Evergreen Playbook Reveals Three Strategies for Sustainable Growth

1. STRATEGY CONTEXT

In the ever-evolving world of trading, maintaining sustainable growth is a challenge that requires a disciplined approach. This Evergreen Playbook is designed for swing and position traders who seek to navigate market fluctuations with a focus on long-term growth. The strategies outlined here are crucial for managing market structure, risk conditions, and volatility regimes while avoiding common behavioral mistakes such as FOMO, hesitation, and oversizing.

2. THE STRATEGY: STEP-BY-STEP

Strategy 1: Risk-Adjusted Position Sizing

Assess Market Risk with CWI: Begin by checking the Crash Warning Index (CWI). If CWI is above 6, the market is in an elevated risk state. In this scenario, limit risk per trade to 1% of your total capital. If CWI is below 3, indicating a stable environment, you can increase risk per trade to 2%.
Determine Volatility with ATR%: Use the ATR% to gauge market volatility. If ATR% is above 1.2, widen your stop-loss by 10-20% to accommodate increased price swings. Conversely, if ATR% is below 0.8, tighten stops to protect profits.
Utilize the Market Dashboard: Align your strategy with the Market Dashboard's state. In a Bullish market, prioritize offensive strategies with higher position sizes. In a Warning state, reduce new entries by 50% and focus on defensive plays.

Strategy 2: Sector Rotation and Leadership

Identify Leading Sectors with Sector Scores: Regularly review Sector Scores to identify which sectors are gaining strength. Enter trades in sectors with scores above 70, indicating strong leadership.
Confirm with Breadth Internals: Use the % Above 50-DMA as a breadth filter. Look for sectors where this percentage is rising, suggesting improving trend health. Complement this with A/D Net trends to confirm internal strength.
Monitor NH–NL Expansion: Ensure that the New High–New Low indicator is expanding in your chosen sector, confirming a robust upward trend.

Strategy 3: Intraday Execution with Daily Edge

Set Action Ranges: Use the Daily Edge execution panel to define your Buy/Sell action range. For example, set a Price Low of $150 and a Price High of $155 for a stock poised for breakout.
Monitor Intrinsic Value: Optionally, include an Intrinsic Value to guide your entry and exit decisions, ensuring trades align with your valuation metrics.
Use Notes for Context: Add reminders such as "watch 50DMA" or "earnings pullback" to keep your strategy aligned with broader market conditions.

3. MARKETVIBE FEATURE INTEGRATION

Decision Edge Dashboard: Provides a comprehensive daily market read, helping you stay objective.
Market Dashboard: Guides behavior based on market states, ensuring you adapt your strategy accordingly.
Crash Warning Index (CWI): A critical risk gauge that informs position sizing and risk management.
Sector Scores: Essential for identifying sector leadership and timing your entries.

4. REAL-WORLD EXAMPLE

Imagine a scenario where the % Above 50-DMA rises from 38% to 47%, indicating improving market breadth. The CWI sits at 5.4, with the Market Dashboard showing a Neutral state. The Tech Sector Score improves from 62 to 70, signaling potential leadership.

In this environment, a trader might:

Limit risk per trade to 1.5% due to the moderate CWI.
Enter positions in the Tech sector, given its rising score and supportive breadth.
Use the Daily Edge to set a Buy range between $200 and $205, with notes to "watch 50DMA".

5. COMMON PITFALLS

Overreacting to Market Noise: Avoid making impulsive decisions based on short-term market fluctuations. Stick to your strategy.
Misinterpreting Indicators: Ensure you understand the implications of each MarketVibe indicator. For example, a high CWI requires more conservative risk management.
Ignoring Volatility: Failing to adjust stops and position sizes based on ATR% can lead to unnecessary losses.

6. OPTIONAL FRAMEWORK SECTION

📋 PLAN

Entry Rules: Use Sector Scores and Breadth Internals to identify opportunities.
Risk Parameters: Adjust based on CWI and ATR%.
Watchlist Prep: Focus on sectors with improving scores and breadth.

⚡ EXECUTE

Trigger Conditions: Use Daily Edge to set precise entry points.
Order Execution: Follow predefined action ranges and intrinsic values.

📊 MONITOR

Track: Continuously monitor breadth and sector scores.
Tighten Stops: Adjust based on volatility changes.
Exit: Use NH–NL contraction as an exit signal.

7. PLAYBOOK CHECKLIST

□ Clear tactical objective — Achieve sustainable growth by aligning strategies with market conditions.
□ Specific entry rules and thresholds — Use Sector Scores >70 and % Above 50-DMA rising for entries.
□ Risk rules with numbers — Limit risk to 1-2% per trade based on CWI.
□ 2–4 MarketVibe references — Utilize CWI, ATR%, Sector Scores, and Market Dashboard.
□ Real example with numbers — Tech sector entry with specific price range and risk parameters.
□ Common pitfalls — Avoid overreacting to noise and misinterpreting indicators.
□ Execution checklist — Plan, execute, and monitor trades using Daily Edge and MarketVibe dashboards.

If you’d like a structured way to monitor these signals and run your daily plan, MarketVibe provides dashboards and execution tools at 1marketvibe.com.

Trading involves significant risk, and it's important to conduct thorough research and consider your financial situation before making any trading decisions. This guide is for educational purposes only and does not constitute financial advice.