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SwingMax Tutorial: Swing Trading Simplified

authorFrederick A Bravey

2024-12-266mins

Swing Trading has been synonymous with the world of investing, especially among active traders looking to make consistent short-term gains. This is why we have developed a cutting-edge AI-generated Swing Trading algorithm that supports both stocks and cryptocurrencies to help simplify complex financial data into simple-to-understand indicators.

How Our SwingMax Feature Works

Technical Analysis

SwingMax examines a variety of technical analysis indicators, including but not limited to the Relative Strength Index (RSI), moving averages, trend patterns, and trading volume. By analyzing these metrics, SwingMax identifies strong and effective price-volume relationships that signal optimal times to buy or sell.

Risk Management

To prevent holding a position for too long without a sell signal and to protect against significant losses, SwingMax incorporates a -10% stop-loss condition. This means if a stock's price drops by 10% from the entry point, the system will trigger a sell signal automatically. Additionally, users have the flexibility to customize their own stop-loss conditions based on their individual risk preferences.

This tutorial will guide you through the key features of our SwingMax tool, demonstrate how to use it effectively, and outline essential considerations before placing a trade.

SwingMax's key stats

The Key Stats section gives you a quick snapshot of the performance of the buy and sell signals generated by SwingMax. Here’s what you’ll find:

  • Win Rate: This shows how often the signals have been successful over the past 3 years. It’s calculated by dividing the number of times the entry price was higher than the exit price by the total number of signals.
  • Avg. Total Return: This is the average return you would have made by following the buy and sell signals over the past 3 years. We calculate this by averaging the total returns of all the stocks we've covered.
  • Stocks New Added: This shows how many stocks triggered a buy signal today.
  • Stocks Opening: Lists the stocks with active entry signals but no exit signals yet.
  • Stocks Exit: This shows how many stocks triggered a sell signal today.

Live Swing Signals of Each Stock

Each stock is broken down into two categories, either ones with an open buy signal or stocks with a sell signal.

Opening List:

This list of stocks shows each one with an open entry point. This means investors can use this information to open a trade position for that stock. Each stock card displays the following information:

  • Name & Ticker
  • Entry Price: The price at which the stock showed a buy signal.
  • Current Price: The current market price of the stock.
  • Entry Date: What date the buy signal was triggered.
  • Unrealized Return: The current return, unrealized (i.e., if you were to sell now).

 

You can further sort the list of your preferences as follows:

  • Latest Entry: Most recent buy signals.
  • Highest Return: Stocks with the highest unrealized return.
  • Oldest Entry: Stocks with the longest time since the buy signal.

 

Closed List:

This list displays all the stocks that have triggered a sell signal, and consequently exited the SwingMax stock cycle. This means investors should sell this specific stock after seeing the sell signal.

  • Name & Ticker
  • Entry Price: The price at which the stock received an entry signal.
  • Exited Price: The price at which the stock triggers an exit signal.
  • Entry Date: When the buy signal was triggered.
  • Exited Date: When the sell signal was triggered.
  • Interval Return: The return achieved from the buy signal to the sell signal's price.

 

You can further sort the list of your preferences as follows:

  • Latest Exit: Most recently completed trades.
  • Highest Return: Stocks with the highest return from entry to exit.
  • Oldest Exit: Stocks that completed their cycle by date

 

How Can SwingMax Support Your Trading Goals?

  • Daily Swing Signals: You’ll get a fresh list of stocks that have triggered new buy or sell signals daily. This gives you a chance to react quickly to market opportunities.
  • Do Your Due Diligence: While SwingMax simplifies timing your trades, we recommend checking for major events (e.g., earnings reports, and FOMC decisions) that could impact the stock trend. These events may introduce risks that the AI might not predict.
  • Simplifies Trading Decisions: SwingMax is designed to minimize the amount of time investors need to spend researching different stocks. However, it is recommended that you’re comfortable with your chosen stocks and run your own due diligence before investing.

 

Live Signals

  • Crypto (Coming Soon): Since the cryptocurrency market operates 24/7, signals are triggered in real-time. This allows you to take advantage of trading opportunities at any time, day or night.
  • Stocks: For stocks, signals refresh at 15:50 pm EST each trading day. This avoids triggering buy or sell signals at the day’s highest or lowest points, allowing for more accurate and strategic entry and exit decisions.

 

Additional Information

  • Average Entry-Exit Interval: Typically, the average time between an entry and exit signal is around 30 days. This provides a balanced window for capturing price movements without overtrading.
  • Risk of Black Swan Events: While SwingMax optimizes trading timing based on technical factors, it can't predict unexpected market crashes or company-specific crises.
    • For example, after an entry signal, a stock price might decline due to significant macroeconomic events like FOMC meetings or unforeseen market reactions. These factors are difficult for the AI model to anticipate.

Important: All investments carry risk. This is the same for our SwingMax feature, ensuring you have done thorough diligence into the stocks you want to invest in and fully understand any external risks that could impact the price of a stock

 

Important Disclaimer: Know the Risks

  • Past Performance Doesn’t Guarantee Future Results: While SwingMax has been successful in the past, there's no certainty that these results will continue in the future.
  • AI Isn’t Perfect: The AI model provides optimized trading signals based on technical data, but even the best models can make mistakes. Use your judgment when following the signals.
  • Watch for Major Events: AI doesn’t fully account for major market-moving events like widespread market drops or corporate disasters. Always conduct your own research to ensure you’re not missing something that could impact your investment.

 

Final Thoughts

SwingMax is designed to make swing trading more efficient and less complex. By following the buy and sell signals, you can streamline your decision-making and potentially improve your trading performance.

Remember, while SwingMax optimizes timing, you are the final decision-maker. Stay informed, consider broader market conditions, and use SwingMax to guide your trades with confidence.

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