Entry Rules — All Must Be Met
1. Pullback: Stock down 8-20% from 20-day high
2. Oversold: RSI below 35
3. Uptrend: Price above 200-day moving average
4. Volume: Today's volume ≥1.5× 20-day average
5. Earnings clear: No earnings in next 10 days
6. VIX filter: VIX below 30 (avoid high volatility)
Exit Rules — First Triggered Wins
Target hit: Stock up +8% from entry → Sell all (+$160 gross / +$152 net)
Stop loss: Stock down -5% from entry → Sell all (-$100 gross / -$108 net)
Time stop: 30 days elapsed → Sell regardless of P&L
Earnings: Exit before earnings announcement
No averaging down: Never add to losing position
Position Sizing — Fixed Rules
Corpus: $10,000 total
Per trade: $2,000 maximum
Max positions: 5 open at once
Max risk (gross): $100 per trade (5% of $2,000)
Max risk (net): ~$108 per trade (incl. ~$8 costs)
No leverage: Spot positions only
Stock Universe
S&P 500 stocks — large cap, liquid
Excluded: Financials, biotech, utilities
Also scanned: Major ETFs (QQQ, SPY, XLK etc.)
Execution: Emirates NBD / WIO app
Order type: Limit orders only, set in UAE morning
Daily Workflow
UAE Morning (8-9 AM): US market just closed. Review scanner results.
If signal found: Place limit buy order for US open (9:30 PM UAE)
Set simultaneously: Stop loss + target sell orders
Check positions: Once daily in morning only
Weekly scan: Run full scan every Monday
Tax & Broker Notes
Tax: Zero capital gains tax as UAE resident
Dividends: 30% US withholding applies
Emirates NBD: ENBD X app, 11,000+ US stocks
WIO: 2,000+ US stocks, fractional shares from $1
Settlement: T+2 for US stocks