swing-trading_skill

Overview

This skill encodes Mark Minervini’s swing trading approach into programmatic checks and detectors for trend, VCP bases, and disciplined risk management. It automates the Trend Template, detects Volatility Contraction Patterns, and calculates entries, buy zones, and stops consistent with Minervini rules. Use it to filter a trading universe for high-probability momentum setups and enforce strict risk limits.

How this skill works

The skill scans price and volume histories to verify all eight Trend Template criteria (moving averages, 52-week position, and MA relationships) and labels Weinstein stages. It runs a VCP detector that identifies tightening contractions, validates depth and volume drying, and returns pivot and tightness metrics. A trade manager computes buy zones, position sizing based on account risk, and stop levels to enforce the 7–8% max loss discipline.

When to use it

• When screening for stocks in a confirmed Stage 2 uptrend before considering entries
• When you need automated VCP detection to find tight bases and high-probability pivots
• When building systematic or semi-automated swing strategies with strict risk controls
• When prioritizing liquid, high relative strength stocks for momentum trades
• When backtesting trend-following rules or creating alerts for breakout candidates

Best practices

• Require all eight Trend Template criteria before tagging a buy candidate—no exceptions
• Prefer VCPs with 2–4 contractions and decreasing depths plus volume drying during the base
• Only enter on a breakout above the pivot with a meaningful volume surge (50%+ above average)
• Position size by percent risk per trade and cap single-position exposure (e.g., 1% risk, 25% max position)
• Cut losers quickly—use a firm stop (7–8% or tighter depending on structure) and avoid averaging down

Example use cases

• Run a daily scanner to surface symbols passing the Trend Template and rank by proximity to 52-week highs
• Detect VCP bases in a watchlist and generate pivot alerts when contraction tightness meets thresholds
• Compute entry plans and position sizes for an account before sending orders to a broker API
• Backtest a Minervini-style system: trend filter -> VCP detector -> breakout entry -> fixed stop -> scaling exits
• Integrate with a dashboard showing stage, pivot, tightness, and suggested stop/size for trade review