Trading Methodology - Technical Execution & Market Understanding

Trading Infrastructure & Platform Architecture

Multi-broker setup with redundant systems, real-time data feeds, and institutional-grade execution infrastructure.

Primary Trading Platforms

Interactive Brokers Pro

Primary Use: Stock & options execution

Account Size: $150,000

Execution Speed: 0.15 seconds average

Commission: $0.005/share (min $1)

Features: API trading, TWS automation

Key Advantages

• Direct market access (DMA)
• Real-time Level II data
• Complex multi-leg options
• Reliable platform uptime

ThinkorSwim Pro

Primary Use: Options analysis & execution

Account Size: $75,000

Execution Speed: 0.25 seconds average

Commission: $0.65/contract

Features: Advanced options analytics

Key Advantages

• Superior options chain display
• Greeks monitoring in real-time
• Probability analysis tools
• Automated rolling functions

Binance Pro API

Primary Use: Crypto arbitrage & trading

Account Size: $100,000

Execution Speed: 0.08 seconds average

Commission: 0.1% maker / 0.1% taker

Features: API automation, WebSocket feeds

Key Advantages

• Lowest crypto trading fees
• Deep liquidity in major pairs
• Advanced API functionality
• 99.9% uptime reliability

Redundancy & Backup Infrastructure

Primary Backup Platforms

Robinhood: Emergency mobile trading

TD Ameritrade: Secondary options platform

Coinbase Pro: Crypto exchange backup

Kraken: International crypto access

System Reliability

Platform Uptime: 99.7% average

API Response Time: 0.15 seconds avg

Data Feed Delays: < 100ms latency

Backup Activation: < 30 seconds

Critical Design Principle

Never depend on a single platform for critical trades. During market volatility (like the GME squeeze), Robinhood blocked trading for hours. Having redundant systems means you never miss an exit opportunity due to technical failures.

Data Infrastructure & Real-Time Analytics

Enterprise-grade data feeds, real-time processing, and custom analytics pipelines for market microstructure analysis.

Real-Time Market Data

Level I & II Market Data

Bloomberg Terminal

• Real-time Level II data for all major stocks

• Order book depth visualization

• Institutional flow indicators

• Cost: $2,000/month

Polygon.io API

• Tick-by-tick historical data

• Real-time WebSocket feeds

• Options chain analytics

• Cost: $399/month

IEX Cloud

• Inexpensive real-time data

• Fundamental data integration

• Cryptocurrency feeds

• Cost: $99/month

Alternative Data Sources

Sentiment Analysis

• Twitter API for retail sentiment

• Reddit WallStreetBets tracking

• Google Trends for search volume

• Update Frequency: Every 5 minutes

Economic Calendar

• Fed announcements and speeches

• Earnings calendar integration

• Options expiration tracking

• Reliability: 99.9%

Options Flow

• Unusual options activity monitoring

• Dark pool prints analysis

• Insider trading detection

• Delay: 15 minutes max

Custom Analytics Pipeline

Data Collection

• WebSocket connections to all exchanges

• API polling every 500ms for critical data

• Database replication for redundancy

• Real-time error handling and retry logic

Processing Engine

• Python-based processing with Pandas

• Technical indicator calculations in real-time

• Statistical arbitrage signal generation

• Risk metric calculations every second

Alert System

• Telegram bot for mobile notifications

• TradingView webhook integration

• Email alerts for critical events

• Desktop notifications for opportunities

Technical Analysis & Signal Generation

Multi-timeframe analysis with custom indicators and quantitative signal validation.

Custom Technical Indicators

Volume-Price Analysis

Volume Weighted Average Price (VWAP)

Calculation: Σ(Price × Volume) / Σ(Volume)
Timeframes: Intraday, weekly, monthly
Signal: Price above VWAP = bullish momentum

On-Balance Volume (OBV)

Formula: OBV(previous) + (Volume if Close > Previous Close) - (Volume if Close < Previous Close)
Usage: Confirms price trends with volume
Alert: Divergence signals potential reversals

Accumulation/Distribution Line

Formula: A/D(previous) + ((Close - Low) - (High - Close)) / (High - Low) × Volume
Purpose: Measures buying vs selling pressure
Confirmation: A/D rising = institutional accumulation

Momentum Indicators

Relative Strength Index (RSI)

Modified Calculation: 100 - (100 / (1 + RS)), where RS = Avg Gain / Avg Loss (14 periods)
Levels: Overbought > 70, Oversold < 30
Signal: RSI crossing 50 in direction of break

Moving Average Convergence Divergence (MACD)

Components: MACD Line (12-period EMA - 26-period EMA), Signal Line (9-period EMA of MACD)
Histogram: MACD - Signal Line
Signal: MACD line crossing signal line with volume confirmation

Average True Range (ATR)

Purpose: Measures market volatility
Stop Loss: Entry - (2 × ATR) for long positions
Position Sizing: Adjust based on ATR value

Multi-Timeframe Confirmation System

Monthly (Macro)

• 20, 50, 200-day moving averages
• Quarterly earnings cycles
• Sector rotation analysis
• Economic calendar alignment

Weekly (Swing)

• Support/resistance levels
• Fibonacci retracements
• Weekly options flow
• Institutional accumulation

Daily (Trends)

• RSI and MACD confirmation
• Breakout pattern recognition
• Gap analysis and fill probability
• Volume surge detection

Intraday (Timing)

• 5-minute RSI and momentum
• Opening range breaks
• Volume spike alerts
• Level II order book analysis

Signal Validation Process

1. Macro Alignment: Check monthly and weekly trends for overall market direction

2. Technical Confirmation: Verify 3+ indicators align on smaller timeframes

3. Volume Validation: Ensure volume supports the signal (150%+ of 20-day average)

4. Risk/Reward: Calculate if potential profit exceeds 2x the risk

5. Market Context: Consider overall market sentiment and correlation

Risk Management & Portfolio Monitoring

Real-time risk monitoring with automated position limits and dynamic portfolio heat calculation.

Real-Time Risk Metrics

Total Portfolio Value: $285,400

Today's P&L: +$1,847 (+0.65%)

Open Position Risk: 4.2% of portfolio

Portfolio Heat: 78% (safe)

Correlation Risk: Low (diversified)

Position Limits Enforcement

Max per position: $8,520 (3% of $285K)

Enforced at order entry

Max portfolio heat: 15% ($42,810)

Current: 4.2% - $11,987

Max daily loss: 2% ($5,708)

Auto-disable if exceeded

Weekly stop: 5% ($14,270)

Cooling period enforced

Automated Risk Control System

Pre-Trade Checks

✓ Position size validation (max 3% of portfolio)

✓ Portfolio heat calculation (max 15% total exposure)

✓ Correlation check (max 3 correlated positions)

✓ Market hours validation (prevent extended hours trades)

✓ News calendar check (no trades during Fed announcements)

Post-Trade Monitoring

✓ Real-time P&L tracking with alerts at -1%, -2%, -3%

✓ Stop loss enforcement (hard stops only, no manual overrides)

✓ Time-based exits (max 7-day holding period for momentum)

✓ Daily loss limits (auto-disable trading at -2%)

✓ Weekly portfolio review and rebalancing

Emergency Protocols

Market Circuit Breakers

• VIX > 40: Reduce all positions by 50%
• SPY moves > 3%: Pause new positions
• Bitcoin -10% daily: Close all crypto positions

Personal Limits

• -3% daily: Trading disabled for 24 hours
• -10% monthly: Review all strategies
• -20% quarterly: Complete system audit

Communication

• Telegram alerts for all significant events
• Email backup for system failures
• Phone call for emergency exits > $5K

Performance Tracking & Continuous Improvement

Every trade is recorded, analyzed, and used to improve the system. Here's how I track and optimize performance.

78.2%

Win Rate (YTD)

+2.1% vs target

2.4:1

Risk/Reward Ratio

Above industry average

1.85

Sharpe Ratio

Risk-adjusted returns

-8.2%

Max Drawdown

Within risk parameters

Continuous Improvement Process

Trade Analysis Framework

1. Entry Analysis

• Signal quality and confluence level
• Market conditions and correlation
• Entry timing precision (fill price vs decision price)
• Position sizing appropriateness

2. Execution Review

• Slippage and commission costs
• Platform performance and reliability
• Timing of exit relative to signals
• Emotional decision vs systematic exit

3. Outcome Assessment

• R-multiple achieved vs potential
• Risk management adherence
• Lessons learned and patterns
• System improvement opportunities

Performance Optimization

Monthly Review Process

• Strategy performance by market condition
• Win rate trends and variance analysis
• Average R-multiple per strategy
• Correlation breakdown and adjustments

Quarterly System Updates

• Indicator parameter optimization
• Risk management rule refinement
• New data source integration
• Platform and tool evaluation

Annual Framework Review

• Complete strategy backtesting
• Market regime analysis and adaptation
• Technology stack evaluation
• Risk tolerance and allocation review

Let's Talk Strategy

Ready to discuss your financial goals? Let's build an investment approach that fits your lifestyle and objectives.

Get In Touch