Equities: How what we trade becomes your comfort zone.
We chose about 1500 stocks from NYSE/NASDAQ market based on their optimistic performance and liquidity measure which average to at least 10 million USD.
By focusing on these stocks and relying on our strategy we further generate effective outcomes:
- proper liquidity allows Stop-Loss activation,
- no fake signal activation,
- full order activation.
Our stock list is updated every three months.
Emotion free + Risk control + Steady profits = 3three trading factors toward success
Our strategy is combined of tools which are beneficial for the investor.
- Emotion free if you agree to losing 8,5% of your capital ? then you can only focus on profits. No more than 20-30% loss of your capital. You get signals, you set up Stop-Loss, and You set up Take-Profit level. While you are waiting for the feedback from the market ? success or fail you will have less stress and more confidence. Finally you track your transaction.
- Risk controlled:
- We recommend splitting up your capital into about a dozen of equal parts
- We use a 6% or 8,5% Stop-Loss /details below/.
- Regular profit – our system is highly effective (aprox. 78,5%) of successful benefiting transactions. We prefer regular constant profit with bull-potential during good market and safe strategy in bear-market. ?Investing is like a battle where the king knows his field, trains his army and brings minimum risks to his soldiers?
Methodology of Emotion Free – Risk Control – Regular Profits
We created three types of signals which are based on our specially designed indicators that track volume, price & time factors.
Type1: OMDTrade = Positive // MK+ = Positive // Key = Positive
Type3: OMDTrade = Neutral // MK+ = Positive // Key = Positive
Market characteristic – optimization of strategy of profiting
Stocks are like fish in a shoal. It?s hard for one fish to swim in different directions when being in a shoal of fish. All traders are aware that the market can be categorized into 3 basic groups Bull market, lateral trend, Bear market:
- Bull market - almost everybody wins.
- Bear market – almost everybody loses.
- Lateral trend – smart traders earns, rest are losers.
Market characteristic strategy
Full Profit – We generate profit for the full position after the market reaches profit at level +6% intraday. We perceive the market less effective considering long term increases. We bring forth profits that are short term allowing ourselves to bring forth cash. This ideology diminishes potential risks while keeping your mind anxiety free.
Take profit – We generate profit for half of each position when the market reaches +6% intraday. We consider the market to be more effective with a greater chance to long-time uprisings. We take profit for half of position and second half of our position is protected with SL upgrade to entry level. For the second half of the position we wait for higher market levels ? we give people a chance to earn more money.
We have checked different systems in our time. A significant mistake that we noticed is a lack of information on how money management can affect your final results. We are sure of our methodology because we are using it on everyday basis. We decided to share those points and help enhance your knowledge to better improve your final results. For each signal Type1, Type3 we allow buying power at particular level as shown below:
Type1 ? 3-10% of capital (it?s based on individual tolerance for risk exposure)
Type3 ? 2-6% of capital (it?s based on individual tolerance for risk exposure)
Each signal is valid for 5 session days including first day when signal is pending.
It?s very crucial to buy stocks on the level we recommend, not higher. Why? Because if you regularly buy 0,5% higher for example , your profit will be less ? 5,5% but your StopLoss level will be higher ? 9% which will change the final results. If the market opens over 0,2% of entry level we are not opening the position.
Stop-loss level during Full Profit strategy - in that market phase we protect our money at level of 6% below entry. It gives us an emotional free state of mind for us trades. We are aware that we get advantage over the market by selection and effectiveness of series of trades.
Stop-loss level during Take profit strategy - in that market phase we protect our money at level of 8.5% below entry. It gives us an emotional free state of mind for us trades. We are aware that we get advantage over the market by selection and effectiveness of series of trades.
Time frame validation for Open position - – If Open position is not touching Take-Profit or Stop-Loss level during two month, we try to close it with any profit. You can easily find these post marked with tag #2month.
For educational purposes we?ll create a statistical portfolio with a sample amount approx. 100 000 USD in cash to show the results of transaction.
We control risk by several factors:
- Proper selection of equities
- Effectiveness of strategy (average is 78,5% opened position gains profit)
- Position management (only 1/25 or less of our capital is connected to one trade)
Although we are aware that Risk Level is below 1R (it % relation between profit and loss), we have an advantage over the market by higher effectiveness of taken positions.
Pending – position scheduled to entry. It?s valid 5 working days. If the position is not taken it will be changed into NotOpen.
Open – During these 5 days when the market hits signal level even 1cents position is active and we start to monitor it. We strongly recommend to always setup a Stop-Loss and Take-Profit before. Not after: /.
Profit – Take profit at 6% level is setup for each entry. According to the market strategy (Take Profit/Full Profit) we can close all positions or half of the positions.
Profit + - to better protect your money, when the market hits 6% profit according to the type of signal and market strategy (Take Profit/Full Profit) half or full of position is closed. For second half of position stop-loss is updated till entry level.
NotOpen – sometimes during 5 working days entry level is not touched. Then position is cancelled and status is change into NotOpen. There is no further tracking of position.
NotOpen(gap) – sometimes during 5 working days the market opens over entry level. If open level is bigger then 0,2% above position is not open. There is no further tracking of the position.
Stop-Loss – we always setup Stop-Loss at -8,5% below entry level to protect cash and have control over the emotional state of mind. When Stop-Loss is touched the position is all closed with loss. Stop-Loss can be upgraded on regular basis during Profit+ status of a particular stock.
Trailing – A stock which we consider a high profit potential is protected with a Stop-Loss on entry level. During further growth there is a regular daily trailing update. Maximum profit with maximum income & cash protection.