The Key to Success With Both Burgers & Trading Strategies
My favorite hamburger place was recently named the best cheeseburger in Arizona.
As a student of Yogi Berra, I immediately knew what that meant for me. The great Yankee catcher and philosopher once saw one of his favorite restaurants gain popularity.
Berra summed up the problem as only he could: “Nobody goes there anymore. It’s too crowded.”
I knew the place would be busy for months. And I would be one of the people who doesn’t go there anymore because it is too crowded.
Their cheeseburger is great. It’s hamburger, American cheese and a regular bun. Nothing fancy. They cook the meat, melt the cheese, and throw it on a bun like you get at the grocery store.
There’s no grass-fed, antibiotic-free meat. The cheese is yellow. The buns don’t have a name.
It’s as basic as the cheeseburger you make at home. And it’s the best in the state, beating out all kinds of gourmet and upscale ideas.
That burger place understands a simple truth — sometimes a thing that’s good doesn’t need to be improved. It just needs to be done very well.
That’s true of both burgers and trading strategies…
Key to Success: Use Time-Tested Ideas
Trading strategies consist of building blocks that are put together in the right way.
Many traders insist on using blocks that are broken. They build strategies and ideas around moving average crossovers or other indicators that don’t work well.
I always wonder why they stick with ideas that are proven to be wrong. Restauranters often do the same thing. If a building has been home to three restaurants in four years, odds are there’s something wrong with the location. And yet, someone always seems willing to try again.
Another mistake traders make is thinking they improved an idea doesn’t work. They take a moving average and add a triple bandpass filter to it. Now it works perfectly in backtesting. But they fine-tuned it too well. It won’t work in the future.
The key to success with trading, as with cheeseburgers, is to use time-tested ideas.
That’s how I built the Apex Alert strategy.
You see, we have many ways to beat the market. The problem is that they won’t always work. Sometimes a factor that beats the market over decades will underperform for years.
To avoid this problem, you can use multiple market-beating factors. The math behind those strategies can be complex. But a simple tool created by Adam O’Dell does all the heavy lifting for us.
It’s the Green Zone Power Ratings system.
It combines six factors — Momentum, Size, Volatility, Value, Quality and Growth — to generate a single number for every stock, a rating that reveals which stocks should beat the market. It’s possible that one of those factors isn’t doing well right now. But the ratings system is designed to compensate for that with other factors.
On top of that ratings system, I added a Profit Calendar based on seasonality that shows us the best-performing sectors to trade and their peak profit seasons. Some stocks do well at certain times of the year. The reason could be tied to the business cycle or almost anything.
But we don’t need to know the why behind the seasonal trend. We just need to know that the seasonal factors exist — and that we have the chance to capitalize on them with the right timing and the right stock.
That’s what my Apex Alert strategy provides. The best stock to trade during its most profitable season. It’s really a simple strategy. Adam’s ratings system is the meat, and my calendar is the cheese.
Together, they make a great burger.
To learn how you can access details of my latest trade triggered by the Apex Alert strategy, click here.
Editor, Precision Profits
After spending nearly 20 years developing pattern recognition software for the United States Air Force, I retired from my military career in 2005. My plan was to utilize the same pattern recognition principals I used in the military and apply them to the largest and most lucrative market in the world: the stock market.