name: sepa-strategy
description: >
Analyze stocks with Mark Minervini's SEPA (Specific Entry Point Analysis) methodology:
stage analysis, the 8-condition trend template, fundamentals, VCP and other base
patterns, pivot-point entries, market environment, and risk-based position sizing.
Use this skill whenever the user mentions SEPA, Minervini, superperformance, the
trend template, VCP (volatility contraction pattern), Stage 2, pivot or breakout
entries, moving-average stacking (price above the 50/150/200-day MAs), breakout
volume, position sizing from risk percentage, growth-stock screening or swing-trade
entry criteria, or bases such as cup-with-handle, flat base, bull flag, or high tight
flag. Also use it
when the user asks "should I buy this stock" or "is this a good setup" about a
growth or momentum name, or shares a chart for pattern analysis.
SEPA Strategy Analysis
Analyze stocks using Mark Minervini's SEPA (Specific Entry Point Analysis) framework — a complete system for identifying high-probability growth stock entries with strict risk management.
Core philosophy: Buy the right stock, in the right stage, at a precise entry point, with strict risk controls. Win rate is ~50-55% — profitability comes from asymmetric risk/reward (small losses, large gains), not from predicting direction.
This skill is for educational/analytical purposes only. It does not constitute investment advice. Never execute trades based solely on this analysis.
Step 1: Gather Stock Data
Collect the following data for the stock. Use yfinance or any available market data tool.
Data needed
Purpose
Current price
Trend template check
50-day, 150-day, 200-day moving averages
MA alignment verification
52-week high and low
Price position check
200MA value from 1 month ago and 4-5 months ago
MA200 slope direction
20-day average volume + today's volume
Volume ratio analysis
Recent quarterly EPS (last 3-4 quarters)
EPS growth & acceleration
Annual EPS (last 3 years)
Long-term growth trend
Recent quarterly revenue (last 3-4 quarters)
Revenue growth check
Gross margin and net margin trend
Margin health
Institutional ownership changes (if available)
Smart money signal
RS rating or 12-month relative performance vs S&P 500
Relative strength
Price history for pattern recognition
VCP / chart pattern analysis
Compute the moving averages, 200MA slope, 52-week range, volume ratio, and relative performance from daily price history in code rather than estimating them — two years of history covers the 200-day MA and its 5-month slope.
If certain data is unavailable, note it and proceed with what you have. Missing RS rating is a significant gap — flag it.
Step 2: Stage Analysis — Identify the Current Stage
Every stock cycles through four stages. Read references/stage-analysis.md for full details.
Determine which stage the stock is in:
Stage
Characteristics
Action
Stage 1 — Basing
Price near 200MA, MA flat/declining, MAs tangled, low volume
Do nothing, wait
Stage 2 — Advancing
Making higher highs/lows, bullish MA alignment, volume on up days
Only stage to buy
Stage 3 — Topping
Wide swings at highs, frequent false breakouts, heavy volume without progress
Reduce, no new positions
Stage 4 — Declining
Below all MAs, bearish alignment, bounces are selling opportunities
Full cash, stay away
If the stock is NOT in Stage 2, stop here and tell the user. No further analysis needed.
Within Stage 2, count the base number (how many consolidation-then-breakout cycles have occurred):
Base 1-2: Safest, most upside potential — full position
Base 3-4: Still valid but reduce position size
Base 5-6: Late stage — half position at most
Base 7+: Avoid — likely transitioning to Stage 3
Step 3: Trend Template — 8 Mandatory Conditions
All 8 conditions must be met simultaneously. If any fails, the stock does not qualify. Read references/trend-template.md for detailed explanations.
Present results as a checklist:
#
Condition
Status
Value
1
Price > 150MA and Price > 200MA
Pass/Fail
[actual values]
2
150MA > 200MA
Pass/Fail
[actual values]
3
200MA trending up for ≥1 month (ideally 4-5 months)
Sell half, move stop to entry price (breakeven). Trade can no longer lose money.
Phase 3: Trailing
Stock reaches +15%
Sell another 25%, trail remaining stop along 20MA. Close below 20MA = exit all.
Iron rules: Stop losses only move UP, never down. Never average down on a losing position. After 3-4 consecutive losses, reduce risk per trade to 0.5%.
Pyramiding (Adding to Winners)
Only add to winning positions, with decreasing size: 50% initial → 30% at +8% → 20% at next base breakout. Never add to losers.
Step 9: Respond to the User
Present a structured analysis report with these sections:
Report Structure
Stock & Stage: Ticker, current price, identified stage, base count if Stage 2
Trend Template Scorecard: 8-condition checklist with pass/fail and actual values
Fundamental Grade: A/B/C/D with EPS growth, acceleration status, revenue, margins
Pattern Identified: Which pattern (VCP, cup-handle, flat base, flag, HTF, or none), with key measurements (contraction depths, volume behavior)
Entry Assessment:
If a valid pattern exists: pivot price, buy zone, breakout volume requirement
If not yet formed: what to watch for
If already extended: "This has moved beyond the buy zone — wait for the next consolidation"
Market Environment: Current assessment and the risk per trade it implies
Position Sizing: Using the formula, show exact shares, stop price, first target, second target, and reward/risk ratio. Ask the user for their account size and risk tolerance if not provided.
Overall Verdict: One of:
Strong Buy Setup — all criteria met, actionable now
Watch List — promising but pattern not yet complete or one condition marginal
Pass — fails trend template, wrong stage, or poor fundamentals
Always end with the disclaimer that this is educational analysis, not investment advice.
Reference Files
references/stage-analysis.md — Four-stage theory, transition signals, base counting
references/trend-template.md — Detailed 8-condition explanations and memory aids
references/patterns.md — VCP 7 rules, cup-with-handle, flat base, flag, high tight flag, quality vs fake signals
references/entry-rules.md — Pivot point mechanics, buy zone, pocket pivot, true vs false breakout identification
references/position-sizing.md — Formula, stop loss 3-phase evolution, pyramiding, loss handling
references/market-environment.md — Bull/choppy/bear criteria and position adjustment rules
How do I install sepa-strategy?
Download plugins/market-analysis/skills/sepa-strategy/SKILL.md from the publisher, or copy the path and open the repository. PlugMCP lists the skill and does not host the file.
Where does sepa-strategy live?
The publisher keeps it at https://github.com/himself65/finance-skills.
Which agents can use sepa-strategy?
Claude, Cursor, and Codex can read a SKILL.md you add from the publisher's repository.