Using breadth to reduce drawdowns

One of the trick to using breadth for reducing drawdowns is to use it as anticipation tool rather than a reactive tool.

The easiest way to do that is to use extreme breadth values. You have to know ahead of time likely turn that way you can close positions at profit and not react once 3 to 5 big distribution days have already happened. If you follow those kind of methods you will invariably be late on both bullish and bearish side.

That is where the skill in using breadth models is. Data on breadth is freely available and if you can use it skillfully to stay ahead of the game you will have less drawdowns and less psychological problem. Drawdowns waste mental and financial energy. It wastes time as you have to spend time recovering from loss.

The best use of breadth is to find extremely bullish or bearish breadth situations. Those tends to be unsustainable and give you early warning signal.

After 4 to 5 distribution days everyone knows market is in correction mode, but if you can anticipate that ahead of time you have an edge. It might be small edge but it is worth studying and acting on.

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

404

Recent Articles