Track C Exam — Answer Key

This is the answer key for the Track C Exam — Swing & Position Trading (modules The Swing Framework through The Weekly Swing Routine). Every entry gives the correct letter, one line on why it is right, and the module to re-study if you missed it.

Answers

1. A — The weekly chart sets direction, the daily holds the setup, and lower timeframes only fine-tune. Re-study: The Swing Framework.

2. B — The two entry families are breakouts to new highs and pullbacks to support inside an intact higher-timeframe uptrend; a dip into support is the pullback. Re-study: The Swing Framework.

3. B — Risk is $25,000 × 1% = $250; stop distance is $80 − $74 = $6; $250 ÷ $6 = 41.6, rounded down to 41 shares. Re-study: The Swing Framework.

4. C — 41 shares × $6 per share = $246 — just under the $250 budget, which is exactly why you round down. Re-study: The Swing Framework.

5. A — Size = risk dollars ÷ stop distance, so a wider stop at fixed dollar risk always means fewer shares. Re-study: The Swing Framework.

6. D — A stop is an instruction to sell at the next available price, not a price guarantee: the gap skipped $74 entirely, so 41 × ($80 − $68) ≈ $492. Re-study: The Swing Framework.

7. B — Trend following survives a low win rate because losers are cut fast and a few big trends are allowed to run. Re-study: Position Trading & Trend Following.

8. C — (0.40 × $900) − (0.60 × $300) = $360 − $180 = +$180 per trade. Re-study: Position Trading & Trend Following.

9. A — (0.40 × $300) − (0.60 × $900) = $120 − $540 = −$420 per trade — the size ratio, not the win rate, flipped the system. Re-study: Position Trading & Trend Following.

10. D — You pyramid only into proof: a position that is already winning. Adding to a loser is averaging down, and it is banned. Re-study: Position Trading & Trend Following.

11. B — Each add is smaller than the one before, and moving stops keep total risk at or under the original plan. Re-study: Position Trading & Trend Following.

12. C — A small fixed target caps exactly the rare, huge winners whose profits pay for the many small losers. Re-study: Position Trading & Trend Following.

13. A — LEAPS are simply long-dated options — typically expiring about 6 to 24 months out. Re-study: Swinging With Options.

14. D — A stock-replacement LEAPS call is bought deep in the money, with delta around 0.70–0.90, so it moves nearly share-for-share. Re-study: Swinging With Options.

15. B — Premium is quoted per share and one contract covers 100 shares: $38.00 × 100 = $3,800. Re-study: Swinging With Options.

16. C — 0.80 delta × $10 move ≈ $8 per share, and $8 × 100 shares ≈ $800 per contract. Re-study: Swinging With Options.

17. A — Given enough time, theta slows down but never disappears: finish below the strike at expiration and the whole $3,800 premium is gone. Re-study: Swinging With Options.

18. D — A bought (debit) spread can never lose more than the debit paid: $1.80 × 100 = $180. Re-study: Swinging With Options.

19. B — Called away at $65: (65 − 60) × 100 = $500 on the shares, plus the $200 premium = +$700 — the run to $72 above the strike was sold away, which is the covered call's trade. Re-study: Swinging With Options.

20. C — Total open risk is the sum of every position's dollars-at-stop, and the whole book carries a hard cap (5% in the module's guideline example). Re-study: Managing a Book of Swings.

21. A — 5% of $50,000 = $2,500; five positions at 1% ($500) each exactly fill it, so a sixth full-size position breaks the design. Re-study: Managing a Book of Swings.

22. D — Five same-sector swings share one fate: a sector-wide drop can hit all five stops together, making them one 5% technology bet. Re-study: Managing a Book of Swings.

23. B — The example caps one sector at 2.5% of the account — $1,250 on $50,000 — inside the 5% whole-book cap. Re-study: Managing a Book of Swings.

24. C — Earnings dates are scheduled landmines: audit them in advance and decide hold, reduce, or exit before the print, never after the headline. Re-study: Managing a Book of Swings.

25. A — A new position is allowed only if the book's total open risk, including the new trade, still fits under the cap. Re-study: Managing a Book of Swings.

26. D — The weekend session is calm planning — regime, open positions, watchlist, calendar. Intraday entry-hunting belongs to day trading, not to the swing routine. Re-study: The Weekly Swing Routine.

27. B — Roughly 10–15 minutes an evening: alerts and working orders watch the market so you do not have to. Re-study: The Weekly Swing Routine.

28. C — Alerts live at your plan's levels — entries, stops, targets — not on every wiggle, so the market comes to you. Re-study: The Weekly Swing Routine.

29. A — Friday's review journals the week honestly: opens, closes, R multiples, and rule breaks — the raw material for improvement. Re-study: The Weekly Swing Routine.

30. B — The plan is written and revised at the weekend session, with the market closed and your head clear; midweek impulses follow the existing plan. Re-study: The Weekly Swing Routine.

How to Use Your Score

• 24–30 — Pass. You can run a swing book the Academy way. Keep the routine for a full quarter before judging your results.
• 18–23 — Close. Re-study the modules named on your misses — most near-passes break on sizing math or the book caps — then retake.
• Below 18 — Not yet. Work back through The Swing Framework to The Weekly Swing Routine in order, do the sizing examples by hand, and retake when the math is automatic.