Selecting forecasts for your strategy
Strategic Alignment Process
Matching QuantWave forecasts to your personal trading approach maximizes effectiveness while maintaining consistency.
Key Selection Criteria
1. Time Horizon Matching
- Day Traders: Focus on 1-3 day forecasts
- Swing Traders: Prioritize 1-4 week signals
- Investors: Utilize 1-6 month projections
2. Risk Profile Compatibility
| Strategy Type | Ideal Risk Level | Position Sizing |
|---|---|---|
| Conservative | Low-Medium (≤2% risk) | Larger core positions |
| Moderate | Medium (2-3% risk) | Balanced allocation |
| Aggressive | High (3-5% risk) | Smaller, concentrated bets |
3. Sector/Asset Focus
- Align with your expertise and watchlist
- Match current market leadership
- Complement existing portfolio holdings
Selection Framework
The 5-Step Filter
- Timeframe: Match to your trading style
- Probability: Minimum 65% confidence
- Risk/Reward: Minimum 1:2 ratio
- Volume/Liquidity: Meets your thresholds
- Technical Alignment: Confirms your analysis
QuantWave Integration Tools
| Tool | Selection Benefit |
|---|---|
| Strategy Matcher | Flags forecasts matching your preset criteria |
| Backtest Simulator | Tests how signal would perform in your system |
| Portfolio Integrator | Shows how signal fits current holdings |
Implementation Approach
For Systematic Traders
- Strictly follow signals meeting all criteria
- Automate execution where possible
- Maintain discipline during drawdowns
For Discretionary Traders
- Use as confirmation for your ideas
- Combine with fundamental analysis
- Adjust sizing based on conviction
Common Selection Mistakes
- Ignoring timeframe mismatches
- Overriding high-probability signals
- Chasing too many opportunities
- Neglecting portfolio fit
Performance Tracking
- Tag trades by forecast type
- Compare strategy-matched vs. unmatched results
- Adjust selection criteria quarterly
Effective forecast selection requires matching QuantWave's signals to your strategy's DNA. By applying disciplined filters and leveraging integration tools, you can build consistent performance while staying true to your trading approach.