Refining Shorting Parabolic, Buying Washout Methodology

Recently have been struggling to control risk when fading overextensions, so looking to specify exact parameters for controlling risk when playing some of these moves.

(1) Is there news?
   - What is the news? As a result can an overextended area be anticipated? Is there any possibility of         undefined/halt risk? (size accordingly).

(2) What is the time of day?
   - Stock will move further in the premarket and open than middle of the day, and don't even bother         fading momentum until the close...

(3) Is there any levels nearby to work with?
   - Can either scale in based on risk off a level, or enter a little larger than normal at the level/flush of       level (risk on level), then add on confirmation.

(4) Don't even consider fading it if it is less than 1 ATR from vwap.
   - This depends on recent ranges of course. Sometimes ATR won't have adjusted for recent ranges.         Use common sense.
   - This also depends on news. If there is news you want a lot more than 1 ATR from vwap.

(5) Remember there's no need to rush. The top/bottom is always more obvious a few minutes later.
   - At this point it is so much easier to control risk.
   - Place a stop approximately 0.1ATR below/above the low/high, then bid/offer to get full size near         that point. There will almost always be a secondary push to near that level.

(6) Use hard stoploss, not mental.
   - This is because I have been lacking the discipline to execute a mental stoploss.
   - With placing of hard stoploss, make an ATR allowance for where it can't reach to be considered a       hold below (if that's what I'm concerned about).

(7) Only use a maximum of half size when fading the initial move.
   - Keep reminding self that top/bottom will be a lot clearer once in place.
   - Remember it is okay to miss this part of the move.

(8) Analyse the Price Action. Is it spiking and emotional, or is it just grindy.
   - Spiking and emotional is a lot cleaner and offer better opportunities.
   - Grinding price action is very difficult to obtain edge, who knows where it stops.
   - Remember it's okay to miss the less than perfect ones.

There is more to the method than that. But this is a good summary for the risk taking procedures. Accordingly, reviewing this list when making a similar play will be pretty handy!!