Table of Contents
Troy Noonan sits down to unpack how he built “Backpack Trader” freedom—going from filling paper charts in the ’90s to running live trade rooms for nearly two decades, and now focusing on swing and intraday systems that do the heavy lifting. He’s the guy behind the Catapult Trader concept, the “lean on the system” mantra, and a practical playbook for crude oil, equities, and options entries driven by price patterns and momentum—no heroics, just repeatable execution.
In this piece you’ll learn Troy Noonan’s core strategy principles: how to prove a trade plan before risking a dollar, why “the immediate past predicts the immediate future,” building a roster of symbols to get enough high-quality setups, keeping risk per trade small (think business, not thrills), and using daily charts with options for simple, scalable swing trades. You’ll come away with a concrete model for session goals, backtesting that creates confidence, and disciplined execution you can apply to your very next chart.
Troy Noonan Playbook & Strategy: How He Actually Trades
Core philosophy: trade plans, not predictions
Troy Noonan keeps it simple: you can’t control price, but you can control how you trade it. His edge comes from predefined trade plans that tell him exactly where to enter, where to take profits, and where to quit—before a single order goes in.
- Always define entry, stop, and targets before the trade; no guessing once you’re live.
- Judges set up by what just happened: “the immediate past predicts the immediate future”—only act when a fresh pattern shifts probabilities.
- Accept uncertainty: you can’t influence outcomes; you can only execute your plan flawlessly.
Swing framework: daily charts + simple options
For freedom and consistency, Troy favors end-of-day swing trading using daily bars. He uses the stock’s price pattern to trigger straightforward, directional option trades—minimal screen time, scalable results.
- Scan daily charts once a day; plan orders at your convenience.
- When the stock hits your level, take the simple directional option (calls/puts)—no complex structures needed.
- Expect lumpy activity: some days nothing, other days several orders; averaged out, it’s minutes per week if the plan is built right.
The “Catapult” setup: momentum shift with defined targets
His Catapult approach looks for a clear momentum flip confirmed by price action. Charts print the entry (a +), targets, and stop—so you can test it over years and trade it tomorrow with the same rules.
- Use the fast/slow momentum cross + a bar in the trade direction to arm the setup.
- Enter the printed price (+), place the stop above/below, and work the target ladders mechanically.
- Favor names where the plan “just wins a lot” historically; prove it with a multi-year performance report before adding to your roster.
- Expect many trades to hit targets and keep running—thus the “catapult” feel. Trail winners only per plan, not vibes.
Options selection: time cushion to catch runners
When a setup triggers, Troy often buys in-the-money options with extra time to survive chop and ride the move. The goal is to give winners room while keeping decisions simple.
- Choose ITM options with 3–5× the average hold time of the setup.
- Keep it directional—no spreads unless your plan explicitly requires them.
- Size so a routine loser is just a business expense, not a dramatic event.
Day-trading prototype: Renko logic and a clear objective
For intraday crude oil, Troy’s prototype system (influenced by Catapult ideas) uses custom Renko charts and momentum “mom” lines. The primary objective is simple: reach Target 2, and certain patterns, like the “Flip Your Mama,” help stack odds.
- Trade the “mom flip”: when all momentum lines align (e.g., all green/red) with an exhaustion-dot backdrop, you’ve got a valid setup.
- Make Target 2 your main objective; anything beyond is a bonus managed by rules.
- Execute the printed entry/stop/targets exactly as displayed; consistency beats tweaking mid-trade.
Roster building: enough signals without overtrading
One symbol won’t keep you busy or diversified. Troy builds a roster of proven symbols, adding them one at a time only after the plan’s equity curve passes muster.
- Start with one symbol; trade it flawlessly for weeks before adding the next.
- Require each symbol to have a solid historical profile (profit factor, average net per trade, tolerable drawdowns).
- Build to a small basket that collectively delivers steady, high-quality setups.
Proof first: backtest metrics that actually matter
Before a setup earns capital, Troy opens the performance report and focuses on a few pragmatic numbers. This keeps him grounded in reality, not hope.
- Prefer high profit factor and strong average net per trade (e.g., dollars per share).
- Avoid “unicorn” curves you can’t replicate live; expect stair-steps and drawdown, and ensure the plan recovers.
- Treat backtests as a roadmap to craft rules; then trade the rules, not the backtest.
Execution routine: minutes a week, businesslike mindset
Once the plan exists, the day-to-day is boring by design. Check charts, work orders, and let the system do the heavy lifting while you protect capital and stick to the script.
- Block a small, consistent window daily to manage swing orders; no random skipping.
- If the price hits your level, execute without hesitation; if not, do nothing. Let probability play out.
- Never “negotiate” with a live trade—follow the plan through targets or stop and move on.
Prove the Plan First: Rules Before Risk, No Predictions Allowed
Troy Noonan is blunt about this: you don’t earn the right to risk capital until a plan is proven. That means writing rules you can follow on a bad day, not just a good chart. Define entry, stop, targets, and exits for winners and losers before you ever click buy. If any piece of the plan depends on your mood or a hunch, it isn’t a plan yet.
Once the rules exist, Troy Noonan wants receipts—backtests, forward tests, and a small live trial to confirm edge and execution. Track results like a business: profit factor, average net per trade, drawdown depth, and recovery speed. Trade the script exactly as written so you’re measuring the plan, not your improvisation. Only when the numbers hold up do you scale, still following the same rules that got you there.
Size Small, Survive Drawdowns, Let Probabilities Compound Over Time
Troy Noonan treats position size like a circuit breaker: it keeps the system alive when markets get rough. He advocates risking a tiny, consistent fraction per trade so a routine losing streak barely dents your equity curve. Small size makes stops emotionally tolerable, which keeps you following the plan when it matters most. The goal isn’t to “win big today,” it’s to stay solvent long enough for your edge to express itself.
According to Troy Noonan, compounding is a math problem, not a motivational one. When risk per trade is modest and uniform, wins stack cleanly while losses stay contained, allowing the law of large numbers to work in your favor. This approach also reduces the temptation to “make it back” after a loser, because the next trade is just another small, predefined bet. Over weeks and months, that steadiness turns into smoother equity growth—proof that disciplined sizing beats adrenaline every time.
Trade the Immediate Past: Momentum Shifts Trigger Mechanical Entries
Troy Noonan keeps entries mechanical by letting the most recent price action set the bias. When momentum flips and a clean pattern confirms, he acts—no forecasting, no “I think” narratives, just the rule. The immediate past provides the highest-quality clue you can actually use, so he builds triggers from fresh breaks, reversals, and confirmations. If the shift isn’t there, Troy Noonan simply doesn’t trade.
The power comes from repetition: the same momentum flip, the same confirmation bar, the same predefined entry, stop, and target. This turns hesitation into execution because every decision is already made. Troy Noonan avoids stacking filters that slow him down; if the core shift is present, the trade is either on or it isn’t. By anchoring on what just happened, he keeps the strategy fast, testable, and stubbornly unemotional.
Diversify by Symbol, Strategy, and Duration to Smooth Equity Curves
Troy Noonan spreads his risk across a small roster of proven symbols so no single market dictates the week. He adds only what’s been tested and earned a spot, which keeps the noise down and the quality up. Different strategies—swing with options, intraday with mechanical targets—fire at different times, so drawdowns don’t stack on top of each other. By design, Troy Noonan wants overlapping but independent edges that keep the equity line climbing even when one lane goes quiet.
Duration matters just as much as the setup itself, and Troy Noonan deliberately mixes timeframes. Daily swings may catch the bigger moves while intraday tactics harvest smaller, frequent wins; together they reduce reliance on any one cadence. He sizes each lane consistently, tracks results separately, and prunes underperformers rather than forcing trades. The outcome is a steadier ride: fewer emotional decisions, more repeatable execution, and a portfolio that works like a well-run business instead of a one-trick bet.
Use Options Simply: In-The-Money, Extra Time, Defined Risk
Troy Noonan keeps his options playbook straightforward so execution stays clean under pressure. He prefers in-the-money contracts for higher delta and quicker feedback, paired with more time than he expects to hold. That cushion absorbs routine chop and slippage while the setup works. Defined risk means the worst case is known before entry, which keeps decisions unemotional.
Troy Noonan sizes each trade so a normal loser is just a line item, not a crisis. He avoids complex structures unless they’re part of a tested plan, choosing directional calls or puts that mirror the chart. Exits follow the same mechanical targets as the underlying setup, not a hunch or a headline. When the target hits, he pays himself; when the stop hits, he’s out—no repairs, no revenge.
In the end, Troy Noonan’s message is refreshingly consistent: treat trading like a real business with a written, tested plan and the discipline to follow it when the market gets loud. He builds entries from what just happened—fresh momentum shifts confirmed by simple price action—then executes the same way every time: predefined entry, stop, and targets. Risk stays small by design, so losing streaks are survivable, and winners can compound. Nothing relies on prediction or gut feel; everything relies on rules you can repeat on a bad day.
Equally important, Troy Noonan spreads his edge across a compact roster of symbols, a couple of proven strategies, and multiple durations so no single lane controls the equity curve. For swing trades, he keeps options simple—typically in-the-money with extra time—to capture the move with defined risk and minimal micromanagement, while intraday tactics provide additional, independent opportunities. The throughline is process: prove the plan, measure the results that matter, prune what doesn’t earn its keep, and scale only what has. Do that, and the strategy stops being exciting—and starts being dependable.
