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This interview features Tyler Bollhorn—veteran stock trader, founder of Stockscores, and teacher of systematic trading for more than 30 years—breaking down how he built a rules-driven approach from real market behavior. He explains why most traders struggle during live sessions (hello, amygdala) and how he uses algorithms to spot statistically abnormal price and volume so he can trade what’s truly “in play,” not what’s being hyped. His perspective matters because he’s blended academic-style statistical tools with hands-on execution to create a repeatable edge for everyday traders.
In this piece, you’ll learn Tyler Bollhorn’s core edge—identifying abnormal strength, waiting for second-wave entries, and managing trades with a clear reward-to-risk filter—plus the mindset work that keeps you from sabotaging good setups. We’ll cover how he avoids news-driven bias, why “make more by trading less” improves expectancy, and the practical routines (written plans, breathing, stepwise risk exposure) that help beginners execute like pros. By the end, you’ll have a simple, beginner-friendly map for turning chaotic tape into a disciplined trader’s strategy you can apply immediately.
Tyler Bollhorn Playbook & Strategy: How He Actually Trades
Core Edge: Trade What’s Statistically “In Play”
Tyler Bollhorn’s edge starts with spotting statistically abnormal prices and volume—names showing unusual attention right now. The goal is to focus on outliers where crowd behavior is concentrated, because that’s where momentum, liquidity, and opportunity live.
- Scan for stocks with abnormally high volume and range versus their own recent norms—today’s standouts only.
- Require quantified abnormality (e.g., multiple of average volume and outsized intraday range), not vague “it looks active.”
- Favor clean, directional moves over choppy charts; skip overlapping candles and messy basing during your trading window.
- If nothing meets the threshold, don’t force trades—no setup, no exposure.
Entry Triggers: Strength First, Then a Low-Risk Tag-In
He prefers getting in after the market tips its hand. Let the first burst prove demand, then step in on a controlled pullback or pause that holds structure.
- After the initial abnormal push, wait for a shallow pullback that holds above a logical level (VWAP, prior micro-pivot, or breakout line).
- Enter on a re-break of the pullback high or a tight flag break; avoid chasing the first spike.
- If the pullback undercuts the reference level or expands volatility, cancel the idea and move on.
- Only take entries where the stop can be tucked tight under the structure, keeping reward-to-risk favorable.
Risk & RR Framework: Trade in “R Units,” Level Up Gradually
Tyler thinks in risk units (R) and scales risk step-by-step as competence is proven. This keeps emotions tame and performance measurable.
- Define 1R as the dollar loss if your stop is hit; every trade is framed in Rs.
- Paper trade to +10R before risking real money; then start with a tiny fixed R (e.g., $50).
- Each time you accumulate +10R net at your current size, step your R up (e.g., $50 → $100 → $200).
- Before entering, verify at least ~2R potential to the next objective; if you don’t see ~2:1, skip the trade.
Stops That Make Sense: Structure First, Math Second
Stops belong where your idea is objectively wrong, not where the P&L feels comfy. This enforces clarity and keeps losses small.
- Place the stop just beyond invalidation (below the base/flag low on longs, above the pivot on shorts).
- Never widen a stop after entry; if volatility expands beyond plan, exit and reassess.
- If the setup morphs into churn (sideways overlap, failed re-break), scratch early rather than “hoping.”
- Pre-commit to a maximum daily R-loss; hit it, and you’re flat for the day.
Position Sizing & Symbols: Smaller Names, Tighter Risk
He often works in lower-priced, more volatile tickers where smaller position sizes still move the needle—without ballooning dollar risk.
- Prefer lower-priced, high-volatility stocks that meet abnormal criteria; they allow smaller share counts and tight stops.
- Size shares by stop distance, so every trade risks the same R regardless of symbol.
- Keep 2–4 concurrent positions max while learning; concentration beats clutter.
- Avoid illiquid names; demand tight spreads and dependable fills during your trading window.
Daily Routine: Fast Scans, No News Bias
Process beats prediction. The routine is built to surface the best candidates fast, then execute the same way every day.
- Pre-market: Build a short list of tickers already showing abnormal pre-market activity; set alerts at inflection levels.
- At the open: Re-scan for fresh outliers; ignore headlines and opinions—price/volume is the truth.
- During the session: If conditions cool off, stand down; trade less when edges compress.
- End of day: Journal entries, exits, and missed setups in R terms, not dollars.
Trade Management: Let Winners Breathe, Cut Losers Clean
Winners should finance the campaign; losers tell you to leave. Simple, consistent rules keep expectancy positive.
- First scale near a logical objective (prior day high, measured move, round number) only if momentum stalls; otherwise, hold.
- If price reclaims your entry and churns, consider a scratch or tight trail to protect open R.
- After a +1R push, consider moving the stop to breakeven only if structure justifies it (fresh higher low on longs).
- Never average down intraday; fresh decisions require fresh setups, not bigger bets on old ones.
Psychology & Execution: Breathe, Plan, and Stay Mechanical
The brain panics when money is moving. Tyler keeps the thinking brain online with simple, repeatable habits.
- Breathe deliberately (even cadence, long exhale) before and during trades to slow the pulse and reduce impulsivity.
- Write a one-page playbook you can read in under 60 seconds: setups, entries, stops, RR, max daily R.
- If you feel FOMO, name it and wait for your next rule-based trigger; no trigger, no trade.
- Track rule adherence (yes/no) alongside P&L; aim for 90%+ compliance before increasing size.
Continuous Improvement: Test, Tweak, Keep the Edge
Edges decay unless you maintain them. Iterate with data, not opinions, and keep timeframes aligned with market speed.
- Batch-review your last 20 trades: Which patterns delivered the highest net R with the least heat? Double down there.
- If win rate drops or heat rises, tighten entry filters (cleaner flags, stronger abnormal thresholds).
- Shorten or lengthen time-in-trade rules to match current volatility; stale rules get you late.
- Remove one variable at a time when testing changes; keep experiments controlled and measurable.
When Not to Trade: Protect the Mental Capital
Knowing when to sit out is a strategy. Flat is a position that preserves R and confidence.
- Skip days with no abnormal standouts or sloppy tape (overlap, random spikes, poor liquidity).
- After two consecutive R-losses, take a mandatory reset block; review, breathe, and only return with A+ setups.
- If external stress is high (sleep, health, distractions), cut size to half-R or don’t trade.
- Remember: Consistency > activity; the edge appears in bursts, not every candle.
Size Every Trade by Fixed Risk, Level Up After Consistency
Tyler Bollhorn keeps it simple: define a fixed dollar risk per trade and stick to it, no matter the ticker. He frames every idea in “R,” where 1R is the amount lost if the stop is hit—nothing fuzzy, just math. By sizing shares to the stop distance, each position has the same emotional weight and clean comparability. This removes the common habit of oversizing “high-conviction” trades and undersizing the ones that actually fit the rules.
Once the fixed R feels automatic, Tyler Bollhorn levels up only after consistent results, not after a lucky streak. He uses milestones—hit a solid net gain at current size, then step R higher in small increments. This keeps psychology stable, protects confidence during learning curves, and turns growth into a controlled progression instead of a gamble. The takeaway is clear: standardize risk, earn the right to scale, and let your process—not your feelings—decide when to size up.
Trade What’s Abnormally Strong: Price and Volume Prove the Story
Tyler Bollhorn hunts for stocks where demand is unmistakable—abnormal price expansion backed by abnormal volume versus recent norms. He avoids stories and focuses on the tape because price and volume reveal where the crowd is committing real dollars. If a name isn’t showing clear relative strength and liquidity, he doesn’t care how convincing the narrative sounds. Tyler Bollhorn wants clean momentum, not chop, with candles that travel and consolidate rather than overlap endlessly.
Once strength is proven, he waits for a controlled pause so risk can be defined tightly. The ideal entry is a re-break after a shallow pullback that holds above a sensible reference like VWAP or the prior micro-pivot. If volume dries up or the pullback undercuts structure, Tyler Bollhorn discards the idea and moves on. The result is a simple filter: price and volume first, structure second, everything else a distant third.
Wait For Pullback And Re-Break; Enter With Tight, Logical Stops
Tyler Bollhorn doesn’t chase the first burst; he lets the market prove strength, then waits for a tidy pullback that holds structure. The pause should be shallow, with shrinking range and cooperative volume, ideally riding above VWAP or a recent micro higher low. He sets a buy stop at the re-break of the pullback high, so momentum must resume to fill him. If the pullback undercuts the reference level or expands into a messy overlap, Tyler Bollhorn cancels the setup without debate.
Stops are placed where the idea is objectively wrong, not where the P&L feels comfy. That usually means just beyond the pullback low or the base edge, keeping distance tight so 1R is small and repeatable. He insists on visible room to at least ~2R before entry; if the next objective is too close, he passes. The effect is a cleaner tape read: wait, tag in only on renewed strength, and protect capital with a stop that matches the structure you trusted in the first place.
Let Winners Breathe, Cut Losers Quickly; Protect Daily Loss Limit
Tyler Bollhorn treats losers like a cost of doing business—he pays the bill fast and moves on. The stop is final, not a suggestion, and he never widens it once the trade is live. When a name reclaims the entry and churns, he’s quick to scratch because preserving R matters more than being “right.” That discipline keeps his average loss small and predictable, which is the backbone of positive expectancy.
On winners, Tyler Bollhorn gives price room to work so the occasional trend day can pay for many scratches. He scales only when momentum stalls at logical targets, and he resists the urge to micromanage every wiggle. After a solid push, he may trail behind fresh higher lows, but only if structure supports it. If the daily loss cap is hit, he’s flat—no revenge trades, no “one more try,” just a clean stop to protect confidence for tomorrow.
Process Over Prediction: Simple Routine, Clean Setups, No Forced Trades
Tyler Bollhorn wins by showing up with the same plan every day, not by guessing headlines or calling tops. He runs quick scans for abnormal price and volume, shortlists a few clean patterns, and sets alerts so the market calls him—not the other way around. If nothing meets his rules, Tyler Bollhorn does nothing, because flat is a valid position. That restraint preserves capital and keeps his mind sharp for when genuine edge appears.
His routine is built to reduce decisions under stress: predefined entries, predefined stops, predefined daily loss cap. Tyler Bollhorn journals in R, grades rule adherence, and reviews the last batch of trades to double down on what’s working. When volatility shifts, he tweaks filters—not his discipline—tightening criteria or shortening time-in-trade. The message is simple: follow the process, trade the clean setups, and let prediction stay in the entertainment business.
In the end, Tyler Bollhorn’s message is disarmingly simple: build an edge you can actually execute. He hunts for statistically abnormal prices and volume because that’s where attention, liquidity, and momentum converge. He lets the first burst prove demand, then tags in on a shallow pullback that holds structure, placing a tight, logical stop right where the idea would be wrong. Everything is framed in R—fixed risk per trade, visible ~2R opportunity before entry, and a hard daily loss cap that protects confidence when the market isn’t cooperating.
Equally important, Tyler Bollhorn treats process as the product. He sizes shares to the stop so every trade carries the same emotional weight, levels up risk only after sustained positive R, and journals in R to measure what’s actually working. News and narratives take a back seat to price and volume; winners are given room to pay for scratches, and losers are closed without debate—no averaging down, no “one more try.” When nothing meets his abnormal-strength criteria, he sits out, because flat is a position. If you adopt just these essentials—abnormal activity, second-wave entries, structure-based stops, fixed-R risk, and strict routine—you’ll trade less, stress less, and let expectancy do the heavy lifting.
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