Strategy to Outperform the Market: Key Principles and Advantages
You won't find detailed financial stock information here, nor will you find complex technical analyses with lots of graphs and indicators. Our strategy for beating the market is much simpler.
Imagine the S&P 500 index as a big river, with many smaller streams representing individual stocks. Most of these stocks move in sync with the main river, but occasionally, a small stream might flow in the opposite direction before correcting its course.
We can think of these small movements as vectors within the larger vector of the index trend. While they may vary in length, most are having some minimum length defined seems by the width of the main stream.
If we have an algorithm to calculate this value for each stock, we can simply close open positions when a stock's price reaches this value.
The amazing thing is that this approach works, and the results are impressive. It doesn't matter how you open positions or in what order alerts come; the final profit is around the index profit.
The equity line is fully correlated with the index graph. It means you don't have any dependency on a separate stocks - the final result depends only on the index statistics and therefore can be improved.
Next, instead of open a positions randomly, we can identify entry points based on patterns that typically occur when the main trend is up or when a stock is trading at its lowest.
Trading these patterns can significantly improve our statistics and potentially yield profits higher than those of the index.
Using our software, we scan the market and send alerts to our Telegram channel.
To achieve more reliable results, it's essential to follow money management rules.
Moreover, adding additional financial information into alerts can enhance results. Choosing stocks with strong financial positions reduces the risk of closing positions at a loss.
So, open positions at or near the levels provided in the alert, and close them with either profit or loss at the levels specified in the alert.
Aim to select stocks with solid financial positions.
Taking into account all of the above, we have tried to make your decision-making process as convenient, transparent, fast and simple as possible... and most importantly profitable.
Good luck!
