Trade Design
1. Pre-Trade Analysis
- Research asset classes relevant to your strategy
- List potential instruments based on market conditions
- Prioritize assets based on liquidity and volatility
- Ensure compliance with regulatory requirements
- Document rationale for each selected asset
- Define acceptable risk levels based on investment goals
- Assess liquidity needs for executing trades
- Identify constraints related to capital allocation
- Consider personal or institutional risk appetite
- Adjust asset selections based on risk assessment
- Review financial statements for key metrics
- Analyze industry trends and forecasts
- Evaluate management and corporate governance
- Consider macroeconomic factors affecting asset performance
- Summarize findings in a report for decision-making
- Use charting tools to analyze price patterns
- Identify support and resistance levels
- Apply technical indicators for buy/sell signals
- Backtest strategies against historical data
- Determine optimal entry and exit strategies
- Monitor interest rates, inflation, and employment data
- Evaluate GDP growth rates and economic forecasts
- Analyze central bank policies and their implications
- Consider geopolitical events and their potential impact
- Summarize macroeconomic insights for trade context
- Stay updated with financial news sources
- Track earnings announcements and economic reports
- Assess analyst ratings and market commentary
- Evaluate news sentiment for potential impacts
- Document key events and their implications for trades
- Identify key competitors and their market positions
- Evaluate market share trends and competitive advantages
- Conduct sentiment analysis using social media and forums
- Assess institutional investor positioning
- Summarize competitive insights to inform trading decisions
- Calculate correlation coefficients with relevant assets
- Identify diversification opportunities based on correlations
- Evaluate the impact of correlated assets on trade strategy
- Document correlations for risk management purposes
- Adjust asset selections based on correlation analysis
- Research upcoming events such as earnings or product launches
- Monitor regulatory changes that may affect the asset
- Identify economic reports that could influence asset prices
- Consider seasonal trends and their historical impacts
- Document potential catalysts for strategic planning
- Set specific profit targets and timeframes
- Define criteria for successful trade outcomes
- Establish risk management parameters (e.g., stop-loss orders)
- Document objectives for future reference
- Ensure alignment with overall investment strategy
- Identify brokerage fees and commissions
- Assess market impact costs based on trade size
- Consider potential taxes on capital gains
- Document total cost of each trade scenario
- Incorporate costs into overall trade analysis
- Develop best-case, worst-case, and most likely scenarios
- Assess impact of market volatility on trade outcomes
- Evaluate alternative strategies if initial plans fail
- Document potential risks and mitigation strategies
- Review scenarios regularly to adapt to market changes
Use in Manifestly