Detailed descriptions of all DCMM parameters and indicators used in the market monitoring system.
The Kelly Criterion provides mathematically optimal position sizing using DCMM’s P_win and R/R Ratio parameters. Kelly % = P_win – (1 – P_win) / R/R. In practice, Half Kelly (50% of calculated) balances optimal growth with manageable variance. The DCMM Deep Access report provides all inputs needed for Kelly calculation.
The 3/10 Oscillator (Osc 3/10) measures the difference between 3-period and 10-period moving averages to detect momentum inflection points. In DCMM, a positive or improving Osc 3/10 during a drawdown setup confirms recovering momentum — especially powerful when combined with RSI < 30 and an active DD setup.
Turtle Soup identifies false breakdowns below key support levels where institutional buyers absorb panic selling. In the DCMM framework, an active Turtle Soup signal combined with a DD setup and high Exp Score creates one of the strongest mean-reversion entry signals — the “triple confirmation” scenario.
LRB Pinball (Linear Regression Bounce) is a proprietary DCMM indicator that identifies stocks trading significantly below their statistical regression trend — in a “bounce zone.” When active alongside DD and Exp Score criteria, it provides additional confirmation for high-probability mean-reversion setups. Available in Extended and Deep Access tiers.
Vol Ratio compares the current session’s trading volume to the 20-day average, serving as a volume confirmation signal for DCMM setups. High Vol Ratio during a drawdown can signal a capitulation bottom (positive for mean-reversion), while extreme sustained high volume may indicate a fundamental change invalidating the setup.
Gap Analysis in DCMM tracks overnight price gaps: Gap (%) measures the opening gap vs. yesterday’s close, while Gap+5min % confirms whether the gap direction holds in the first 5 minutes of trading. For drawdown setups, gap downs can create improved entries while large unexplained gaps may signal news events that invalidate the setup.
Z-Score in DCMM measures how many standard deviations the current price move deviates from the stock’s historical norm. It serves as an anomaly detector — values below -2.0 signal that the current decline is statistically unusual and may invalidate the mean-reversion thesis, acting as a negative filter for setup selection.
The R/R Ratio in DCMM is calculated as TP_year / SLm — the historically-calibrated reward-to-risk ratio for each setup. It is classified into 4 gradations: Excellent (≥1.0), Good (0.5–1.0), Acceptable (0.3–0.5), and Below Minimum (<0.3). Combined with P_win, it drives Exp Score and Kelly position sizing.
Exp Score is a composite expected value metric that combines P_win (probability of success) with TP_year/SLm (reward-to-risk ratio) into a single ranking score. It is the primary prioritization metric in DCMM Deep Access, identifying the highest-quality setups across all monitored stocks.
DCMM provides multiple statistically-derived stop loss levels: SL90 (90th percentile next-session low from Historical Twins), Smart Stop/SLm (the primary recommended stop), SLc (conservative), SLmin (tightest), and SL_year (annual context). Each is calculated from Historical Twins to ensure data-driven risk management.