Investing Overview
Status: Verified against code Last Updated: 2026-04-13
What Is Investing?
Investing is the longest-term style — you're building positions for months to years. Focus shifts from short-term moves to major trends and fundamentals.
Typical Holding Period: Weeks to months (or longer)
Key Characteristics
| Aspect | Investment Setting |
|---|---|
| Timeframe | Daily bars |
| Lookback | 2 YEARS (730 days) |
| Bars Shown to AI | 60 bars |
| RSI Window | 14 (standard) |
| EMAs | 9, 20 |
| SMAs | 50, 100, 200 |
| MACD | Yes |
Why these settings?
- 2 years of data = full market cycles, secular trends
- Daily bars = no intraday noise
- 60 bars = ~3 months of daily context
- 200 SMA = the bull/bear market divider
Stop Loss & Target Rules
| Element | Investment Range |
|---|---|
| Stop Loss | 1.5x to 2x ATR (Average True Range) |
| Target 1 | Based on resistance levels |
| Target 2 | Based on longer-term trend |
| Time Stop | None (position-based, not time-based) |
Investment trades don't have time stops — you hold until price action dictates exit.
When to Invest
Good Conditions:
- Stock in confirmed uptrend (above 200 SMA)
- Strong fundamentals (for fundamental investors)
- Sector rotation favoring the position
- Macro environment supportive
Avoid Investing When:
- Stock below 200 SMA (bear trend)
- Major recession signals
- Sector rotation away from position
- Fundamental deterioration
Asset Types for Investing
| Asset | Investment Support | Notes |
|---|---|---|
| Equities | ✅ Full | Most common approach |
| Options | ✅ Full | LEAPS (30-60 DTE minimum) |
| Futures | ⚠️ Limited | Long-term structure + rollover-aware planning |
| Crypto | ✅ Full | High volatility, long-term trends |
Investment vs Trading Mindset
| Factor | Trading | Investing |
|---|---|---|
| Time Horizon | Minutes to days | Weeks to years |
| Stop Strategy | Fixed dollar/percent | ATR-based, wider |
| Position Size | Aggressive | Conservative |
| Drawdown Tolerance | Low | Higher |
| Win Rate Focus | Critical | Less critical (bigger wins) |