The Reality of Relative Strength Based Trading with Linda Raschke

Access the presentations of all 24 experts from the 2023 TraderLion Conference. Learn from top traders, hedge fund managers, trading psychologists, and more - https://traderlion.com/YT_TLC23 📘 Get your FREE 115-page Ultimate Trading Guide: https://traderlion.com/YT-UTG 🔍 Next-Generation Stock Screener: https://traderlion.com/YT-DV 📈 Trade With IBKR: https://traderlion.com/IBKR Relative strength is one of the most powerful yet misunderstood concepts in trading. In this insightful session, Market Wizard Linda Raschke breaks down the reality of relative strength-based trading, including when it works, when it doesn’t, and how to adjust your strategies based on market conditions. Learn why momentum stocks keep running, how to use lookback periods effectively, and how to identify high-probability trade setups based on market cycles. 🔍 What You’ll Learn in This Video: ✅ How to spot relative strength leaders and laggards ✅ Why the six-month lookback period is optimal for momentum trading ✅ The Janus Factor: Understanding market duality and trend reversals ✅ How to use relative strength to find the best risk/reward opportunities ✅ The biggest mistakes traders make with relative strength ✅ Why averaging down is a huge mistake and what to do instead Whether you're a swing trader, momentum trader, or portfolio manager, this session is packed with actionable insights to help you refine your relative strength-based trading approach! 🚀 Follow Linda Raschke on Twitter/X: https://twitter.com/LindaRaschke Learn more about her system: https://lindaraschke.net/ Enjoy! - The TraderLion Team ----------------------------------------------------------------------------------------------------------------------- Stay in touch: Follow us on Twitter: https://www.twitter.com/TraderLion_ Like us on Facebook: https://www.facebook.com/TraderLion Our Blog: https://www.traderlion.com/blog/ Timestamps: 00:00 – Introduction: How to maximize profits in the least amount of time 00:30 – The Golden Rule: Never average down on losing trades 00:59 – Linda Raschke on the Janus Factor and relative strength 02:04 – Understanding relative strength lookback periods 03:58 – Why the six-month lookback is optimal for momentum stocks 05:14 – Using relative strength with commodities and indices 06:37 – Market conditions that favor momentum vs. mean reversion 07:50 – Short-term trading strategies using relative strength 09:08 – The difference between momentum and positive feedback loops 11:09 – How to scan for relative strength leaders and laggards 13:45 – How institutions adjust positions at the start of each quarter 15:06 – Using relative strength for investment portfolios 16:30 – The Janus Factor: How market conditions dictate strategy 18:37 – The widening spread between leaders and laggards 20:37 – How to track and trade relative strength spreads 23:12 – Why momentum strategies fail in mean-reverting markets 27:10 – How contrarian traders capitalize on oversold stocks 29:03 – Recommended reading: The Janus Factor by Gary Anderson 31:12 – How Linda Raschke applies relative strength in futures trading 35:55 – The best momentum indicators for trading 37:58 – How to spot trend days using relative strength 41:16 – Practical tools for scanning and tracking relative strength 44:07 – The importance of understanding market relationships 46:48 – Why momentum strategies fail in choppy markets 48:39 – Common cognitive biases that hurt traders 50:43 – Why self-discipline is the key to successful trading 52:46 – How to develop a consistent, repeatable trading process 55:43 – Final thoughts & Q&A: How to apply these strategies effectively