[COPY] Introducing the Upgraded DynaLogic 2.0 Platform: Enhance Your Investment Journey
Unveiling DynaLogic's Four Distinct Zones for Securities and Upgraded Signals
For those subscribers who may not have seen the previous email announcing our upgrades.
We are thrilled to announce the upgrade of the DynaLogic platform, as we continue to enhance the value we bring to our subscribers.
DynaLogic 2.0 redefines securities into four distinct Zones for both Add/Initiate (Buys) and Sells. We have also added recommended sell amounts for those who are looking to use DynaLogic for short term trades. More details on these upgrades, which will roll out on July 5th, are below.
In the graphic above, you can visualize a stock’s progression through the zones while the table gives you a simplified indication of how DynaLogic identifies the risk & opportunity on a stock in that zone.
A Zone 4 Sell is saying there has been a significant run-up in the price of an underlying security and there is now “Substantial Downside Price Risk”. If you own the security, this would be a good time to “take some chips off the table”. This zone corresponds to our strongest sell signals and the highest recommended sell amounts. Historically, we have seen stocks that reach this level frequently decrease in the short to medium term. Our signals are designed to protect you from the downside while locking in gains, but keep you invested to benefit from any continued increase in the stock.
If the stock decreases in price from being a Zone 4 sell, it will then trigger a Zone 1 Add/Initiate (Buy). This represents an opportunity to initiate or add to a position at a lower price than a recent peak; however, the stock has seen a substantial increase already so this is labeled as “Minimal upside opportunity” and there is still significant risk to the downside, so any allocation would be limited.
Conversely, if a Zone 1 Sell has been reached because an underlying security has undergone a significant price decline, there is “Substantial Upside Price Opportunity” which also means limited downside risk. This may be a great time to add to or initiate a position in a stock you have considered owning.
On a separate note, we have also upgraded the signal post to not only include sell signals for subscribers managing long-term investments in their portfolios, but also provide suggested trade percentages for subscribers making short term trades.
We recognize that selling 1% or 2% of a position is not meaningful for a short term trade, so we revamped our platform to also be used for short term trades in larger increments. We’ve tested these out and are confident they can be a valuable tool for investors executing trades with a shorter time horizon.
It is important to note, DynaLogic is never trying to anticipate the future but rather looks at the past and provides guidance as to an expected outcome based on price movement. Securities that are overbought can stay overbought and continue to increase in price and securities that are oversold can stay oversold and continue to decline further in price. While following our signals has led to many great outcomes, nothing in investing is certain and no one gets it right 100% of the time! We always recommend you conduct additional research to fully understand a company’s circumstances before executing a trade.
We believe these changes will make it easier for our subscribers to understand and act on our signals. As always, we recommend any feedback or suggestions, feel free to leave a comment or reach out to us at support@dynalogic-signals.com.
We are excited for more of you to test out our revamped signals, so we will be sending our signals to our free subscribers for the next week, so you can test them out for yourself!