Skip to main content
Track Paper trading simulation
10 / 24
Search the archiveLibrary
Library

2012issue C0634-39

First-hour countertrend entries after broken levels

A first-hour, one-stock workflow confirms Support and resistance with a five-bar hold, takes the first 25-cent break as the trigger, and exits on a 15-cent retracement so Rule-based entry and Paper trading simulation can test the sequence as one timed procedure.

  • The procedure is a first-hour, one-stock, real-time long-and-short workflow limited to two to five round trips before any later expansion to more names.
  • Support and resistance are confirmed on a one-minute chart only after five candlesticks hold a high or low, and the first print 25 cents past that level is the intended trigger.
  • Rule-based entry is countertrend: long only after a support break and short only after a resistance break, at the specified extension rather than at the original level, then hold until a 15-cent retracement fills.
  • The source presents the rules as an incomplete, non-bulletproof framework and instructs operators to use Paper trading simulation before live use.
Entries in this reading3 entries
Current trackPaper trading simulation34 readingsSupport and resistance227 readingsRule-based entry292 readings

A first-hour construction workflow

The procedure is built as a first-hour, one-stock, real-time long-and-short workflow. The operator stays with that single name for two to five round trips before any later expansion to more names.

The stock filter is limited to highly liquid names in a 100-to-200 price band because the system needs fast 15-cent swings inside the first hour.

How Support and resistance are confirmed

Intraday levels are confirmed on a one-minute chart only after five candlesticks hold a high or low. Quarter-dollar prices are treated as standing market barriers, so the first print 25 cents past the original support or resistance is the intended entry trigger.

The first subsequent 25-cent extension of that confirmed level is the trade.

Rule-based entry and the matching exit

Entries are defined as countertrend. The operator goes long only after a support break and short only after a resistance break, at a specified price rather than at the original level.

The matching exit rule is to hold until a 15-cent retracement fills, whether that retrace takes seconds or several minutes.

Execution is specified as direct-access fast-key orders from a Level 2 display so a 15-cent target can be taken the moment it prints.

Paper trading simulation before live use

The source presents the rules as an incomplete, non-bulletproof framework. Operators are instructed to paper-trade the procedure before using it live.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
10 of 24 in the Paper trading simulation track
201243-43 pp.Next on Paper trading simulationTime-box simulation before live decision pressureAbout one to two weeks of paper trading is enough platform-rehearsal for order types, market quirks, platform features, and account monitoring.
All readings on this track · 24 readings
  1. 1988Process goals, journals, and pre-trade stress checks
  2. 1989A written plan before impulse takes command
  3. 1991Step-through construction of a currency range tactic
  4. 1999Relocating expiration break-even with a bull debit spread
  5. 2003Rebuild testable trading rules after a drawdown
  6. 2005Forex stops, lot count, and reward as one budget
  7. 2010Predefined rules before discretion in a mechanical trading system
  8. 2010Evaluating euro-gold intraday lead-lag rules
  9. 2011How to turn an FDA-calendar sample into a testable bio-runup procedure
  10. 2012First-hour countertrend entries after broken levels
  11. 2012Time-box simulation before live decision pressure
  12. 2013Adding markets without liquidity and emotion rules
  13. 2013Precommit the exits on leveraged trades
  14. 2013Check the currency cross, the margin, then the demo fill
  15. 2014Test entry, exit and abstention as one procedure
  16. 2015Paper-trade the system you refuse to complicate
  17. 2015Four-step system vetting before live trading
  18. 2015Price and volume rules over pattern shortcuts
  19. 2017Closing a Friday news fade into one entry and exit procedure
  20. 2019Hype-resistant trading process: paper checks and ruin risk
  21. 2020Paper trading cannot validate a live decision process
  22. 2020Tenth-size futures as a small-account ruin filter
  23. 2020Evaluating systems with paper trading and walk-forward windows
  24. 2020Sizing protective puts with micro index options
By fieldEntry and exit rules327 readingsBy year2012165 readings
All 34 readings tagged Paper trading simulation
Also on Paper trading simulation5 readings
2017Closing a Friday news fade into one entry and exit procedure1986Fear signals an untested decision process1987Wyckoff campaign phases as one enter, exit, or stay-out procedure1987Stand down or rehearse on paper when a Wyckoff read fails1988Process goals, journals, and pre-trade stress checks