The Morning Threshold
Clarity
Is my mind clear enough to focus on one thing for the next few hours?
Context
Do I know the key levels (POC, VA, Extreme H/L) for today's session?
Intent
Am I trading to trade, or trading because I see something high-probability?
01
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Market Condition Filters
Read the environment before you trade
Trend Day Signals ✅
Gap open > 10 pts and holds direction in first 15 min
Price stays on one side of VWAP for > 30 min
VIX > 18 with clear directional momentum
High-impact news catalyst (FOMC, CPI, NFP) confirms direction
Globex range > 30 pts overnight
Range Day Signals ↔️
Flat open — price within 5 pts of prior close
Price oscillates back and forth through VWAP repeatedly
VIX < 14 — low volatility, compressed ranges
No major catalysts on the economic calendar
Globex range < 15 pts — quiet overnight session
02
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Pre-Market Prep
8:30 – 9:30 AM EST
Key Levels to Mark
Yesterday's High & Low
Overnight Globex High & Low
Prior Day VWAP
POC · HVN · LVN from Volume Profile
Nearest support & resistance levels
Bias Assessment
Check economic calendar for catalysts
Note pre-market futures direction
Decide: Trend day or Range day bias
Mark your 20-pt target on the chart
Note daily loss limit — set kill switch
Today's Plan
Target: 20 pts across 2–4 trades
Structure: 5–8 pts per segment
Kill Switch: Stop trading if down 15 pts on the day
Max Trades: 4 per session — no revenge trading
03
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Entry & Exit Criteria
Specific signals — not feelings
Long Entry Rules
VWAP Reclaim: Price dips below VWAP, then a 5-min candle closes back above it with increasing volume.
HVN Bounce: Price tests a High Volume Node from below, shows a rejection wick, then closes above the level.
Breakout Confirm: Price breaks above prior session high or Globex high with a 5-min close above + volume surge.
Opening Drive: First 5-min candle closes bullish, retest of its low holds — enter on break of first candle high.
Short Entry Rules
VWAP Rejection: Price rallies to VWAP from below, fails to close above it, then closes back under with volume.
LVN Fade: Price pushes into a Low Volume Node — thin area acts as resistance. Short the rejection wick close.
Failed Breakout: Price breaks a key level but fails to hold — closes back inside the range within 1–2 candles.
Opening Drive: First 5-min candle closes bearish, rally back to its high fails — short the break of first candle low.
Exit Rules — Take Profit
First target: next HVN or VWAP ± 5–6 pts — exit 50% of position
Second target: prior session high/low or +10 pts — exit remaining 50%
If price stalls for 3+ candles and volume dries up — exit immediately
If approaching end of session window — close all positions, do not hold
Exit Rules — Cut Losses
Exit immediately if price closes back through your entry trigger level
Exit if VWAP turns against your direction mid-trade
Exit if a counter-trend high-volume candle forms
Never add to a losing position — ever
04
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Stop Loss Placement
Structure-based, not arbitrary
VWAP Trade: Stop goes 2–3 pts beyond VWAP on the opposite side of your entry. Never wider.
Support/Resistance: Stop goes 1–2 pts beyond the level you traded off. If level breaks, thesis is invalid.
Opening Drive: Stop goes 2 pts beyond the low/high of the first 5-min candle.
Breakeven Rule: Once the trade is up 5 pts, move stop to breakeven. Lock in safety — remove emotional pressure.
Trailing Stop: After 8 pts gained, trail stop 3–4 pts behind the last swing low (long) or high (short).
| Setup Type | Max Stop | $ Risk (1 ES) |
|---|---|---|
| VWAP Reclaim/Rejection | 3 pts | $150 |
| Support/Resistance Level | 4 pts | $200 |
| Opening Drive | 5 pts | $250 |
| Range Fade | 5 pts | $250 |
| Breakout Play | 6 pts | $300 |
| Hard Max (any trade) | 10 pts | $500 |
05
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Position Sizing Formula
Risk 1–2% of account per trade
$10k Account
1 MES
Risk $100–$200/trade
20 pts = $100
20 pts = $100
$25k Account
1 ES
Risk $250–$500/trade
20 pts = $1,000
20 pts = $1,000
$50k Account
2 ES
Risk $500–$1,000/trade
20 pts = $2,000
20 pts = $2,000
$100k Account
3–4 ES
Risk $1,000–$2,000/trade
20 pts = $3–4k
20 pts = $3–4k
The Formula
Contracts = (Account × 0.01) ÷ (Stop in pts × $50)
Example: ($25,000 × 0.01) ÷ (5 pts × $50) = $250 ÷ $250 = 1 ES contract
Example: ($25,000 × 0.01) ÷ (5 pts × $50) = $250 ÷ $250 = 1 ES contract
Rule: Never risk more than 2% per trade. Start at 1% until you have 20 consecutive winning days. Scale up only after consistent profitability is proven — not before.
06
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Partial Profit Taking
Harvest gains in layers
Layer 1 — Secure
+5 pts
Exit 50% of position. Move stop to breakeven on remainder. Lock in $250/contract. Trade is now risk-free.
Layer 2 — Extend
+10 pts
Exit 25% more. Trail stop to +3 pts. You've now secured 75% — let the final piece run.
Layer 3 — Runner
+20 pts
Final 25% runs with trailing stop. Target next key level or end of session. Max upside capture.
07
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Trading Sessions Timeline
Four execution windows
8:30–9:30 AM
Pre-Market Prep
No trading — preparation only
Mark key levels, assess bias, check economic calendar, set daily loss limit. Know your plan before the bell rings.
9:30–10:30 AM
Opening Drive
Target: 5–8 pts
Highest volatility window. Breakout or fade the opening range. Use momentum entries only — no counter-trend during first 15 min. Max 2 trades here.
10:30–11:00 AM
Cooling Period
Stand aside
Market digests the opening move. High chop risk. Review trades taken, adjust plan for midday.
11:00 AM–1:30 PM
Midday Rotation
Target: 5–7 pts
Play VWAP bounces and volume profile rotations. Smaller size, tighter stops (3–5 pts). Take partial exits quickly — midday moves are shorter.
2:00–3:30 PM
Afternoon Push
Target: 6–8 pts
Align with trend continuation or reversal into close. Use Fed/earnings/news catalysts if present. Final push to reach 20-pt target.
3:30–4:00 PM
End-of-Day Review
No new trades after 3:30 PM
Close all positions. Log trades. Calculate total points harvested. Consistency rule: even 2 winning trades = net positive progress.
08
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Trade Invalidation Rules
When NOT to trade
Skip the Entire Session
News in 30 min: FOMC, CPI, NFP, or Earnings — stand aside 30 min before and after announcement.
Gap > 40 pts: Extreme opening gaps create unpredictable fill levels. Wait for a clear structure to develop.
VIX > 40: Market is in fear mode — erratic moves, wide spreads, unreliable levels. Sit out or cut size in half.
Already hit daily loss limit: Day is over. Close everything, step away from the screen.
Skip the Specific Trade
Setup is unclear: If you can't clearly describe the entry trigger, don't take the trade. Wait for the A+ setup.
Stop is too wide: If the correct stop placement requires >10 pts of risk, skip it — no trade is worth it.
Already 4 trades today: Max 4 trades per day. No exceptions, even if the market looks great.
Emotional state: Frustrated, anxious, or impulsive after a loss — log it and step away for 30 min minimum.
09
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Psychological & Discipline Rules
The edge is in your behaviour
The Kill Switch
Daily Loss Limit: Stop trading if down 15 pts on the day. No matter what you think you see.
Consecutive Losses: After 2 losing trades back-to-back, take a 60-min break before any new trade.
Weekly Cap: If down 40 pts in a week, stop for the rest of that week. Protect your capital base.
Mindset Rules
No revenge trading: Every trade stands alone. A loss is information — not a score to settle.
Process over outcome: A losing trade executed correctly is a good trade. A winning trade on a bad setup is a bad trade.
Target is a ceiling: Once you hit 20 pts, the trading day is over. Walk away — greed gives it back.
🔴
Stop if down 15 pts
Daily kill switch — no override
✅
Stop when up 20 pts
Day complete — step away
⏸️
Pause after 2 losses
60-min break — mandatory
10
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What 20 Points Is Worth
Dollar value across contracts
ES — E-mini S&P
$1,000
per contract
$3,000 × 3 contracts
$50/pt multiplier
$3,000 × 3 contracts
$50/pt multiplier
MES — Micro S&P
$100
per contract
$300 × 3 contracts
$5/pt multiplier
$300 × 3 contracts
$5/pt multiplier
NQ — E-mini Nasdaq
$400
per contract
$1,200 × 3 contracts
$20/pt multiplier
$1,200 × 3 contracts
$20/pt multiplier
MNQ — Micro Nasdaq
$40
per contract
$120 × 3 contracts
$2/pt multiplier
$120 × 3 contracts
$2/pt multiplier
| Symbol | Contract | Avg Daily Range | $/Point | 1 Contract | 3 Contracts |
|---|---|---|---|---|---|
| ES | E-mini S&P 500 | 85 pts | $50 | $4,250 | $12,750 |
| MES | Micro E-mini S&P | 85 pts | $5 | $425 | $1,275 |
| NQ | E-mini Nasdaq-100 | 500 pts | $20 | $10,000 | $30,000 |
| MNQ | Micro E-mini NQ | 500 pts | $2 | $1,000 | $3,000 |
11
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Phasing Your Journey
Scale with discipline
PHASE 01
🌱
MES Testing
1–2 MES
$100–200
/day
Build consistency and prove discipline before scaling
PHASE 02
📈
ES Scaling
1 ES
$1,000
/day
Already exceeds $500/day monthly average target
PHASE 03
🚀
Contract Multiplication
5 ES
$5,000
/day
$10k/month achievable in just 2–3 trading days
PHASE 04
🏛️
Institutional Level
10 ES
$10,000
/day
Requires deep consistency and prop firm capital
12
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Weekly Performance Tracking
Metrics that matter
Win Rate Target
55%+
Minimum viable rate at 2:1 reward/risk
Profit Factor
1.5+
Gross wins ÷ gross losses. Aim for 2.0+
Avg Win : Avg Loss
2:1
Winners must be 2× larger than losers
Max Drawdown
-40pts
Weekly cap. Pause & review if hit.
Weekly Trade Log
Click any cell above to edit when Edit Mode is on. Add your own trades each week.
13
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Quick Reference Cheat Sheet
Print this and keep it visible
Before Entry — Ask Yourself
Is there a clear trigger? (VWAP reclaim, level bounce, breakout confirm)
Where exactly is my stop? (specific level, not a dollar amount)
What's my first and second target? (pre-planned, not improvised)
Is my size correct? (1–2% risk on account, stop × multiplier check)
Am I within an active session window? (no trades outside 9:30–3:30 PM)
After Each Trade — Log It
Entry time, price, and contract count
Exit time, price, and points captured
Was the setup valid? Did I follow the rules?
Emotional state during the trade (calm / anxious / impatient)
One improvement for next time
GREEN LIGHT ✅
Clear setup · Within session · Stop placed · Size correct · Calm mindset
CAUTION ⚠️
Setup is okay but not A+ · News in 90 min · 3rd trade today · Slightly wide stop
RED LIGHT 🚫
No clear trigger · News imminent · 4th trade today · Already down 15 pts · Emotional
14
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My Notes & Customisations
Personal adjustments to this plan
Click Edit Mode in the toolbar, then click here to add your own notes, adjustments, and observations. Record what's working, what isn't, and any rule modifications you make over time.
My Preferred Instruments
ES · MES · NQ · MNQ — choose based on account size and risk tolerance
My Account Size & Phase
Current phase: Phase 1 — MES Testing
Account: $_____ · Risk per trade: $______
Account: $_____ · Risk per trade: $______