Small-Cap — Sell Every Spike (Rendon1)

Small-Cap — Sell Every Spike v6 — Strict, No Look-Ahead

Educational use only. This is not financial advice or a signal service.
This strategy targets low/ mid-float runners (≤ ~20M) that make parabolic spikes. It shorts qualified spikes and scales out into flushes. Logic is deliberately simple and transparent to avoid curve-fit.

What the strategy does

Detects a parabolic up move using:

Fast ROC over N bars

Big range vs ATR

Volume spike vs SMA

Fresh higher high (no stale spikes)

Enters short at bar close when conditions are met (no same-bar fills).

Manages exits with ATR targets and optional % covers.

Tracks float rotation intraday (manual float input) and blocks trades above a hard limit.

Draws daily spike-high resistance from confirmed daily bars (no repaint / no look-ahead).

Timeframes & market

Designed for 1–5 minute charts.

Intended for US small-caps; turn Premarket on.

Works intraday; avoid illiquid tickers or names with constant halts.

Entry, Exit, Risk (short side)

Entry: parabolic spike (ROC + Range≥ATR×K + Vol≥SMA×K, new HH).
Optional confirmations (OFF by default to “sell every spike”): upper-wick and VWAP cross-down.

Stop: ATR stop above entry (default 1.2× ATR).

Targets: TP1 = 1.0× ATR, TP2 = 2.0× ATR + optional 10/20/30% covers.

Safety: skip trades if RVOL is low or Float Rotation exceeds your limit (default warn 5×, hard 7×).

Inputs (Balanced defaults)

Price band: $2–$10

Float Shares: set per ticker (from Finviz).

RVOL(50) ≥ 1.5×

ROC(5) ≥ 1.0%, Range ≥ 1.6× ATR, Vol ≥ 1.8× SMA

Cooldown: 10 bars; Max trades/day: 6

Optional: Require wick (≥35%) and/or Require VWAP cross-down.

Presets suggestion:
• Balanced (defaults above)
• Safer: wick+VWAP ON, Range≥1.8×, trades/day 3–4
• Micro-float (<5M): ROC 1.4–1.8%, Range≥1.9–2.2×, Vol≥2.2×, RVOL≥2.0, wick 40–50%

No look-ahead / repaint notes

Daily spike-highs use request.security(..., lookahead_off) and shifted [1] → only closed daily bars.

Orders arm next bar after entry; entries execute at bar close.

VWAP/ATR/ROC/Vol/RVOL are computed on the chart timeframe (no HTF peeking).

How to use

Build a watchlist: Float <20M, RelVol >2, Today +20% (Finviz).

Open 1–5m chart, enter Float Shares for the ticker.

Start with Balanced, flip to Safer on halty/SSR names or repeated VWAP reclaims.

Scale out into flushes; respect the stop and rotation guard.

Limitations & risk

Backtests on small-caps can be optimistic due to slippage, spreads, halts, SSR, and limited premarket data. Always use conservative sizing. Low-float stocks can squeeze violently.

Alerts

Parabolic UP (candidate short)

SHORT Armed (conditions met; entry at bar close)