Luis H., based in Australia, began his journey as a long-term investor before transitioning into systematic trading. He was influenced by books authored by Larry Connors and a course led by AmiBroker. Eventually, he joined an Australian trading group focused on catalyst-driven setups, particularly earnings-related moves.
He trades in the pre-market to capture intraday reversals early, specializing in shorting volatile stocks priced under $5 following post-catalyst surges of 50–300%. He uses relative volume (RVOL) and tape action to time reversals, typically entering when volume begins to fade, for example, his short of $NEHC after a 100% AI-driven spike.
In addition, Luis backtests indicators like RSI, volume, and the 200-day moving average to identify short-biased edges. His position sizing is dynamic, adjusting based on real-time price action.
Tip 1
Recovering from drawdowns
The challenge is that when you are in a draw-down, you have to reduce risk significantly, and you have to make your way back. So, for me, it was about being disciplined, being patient, wait for the setups, and slowly by slowly getting back into the profit range.
Tip 2
Using RVOL and tape for timing entries
My position size relies on the tape. I want to see action, how much volume is coming in, how quickly, when it stabilizes, and when you have buyers coming in and out.
