How To 'A/B Test' Your Investing Positions

04/04/19 11:14AM EDT

Are you using the “A/B Test” to guide your investing decisions?

As Hedgeye CEO Keith McCullough explains, by looking at our fundamental research view, and comparing it with our proprietary market signal, this method can help simplify your decision-making process.

“Do this with every one of your positions,” McCullough explains in the clip above from The Macro Show.

For example, “Is XLE bullish trend or not? Check. Is Energy a buy in the current quadrant we’re in – Quad 3 (growth slowing and inflation accelerating)? Yes, it’s a top three position. Check. A-B test done. Now I buy at the low end of the risk range.”

Watch the full clip above for more examples in applying this strategy.

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