Our favourite stock setups

QTS: Quiet & Tight Pullback Setup

Effective date: May 23, 2021

MGS: Momentum Gap Setup

Effective date: May 23, 2021

URS: Undercut & Rally Setup

Effective date: May 23, 2021

WRS: Weak Rally Setup

Effective date: May 23, 2021

CLMX: Speculative Climax Setup

Effective date: May 23, 2021

OPVS: Opportunistic Price and Volume Setup

Effective date: May 23, 2021

General Strategy Description

Swing trading long or short in quality and liquid US listed securities with variable holding periods ranging from minutes to years. You can decide to enter a trade based on a LIVE entry setup according to our methodology as mentioned above. The stock idea will switch to HOLD once the stock price is extended from the intial price level. This threshold is decribed in detail in the description of the respective Stock Setup Type. This means the setup is not LIVE and thus not actionable anymore. Once the stock reaches the Target Price, flashes a situational exit signal or reaches your predetermined maximum risk per trade -whatever comes first- we always advice to close the trade.

General Exit Strategy

Once the split adjusted stock price reaches the Stop Loss price mentioned in the Live Signal we advice you to exit the trade. When the split adjusted stock price reaches the Target Price the trade is a proper win and can be closed out. However, independent on the Stop Loss level above you MUST determine an individual maximum risk which you are willing to lose on any given trade. We advice you to exit any live trade once the paper loss exceeds your maximum risk thus overriding the Stop Loss Price of the Live Signal. You have to set your own risk allowance as described here in this article or via external sources on the internet. A common individual maximum trade risk is 2%, this is called the 2% rule and is common trading knowledge. Reasonable incremental scale-outs, e.g., based on our 10% rule are considered risk management techniques which you can apply independently if you want. We will make a tweet/post when we see such a scale-out opportunity in real time.

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