How robust is your equity strategy?

How robust is your equity strategy?

In other articles from me, I have already pointed out the importance of a good equity strategy for a successful long-term stock trading.

After the interest rate cut in the last week, the first investor nervousness appears to be over and the situation after the mortgage crisis relaxes on the stock market rapidly.

Now it is time to draw a first summary and to check how robust your strategy really is. A good http://www.rockwelltrading.de/ equity strategy code is not optimized for a market situation - it adapts to the market situation, that they would have worked in recent weeks.

Question thus:

What happened to your stock portfolio in the last two months?

Possibility Number 1:

The profits in the last two months are similar to those of the weeks and months before.

Congratulations! They seem to have a very robust equity strategy that places in seemingly every market situation their functionality test.

Option 2:

Although they made profits, but much smaller than the weeks and months before.

It would take you to worse, after all, you are still in positive territory. However, I would advise you to watch your equity strategy in more detail in the coming weeks and months. Your equity strategy appears in a bull market (steadily rising prices, as we know it in Germany in recent years) to run very well, but will continue this market? You should eventually get used to the last made smaller profits ...

Option 3:

They suffered losses - sometimes quite large losses

Apparently, your equity strategy works only in a bull market and is precisely this market situation (over) optimized. Unfortunately fared most investors so: A short crisis and many previously tedious achieved gains have been made in record time naught.

In this case, you should revise your equity strategy urgently, because the long term has an optimized on a market situation strategy no chance of success.

BY EDSON CANO