How George Works

The opposite of every instinct is correct.

The Philosophy

George Costanza doesn't analyze the market. He analyzes you. He looks at what looks "safe," what looks "smart," what looks like a "breakout," and then does the exact opposite.

If every instinct you have is wrong, then the opposite would have to be right.

How George Trades

1

Market Scan

George scans SPY, IWM, QQQ, and ^SPX every minute during market hours. He analyzes RSI, volume, put/call ratios, and opening range breakouts to understand what the crowd is thinking.

2

Discomfort Score

George calculates his "discomfort" with the current market state. The more signals that align, the higher his discomfort score.

✓50-59%: George is watching (Discord notification)
✓40-59% (Swing): Watching swing opportunity
✓60%+ (Normal Hours): George acts - executes 0DTE trade
✓60%+ (Swing): Executes swing trade
✓50%+ (Power Hour 2:30-4 PM): George is unleashed - more aggressive!
3

Fakeout Detection

Before executing any trade, George checks for market maker manipulation. He analyzes volume patterns, price action, time-based traps, and historical patterns to avoid fake breakouts.

✓ENTER: Confidence < 40% - Safe to proceed
✓WAIT: Confidence 40-59% - Wait for pullback confirmation
✓AVOID: Confidence ≥ 60% - Block trade (likely fakeout)

Dynamic Thresholds: Adjusts based on market volatility (VIX). High VIX = higher thresholds (more fakeouts expected).

4

The Inversion

Once George knows what the rational human would do, he does the opposite:

  • →Crowd Bullish? George buys PUTS
  • →Crowd Bearish? George buys CALLS
  • →Crowd Confused? George buys STRADDLES (chaos is a ladder)
4

Risk Management

0DTE Scalp Stop Loss:
  • • SPX: Trailing only (activates at +15%)
  • • Others: -40% before 2pm, -50% after 2pm
  • • Moves to breakeven at +15% gain
  • • Then trails upward, never downward
Swing Trade Stop Loss:
  • • Initial: -15% (or dynamic based on VIX)
  • • High VIX (>30): Wider stop (-22.5%)
  • • Low VIX (<15): Tighter stop (-11.25%)
  • • Breakeven at +20%, trailing at +30%, target lock at +50%
Take Profit:
  • • Scalps: +100% partial close, runner trails
  • • Swings: Target-based exit or partial at target (50% at target, 50% runner)
End of Day:
  • • All 0DTE positions auto-close at 3:58 PM ET
  • • Swing trades can hold overnight (max 5 days)

Swing Trading Strategy

George also trades swing positions based on price action relative to key levels (prior week/day OHLC, pivot points, swing points). These are longer-term holds (up to 5 days) with different risk management rules.

Entry Signals

  • • Watching (40-59%): Discord notification, auto-expires after 24h
  • • Entry (60%+): Executes swing trade
  • • Volume Required: Must have 1.5x average volume
  • • Position Sizing: 1-3 contracts based on signal strength
  • • Max 4 swings/day: Separate limit from scalps

Exit Logic

  • • Target Reached: Underlying hits target price
  • • Time Limit: Auto-close after 5 days
  • • Stop Loss: -15% initial, breakeven at +20%
  • • Trailing: Starts at +30%, locks +30% at +50%
  • • Partial Exits: 50% at target, 50% runner

Smart Features

  • • Option Selection: Prefers 5-7 day weekly options, target-based strikes, avoids high IV (>80%)
  • • Position Correlation: Won't enter swing if already have scalp in same direction
  • • Watch Tracking: If watched 3+ times without entry, increases threshold
  • • VIX-Based Stops: Adjusts stop loss width based on market volatility

Power Hour (2:30-4:00 PM)

During the final 90 minutes of trading, George is unleashed. All restrictions are removed and he becomes more aggressive.

Normal Hours

  • • 60% threshold to trade
  • • Max 3 trades per direction
  • • 25% position limit
  • • Losing streak penalty (-10)

Power Hour

  • • 50% threshold to trade
  • • No direction limit
  • • 37.5% position limit
  • • Losing streak ignored!

George's Daily Schedule

8:00 AM

Morning Analysis

Reviews pre-market moves and makes a plan

9:25 AM

Opening Bell Prep

Locks in what trades to take at open

9:30 AM
4:00 PM

Active Trading

Scans markets every minute, checks for fakeouts, and acts on signals. Also monitors waiting trades for pullback confirmation.

3:58 PM

Auto-Close All Positions

Closes everything 2 minutes before market close

4:05 PM

Daily Recap

Summary of the day's performance (scalps and swings tracked separately)

Fakeout Detection System

George uses sophisticated analysis to detect market maker manipulation before entering trades. This helps avoid fake breakouts and reversals.

Detection Factors

  • • Volume Analysis: Low volume breakouts = suspicious
  • • Price Action: Rejection wicks, quick reversals
  • • Time Patterns: Opening hour, lunch hour traps
  • • Support/Resistance: Multiple bounces at key levels
  • • VWAP Analysis: Price extended from VWAP
  • • Multi-Timeframe: Daily/weekly trend conflicts
  • • Historical Patterns: Learns from past fakeouts

Pullback Confirmation

  • • WAIT Recommendation: Trade stored as "waiting"
  • • Monitoring: System checks every minute for pullback
  • • Confirmation Level: Price must retest specific level
  • • Auto-Execute: Trade executes when pullback confirmed
  • • Expiration: If no pullback, trade expires after wait time

Dynamic Thresholds

Fakeout thresholds adjust based on market conditions:

  • • High VIX (>30): Higher thresholds (75% fakeout, 50% wait)
  • • Normal VIX (13-20): Standard thresholds (60% fakeout, 40% wait)
  • • Low VIX (<13): Lower thresholds (55% fakeout, 35% wait)

Trading Limits & Rules

0DTE Scalp Trades

  • • Max 8 trades per index per day
  • • Max 16 total scalp trades per day
  • • Max 3 trades per direction (calls/puts)
  • • 25% position limit (37.5% in Power Hour)
  • • All positions close at 3:58 PM ET
  • • Fakeout detection blocks suspicious trades

Swing Trades

  • • Max 4 swing trades per day
  • • Separate limit from scalps
  • • Max 2 swings in same direction
  • • Can hold overnight (max 5 days)
  • • Won't enter if already have scalp in same direction
  • • Fakeout detection applies to swings too
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