Our Methodology

Why we focus on swing trading and how Elliott Wave theory guides our analysis.

2-6 Week Time Horizon

We focus on swing trading with a 2-6 week time horizon. This timeframe offers the sweet spot between noise reduction and manageable exposure.

  • Reduced noise — Longer than intraday, allowing clearer patterns
  • Manageable exposure — Shorter than long-term investing, limiting risks
  • Better risk/reward — Captures meaningful moves with defined stops

Why Not Intraday Trading?

Intraday trading requires constant monitoring and creates unnecessary stress:

  • Constant monitoring — Full-time attention throughout market hours
  • Higher noise — Random fluctuations trigger false signals
  • More stress — Rapid decisions increase emotional trading
  • Higher costs — More trades mean more commissions

Our swing trading approach allows thoughtful analysis and fits better with most traders lifestyles.

Elliott Wave Theory

Elliott Wave theory helps us understand market psychology through price patterns:

  • Identify market phases — Recognize trending vs consolidation periods
  • Find high-probability entries — Look for wave completions at key levels
  • Set realistic targets — Use wave projections to estimate move endpoints
  • Manage risk — Know where structures invalidate to place stops

Combined with AI analysis, this framework provides structure and context to our trading ideas.

Expected Win Distribution

Not every idea will hit all targets — this is normal and expected in trading:

~20-30% hit all targets (big winners)
~40-50% reach first target (small wins)
~20-30% hit stops (controlled losses)

The Key to Success

With proper risk management (1-2% per trade), a 60-70% win rate with good risk/reward ratios leads to consistent profitability.

Setting Realistic Expectations

We believe in transparency. Trading is challenging, and no system wins 100% of the time. Our goal is to provide:

High-quality analysis

Based on proven methodologies

Clear risk parameters

Know your exposure upfront

Honest track records

Showing winners and losers

Educational context

Understand the reasoning

Ready to see our methodology in action?