PRESENTS

SWING TRADE PRO 2.0

THE 5-STEP SWING TRADING BLUEPRINT
STEP 4: EXECUTION
 EXECUTION:
EXECUTE THE STRATEGY
SWING TRADE PRO 2.0 While each step in our 5-Step Blueprint is important, You will also learn three techniques for scaling out of
perhaps no other step requires more attention to positions as a powerful form of trade management.
detail, focus, and practice than Step 4: Execution.
Scaling out of trades is the process of gradually
Your goal is to be able to execute your bias in the taking profits as a position moves in your favor, or

4. EXECUTION
market without error, as execution error is generally reducing exposure should a position move against
the most costly of all trading errors. Practice you. These techniques are designed to provide
flawless execution of your strategies for each and consistency, reduce risk exposure, and offer
EXECUTE THE STRATEGY every trade. flexibility while in trade.

4.1 1x3 Entry Technique In this step, you will learn how to scale into positions Your goal is to be able to execute entries and exits
according to the level of exposure that you’re wiling in any market by using, and combining, the following
4.2 1x2 Entry Technique to take at the outset of a trade. entry and scaling techniques:

4.3 11 Scaling Technique Scaling into trades is the process of building a Techniques for Scaling Into a Position:
position by first testing the trade with smaller size,
4.4 111 Scaling Technique and then adding more exposure as the position — 1x3 Entry Technique
4.5 211 Scaling Technique begins to work in your favor. This approach is quite
effective, as traders have the ability to reward — 1x2 Entry Technique
winning trades with additional exposure, while
limiting losing trades to smaller losses due to Techniques for Scaling Out of a Position:
smaller starting size.
— 11 Scaling Technique
You will learn two entry techniques that will give you
the ability to scale into positions, thereby giving you — 111 Scaling Technique
an additional lever to adjust in terms of risk
management, alongside trade allocation. — 211 Scaling Technique
 EXECUTION:
1x3 ENTRY TECHNIQUE
SWING TRADE PRO 2.0 1x3 Entry Technique: A 3-part technique used for scaling into a position by thirds. Each scale-in splits
the maximum allowable trade allocation by 1/3 and can have multiple contracts/shares per scale-in.

1x3 Entry Technique:

4. EXECUTION • 1st Entry (33% of Trade Allocation): Execute a starting position by scaling into a third of your
maximum allowable trade allocation.

EXECUTE THE STRATEGY • 2nd Entry (33% of Trade Allocation): Look to add 33% more exposure should price move in your
favor, or if you want to defend your trade.
4.1 1x3 Entry Technique
4.2 1x2 Entry Technique • 3rd Entry (33% of Trade Allocation): Look to add the final 33% of allowable exposure should price
move in your favor, or if you want to defend your trade.
4.3 11 Scaling Technique
• Additional Option: A 1x3 entry technique variation is to execute 50% of allowable trade allocation on
4.4 111 Scaling Technique the 1st entry, and then adding 25% additional exposure on both the 2nd and 3rd entries.
4.5 211 Scaling Technique
1x3 ENTRY TECHNIQUE EXAMPLE:

CORE EQUITY $100,000

TRADE ALLOCATION @ 1.5% $1,500
1ST ENTRY $500 Trade Allocation ($1,500 / 3)
2ND ENTRY $500 Trade Allocation ($1,500 / 3)
3RD ENTRY $500 Trade Allocation ($1,500 / 3)
TOTAL RISK $1500 ($500 x 3)
 EXECUTION
1x3 ENTRY TECHNIQUE
The 1x3 Entry Technique allows traders to build a position in three parts, first by
first testing the trade with smaller size (33%), and then adding more exposure if
necessary (66%). This approach allows traders to reward winning trades with
additional exposure, while limiting losses due to smaller starting position size.

Taking Profits:
After building a
1st Entry (33%): Start an initial successful position
position by executing an entry with during the first 4
33% of trade allocation during the days of rejection
last hour of a rejection day and absorption,
look to pay yourself
on the first major
pop in your favor,
taking either full or
partial profits.
3rd Entry (33%):
Reserve the last
33% of trade
2nd Entry (33%): Add to the allocation to defend
position by executing an entry at/ your position should
1x3 Entry Technique: Allows traders to
near the absorption zone on Day a failed new low
conservatively scale into a position using 33% of
2 with 33% of trade allocation develop on Days 3
allowable trade allocation. Winners get rewarded
and/or 4.
with additional exposure, and trades that
underperform do so on smaller position size.

1x3 ENTRY
 EXECUTION:
1x2 ENTRY TECHNIQUE
SWING TRADE PRO 2.0
1x2 Entry Technique: A 2-part technique used for scaling into a position by halves.
Each scale-in splits the maximum allowable trade allocation by 1/2 and can have
multiple contracts/shares per scale-in.

4. EXECUTION 1x2 Entry Technique:

EXECUTE THE STRATEGY
• 1st Entry (50% of Trade Allocation): Execute a starting position by scaling into half
4.1 1x3 Entry Technique of your maximum allowable trade allocation.
4.2 1x2 Entry Technique
• 2nd Entry (50% of Trade Allocation): Look to add the final 50% of allowable
4.3 11 Scaling Technique exposure should price move in your favor, or if you want to defend your trade.
4.4 111 Scaling Technique
1x2 ENTRY TECHNIQUE EXAMPLE:
4.5 211 Scaling Technique
CORE EQUITY $100,000
TRADE ALLOCATION @ 1.5% $1,500
1ST ENTRY $750 Trade Allocation ($1,500 / 2)
2ND ENTRY $750 Trade Allocation ($1,500 / 2)
TOTAL RISK $1500 ($750 x 2)
 EXECUTION
1x2 ENTRY TECHNIQUE
The 1x2 Entry Technique allows traders to build a position in two parts, first by
first testing the trade with smaller size (50%), and then adding more exposure
if necessary (50%). This approach allows traders to reward winning trades with
additional exposure, while limiting losses due to smaller starting position size.

Taking Profits:
After building a
successful position
during the first 4
days of rejection
and absorption,
look to pay yourself
on the first major
pop in your favor,
taking either full or
partial profits.

2nd Entry (50%):

Reserve the last
1st Entry (50%): Start an
50% of trade
initial position by executing
1x2 Entry Technique: Allows traders to allocation to defend
an entry with 50% of trade
conservatively scale into a position using 50% of your position should
allowable trade allocation. Winners get rewarded allocation at/near the a failed new low
absorption zone
with additional exposure, and trades that develop
underperform do so on smaller position size.

1x2 ENTRY
 1st Scale-In:
Execute 50% of
EXECUTION
trade allocation ENTRY EXECUTION TECHNIQUES
during the last hour
1x2 ENTRY Choose an entry execution technique
2nd Scale-In: Execute 50% of that aligns with the probability of profit
of rejection day
trade allocation at/near the
3rd Scale-In: rejection day midpoint
for a given opportunity. For example, use
Execute 33% of the 1x2 or 1x3 entry technique for
trade allocation countertrend trades, while entering high
after failed new
odds trades more aggressively.
low develops

1st Option: Execute 100%

of trade allocation during
last hour of rejection day

2nd Option: Execute 100%

1x3 ENTRY of trade allocation at/near
2nd Option: Execute 100% of trade the rejection day midpoint
allocation at/near the rejection day midpoint
1st Scale-In: 2nd Scale-In:
100% ENTRY
Execute 33% of 1st Option: Execute 100% of trade
Execute 33% of
trade allocation at/ allocation during last hour of rejection day
trade allocation
during last hour near the rejection
of rejection day day midpoint on
Day 2 or Day 3 100% ENTRY
 1x2 ENTRY
EXECUTION
1x2 SCALE-IN TECHNIQUE 1st Scale-In:
The 1x2 Scale-In Technique is a 2-part Execute 50% of 2nd Scale-In:
trade allocation Execute 50% of
technique used for scaling into a position by during the last hour trade allocation at/
halves. Each scale-in splits the maximum of rejection day near the rejection
allowable trade allocation by 1/2 and can have day midpoint
multiple contracts/shares per scale-in.

2nd Scale-In: 2nd Scale-In:

Execute 50% of Execute 50% of
trade allocation at/ trade allocation at/
near the rejection near the rejection
day midpoint day midpoint

1st Scale-In: Execute 50%

1x2 ENTRY of trade allocation during the 1x2 ENTRY
last hour of rejection day
 EXECUTION:
11 SCALING TECHNIQUE
SWING TRADE PRO 2.0

11 Scaling Technique: a 2-part technique used for scaling out of a position by halves.

4. EXECUTION Each scale-out can have multiple contracts/shares, but ideally there are the same
number of units for each scale-out.
EXECUTE THE STRATEGY
11 Scaling Technique:
4.1 1x3 Entry Technique
4.2 1x2 Entry Technique • 1st Scale: Scale out of half of the position at your first target (T1).

4.3 11 Scaling Technique • 2nd Scale: Scale out of the last half of the position at your second target (T2).
4.4 111 Scaling Technique
11 SCALING TECHNIQUE EXAMPLE:
4.5 211 Scaling Technique
TRADE ALLOCATION 20 contracts
1ST SCALE Scale 1/2 (10 contracts) at T1
2ND SCALE Scale 1/2 (10 contracts) at T2
 EXECUTION
11 SCALING TECHNIQUE
Use the 11 Scaling Technique to scale out of a position in two
equal parts. Look to scale out of 50% of the position on the first
favorable move after building a position, and scale out of the last
50% at your forecasted target zone. This technique is designed
to provide consistency, reduce risk exposure, and offer flexibility.

2nd Scale (50%): Scale 1/2 the

position after price enters your
forecasted target zone, which
completes the trade

11 Scaling Technique:
1st Scale (50%): Scale 1/2 the position after the After building a position
first expansion day in your favor. It is important to within the Rejection Day
pay yourself on partial profits after successfully sequence, look to take
building a position within the rejection sequence partial profits after the
in order to reduce risk and improve well being. first major pop in your
favor, and again after
price reaches your
forecasted target zone.
 EXECUTION:
111 SCALING TECHNIQUE
SWING TRADE PRO 2.0
111 Scaling Technique: a 3-part technique used for scaling out of a position by thirds.
Each scale-out can have multiple contracts/shares, but ideally there are the same
number of units for each scale-out.
4. EXECUTION 111 Scaling Technique:
EXECUTE THE STRATEGY
• 1st Scale: Scale out of a third of the position at your first target (T1).
4.1 1x3 Entry Technique
4.2 1x2 Entry Technique • 2nd Scale: Scale out of second third of the position at your second target (T2).
4.3 11 Scaling Technique
• 3rd Scale: Scale out of the last third of the position at your third target (T3).
4.4 111 Scaling Technique
4.5 211 Scaling Technique 111 SCALING TECHNIQUE EXAMPLE:

TRADE ALLOCATION 300 shares

1ST SCALE Scale 1/3 (100 shares) at T1
2ND SCALE Scale 1/3 (100 shares) at T2
3RD SCALE Scale 1/3 (100 shares) at T3
 Use the 111 Scaling Technique to scale out of a position by thirds (33% for each
EXECUTION scale). Look to scale out of 33% of the position on the first favorable move after
111 SCALING TECHNIQUE
building a position, and then trim 33% twice more as price moves in your favor.
3rd Scale (33%): Scale final 1/3
position inside the forecasted
target zone after a failure to hold
1st Scale (33%): Scale 1/3 yHI, which completes the trade
position at the end of the
first breakout day after
building a position within
the rejection sequence
2nd Scale (33%): Scale 1/3
position after price enters
your forecasted target zone

111 Scaling Technique: After building a position Add Back (33%): After scaling 1/3
within the Rejection Day sequence, look to take partial position the previous session, you have
profits after the first major pop in your favor, and again the option to add the 1/3 scale back to the
after price reaches your forecasted target zone. position upon a retest of the secondary
absorption zone the next day
 EXECUTION:
211 SCALING TECHNIQUE
SWING TRADE PRO 2.0
211 Scaling Technique: a 3-part technique that is used for scaling out of a position by
half at first, and then by quarters. Each scale-out can have multiple contracts/shares,
but ideally the first scale has twice the size as the second and third scales.
4. EXECUTION 211 Scaling Technique:
EXECUTE THE STRATEGY
• 1st Scale: Scale out of half of the position at your first target (T1).
4.1 1x3 Entry Technique
4.2 1x2 Entry Technique • 2nd Scale: Scale out of a quarter of the position at your second target (T2).
4.3 11 Scaling Technique
• 3rd Scale: Scale out of the last quarter of the position at your third target (T3).
4.4 111 Scaling Technique
4.5 211 Scaling Technique 211 SCALING TECHNIQUE EXAMPLE:

TRADE ALLOCATION 4 contacts

1ST SCALE Scale 1/2 (2 contracts) at T1
2ND SCALE Scale 1/4 (1 contract) at T2
3RD SCALE Scale 1/4 (1 contract) at T3
 EXECUTION
3rd Scale (25%): Scale final 1/4
211 SCALING TECHNIQUE position on the pop after earnings,
Use the 211 Scaling Technique to scale out of a position in three which completes the trade
parts. Look to scale out of 50% of the position on the first favorable
2nd Scale (25%): Scale 1/4 position
move after building a position, and scale out of the last 50% in two upon a retest of recent highs, leaving
parts as the trade progresses. This technique is designed to just a 1/4 position heading into earnings
provide consistency, reduce risk exposure, and offer flexibility.

1st Scale (50%): Scale

1/2 position at the end of
the first breakout day after
building a position within
the rejection sequence

211 Scaling Technique: After building a position within

the Rejection Day sequence, look to scale the position
in three parts, typically by scaling 50% of the position
at first, and then scaling twice more in 25% scales.
 PRESENTS

SWING TRADE PRO 2.0

THE 5-STEP SWING TRADING BLUEPRINT
STEP 4: EXECUTION
 PRESENTS

SWING TRADE PRO 2.0

THE 5-STEP SWING TRADING BLUEPRINT
STEP 5: DOCUMENTATION
 DOCUMENTATION:
DOCUMENT THE RESULTS
SWING TRADE PRO 2.0 Step 5 of our 5-Step Blueprint captures the importance of proper and routine
Documentation, including periodic review of such documentation. In order to improve as
a trader, you must learn from experience, including learning from losing and winning
trades alike. This process allows you to identify patterns from your performance history
that may reveal strengths you can build upon, or weaknesses to improve upon. While
5. DOCUMENTATION documentation is an often overlooked aspect of trading, it is a vital and necessary
DOCUMENT THE RESULTS routine for serious traders.

5.1 Entry Documentation In this section, you’ll learn how to properly document your trades, including entry and
5.2 Exit Documentation exit documentation. Remember, it is not enough to simply document the results, you
must also periodically review your documentation and results in order to reveal
5.3 Trade Log & Review tendencies that may be helping or hindering your trading.

DOCUMENTATION:

• Entry Documentation: You’ll learn how to document a trade at the entry

• Exit Documentation: You’ll learn how to document a trade after the final exit

• Trade Log & Review: You’ll learn what to include in a trade log and trade journal, and
also learn about the importance of periodic performance review.
 DOCUMENTATION:
ENTRY DOCUMENTATION
SWING TRADE PRO 2.0 In this section, you’ll learn how to properly document your trades at the outset of a position
— at the entry. An efficient approach to entry documentation is to take a screenshot of the
chart, followed by annotating the chart with notes that include the following information:

1.TRADE ALLOCATION: Note the trade allocation that you have chosen for the trade.
5. DOCUMENTATION
DOCUMENT THE RESULTS 2.SETUP: Note the setup that you have chosen to trade.

5.1 Entry Documentation 3.STRATEGY: Note the strategy that you will be executing from the toolkit.
5.2 Exit Documentation
4.ENTRY ALLOCATION: Note the execution technique that you will be using to enter and
5.3 Trade Log & Review manage the trade.

5.TARGETS: Note the profit targets that you have forecasted for the trade

6.ENTRY PRICE: Note the entry price for the trade, including taking a screenshot of the
option chain if need be

7.TRADE NOTES: Jot down pertinent notes for the trade, including current or foreseen
market conditions, confluence zones, general trade thoughts, etc.
NOTES:
— Strong uptrend with rejection day at CLVN
— Rejection at 8/21 PEMA trigger zone
— Expecting price to close above 1800 by expo 7/27
— Expecting good earnings and positive reaction,
with upside target at 1860
 DOCUMENTATION:
EXIT DOCUMENTATION
SWING TRADE PRO 2.0 In this section, you’ll learn how to properly document your trades at the conclusion of a position.
For the sake of efficiency, take a screenshot of the chart once you’ve completely exited the
position, and then annotate the chart with notes that include the following information:

1.EXIT PRICE: Document the exit price(s) for the trade, including all scales
5. DOCUMENTATION 2.PROFIT/LOSS (PNL): Document the PNL for the trade
DOCUMENT THE RESULTS
3.PERCENT ROI: Document the gain/loss as a percentage of initial investment (ROI)
5.1 Entry Documentation
5.2 Exit Documentation 4.DAYS IN TRADE: Document the number of days in trade
5.3 Trade Log & Review
5.MAX ADVERSE EXCURSION (MAE): Document the farthest price went against your entry
price while the position was still in trade

6.MAX FAVORABLE EXCURSION (MFE): Document the farthest price went in your favor
from the entry price while the position was still in trade

7.TRADE NOTES:
• Document what went well for the trade
• Document what could have been improved for the trade
• Document any market conditions that may have positively (or adversely) affected the trade
 DOCUMENTATION:
TRADE LOG & REVIEW
SWING TRADE PRO 2.0 In this section, you’ll learn what to include in a proper trade log and journal, including suggestions for
periodic trade and performance review. Here’s what to include:

1.TRADE LOG (SPREADSHEET): It is important to keep a log of all trades, including any and all
pertinent information as it relates to the trade.

5. DOCUMENTATION 2.TRADE JOURNAL: It is important to keep a trade journal, either handwritten or digital (or both), that
will allow you to jot down notes on the market, for trades, market insights, etc, which should be
DOCUMENT THE RESULTS review periodically.
• HANDWRITTEN NOTEBOOK
5.1 Entry Documentation • DIGITAL NOTEBOOK (EVERNOTE, ONE NOTE, ETC)
5.2 Exit Documentation
3.TRADE REVIEW: Periodic trade review is extremely important, as it allows you to improve upon
5.3 Trade Log & Review weaknesses, and build upon strengths.
• DAILY REVIEW
• WEEKLY REVIEW
• MONTHLY REVIEW
• MILESTONE REVIEW (e.g. EVERY 100 TRADES)

4.JOURNAL REVIEW: Periodically reviewing your trade journal is also important, as it allows you to
review your notes on prior market conditions, analysis, and forecasts, and to measure how these
eventually turned out in the future.
• WEEKLY REVIEW
• MONTHLY REVIEW
• SPECIFIC REVIEW
TRADE RECAP:

• $AMZN developed a rejection day at the critical market structure CLVN of 1780
• The rejection also coincided with the 8/21 PEMA trigger zone
• The rejection of this level suggested a rally to previous market structure resistance — at around 1860
• Earnings on Friday (7/27), and expected to beat and for price to move higher
• The trade went in my favor immediately, reaching the 1860 target in 2 days

REINFORCING THE GOOD:

• I executed a precision entry after morning rejection, believing that bullish absorption was already
occurring off the 1780s
• I held steadfast to my belief that price would close above 1800 by the end of the week, even under
extreme conditions after earnings were released, including:
- Price initially dropping to as low as 1806.96 after earnings were released (my heart rate was
clocked at 71bpm during this time)
- Price gapped up the next day after earnings to 1880, but then dropped all the way to 1806.53 at
around noon on expiration day, before settling above 1800 for the week

NEED TO IMPROVE:

I had at least two different chances to buy back my put spread for .05, but instead decided to hold

- IMPROVE: Look to take quick profits on a credit spread if .05 can be had early in the trade. This
will give you quick profits, and allow you to begin putting new money to work on another
opportunity.
- TAKE ACTION: As soon as the credit spread is executed to open the position, execute an order
to close the position for .05. This will help semi-automate the process and take the money when
it is there for the taking.
 PRESENTS

SWING TRADE PRO 2.0

THE 5-STEP SWING TRADING BLUEPRINT
STEP 5: DOCUMENTATION