Trading The Avalanche Strategy!

Hi Folks,

I just wanted to give a quick update on some avalanche day trades Art of Trading made over the month of September!

The Avalanche day trading strategy is a strategy that I developed myself nearly 15 years ago now. Its been one of the key components in my day to day, day trading playbook and one that has continued to produce low risk, high reward results to this day!

We've covered the Avalanche day trading strategy on the Art of Trading blog a few times in the past, so we won't "dive deep" into the strategy itself because it can be reviewed in depth in these two previous blog posts found here:

• "How to Avalanche Day Trade!"

• "A Deep Dive Into Technical Trades!"

To get you quickly up to speed with my Avalanche day trade strategy here is a quick summary:

Concept:

The Avalanche strategy aims to capture quick bounce opportunities in strong, up trending stocks that experience sharp intraday selloffs usually from the open into 10:30AM to 11:00AM EST.

Ideal Setup Conditions:

• Stocks that are in strong daily timeframe uptrends

• A flat or gap up open that fades sharply lower in a steep, continuous selloff.

• The selloff starts to lose velocity around 10:45 to 11:00AM EST

• The best setups are usually 7% - 12% intraday declines before 11AM

• The steeper the selloff, the better the setup

Execution & Risk:

• Executed usually between 10:45 to 11:00AM EST

• Risk per trade typically sits around 2%

• Typical reward 4% - 6%

• Disciplined stops and profit taking are essential for consistency

• Only take top quality setups. Consider market strength & potential news headlines

So now that you're up to speed with the strategy, I scan for these "avalanche" setups each and every day for AoT members. If an A+ avalanche trade setup presents itself I make sure to share the setup with the private group well in advance. This is a bread and butter type strategy that we trade frequently. In the month of September we had a 10 or more of these setups which were all pretty much benchmark examples of the strategy.

I'll share some of these below!

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$AFRM from September 30th was good for about +5%. I notify AoT members as soon as these setups pop up in my scans. Here's how $AFRM played out!

I update the setup as it plays out in real time!

$AFRM ended up reaching the +5% target by the end of the day on September 30th!

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$B was the focused Avalanche trade setup for September 29th! I make sure to highlight my stop loss and target on the trade so less experienced members can follow along confidently!

$B ended up playing out for around 3% about 1 hour later. When the setup surges higher quicky I try to book gains rather then wait around and potentially have the trade go back red!

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$IREN was a textbook Avalanche setup which traded down sharply on September 26th. It was down over 13% when I spotted this setup in my scans. Shortly after I let AoT members know about!

About 90 minutes later $IREN had bounced from the lows making roughly a +4.5% gain!

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Here's a list of some of the Avalanche trades that AoT took in the month of September

1. September 8th $METC: +3.5%

2. September 9th $WMC: +4%

3. September 16th $AAOI: +5%

4. September 18th $UEC: +7% (Full step by step education review found here)

5. September 26th $IREN: +4.5%

6. September 29th $B: +3%

7. September 30th $AFRM: +5%

As you can see, even just a single, keep it simple style of strategy can produce consistent and tangible results. With a bit of practice you can even create your own strategy that follows similar technical conditions to add to your tool box!

As always I'll be sharing these easy to follow along setups day to day with AoT members in the private group!

Cheers and happy trading!