A disciplined trend-following strategy that waits for the market to show its hand at the open before committing.
VWAP Base Camp is a trend-following strategy built on a single core idea: let the open reveal the bias, then trail it patiently. The observation window from 9:30 to 10:00 ET does the heavy lifting — filtering out choppy conditions before a single contract is risked.
Three tools only: VWAP, 9 EMA, and Volume. If you can't see the setup with just these, it isn't a setup. The strategy earns its name from the idea that a Base Camp is established at VWAP before the ascent begins — price must prove itself there before entry.
The conditions before the open determine position sizing and whether you trade at all. VIX regime is the primary size controller; news classification determines how strict the chop filter must be.
| VIX Level | Market Condition | Position Size |
|---|---|---|
| Below 20 | Normal conditions | Full size |
| 20 – 25 | Elevated volatility | 75% of normal |
| 25 – 30 | High volatility | 50% of normal |
| Above 30 | Extreme volatility | No trade |
Fed decisions, NFP, CPI, major geopolitical events. These create conditions where the strategy's edge disappears. No setup is valid on a Tier 1 day — sit on hands entirely.
Earnings, secondary economic prints, scheduled speeches. Trading is allowed but the chop filter in Gate 1 becomes stricter: zero VWAP crossings during the observation window (standard is ≤1).
All three gates must be cleared sequentially during the 9:30–10:00 ET observation window. A single fail means no trade for the session — not "wait for next setup."
Count how many times price crosses VWAP during the 9:30–10:00 observation window.
At exactly 10:00 ET, assess the relationship between the 9 EMA and VWAP.
Price must touch VWAP from the correct side — confirming that VWAP is acting as support (long) or resistance (short).
The entry sequence begins only after all 3 gates pass. Steps must occur in order; skipping or reordering invalidates the setup. New setups open only between 10:00 and 11:00 ET — after 11:00, existing sequences can complete but no new ones start.
Price touches VWAP from the bias direction established in Gate 3. This is your alert that the sequence has begun.
The 1-minute candle that touches VWAP must close on the correct side. A close through VWAP cancels the sequence — restart from Step 1.
Price closes above (long) or below (short) the 9 EMA on a candle that has clear body — not a doji or inside bar. This signals commitment from the bias direction.
A structural point is established: higher low for longs, lower high for shorts. This becomes the reference for the pullback in Step 5.
Price pulls back to touch the 9 EMA — a touch is required, not just an approach. This is the last chance for the market to disqualify the setup before entry.
The candle after the 9 EMA touch closes in the direction of the trade. Enter at the open of the next candle. Do not chase; if you miss the open, the entry is invalid.
The sequence resets to Step 1 if: price crosses VWAP, the 9 EMA crosses VWAP, or more than 3 candles pass between any two consecutive steps without progress.
Base Camp uses a trailing approach rather than fixed targets — the goal is to stay in a trend as long as it holds, not to take a predetermined amount of points.
Trail stop using the 1-minute 9 EMA. Move stop to below (long) or above (short) the 9 EMA after each completed candle.
Stay aggressive — the morning trend is your best window.
Switch to the 5-minute 9 EMA for trailing. This gives the trade more room as volume typically thins and price action becomes choppier.
Still flat by 15:45 ET regardless.
After 2 consecutive losing trades, a mandatory 30-minute cooldown begins. No new setups during this window. Use the time to review what happened — not to look for a revenge trade.