Seven01 Catalyst Continuation Strategy

Qualification Rules

To be tested under the Seven01 Catalyst Continuation Strategy and count toward its official statistics, a stock must:

• Have a legitimate, publicly released and verifiable catalyst.
• Be identified and recorded by our live catalyst-monitoring process before the next-morning outcome is known.
• Meet our predefined Confirmed / Qualifying catalyst criteria.
• Have catalyst date/time, reaction, volume, float when available, and confirmation status recorded.
• Remain permanently in the dataset once qualified, regardless of whether it wins or loses.

The strongest qualifying setups generally have several of these characteristics:

• +20% or greater catalyst-driven move
• At least approximately 1 million shares traded
• Strong relative volume
• Lower share price, with sub-$5 names prioritized
• Low float when available
• Former-runner history
• A clear momentum or breakout trigger

These are prioritization characteristics, not automatic exclusion rules. A setup is not excluded simply because it does not display one of them.

Trade Rules

Result Definitions

• TARGET REACHED — +2% is reached before the -6% stop.
• STOP HIT — -6% is reached before the +2% target.
• TIMEOUT — Neither the target nor the stop is reached before 9:29 AM.
• UNRESOLVED — Both the target and stop appear inside the same available historical bar and we cannot reliably determine which occurred first.
• DATA INSUFFICIENT — Reliable 7:00 AM pricing or sufficiently granular data is unavailable.

• • Do not use any prices after 9:29 AM to determine the result.
• • Do not retroactively change the rules.
• • Every qualifying setup remains in the dataset regardless of whether it wins, loses or times out.

Entry Price Integrity

The official 7:00 AM entry cannot later be replaced with:

• ✕A more favorable print
• ✕A later price
• ✕A midpoint selected after seeing the result
• ✕An overnight entry
• ✕A theoretical price that was not legitimately tradable

If reliable 7:00 AM data is unavailable, mark the setup DATA INSUFFICIENT rather than estimating it.

In the historical sample tested under the Seven01 Catalyst Continuation Strategy rules with a 6% stop, 16 of 16 qualifying setups reached the +2% target before the stop, 0 reached the stop first, and 0 were unresolved because available historical bars did not establish whether the target or stop occurred first.

Historical results are research observations only. They are not a guaranteed win rate and do not imply that future trades are expected to produce similar results.

Current Forward-Test Queue

No setups are currently queued for forward testing. New setups appear here once they reach Confirmed / Qualifying status.

Data Integrity

• Confirmed / Qualifying
  Meets the predefined qualifying catalyst criteria. The only classification that affects the official strategy statistics.
• Early Catalyst / Pending Confirmation
  A legitimate catalyst was identified, but the qualifying criteria are not yet fully met.
• Non-Confirmed
  Retained in the catalyst database but did not meet the qualifying criteria.
• Low Priority
  A legitimate catalyst that was not prioritized for testing.
• Data Insufficient
  Reliable 7:00 AM pricing or sufficiently granular data is unavailable.

• • Only Confirmed / Qualifying stocks affect the official strategy statistics.
• • The broader catalyst database still retains legitimate catalysts that did not qualify, so the research does not become selection-biased.
• • Once a qualifying forward-test setup is added, it can never be removed because of its outcome.
• • Wins, stop hits, timeouts, unresolved setups and data-insufficient observations all remain part of the permanent record.