February 19, 2025
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Table Of Contents:
It is important to get well-oriented with how the markets are performing before you start to trade or invest. Thus, strategically positioning yourself to trade in the best-performing trading instruments and assets class will enable you to increase your performance and profitability. Duly noted, your performance is largely based on how the underlying asset class or trading instrument is performing. A poorly selected trading instrument will lead to a generally poor performance. Whereas, a well-selected asset class or trading instrument will generally lead to a good performance. This article is well suited for those who swing trade, utilize trend-following strategies and/or trade for longer periods, usually more than a week.
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Portfolio positioning is best done at the start of a period as a part of the trading preparation routine. The start of the period could be the start of week, month or year. This allows you, to focus your efforts on the most promising opportunity and not waste your time and energy on analyzing markets that will not trend.
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The Big question is,
‘How do you know which asset class or trading instrument is performing well and how do you enter the trend in time?’
We will use tradingview.com as our primary research tool, so if you do not have an account in tradingview.com, please ensure you open one. On the other hand, if you already have an account in tradingview.com I would recommend you to open a separate account for this purpose only. This will ensure you do not interfere with your current setups because apparently for tradingview.com, comparisons settings done in one chart tend to replicate in the other charts.
The first thing we need to do, is to determine the benchmark trading instrument which we will use as the basis for comparison. The criteria for selecting the benchmark are as follows:
So based on the above criteria, this is my preferred list of trading instruments that I will use as the benchmark for comparison in each respective asset class:
Another way to look at it, it’s the respective pair which when it moves, others which are correlated follow. The leading pair can be considered as the alpha. They act like the Sun and the rest oscillate like planets around it. Duly note, they may not necessarily be the best performing in percentage growth terms.
So as a trader and/or investor, your objective is to put your money where it will give you the greatest return. In essence, we are targeting percentage growth at manageable risk levels. Think of your money as sheep and the asset class or market with greater liquidity and greater percentage growth as being the green pastures.
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So your goal is to position your capital (i.e. the sheep) where the market is moving more (i.e. the green pastures).
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Duly note, this is where trends will be found and where your money will be multiplied to greater multiples. This is achieved by identifying the best-performing asset class first then identifying the best trading instrument within each asset class that has already been considered to be performing well.
Log into Trading View:
Select Chart
Go to the Watchlist pane > Select properties (three circles next to the plus sign +)> Clear the existing watchlist
Click the plus sign (+) and add the following watchlist (A current limitation exists on a number of instruments you can add for new members under free plan)
Bond Yield Symbols
US Bond Yield Trading View watchlist
2. Cryptocurrency 2021 Top Market Cap list
Cryptocurrency 2021 Watchlist
3. US Tech Shares Watchlist
US Tech Watchlist
4. Indices
Indices Watchlist
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