THT Trading Playbook

📖 THT Trading Playbook

The Complete System for Spotting, Planning, and Executing High-Probability Trades

THIS IS NOT FINANCIAL ADVICE. THIS IS SIMPLY HOW I MANAGE MY FUNDS.

1. Core Philosophy

THT’s trading approach is built on clarity, structure, and risk control.

We do not chase hype.

We trade where institutions trade — at Smart Money Zones, Institutional Buy Levels, and Point of Control (POC) levels — confirmed by our proprietary indicators.

Key Principles:

• Weekly and Monthly charts are the core starting timeframes when scanning for setups.
• We can use Daily or even 4-hour timeframes for short-term swing opportunities.
• Trade at Institutional Pricing: Buy at wholesale (discount) and sell at retail (premium).
• Price First, Indicators Second: Indicators confirm price action, not the other way around.
• Risk Management Over Everything: Preserving capital is priority #1; compounding comes second.
• Position Sizing = Survival: Size every trade to survive the worst-case scenario without blowing the account.

2. How We Spot Plays

Step 1: Start with Macro Context

We look for trades that align with the broader trend and institutional positioning.

Tools & Methods:

• Timeframes: Weekly & Monthly first → drop down to Daily or 4H for swing entries.
• Market Structure: Identify trend:
  • Uptrend = Higher Highs (HH) & Higher Lows (HL)
  • Downtrend = Lower Highs (LH) & Lower Lows (LL)
  • Compression = LH + HL in same range

Step 2: Identify Macro Smart Money Zones

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• Definition: Price areas where institutions accumulate (buy) or distribute (sell) positions.
• Creation: Use Fibonacci retracement from most recent swing high → swing low (or low → high in uptrend).
  • Key Levels:Institutional Buy Zone: 0.618–0.786 retracement in uptrend
  • Smart Money Zone (SMZ): 0.786–0.826 retracement (highest probability entry)
  • Finding Them:Draw manually with Fibonacci or
  • Use Chewy’s Smart Money Zone Indicator for automatic plotting.
  • Color Coding:Blue = Bullish SMZ
  • Pink = Bearish SMZ
• Confluence: Higher timeframe SMZ > Lower timeframe SMZ.

Step 3: Mark Institutional Buy Levels

• Align with macro SMZ.
• Typically overlaps POC or high-volume blocks on Volume Profile.
• We can hunt a BX Trender entry inside a SMZ on a smaller timeframe (Daily or 4H), but this is riskier than waiting for higher timeframe confirmation.

Step 4: Analyze Volume Profile

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• Lookback: 150 bars (industry standard).
  • Components:Thick Blocks: Heavy trading activity → strong S/R zones.
  • Thin Areas: Low activity → fast-moving price zones (“hot knife through butter”).
  • Point of Control (POC): Red line = most traded price level in lookback period → major S/R.
  • Rules:Higher timeframe levels = stronger.
  • Avoid buying into thick resistance blocks or shorting into thick support blocks.
  • Thin → thick transitions make great breakout targets.
  • Thick → thin transitions make great pullback/add zones.

3. Getting Into Positions

Primary Entry Criteria:

1. Price is inside or near SMZ.
2. BX Trender confirmation:

• • Bullish: HL formation or bright green
  • Bearish: LH formation or bright red

1. Market structure aligns with trade direction.
2. Volume Profile supports entry (no thick block immediately against trade).

Secondary Entry Criteria:

• Institutional buy level aligned with SMZ.
• Compression breakout pattern inside SMZ.
• Hunting BX Trender confirmation on a smaller timeframe when in SMZ (riskier but possible).

4. Stop Loss Placement

Hard Stops (Non-Negotiable):

• Default: Just beyond the SMZ boundary.
• Rule: Stop is triggered on candle close beyond stop-loss level, not just by wicking into it.
  • For SMZ Trades:Bullish: Candle close below SMZ low.
  • Bearish: Candle close above SMZ high.
• Volume Profile Support/Resistance: Place stops beyond strong volume blocks if they align with SMZ.

5. Taking Profits

Learn and get access to our custom THT ATR Trailing Stop Loss Indicator THT Average True Range Trailing Stop Loss

Profit Target Rules:

• Option 1: ATR trailing stop loss indicator to lock in breakout gains.
• Option 2: Scale out at Volume Profile resistance blocks.
• Option 3: Take final profits at BX Trender weakness or Fibonacci extensions (1.272 or 1.618).

Scaling Out:

• Always scale out little by little — 10% at a time.
• Goal is to stay in position for macro parabolic breakouts while reducing risk gradually.

6. Position Sizing Rules

Shares:

• Can use up to 100% of account, but no more than 10% in any one position.
• Reduce allocation as account grows to protect gains.

Options:

• Never more than 50% of account in open positions.
• No more than 5% of account per position.

Sizing Formula:

Risk per trade = Account Size × Max Risk %

Position size = Risk per Trade ÷ (Entry Price – Stop Loss Price)

7. Full Trade Workflow Checklist

Step 1: Scan

• Look for tickers inside macro SMZ with market structure confluence.
• Check Volume Profile for nearby POC and thin/thick zones.

Step 2: Validate

• Confirm with BX Trender.
• Ensure no major resistance block directly ahead.

Step 3: Plan

• Define entry, stop loss (close beyond level), profit targets.
• Calculate position size.

Step 4: Execute

• Place limit order near SMZ boundary.
• Set hard stop immediately.

Step 5: Manage

• Scale out 10% at resistance or ATR stop trigger.
• Hold remainder for macro breakout.

Step 6: Review

• Log trade with screenshot and notes.
• Evaluate confluence factors.

8. Golden Rules

• Never enter without SMZ or institutional buy level confluence.
• Always size based on stop distance, not “gut feeling.”
• Avoid chasing — if it runs without you, wait for the next SMZ pullback.
• Trade with the trend unless playing a defined countertrend SMZ setup.
• Review trades weekly to refine execution.