Learn How to Trade Supply and Demand Instead of Price
Sounds crazy? Nope. Price is set by machines that are faster than you, so don’t chase price.
Easily Search for Individual Stocks, Create Portfolios, and Review Trading Assumptions to Manage Risk
Search for individual stocks
Use the quick-search box at top right to look up a stock, like AAPL. You can see Supply and Demand right away. The heart and soul of EDGE is finding Entries and Exits not by PRICE, but by Supply and Demand. Prices are capricious and set by sophisticated trading machines with far more computing power and data than you’ll ever have as an individual investor.
So, again, don’t be fooled! Use Supply and Demand, like this, for AAPL.
See what all the money is doing
The EDGE Dashboard is your window on the money. You can, literally, see what ALL the money in the market is doing, through 11 sector portfolios that EDGE creates and maintains for you.
We also include Big Tech, often called the FAANGs+ (FB/META, AAPL, AMZN, NFLX, GOOG/L, plus MSFT, TSLA and a handful of others). It’s a major part of today’s stock market and thus a bellwether.
As we test and refine data science, we’ll add several portfolios with the best dynamic ideas for both good conditions and tumultuous ones.
This is how the Dashboard shows Supply and Demand across the market by portfolio.
Create static portfolios
Then create your own portfolios! Already know what stocks you like to trade? Create a static portfolio, where the components don’t change.
Build dynamic portfolios
Or create a Dynamic Portfolio using our market-structure criteria. Like this:
Use market structure metrics to refine your search
In your portfolio view, you’ll see our unique metrics, including Sentiment, or Demand, on a 10-point scale and whether it’s up, down, topped or bottomed. And Supply as a percentage, and the 30-day trend.
You’ll also $/Trade, the best measure of liquidity. That’s how much one can buy, on average, before price changes. Know that amount before you trade! Plus, volatility, market cap, and industry.
Backtest your data
Back-test your data to improve outcomes. For instance, data here for TSLA show that buying the rise over 5.0 and selling when Demand ticks down generated 34% returns – in just 66 days, rather than buying and holding TSLA for 155 days, and getting 32%. All that additional time can be spent using EDGE to help you profitably buy or sell other stocks.
Manage risk
Finally, always beware of broad risk.
Our risk-management tool is composite Demand/Supply data for the stocks comprising the S&P 500 versus SPY, the largest Exchange Traded Fund tracking the S&P 500. Statistically, nearly all market-gains occur between 4.0-6.0 when Demand – Broad Sentiment – is rising.
Oh, and we show historically where options and futures expirations occurred, so you’ll see how often the market changes in step with them (not headlines!).
Why not 5.0 or 10.0? This is composite data for 500 stocks. The AVERAGE in a rising stock market will be something better than 5.0. But tops or bottoms will be narrower than with an individual stock, where it’s 1.0 and 10.0, the full range.
Think it doesn’t matter? Here’s some math. From Jan 5, 2021 to Mar 1, 2022, SPY was up 17%. But it was also down 91% if one adds up all the negative days, and up 108%, tallying just the up days.
So if you can eliminate just a portion of those down days, you can dramatically improve performance. That’s why Broad Sentiment matters.
Prices move all over the place. Sentiment is always the same: a 10-point scale.
Want to know more? Here’s a product demo with EDGE CEO Tim Quast.
