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RE: Stellar: 8 to 1 R/R TRADE [Short term trade]
This is an example of how a portfolio made with that strategy looks like (only playing one side of the market)
This was around 13march of last year before the starting of the major move SPX stocks had experienced.
Most people is scared of buying the top yet ATH means the best momentum possible: every single stockholder is making money
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I like the simple plan. I assume you buy positions ATH and short positions ATL because of momentum. Stocks in a trend tend to continue the trend. Is this why?
Most people want to buy cheap and they buy something that might be forever down there or could take years to move.
Time is something very valuable and the easiest thing to maximize timming is buying something that is clearly moving.
When you're buying something ATH you know one thing: EVERY single holder is making money. Also, you're buying something that is bullish and has good momentum today (is in ATH!)
This is how that portfolio would be looking... today.