Objective 📍

This SOP outlines the rules and processes for operating the Main Fund within our trading community.

The Main Fund now follows the 🟢 BX Hybrid Bot with structured human intervention for scaling in/out, profit-taking, and key support/resistance decisions.

The goal is to:

🔷 Maximize upside during trending breakout markets

🔷 Minimize downside with strict exit rules

🔷 Combine automation (BX Hybrid Bot) with manual discretion (volume profile, market structure, smart money zones)

Core Trading Framework

1. Entry Criteria ✅

Our Entry Criteria has two parts. Both must be true to enter a position:

1. Weekly Chart: Stock is in the macro Smart Money Zone (SMZ).
2. Daily Chart: BX Trender is increasing (higher high or higher low).

🏆 Weekly watchlist is built around SMZ pullbacks, but execution occurs on the daily timeframe

📌 Reference: See SOP on Smart Money Zones for identification. 👇🟣

THT Smart Money Zones

A position is exited when BOTH conditions are true:

1. The Daily BX decreases below zero (makes a lower low and turns red), AND
2. Price closes below the THT Average True Range Trailing Stop Loss

🔑 Key Principle:

• If none or one of the exit conditions are true, then remain in the trade. Only exit when both exit conditions are true.
• This prevents over-trading or getting chopped up during consolidations inside strong breakouts.

📌 Reference: See attached SOP on ATR Trailing Stop Loss for setup and mechanics.

THT Average True Range Trailing Stop Loss 👈

3. Daily Operational Flow 🌊

At the end of each trading day:

• The BX Hybrid Bot scans daily closes.
• A Buy/Sell list is generated automatically.
• From there, I will create my personal buy and sell list within the Main Fund thread on discord and give my thoughts on the current setups in play.

From there, you have three options:

1. ☀️ Preferred (Morning): Wake up at market open and place market orders (ensures clean execution).
2. 🌗 Alternative (After Hours): Place after-hours market orders the night before (executes at next day’s open).
3. Optional: Use a broker feature (if available) to set market-on-open orders the night before.

⚠️ Understand there may be slight differences in P&L depending on when/how you enter, but results will be broadly aligned.

4. Holding Period 📈

• Average winning trade lasts 30–60 days.
• Positions are meant to capture full breakout trends, not quick scalps.
• If the ATR stop breaks immediately after entry or price rejects hard, we may exit the very next day to limit downside.

Human Intervention Rules

Automation drives 90% of trades, but manual overrides apply under these conditions:

Profit-Taking / Scaling Out 💸

• If a stock runs 30–50% in a short time and is trading far from the ATR stop:
  • Reduce position size by 10–20% increments.
  • This captures profits while leaving most of the position to run.
  • If price pulls back and criteria still hold, we can average back in.
• If price moves into major volume profile resistance (thick VP nodes):
  • Take 10–15% off.
  • Goal is to protect against rejection while keeping core size for upside continuation.

Support-Based Buys (Outside Bot) 📊

Manual entries may occur if:

⭐️ Price pulls into a daily SMZ or point of control (POC) support, even if the BX has not yet flipped green (to a higher high).”

Risk Management:

• Stop loss = daily close below the most recent swing low (not just a wick).

⚠️ Important Clarification: These manual overrides are optional. You do not have to follow them. You can stick strictly to the bot’s entries and exits and still trade the system profitably. Overrides are only meant to add nuance and flexibility for those who want them.

Risk Management & Position Sizing

1. Maximum Exposure Planning

• • Use the max number of stocks on the weekly watchlist as baseline.
  • Example: 50 stocks on watchlist → assume all could trigger.

1. Cap Exposure

• • Fund will assume 85% of watchlist could be live at once.
  • Conservative: 0.75 (75% exposure).
  • Aggressive: 0.85 (85% exposure).

1. Position Sizing Formula

• • Position Size = (Fund Value ÷ (Watchlist × % Exposure))
  • Example: $100,000 fund, 50 watchlist names, 75% exposure → 35 max positions.
  • $100,000 ÷ 35 ≈ $2,900 per position.

1. Adjustment Rules

• • We do not recalculate sizing weekly.
  • If a stock is up significantly, we will not average up into the position.
  • Sizing is set at entry and left alone for the life of the trade.

Manual Override Conditions (Summary)

✅ Profit-taking: 30–50% runs far above ATR → sell 10–20%

✅ VP resistance: trim 10–15%

✅ Early support buys: Daily SMZ or POC → stop loss = daily close below swing low

✅ Market structure overrides: explained in daily recap/live streams

✅ All overrides optional — you can ignore them and trade the bot alone

All bot trades will be visible in the web app.

• Manual trades will always be explained with context (e.g., “entered on POC support” or “trimmed at VP resistance”).
• End-of-day recaps and live streams will summarize:
  • Open positions
  • Adjustments made
  • Watchlist updates

Conclusion

This SOP combines the discipline of algorithmic structure with the flexibility of human discretion.

• Bot provides structure → BX & ATR system ensures mechanical consistency.
• Human provides discretion → Market structure, VP, and SMZ logic capture nuance bots miss.

The Main Fund is designed to:

• Capture massive breakouts
• Protect against drawdowns
• Scale winners dynamically
• Deliver longer holding periods with higher profitability

If you have questions, open a support ticket. Otherwise, stay tuned for daily recaps and live streams as we transition to this upgraded strategy.