Stock Short-Term Trading System

Problem

Short-term trading usually fails less because of bad ideas and more because of inconsistent execution: chasing strength without a checklist, holding losers without a stop, averaging down, and turning short-term trades into long-term losses. This framework turns short-term evaluation into inspectable signals: filter untradeable instruments, then evaluate relative strength, trend structure, entry quality, and risk-reward before suggesting build, add, reduce, clear, or stay flat. It does not predict price direction; it only outputs rule-based system signals.

How It Works

• Pre-filter: Exclude ST stocks, suspended names, thin liquidity, missing STAR Market or BSE permissions, and ETFs with liquidation risk before evaluation.
• Strength: Prefer relative-strength difference, such as an N-day stock return minus an index return; use RPS or sector ranking as fallback. Do not chase weak names or falling knives.
• Trend: Require upward MA60, close above MA60, and MA20 above MA60; bearish alignment blocks new entries.
• Entry and risk: Pullbacks need shrinking volume and stabilization; breakouts need volume confirmation. Initial stop-loss must be explicit, with per-trade loss capped near -3%; risk-reward should be at least 2 for stocks and 1.5 for ETFs.
• Position management: After profit, use the MA10 lock line and exit when it breaks; scoring affects size bands but cannot override hard stops.

Limits

• Intended for A-share and ETF short-term trend assessment, not long-term value investing, DCA, or fund allocation.
• Requires market data such as K-line, moving averages, volume, RPS, or sector rankings; missing data must be disclosed rather than invented.
• The output is a disciplined trading framework and signal conclusion, not investment advice, and final decisions remain with the user.