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Education

Foundational concepts, systematic methods, and practical frameworks. Start with the essentials below, then explore the full research archive.

5 Core Briefs

4 Quick Concepts

Essential Reads

Start Here: 5 Core Briefs

Read these in order. Each brief builds on the previous, covering the fundamental concepts every trader needs before developing systems or strategies.

8 minFoundation

Alt Research Framework

Introduction to the Alt Research methodology. Three core systems—Pivots, Breakouts, and Swing—designed for futures markets with defined edge and risk parameters.

P1 (Pivots), B1 (Breakouts), S1 (Swing) system architecture
Futures-focused: ES, NQ, CL, GC primary instruments
Each system has documented rules, not discretionary signals

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12 minPivots

Pivot Trading Systems (P1)

Trading reactions at calculated pivot levels. Using daily, weekly, and monthly pivots as high-probability reversal zones in futures markets.

Central Pivot Range (CPR) for session bias
R1/S1 as primary reaction levels during RTH
Confluence with VWAP and prior session levels

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10 minBreakouts

Breakout Systems (B1)

Capturing momentum on range expansion. Opening Range Breakouts (ORB), session highs/lows, and volatility-based entries for futures day trading.

5-min and 15-min ORB setups on ES/NQ
Initial Balance (IB) range as breakout trigger
Volume confirmation and failed breakout recognition

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15 minSwing

Swing Trading Systems (S1)

Multi-day position trading in futures. Capturing larger moves using daily structure, weekly levels, and trend continuation patterns.

Daily close above/below key levels for entry
Holding through overnight sessions with defined risk
Scaling out at measured move targets

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7 minRisk Management

Risk & Position Sizing for Futures

Calculating contract size based on account risk and stop distance. Tick value considerations and margin requirements for ES, NQ, CL, and micro contracts.

Risk 1-2% per trade, calculate contracts from stop distance
Micro contracts (MES, MNQ) for precise position sizing
Account for overnight margin vs. day trading margin

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Reference

Quick Concepts

Core trading concepts explained concisely. Bookmark this section for quick reference.

Pivot Level Calculations

Standard pivot formula for futures:

Pivot (P) = (High + Low + Close) / 3
R1 = (2 × P) - Low
S1 = (2 × P) - High
R2 = P + (High - Low)
S2 = P - (High - Low)

Use prior session (RTH close) for day trading.
Weekly/monthly pivots for swing trades.

Opening Range Breakout (ORB)

Capture momentum after the opening range forms.

Setup:
• Mark high/low of first 5 or 15 minutes
• Entry on break above/below range
• Stop at opposite side of range
• Target: 1-2x range width

Best on ES/NQ during high-volume RTH open.
Avoid low-conviction, narrow-range opens.

Initial Balance (IB)

The first hour of Regular Trading Hours (RTH).

Key concepts:
• IB High/Low = first 60 min range
• Break of IB often leads to trend day
• Holding inside IB = rotational/balanced day
• IB width indicates expected volatility

Wide IB = likely rotation. Narrow IB = breakout potential.

Futures Contract Specs

Common futures tick values:

ES (S&P 500): $12.50/tick, $50/point
MES (Micro): $1.25/tick, $5/point
NQ (Nasdaq): $5/tick, $20/point
MNQ (Micro): $0.50/tick, $2/point
CL (Crude): $10/tick, $1000/point

Calculate position size from tick risk, not dollar amount.