The stock market is an unpredictable beast. One moment, tech stocks are soaring, and the next, your portfolio looks like it just came back from a bender in Vegas. But instead of relying on gut feelings, news headlines, or that one guy in your friend group who swears by "vibes," I’ve built a structured, data-driven approach to swing trading megacap stocks—Medeiros Alpha Strategy (MAS).
Now, I know what you’re thinking—"Another trading system?"
But here’s why this one isn’t some fly-by-night, get-rich-quick nonsense:
- It uses standard deviation, not emotions. (If I traded based on my emotions, I'd be buying Tesla at the top and panic-selling Microsoft every time it dipped 1%.)
- Megacaps offer liquidity and relative stability. (No, I’m not chasing penny stocks that could go to zero faster than my patience at a DMV.)
- I take profits based on logical targets, not hype.
Let’s break it down.
Why Stick to Megacaps for Swing Trading?
I focus on megacap stocks—the Apples, Microsofts, Visas, and Googles of the world. Why? Because these companies are built like financial fortresses.
They might not have the same adrenaline-pumping volatility as small caps, but that’s exactly why they work. Their size and influence mean:
More liquidity (You won’t get stuck holding bags of a stock that just got delisted.)
Institutional backing (Fund managers don’t dump them at the first sign of trouble.)
Predictable price movements (Because algorithms and hedge funds already have them mapped out like a Google Earth image.)
Most of these megacaps are overvalued by several fundamental metrics, which means their dividend yields are about as exciting as watching paint dry. But I don’t mind—I’m taking dividends as income, not reinvesting them. If Visa wants to pay me to own their stock, I’ll gladly accept it.
The Strategy: Standard Deviation as a Guide
Instead of guessing when to buy and sell, I’m using a strategy based on 30-day and 90-day standard deviations to set price targets:
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Dollar Cost Averaging (DCA) Uses the 90-Day Standard Deviation
- When a stock drops, I use half of the 90-day standard deviation to buy more at a logical level rather than throwing random buy orders into the void.
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Profit-Taking Uses the 30-Day Standard Deviation
- Once I enter a position, I look at a percentage of the 30-day standard deviation to determine when to sell.
- This ensures I’m capturing shorter-term price reversions without overstaying my welcome like a guest who doesn’t know when to leave.
These megacaps have been overextended for years, so a recent sell-off actually increases the likelihood of a price reversion. I’m not relying on wild speculation—I’m playing the math game.
MAS: The Program That’s Helping Me Trade Smarter
I’ve built a system, Medeiros Alpha Strategy (MAS), to monitor stock prices and alert me to trades when prices hit my standard deviation targets.
But let’s be real—I’m not trusting it blindly just yet. MAS is still in its infancy, kind of like a toddler learning to walk. You don’t just hand over the car keys to a kid because they took two steps without falling.
That’s why, after making several purchases yesterday based on MAS alerts, I did what any responsible trader would do:
Set up my sell orders manually on my broker’s website.
This is an added layer of protection to ensure that if my target is hit, I’m locking in profits—even if my new program decides to take a nap.
The Future of MAS & Trading Smarter
Trading isn’t about being right all the time—it’s about creating a system that gives you an edge and lets you minimize risk while maximizing gains.
MAS helps me find buying opportunities based on volatility.
I’m leveraging price reversion and standard deviation instead of blind faith.
My broker’s website is my safety net while I test and refine the program.
As MAS evolves, I’ll fine-tune it, but for now, it’s already giving me a leg up on making smarter trades with fewer emotional decisions.
So if you’re tired of staring at stock charts like they hold the secrets of the universe, maybe it’s time to start trading with logic instead of hope.
Stay disciplined, trade smart, and don’t let FOMO trick you into buying at the top.
