Tough Month for my Breakouts and Reversals Model

Covestor model: Breakouts and Reversals

February was a very poor month for the Breakouts and Reversals model portfolio.

This month was a lesson in not letting an opinion about market direction overrule the trend.  The model portfolio lost about 4.3% in value as the major stock benchmarks added about 4%, leading to an approximately 8% under performance for the month.

This was due to a short bias that was maintained too long despite evidence to suggest the market was not falling. This position should have been cut sooner.

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