📊 Daily Entry Checklist

Scott's Automated Trading System - 10-Year Pattern Analysis (2016-2026)

Foundation: 504 trading days, 214 trades, 52.8% win rate, 1.81x profit factor

Quick Settings

Default Account Value ($)

Default VIX Level

Favorite Stock

Step 1: Account Health Check (06:00-09:30 AM ET)

Current Account Balance ($)

Daily Loss Limit (2% of account)

Current Day's Loss ($)

Remaining Daily Budget ($)

Open Positions (max 7)

Cash Position (target 9%)

✓ All account checks passed - Ready to proceed

Step 2: Market Setup (09:30-10:00 AM ET)

Current VIX Level

Market Trend

VIX-Based Position Sizing Multiplier:

Calculate VIX multiplier →

Today's Economic Events / Notes

Step 3: Earnings Calendar Alert

Checked for earnings today/tomorrow on current positions

Earnings Note (if any)

Step 1: Run Scanner

Opened scott_dashboard_integrated.html and ran SCAN

Step 2: Candidate Stock Entry

Candidate Stock Symbol

Current Price ($)

Win Rate (%)

SMA 20 ($)

SMA 50 ($)

RSI

Support Level ($)

Resistance Level ($)

Volume Ratio (vs avg)

IV Rank (%)

⚡ Entry Signal Verification

⚠️ ALL 5 SIGNALS MUST BE MET. NO EXCEPTIONS.
This is the hard requirement. If any signal fails, move to WATCH list.

Signal 1: Uptrend ✓

Price > SMA20 > SMA50, all trending upward

Price > SMA20

SMA20 > SMA50

Both trending upward

Higher Highs and Higher Lows

Signal 1 Result: Waiting...

Signal 2: Volume ✓

Recent volume > 1.5x average, shows strong participation

Volume Ratio ≥ 1.5x

Volume trend increasing or steady

Signal 2 Result: Waiting...

Signal 3: Breakout ✓

Price breaks above resistance, confirming institutional buying

Price clearly above resistance (>0.5%)

Breakout on increased volume

Support level established below

Signal 3 Result: Waiting...

Signal 4: Pullback ✓

Price pulled back to SMA20 or support, setting up new entry

Price within 0.5-2% of SMA20

OR within 0.5-2% of support

Pullback depth normal (not too deep)

Bounce quality strong

Signal 4 Result: Waiting...

Signal 5: Bullish Structure ✓

Price pattern shows strength, RSI 40-70, no red flags

RSI between 40-70 (optimal)

Higher low formed (buyers defending)

No major news gaps down

Sector is trending up or neutral

No technical break of major support

Signal 5 Result: Waiting...

Final Signal Result

All 5 Signals Met:
Waiting...

Decision:
Waiting for verification...

180-Day Call Option Analysis

Only continue if ALL 5 entry signals were met.

Step 1: Call Option Pricing

Days Until Expiration (180-day calls)

Call Option Premium ($)

Bid-Ask Spread ($)

Implied Volatility (%)

Open Interest (contracts)

Liquidity Assessment

Step 2: HIGH Entry (Aggressive)

HIGH Entry Price ($)

Selected Strike ($)

Reason for HIGH Entry

Step 3: LOW Entry (Conservative)

LOW Entry Price ($)

Selected Strike ($)

Reason for LOW Entry

Step 4: Entry Selection

Which entry point are you selecting?

Selected Entry Strike ($)

Position Sizing Calculation

Step 1: Position Size Formula

Account Value × 8% ÷ (Call Premium × 100) = Contracts
Example: $1,000,000 × 8% ÷ ($4.00 × 100) = $80,000 ÷ $400 = 200 contracts

Account Value ($)

Position Size Allocation (8% of account)

Call Option Premium ($)

Calculated Contracts

Step 2: VIX-Based Adjustment

Current VIX Level

VIX Multiplier: Waiting...

Final Contracts: Waiting...

Step 3: Risk Assessment

Maximum Loss Per Trade ($)

As % of Account

Current Daily Loss ($)

Remaining Daily Budget ($)

Risk Assessment Before Entry

Technical Risk Factors

Earnings Risk: None or acceptable (<14 days to exp)

Support level clearly established and >2% below entry

Resistance above for 40% profit target is realistic

Correlation to SPY is acceptable (not overly exposed)

Sector is trending up or neutral (not down)

Options-Specific Risk Factors

Daily theta decay is acceptable (accounted for 180 days)

IV Crush risk is acceptable (no major events expected)

Options liquidity is good (tight spreads, decent OI)

Account Risk Factors

Sector exposure remains ≤30% (before adding this trade)

Current drawdown is <25% (account not in drawdown)

Currently <7 open positions (room for new position)

Not 3+ consecutive losses in this sector

Additional Risk Notes

Final Risk Assessment:

Check all boxes and click button below

Trade Execution

✓ Ready to Execute
All requirements met. Prepare for order placement.

Order Details Summary

Broker Platform

Stock Ticker

Stock Price

Call Strike

Call Expiration

Quantity (Contracts)

Total Cost ($)

Pre-Execution Checklist

Order details verified CORRECT

Strike price confirmed (ATM or slightly OTM)

Expiration date confirmed (180 days)

Account balance sufficient

Not a duplicate position (won't double up)

Order Submission

Order Type

Order Price ($)

Order placed in broker platform

Order Confirmation #

Execution Time

Actual Execution Price ($)

Actual Contracts Filled

Position Tracking - First 7 Days (Critical Entry Period)

This is where you monitor entry confirmation. If the trade doesn't work in first 7 days, use stop loss.

Trade Symbol

Entry Date

Entry Price ($)

Target Price (40% profit) ($)

Stop Loss (20% down after 7 days) ($)

Daily Tracking (First 7 Days)

Day	Current Price	Change %	Action
Day 1
Day 2
Day 3
Day 4
Day 5
Day 6
Day 7

Day 7 Decision Point

Stop Loss now becomes ACTIVE. Exit if hit -20%

Day 7 Current Price ($)

Unrealized P/L ($)

Decision at Day 7

Quick Reference Guide

All 5 Entry Signals (Must All Be Met)

Signal	Condition	Check
1. Uptrend	Price > SMA20 > SMA50, all rising	☐ Higher Lows ☐ Higher Highs
2. Volume	Recent volume > 1.5x average	☐ Ratio ≥1.5x ☐ Increasing
3. Breakout	Price breaks above resistance	☐ Clear break ☐ On volume
4. Pullback	Price pulled to SMA20/support	☐ 0.5-2% away ☐ Quality bounce
5. Bull Structure	Higher lows, RSI 40-70, no flags	☐ RSI in range ☐ No red flags

Exit Rules (Any Trigger = Exit)

Rule	Trigger	Action
1. Profit	Stock +40% from entry	PRIMARY EXIT - Take profits
2. Stop Loss	Stock -20% after 7 days	HARD STOP - Protect capital
3. Time Decay	14+ days elapsed	Exit before theta accelerates
4. Partial Profit	+30-50% profit reached	Optional - Lock in gains
5. Expiration	< 14 days to expiration	MANDATORY - Exit for safety

Key Formulas

Position Sizing:
Account Value × 8% ÷ (Call Premium × 100) = Contracts

Daily Loss Limit (HARD STOP):
Account Value × 2% = Maximum Daily Loss

VIX Multiplier:
VIX < 12: 120% position size
VIX 12-18: 100% position size
VIX 18-25: 80% position size
VIX > 25: 40% position size

Profit Target:
Entry Price × 1.40 = 40% profit target

Stop Loss:
Entry Price × 0.80 = 20% loss stop (active after 7 days)

Account Allocation Targets

Call Options

Target: 46% of account

Your primary income-generating positions

SPY Hedge

Target: 45% of account

Portfolio protection against market decline

Cash Buffer

Target: 9% of account

Minimum 5% for emergency liquidity

Position Limits

Max Open Positions

7 positions maximum

Prevents over-concentration

Max Per Position

12.6% of account

Keeps single position manageable

Max Per Sector

30% of account

Sector purge if 3+ consecutive losses

System Performance Metrics

Win Rate

52.8% of trades

Based on 214 trades, 113 wins

Profit Factor

1.81x

For every $1 lost, make $1.81

2-Year Return

327%

$4M → $17.1M over 2 years

Est. CAGR

20-30% annually

10-year compounding projection

Daily Entry Checklist v2.0 | Foundation: 10-Year Trading Pattern Analysis (2016-2026)
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