Friday, August 15, 2014

My method

Yeey, I got a new person answering my question if they've been on this blog before. :D Hi there, who ever you are!

It's been a year since I started with this blog and my trading method. I will post the year results soon. But if I had to guess I would say I made about 100% on the portfolio. A fantastic result I think!

I want to write a little more about my method. There hasn't been a lot of technical setups lately. I like to trade spikes (or bubbles) mostly in inverse leveraged ETFs. These ETFs tend to go down over time and if you start shorting them where a spike is chances are you have a decent entry point. The second part of my method is to manage bet size so that if I'm wrong and the trade goes against me I have enough total portfolio capital to wait for the trade to turn in my favour again. This can be risky. For instance the DUST EFT once climbed over 600% from bottom to top before it turned. Shorting 600% against you is hard to survive. But this is not a common occurance and I would have had to get in close to the bottom to be caught in that entire move. The third part of my method is to keep accumulating if the trade goes against me. Again this is risky as the position increases while it goes against me. Basically I have a method that will give me far above average gains in most markets but if there is something unexpected that happens, like a 600% climb in an inverse ETF, I might blow up the account.

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