# Leveraged, Inverse, Day-Trading, And Swing Rules

## Purpose

The account must be able to make money in both rising and falling markets while reducing the user's mental load.

`SOXL` and `SOXS` are tactical instruments, not identities. They are used only when semiconductor market structure supports them.

Official product objective reference: Direxion says `SOXL` and `SOXS` seek daily results of 300%, or 300% of the inverse, of the NYSE Semiconductor Index before fees and expenses. Treat this as tactical exposure, not a default long-term hold.

## Account Constraint

- Main account: leverage and inverse ETF trading is allowed.
- Sub account: leverage/inverse ETF trading is not allowed.

Blocked in the sub account unless the user later says the broker permissions changed:

- `SOXL`
- `SOXS`
- `TQQQ`
- `SQQQ`
- `UPRO`
- `SPXL`
- `SPXS`
- `QLD`
- `SSO`
- other leveraged or inverse ETFs.

If a report recommends a leveraged or inverse ETF, it must explicitly say `MAIN ACCOUNT ONLY`.

## Direction Map

Use `SOXL` when:

- Semiconductors are repairing or leading.
- `SMH/SOXX` stop making lower lows.
- `NVDA/AVGO/AMD/MU/TSM/ASML` stabilize or lead.
- QQQ and market breadth support risk-on or selective risk-on.
- VIX is stable or falling.
- Entry, stop, target, and same-day exit rules are clear.

Use `SOXS` when:

- Semiconductors are breaking down.
- `SMH/SOXX` lose key support with volume.
- Bellwethers fail rebounds or gap down on real news.
- QQQ breadth is weak and VIX/rates/dollar pressure supports defense.
- The trade has a clear stop and is not held blindly after a sharp move.

Use neither when:

- The market is choppy.
- Semiconductors are mixed and whipsawing.
- Spreads are poor.
- The user is too fatigued to monitor.
- The plan lacks exact stop, target, time stop, and size.
- The required cash is not available and the setup may mature before Namuh/NH cash settlement or FX is ready.

## Same-Day Trading

Day trades are allowed when the setup is tactical and the user is likely awake during US market hours.

Day-trade labels:

- `DAY TRADE LONG`: same-day long trade, usually `SOXL` or strong individual ticker.
- `DAY TRADE SHORT`: same-day bearish trade, usually `SOXS`.
- `SCALP ONLY`: small size, quick target, fast invalidation.
- `NO OVERNIGHT`: exit before close unless a fresh overnight thesis is written.
- `OVERNIGHT ALLOWED`: only when trend, news, and risk justify it.

Default rule:

- Leveraged/inverse ETFs are `NO OVERNIGHT` unless the report explicitly upgrades them.

## Leveraged Swing Holding

Leveraged and inverse ETFs can be held beyond one session only when the broader trend is strong enough.

Swing labels:

- `NO OVERNIGHT`: exit or avoid before close.
- `OVERNIGHT WATCH`: holding overnight is possible only if the close confirms.
- `SWING HOLD 2-3D`: short swing hold allowed.
- `SWING HOLD 3-7D`: strong directional regime supports multi-day hold.
- `REDUCE BEFORE WEEKEND`: reduce or exit before weekend gap risk.
- `EXIT SWING`: trend or invalidation failed.

Reference:

- `/Users/jangbogeun/Documents/Codex/2026-06-06/2/outputs/leveraged_swing_hold_rules.md`

## Required Tactical Plan

Every `SOXL`, `SOXS`, same-day, or leveraged swing recommendation must include:

- Direction: long or inverse.
- Account: main only if leveraged/inverse.
- Current price source and timestamp.
- USD price.
- USD/KRW FX rate.
- KRW budget.
- Calculated shares.
- Approximate KRW exposure.
- Entry trigger.
- Target 1 and target 1 action.
- Target 2 and target 2 action.
- Stop or invalidation.
- Max loss in KRW and percent.
- Time stop.
- Exit-by time in KST/JST.
- Overnight permission or swing label.
- Weekend rule if holding longer than 2 sessions.
- Daily revalidation checklist for swing holds.
- Funding source and cash-ready assumption if 10,000,000 KRW is not already available.
- Rotation opportunity cost if entering requires selling an underwater holding.

If current price or FX is unavailable, the report must say `NEEDS LIVE PRICE/FX` and avoid exact share count.

Reference:

- `/Users/jangbogeun/Documents/Codex/2026-06-06/2/outputs/liquidity_and_rotation_opportunity_cost_rules.md`

## Sizing Rules

For leveraged/inverse ETFs:

- Start smaller than normal stocks.
- Default max initial tactical size: 5-15% of main account unless the user provides a different limit.
- In high volatility, prefer 3-8%.
- Max loss per trade should be defined in KRW before entry.
- Do not average down. Only add on confirmation if the original plan allows pyramiding.
- Do not force-sale an underwater holding to fund `SOXL` or `SOXS` unless the net rotation edge is positive after cash delay, missed rebound risk, slippage, FX, and fatigue cost.

Share count formula:

`shares = floor(budget_krw / (price_usd * usdkrw * (1 + fee_buffer)))`

The report should show both shares and approximate KRW amount.

## SOXL And SOXS Regime Table

| Market State | SOXL | SOXS | Default Action |
| --- | --- | --- | --- |
| Semiconductor leadership repair | Allowed | Avoid | SOXL watch or staged entry |
| Semiconductor breakdown | Avoid | Allowed | SOXS tactical review |
| Choppy / mixed | Avoid | Avoid | Cash or individual stocks only |
| Panic selloff but stabilizing | Watch | Scalp only | Wait for confirmation |
| Failed rebound | Avoid | Watch | SOXS only with tight stop |
| Trend repair | Allowed | Avoid | SOXL staged entry |

## Fatigue Override

If the user is mentally or physically overloaded:

- Reduce trade count.
- Use smaller size.
- Prefer pre-set target/stop alerts.
- Avoid SOXL/SOXS unless the setup is unusually clear.
- Cash is preferred over a trade that needs constant staring.

The system's first objective is to reduce fatigue while preserving upside.