Risk Management

We seek much higher returns than the market. With higher returns comes greater risk. This risk could lead to large drawdowns and losses, especially when using options strategies for investing. We at Broken Investing believe that risk management is critical. So, how do we try to protect our clients’ money?

Right Markets                   

We typically invest in highly liquid ETFs rather than individual stocks. ETFs are more stable, more diversified, and more predictable.

Right Metrics

We only invest in securities when our proprietary indicators reach the right scores.

Right Money

We layer in our clients’ money in a strategic manner called Dollar Cost Averaging that lowers risk.

Right Management

We invest in longer dated options that have expiration dates at least 80 days out. If our strategy does not lead to our expected gains within two months, we implement an exit strategy to cut losses and find a better investment.