FAQs Frequently Asked Questions
Dr K Market Direction Model
What I would like to know is what to do with our pocket pivot positions when market direction changes to cash. Based on your portfolio management, I'm thinking we should at least scale back some.
Keep your stops in place so you dont ever violate your maximum risk tolerance levels. There are many ways to size down if you feel you are overweighed in the market when a change in signal occurs. For egs, if you're on margin when the model switches to cash or a sell signal, you could size down your positions so you're off margin, or you could simply cut all positions in half, or you could sell your weakest positions.
First published: | 24 Jan 2011 |
Last updated: | 24 Jan 2011 |