All Bases Covered … Time, Volatility & Direction!
How the Time Strategy Compliments Other EWO Strategies
We recently introduced our new EWO Time Strategy, and this article explains how it works with our existing volatility and impulse strategies to create an all-round approach to trading.
As a trader it’s important to understand that markets and individual stocks are cyclical in their trading activity. All markets go through periods of accumulation, uptrends, distribution and down trends. Stocks in similar industry groups tend to do this together and sometimes entire markets move in unison. Consequently, if you have only a single approach to trading, there will be times when your approach is working and profitable. Conversely, there will be other times when your approach is either not performing, or possibly not even identifying available trading opportunities.
From time to time, we’ve experienced problems like this with our Impulse and Volatility strategies where market conditions have precluded us from finding sufficient trading activity for subscribers. In times such as these, the best trade is often no trade. In other words, it’s best to stick with your proven strategy even if it means that you don’t take as many trades during those periods.
However, we are very pleased to introduce our new Time Strategy which has a completely different trading profile then our other strategies and means that we’ll not only have a great number of additional trades, they’ll also be in very different market conditions which is great for the trade diversification / risk in our portfolio. Let’s take a look at them individually: