Besides SlopeCharts and the Posts section, my favorite part of the website these days has become SlopeMATRIX. A primitive version of this came out a few years back, but I was so dissatisfied with it I got rid of it. We reintroduced the product in a far better fashion recently, and we’ve just added an important new mode I’d like to tell you about: Risk Mode.
To understand this, you should know MATRIX has four different modes, the newest of which is designed to help manage risk and opportunities:
Each of these provides a different view into a given watch list. In particular, if you dedicate a watch list to either long or short equity positions (or both), you can use MATRIX in lieu of a quote-powered spreadsheet, with the advantage of it being tethered directly to your Slope data.
The other three modes in MATRIX are old news, but let’s talk about Risk Mode in particular. It features:
- A column in which you can enter a target price for the position (this is optional);
- The S/L $ Risk column, which tells you in dollar terms what the risk is for your position (based on current price levels) if it were to hit its stop price.
- The S/L % Risk column, which tells you in percentage terms what the risk is for your position (based on current price levels) if it were to hit its stop price.
- The Tgt $ Reward column, which tells you in dollar terms what the opportunity is for your position if it goes all the way to your target price
- The Tgt % Reward column, which tells you in percentage terms what the opportunity is for your position if it goes all the way to your target price
As usual, every single column is sortable, which is a fantastic way to get answers to such questions as:
- Am I taking too much risk in a given position?
- What are the biggest and smallest profit opportunities?
- What are the biggest and smallest risks based on position?
- Do I need to tighten or loosen any of my stop-loss prices in order to make adjustments for too-large or too-small levels of risk? Or perhaps I should change the size of my position for the same goal.
I have found this new feature to be endlessly valuable, and I hope the Silver, Gold, and Diamond members who have access to it find it benefits them as well.