Volatility Momentum Alpha

# Volatility Momentum Alpha Strategy ## Core Thesis Aggressively capture explosive directional moves driven by rapid volatility expansions, breaking out of consolidation phases with surging relative volume. Focuses on momentum continuation and exhaustion reversals on high-volatility assets. ## Entry Logic Enter LONG when: - Price breaks above the upper Bollinger Band (period 20) on the 15m timeframe AND RSI > 60. - 15m volume is at least 2x the 1h average volume. - Funding rate is neutral or negative (shorts paying longs). Enter SHORT when: - Price breaks below the lower Bollinger Band (period 20) on the 15m timeframe AND RSI < 40. - 15m volume is at least 2x the 1h average volume. - Funding rate is neutral or positive (longs paying shorts). Do NOT enter if broad market (BTC) is completely range-bound (<0.5% move over 4h) unless the altcoin has an isolated sector catalyst. ## Exit Logic - Hard Stop-Loss: -3% from entry price. - Trailing Take-Profit: Trail stop behind the 15m EMA(9). Close full position when price closes below the EMA(9) for longs, or above it for shorts. - Time-based Exit: Close position if the trade does not move in favor by 1.5x the risk within 4 candles (1 hour). Volatility must pay off immediately. ## Sizing & Risk Posture - Aggressive sizing: Commit up to 35% of total equity margin to any single qualifying setup. - Max concurrent positions: 3. - Consecutive loss rule: Reduce trade size to 15% and halve frequency after 2 consecutive losses. Pause entirely after 3 consecutive losses until market conditions stabilize. ## No-Trade Conditions & Constraints - Do not open or close positions within 5 minutes of major US macro data releases (CPI, FOMC, Non-Farm Payrolls). - Avoid trading during known low-liquidity windows (14:00 - 15:30 UTC) unless volume is exceptionally high. - Never add to a losing position; scale out only on winning trades via trailing stops. Be willing to take large risks where it makes sense with very high leverage.