Diversify Your Portfolio: Trading and Investing with The Machine
Did you miss Larry Connors’ presentation: How to Engineer Your Trading Portfolio for Profits – Trade 21st Century Technology for as Little as $100 a Month?
Here’s an excerpt. And be sure to visit us at the link below to learn more about trading and investing with The Machine.
By trading a portfolio of diversified strategies you can often lower the volatility of your account and increase your returns.
What does it mean to trade a portfolio of diversified strategies?
1. Market Direction: Long and short
2. Asset type: Stocks and ETFs
3. Time Horizon: Short and Long
Ideally you want strategies on the long side, for the times when markets are rising. You also want strategies on the short side, for the times when markets are overbought and then tend to decline. You want to have strategies for equities, and then you want to have different strategies for ETFs. This provides diversification.
And then ideally you’ll have strategies for multiple timeframes. So you’ll have a short time frame, which is focused on swing trading and you can also add day trading with The Machine to that. And also longer term time frames, which is where the trend following strategies come in.
So if the long term trend is up, with the trend following strategies, you are in blue chip stocks on the way up. If the longer term trend is down, you’ll have the ability to to take, for example, ETFs, and be short those ETFs on the way down.
By adding these strategies together, you are getting a more balanced, more diversified, stronger portfolio. This is what allows you to grow your wealth in up markets, down markets, or sideways markets.
Join the quantitative trading revolution! Learn how to trade a portfolio of stocks and ETFs in just minutes a day! Click here for more information on how to join Larry Connors next Wednesday for How to Engineer Your Trading Portfolio for Profits.
Larry Connors is founder and CEO of TradingMarkets.com and Connors Research