The Ideal Long Float Rotation Setup and How to Get Size!

Wanted to get down an exact set of guidelines for when to go for the home run trade long on float rotation, and how to play it. The idea is that it will be something to print out and refresh over when the setup occurs next.

The Setup (remember this is the optimal where push size):
- Gap Up on positive news. Day 1.
- Consolidate and digest gap while putting through float rotation.
- After breakout from opening range put in a big wave one. Consolidate/pullback for 20 min or more before breaking out again.
- Note that if it's going to be an absolute beast there will most likely be a second leg. As always patience is important!

Execution/Trades:
- If ever feel like it's going to go without you just get like 1/5 or something quite small. Lock some in very quickly but this way if it does end up going can always buy higher and maintain a good average.
- It's day 1. Hold 1/3 of position for the entire day. It likely closes near the high of day. DO NOT selling this 1/3 into parabolic because a para from $3 to $4 will look enormous on current charts but at end of day when it's at $8 it won't look so big. Only other reason2sell is if it does go enormously parabolic (think +200%) and it breaks the trailing stop-loss on trend.
- It will move in waves (if behaving second wave should be somewhat equal to first wave, or way bigger) so use every miniature pullback (within wave) to add to position and trail stop-loss to get enormously large. Just a note on this point: As the stock moves should be anticipating and making guidelines for what it needs to do to increase size. As it fulfills those expectations it is therefore confirming that have a good read on how it's trading and you earn the right to start putting size on.
- Whenever in size always sell some into strength. This is very important.
- The first leg is where you are aiming to lock in decent profit. By locking in realised profit on the first leg, and by having the 1/3 still entered (to retain a good average). Adding size on a higher consolidation b/o is less risky.

Attached is a screenshot of AQXP wave 1 and wave 2. AQXP was a massive one so pay no attention to the size of the move. But more the point is that while it was within the waves higher buying more and more and trailing stop-loss worked until it didn't (by which point because you have size on and are selling into any strength thus locking it in) you just take the stop-loss and give up unrealised profit.
It also emphasises the necessity of keeping 1/3 as long as possible!

Wave 1:

Wave 2: