Q. I have both SPA3 Investor and SPA3 Trader and just received a High Market Risk Alert on the SWS Mobile App - What does this mean for my portfolios?
SPA3 Investor doesn’t use Market Risk as part of its risk management process as extensive research showed that it reduced the effectiveness of the SPA3 Investor Edge.
So when you receive a SPA3 Trader High Market Risk alert, your SPA3 Investor portfolios are not effected and should continue as normal. In the event of a broad market decline each individual stock will produce an exit signal if they are also experiencing significant declines thereby preventing excessive losses.
Having said that, there is an optional High Volatility Market Risk rule that some members might choose to use. It is outlined in the last section of the SPA3 Investor Course
SPA3 Trader includes Market Risk Criteria to manage your portfolios in times where there is increased potential for downwards market movement. Depending on the Risk profile you are following, when a High Market Risk signal occurs you will take different courses of action.
Please follow this link below to access the Education Centre. You will find a brief explanation of the different Risk Profiles and associated actions in High Risk markets just below the first video.
For more in depth reading, please refer to Section 6.4 of the SPA3 Trader Reference Manual that can be accessed via the documents section on the home tab in Beyond Charts.