Category Archives: How to use cycle app

Collection of blogs on how to use cycle app effectively and make good investment decisions

Protect your capital with “Stop Loss” in the cycle app

‘Stop-Loss’ is an advance order designed to limit an investor’s loss in a particular stock. It is generally a price at which the ‘sale order’ gets triggered for a particular stock that is undergoing a downward trend, thereby, protecting the capital from further erosion.

The devaluation of stock may happen because of any reason but the basic idea is to protect your own capital as much as possible. To stay in the market and continue investing. It is a highly recommended risk management technique.

Our app “Cycle” has been designed to advise you on the “Stop-Loss” aspect of risk management.

For every stock that has a BUY signal under any given time frame vis-a-vis Short, medium and long term. This can be used as it is by our users while booking their trades.

Please refer to How to use Cycle tutorials for learning how to make effective use of stop-loss with the help of various signal combinations in short term & long term investing.

Use “CRS” Score in Cycle App To Invest Better

The CRS Score is one of the unique points which make insights by the cycle app invaluable.
It is being followed by Industry leaders across the US and India to make decisions in the stock market

Cycle Relative Strength (CRS) Rating indicates the price performance of a particular stock in comparison to all other stocks that get traded on a particular stock exchange. Quite simply put, it reflects whether a given stock is a leader, a mediocre performer or a laggard in the stock market. 

Interpretation of CRS rating?

Generic interpretation

CRS ScoreInterpretation
70>Outperformer stock 
40-69Average / Mediocre performer
39<Laggard
Range of CRS Score in Cycle app

Critical Interpretation

The CRS rating is given out of 100. If the CRS rating for a given stock is 82, it essentially means that the stock is beating 82% of other stocks based upon price performance over the last 4 quarters.

Please refer to How to use Cycle tutorials for learning how to make effective use of the CRS score with the help of various signal combinations in short term & long term investing.

Better Long-term investments using the Cycle app

For being a profitable Long Term trader you should first look at those stocks which have a “BUY” signal in the long term.

Trading is primarily driven by two strategies.

  • To buy at breakouts. 
  • To buy after corrections.

Buying at breakouts

If the signal combination for both the Midterm and the Long term is showing “BUY”, it clearly reflects breakout and hence one can go ahead and buy the script. 

Leveraging from corrections

Midterm SignalLong term SignalInterpretation
BUYWAIT (when the signal has changed from SELL to WAIT)Buy
When Long term changes to BUY
BUYWAIT(when the signal has changed from BUY to WAIT)Book profit if bought in past
WAIT
(when the signal has changed from SELL to WAIT)
BUYBuy
It’s a breakout when Mid-term changes to BUY
WAIT
(when the signal has changed from BUY to WAIT)
BUYBook profit if bought in past
Leveraging from corrections in the market through cycle app

Using Stop loss function

Once you have identified which Scrip to buy, you should next take care of your investment against any unforeseeable losses on account of market fluctuations.

Therefore, use the Long term “stop-loss” which has already been mentioned in the “Cycle” app.

Please refer to How to use Cycle tutorials for learning how to make better decisions for long term investments with the help of various signal combinations along with CRS score, stop loss and reversals

Better Short-term Investing using cycle app

For being a profitable short term trader you should first look at those stocks which have a “BUY” signal in the midterm. This will increase the probability of gains. 

Trading is primarily driven by two strategies.

  • To buy at breakouts. 
  • To buy after corrections.

Buying at breakouts

If the signal combination for both short term and midterm is showing “BUY”, it clearly reflects breakout and hence one can go ahead and buy the script

Leveraging from corrections

Short term Midterm Interpretation
WAIT 
(when the signal has changed from SELL to WAIT)
BUYbuy: when short term changes to BUY
WAIT
(when the signal has changed from BUY to WAIT)
BUYBook profit if bought in past
Leveraging Corrections in cycle app

Using Stop loss function

Once you have identified which Script to buy, you should next take care of your investment against any unforeseeable losses on account of market fluctuations.

Therefore, use the short term “stop-loss” which has already been mentioned in the “Cycle” app.

Please refer to How to use Cycle tutorials for learning how to make better decisions for short term investments with the help of various signal combinations along with CRS score, stop loss and reversals

Philosophy – Logic behind the signals of the cycle app

Basic Principle

Stock markets across the globe operate as a function of price movement. And therefore the “Cycle” app is principally designed on the concept of “Demand & Supply”. If demand increases then the price of the stock will increase and if supply increases then the price will decrease. Therefore, for generating signals at any given point in time, “Cycle” takes into account the demand and supply situation according to daily data generated in stock exchanges.

Our Philosophy

The “Cycle” app works around the following philosophies:

  • Reactive Technical Analysis: It takes into account all available historical data for a script while analysing and generating signals.
  • Trend Following: It helps in riding the tide rather than speculating the odds. 
  • Risk management: Helps the user to protect the capital in case of unfavourable circumstances.

Signal Generation

Based upon the given principle and our philosophies, “Cycle” generates one of the following signals for its users to act upon. 

  • BUY
  • SELL
  • WAIT

These signals get generated under three-time frames namely:

  • Short-Term (less than one year)
  • Mid-Term (1 year to 3 years)
  • Long-Term (2 years to 10 years)

These signals are advised to be used in various combinations to attain different trading goals. Please refer to other “Cycle” tutorials to learn more in detail.

Please refer to How to use Cycle tutorials for learning how to make better decisions for short and long term investments with the help of various signal combinations along with CRS score, stop loss and reversals