Trading Strategy - Tria

Tria Strategy - the major strategy of ProtfolioRunner. It’s based on finding balanced stock price as a result of Demand-Offer interaction on a market. Breach of such balance due to growing demand makes it possible for market quotes to grow. The basis of Tria strategy is to form a portfolio out of growing stocks thus to minimize the investment risks. 
 
Let’s say all trading parties possess major data about a stock and no new data is available.
 
Then demand-offer interaction defines market aspiration for a current status of balanced stock price. Soonest new data about a stock becomes available for all trading parties, market demand for a stock starting to change under the impact of non price factors and demand line shifts correspondingly. New level of balanced stock price is settled and the story repeats all over again. In technical analysis such situation called Pattern (also Formation). Below we can see pattern as a triangle with prolongation of ascending trend. It means that demand line moved up till the balanced stock price has been settled.
 
Picture. Forming and breach of the market balance:
a) Demand-Offer line                      b) Price curve
 
Let’s say at a given moment  market informed all known data about stock prices and no new data is available. Lines D & S – demand and offer correspondingly. At a moment  stock price is , corresponding offer volume is  and volume of demand is , . Under the influence of demand which is bigger then the offer, sellers increase price till  level (when demand on a market will be equal to offer level -  - see direction 1 on the picture). However at a price  we’ll have new offer volume from sellers and offer will be increased till  level (see direction 2 on the picture). Now volume of demand  is less then volume of offer and sellers will decrease the price till  level (see direction 3 on the picture). At this moment when price  some of sellers will leave the market and volume of offer will go down to  level (see direction number 4 on the picture). The same way all posterior turns to a balanced stock price are going on.
 
New information entering a market which increases stocks value for investors leads to shifting of demand line (D to D’), breaching of a current balanced level and forthcoming of new balanced price.
 
 
 

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