Q&A by Don Bright
In this month’s column, Rob Friesen, president & COO of Bright Trading, again fills in for Don Bright.
Expanding on the discussion from my recent columns but focusing on single-stock trading and pair or hedged positions, I’ll explore the if-then statement in different scenarios.
An if-then statement allows you to execute a trade based on a set of rules that you have outlined. A strategy consists of some rules that govern the type of stock, market conditions, and qualifiers of the trade. It must also consider the win potential and loss magnitude. Taking it further would incorporate different scenarios:
• Stock or pair could go up as you desired
• Stock or pair could go up a partial amount of your original goal
• Stock or pair could remain stationary or trade in a narrow range
• Stock or pair could drop in price.