Darvas Trading

The implementation of the momentum strategy of the legendary Hungarian dancer Nicolas Darvas who stirred up Wall Street in the 50s and 60s and made 2 million dollars from just a few thousand dollars within one and a half years. Stocks and ETFs that break out of a tight consolidation to new 52-week or multi-year highs at higher trading volumes are to be bought. Stocks of companies that bring a revolutionary new product on the market and show strong sales and/or profit growth are to be preferred here. The holding period depends on the performance of the stock. True to the principle: “There is no reason to sell a rising stock”. Winners are to be held in the portfolio or even bought later, while loss stocks are to be rigorously sold via stop loss from the portfolio so the maximum loss per trade is restricted to about eight to ten percent.