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Cut Losses Short; Ride your Wins with Volume Forecast

Updated: Apr 28

Introduction

Warren Buffett, one of the richest men in the world, made his fortune by riding his winning investments while cutting his losses early on.


Here is a list of tips on how to achieve that:

  • Increase confidence in your strategy with data

  • Use forecasting Indicators to sense trends.

  • Ride your winners hard! if volume follows the forecast pattern

1. Lack of confidence causes you to lose your money


If you have proof that your strategy is a sure bet, you would cut at the sign of any positive evidence. When I trade, I only follow a proven strategy with I have enough data to back. If I don't like what I see on my charts, I end the trade early and move on to something else. In other words, don't be stubborn and keep trading a losing position simply because you think it will turn around if you wait long enough. The trade does not work like that; it's a game of chance!


How do you get proof that your strategy works? I tested the Volume forecast Strategy. I have over 600, 000 trades. See them here:


2. Use forecasting Indicators

Every hedge fund, HFT, market maker and their mother, uses A.I. to forecast future trading volume. If you're not using forecasting indicators in your trading strategy, you're losing out on plenty of opportunities.


Imagine a stock is trading 1M volume candle in a 1 minute. How much volume is the following candle going to trade? 3 shares?


NO!!! If it trades 3 shares only, the market will break!

More on that here:

This awesome tool will help you find trades a lot faster than you've ever been able to before.


3. Ride your winners hard!



In order to reap the benefits of your investments, you must have confidence that the prices will rise/fall and continue in your favour. How will you know? Since you know how much volume is going to be traded in the future, you are able to guess the trend. If the volume starts to behave irregularly, just get out. It’s as simple as that. The easiest way to cut losses quick and to ride your winners hard is:


Predict how much volume will be traded in the next candle!


Conclusion

In summary, increase your confidence by knowing exactly your winning and losing percentages. You can see our wins and losses percentages by clicking on the link below.


Forecasting volume is our go-to strategy. It is the only indicator used by the big guys.


Riding wins require you to estimate the future volume. If you know the volume will be low and you are short. You know that a squeeze will be unlikely. Thus, you are able to keep your position for a longer period.


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