (stay away from them)
(less than 20 million)
Medium float $10-$100 (my favorite!)
(20-500 million)
Large float
Any (usually +$20)
(+500 million)
Trading stocks with different

floats is the MAIN reason of
inconsistency among
traders!!
All of Class 4 strategies are for mid-to-high float stocks
from low-floats….

Open Late-Morning Mid-day Close
ORB VWAP Moving Average Trend VWAP

Moving Average
ABCD VWAP False Breakout
Trend
VWAP Reversal Booty Reversal
Engulfing Cracks
VWAP False Breakout
VWAP Reversal
Booty Reversal
Opening Range Breakouts (OBRs)

ORBs
The first 5-min is usually very volatile, wait for 5-min.

Opening Range Breakouts Strategy
Opening range should be lower than ATR
◦ Wild opening ranges are dangerous
(too much volatility at Open = HFT or institutional trading)
ORB is an entry signal ONLY.

Stop loss: I usually use loss or break of VWAP.
Profit target: technical levels such as
◦ low of the day
◦ Next important level
◦ moving averages nearby
◦ Previous day close

Opening range breakout is from the

body of candlestick, not the wicks.

Opening range breakout in volatile opening
Stop out
ORB
Breakout!
This example is a bad ORB,

because ORB is too wild Could not make a low!
and as you see, it probably
won’t not work out!

We defined a Trade Idea scanner for ORBs.

ORB can take up to 1 hr to happen.
Break out!

Jul 19 2018


Risk Management on Entries: Too extended from VWAP
Breakout Breakout
Risk! Risk!
Jul 19 2018

Risk Management on Entries: understanding 1-min price action
Breakout
Should we go long
now for ORB?
Risk!

Risk Management on Entries: Pull back or Reversals?
Should we go long
now for ORB?

Risk Management on Entries: understanding 1-min price action

Risk Management on Entries: 1-min for best entries
Big rejection wick,

but its bearish
Breakout! Daily level

Daily level
Risk!
Reward!
Previous Day Close

Previous Day Close

Some ORBs examples:
WATT December 27 2017

ORB Example: Use 1 min for better entry and stop loss.

ORB Example: Use 1 min to for better entry and stop loss.

More examples
Jul 18 2018

More examples
Overall a bad setup:

x You have to short into supports
x You have to long into resistances.
Jul 18 2018
Good first trade. But
Second trade I shorted
into a support level of
$77.16.
Jul 19 2018

Jul 23 2018

Daily level
High of pre-market
Jul 24 2018 MARA Float is 13 M shares.

ABCD Pattern

Day Trading Strategy
ABCD Pattern

ABCD Pattern

ABCD Pattern

ABCD Pattern and ORB together: Powerful Strategy
Sold some Sold break-even
B D D
B D
C C VWAP
Long VWAP
Potential entry C
A
A Potential entry

Reverse ABCD Pattern
for Short Selling

VWAP Trading
• VWAP Reversals
• VWAP False Breakout
• VWAP Trend Trades

VWAP: Definition
VWAP is an important number to institutional traders at the end of day. Managers compare
traders average filled price vs. VWAP.
◦ Big sellers want to have avg. price above VWAP
◦ Big buyers want to have avg. price below VWAP
Therefore:
Institutional traders want to sell above VWAP: price comes down to VWAP
Institutional traders want to buy below VWAP: price moves up to VWAP

VWAP: the most important day trading indicator
shows market sentiment: who is in control of the price.

How to use VWAP for trading
a. The most important support or resistance level
 Powerful profit target or stop loss for other strategies
b. Strategies:
1. VWAP Reversal at the Open (Brian’s double bottom!)
2. VWAP False Breakouts (~10:00 am -12:00 pm)
3. VWAP Trend Trade: loss or hold of VWAP (usually after ~10:30 am)

1. VWAP Reversals at the Open
(9:30 to 10 am)
When Stock can not make a new 5-min low: Possible Long to VWAP and Above
When Stock can not make a new 5-min high: Possible short to VWAP and below
This could be after the 5 min Opening Range Breakup/down

VWAP Reversals

VWAP Reversals

VWAP Reversals

VWAP Reversals

VWAP Reversals

VWAP Reversals

VWAP Reversals

VWAP Reversals

VWAP Reversals

VWAP Reversals:
Always consider risk:reward

VWAP False Breakouts

2. VWAP False Breakouts
Most VWAP trades should start a trend after. If they do not, they are likely false breakouts.
False breakouts, can not establish a trend above Trend Established after VWAP
Go short

2. VWAP False Breakouts
Most VWAP trades should start a trend after. If they do not, they are likely false breakouts.
False breakouts, can not establish a trend higher Trend Established after VWAP
Go short

VWAP False Breakout

May 17 2017 TGT False Breakout
VWAP False Breakout

?

May 15 2017 IONS False VWAP Breakout

Jul 16 2018

Jul 24 2018

And yes, sometimes false breakouts do not work!
Better to wait for next 5 min for confirmation.

Jul 24 2018

3. VWAP Trend Trade
after VWAP Hold or Loss
Stocks in Play usually either
hold or lose VWAP after the
Open, that is the time to go
after them!

3. Extreme Reversals (Robert H Booty Reversals)
Stocks in Play who move
extreme during the day, are
set up for a booty reversal.
Watch all videos on YouTube Channel

3. Extreme Reversals (Robert H Booty Reversals)
Stocks in Play who move

extreme during the day,
are set up for a “booty
reversal”.

Stock in Play has sold off during the day

Stock in Play has sold off during the day
 This happens during late morning, afternoon.

Entry Criteria:
1. New 15-min high
2. Cross over 9 EMA, 20EMA, 50 SMA on 1-min chart
3. New 5-min high
Target: VWAP
Stop loss: below low of the day

Example 1

Example 1

Example 1

Example 2

Example 2

Example 2

Example 2

Example 2

Example 2

Example 2

Bearish and Bullish Engulfing Crack



Bearish and Bullish Engulfing Crack Strategies

Signal: Bearish Engulfing
Risk
Reward
Watch Robert H Video in Education Center

One Stock in Play: all strategies!
VWAP false breakout

VWAP Reversals
VWAP loss
ORB
May 12 2017
One Stock in Play: all strategies!
VWAP false breakout
VWAP loss
ORB
May 15 2017
Thank you.

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Day Trading Strategies

COPYRIGHTED MATERIAL: ANDREW AZIZ (C) WWW.BEARBULLTRADERS.COM

COPYRIGHTED MATERIAL: ANDREW AZIZ (C) WWW.BEARBULLTRADERS.COM

Class 1: Before Start Trading: Trading Platform

Class 4: Trading Strategies

Class 5: Risk Management

COPYRIGHTED MATERIAL: ANDREW AZIZ (C) WWW.BEARBULLTRADERS.COM

2. ABCD Pattern / Reverse ABCD Pattern

4. Extreme (Booty) Reversals (by Robert H)

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Trading stocks with different

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ORB VWAP Moving Average Trend VWAP

VWAP False Breakout

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ORB is an entry signal ONLY.

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Opening range breakout is from the

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This example is a bad ORB,

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Big rejection wick,

Breakout! Daily level

Previous Day Close

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Overall a bad setup:

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Jul 24 2018 MARA Float is 13 M shares.

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◦ Big buyers want to have avg. price below VWAP

Institutional traders want to buy below VWAP: price moves up to VWAP

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1. VWAP Reversal at the Open (Brian’s double bottom!)

2. VWAP False Breakouts (~10:00 am -12:00 pm)

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This could be after the 5 min Opening Range Breakup/down

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