In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough breaks down the A/B test he runs when deciding to enter a position, as well as how he determines position sizing.
A) Is it Signal Bullish?
B) Is it in the right Quad, and then
C) Signal Strength – the positions signaling higher-highs are my biggest positions.”
“It’s not a ‘look,’ like a touchy-feely thing. It’s not about the valuation of things, or the moving average of things, it’s about the particular thing. It’s about the particular time – the when – which matters a lot more than the why.”