Micro-Cap Momentum Strategy

High-volatility momentum strategy for micro-cap stocks.

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Strategy Overview

Parameter	Value
Universe	Micro-cap stocks ($100M - $2B market cap)
Timeframe	Intraday to swing (1-5 days)
Account	Alpaca Paper (testing)
Risk per Trade	2% of account

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Entry Criteria

All conditions must be met:

1. Breakout: Price >= 16-day high
2. Volume Surge: Current volume >= 3x 20-day average
3. RSI Strong: RSI(14) > 61

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Exit Criteria

Take Profit

• Target: 10-15% gain
• Partial exits at 7%, 10%, 15%

Stop Loss

• Initial: 7% below entry
• Trailing: Move to breakeven after 5% gain

Time Stop

• Exit if no movement after 5 days

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Position Sizing

Position Size = (Account * Risk%) / (Entry - Stop)

Example:
- Account: $100,000
- Risk: 2% = $2,000
- Entry: $10.00
- Stop: $9.30 (7% below)
- Position: $2,000 / $0.70 = 2,857 shares
- Dollar Value: 2,857 * $10 = $28,570

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Symbols Watchlist

Current universe (from micro_cap_monitor.py):

SYMBOLS = [
    'PLTR', 'SOFI', 'RIOT', 'MARA',
    'PLUG', 'BLNK', 'CHPT', 'QS',
    'OPEN', 'CLOV', 'SKLZ', 'WISH'
]

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Backtest Results

Add backtest results here

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Paper Trading Log

Track paper trading performance

Date	Symbol	Entry	Exit	P&L	Notes

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Last Updated: January 2026