System Performance and Confidence Interval

When you review the performance of a trading model, how do you know it’s worth trading for? How do you know it’s the right system for you? How confident are you that it will continue to profit in the future? When it comes to evaluating your trading model there are many factors to take into […]

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The Bullish Outside Month

I came across an article over at the blog, Jay On The Markets, that talked about applying a bullish outside indicator on a monthly chart. The article I was reading is entitled, “One Sign That the Bull May Still Have Legs​”. In this article Jay talks about the incredible run the U.S. broad market has experienced […]

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Intermarket State Divergence

For the past 20 years I had been teaching my concept of Intermarket Divergence for generating trading signals. You can learn about this concept in a previous article, “Intermarket Divergence – A Robust Method for Signal Generation”. I developed this concept because most of my intermarket work was based on the future’s market and using […]

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Hedging a $500k Portfolio With Optimal Puts

Hedging a $500k Portfolio With Optimal Puts

A reader recently emailed me, asking how he could hedge a “typical $500k mutual fund portfolio”. I’m going to walk through a step-by-step example of doing that in this post.Step One: Choose A Proxy Exchange-Traded FundIf you own a portfolio of stocks or stock funds, you can hedge that portfolio against market risk by buying […]

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