What if the market crashes, how do we protect ourselves?
We take a two-pronged approach to manage downside risk. First, we actively monitor macro-level economic, sentiment, breadth, and technical indicators allowing us to make better decisions when to reduce margin, reduce our bull put exposure, or to completely stop opening bull put spreads during uncertain times, substantially reducing our downside risk. This data, along with 15 years of experience in seeing many market cycles, helps us modulate our levels of exposure. For more on what indicators we monitor, and our approach please go to Why Market Timing is Important.
Secondly, if the underlying index moves quickly, we proactively make adjustments to our trades to reduce our risk and possible losses. Please visit the Learning Center and read the case study entitled “what if the market drops unexpectedly, how do we protect ourselves?”.
What if the market crashes, how do we protect ourselves?
We take a two-pronged approach to manage downside risk. First, we actively monitor macro-level economic, sentiment, breadth, and technical indicators allowing us to make better decisions when to reduce margin, reduce our bull put exposure, or to completely stop opening bull put spreads during uncertain times, substantially reducing our downside risk. This data, along with 15 years of experience in seeing many market cycles, helps us modulate our levels of exposure. For more on what indicators we monitor, and our approach please go to Why Market Timing is Important.
Secondly, if the underlying index moves quickly, we proactively make adjustments to our trades to reduce our risk and possible losses. Please visit the Learning Center and read the case study entitled “what if the market drops unexpectedly, how do we protect ourselves?”.