Risk Management

How do you know when you are wrong?

When opening any position you should always know at what level you are prepared to close.

Avoid self-delusion, end all confusion, Most importantly: sleep at night!

Typically around 1 in 3 of our investment signals will fail.

Therefore risk management is our most important use of the cloud. Our stop/exit is triggered when price closes on the opposite side of the cloud to which the position was opened.

The stop follows the cloud throughout the duration of the investment. You can’t miss it.

Let your bad investments, or ideas, die so your account doesn’t have to.

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