GoNoGo Risk® hard codes a proxy for equity market risk and applies the GoNoGo Trend concept. The tool helps investors evaluate risk exposure from a macro perspective. This was not built as a trade signal, but rather to indicate when to take advantage of conditions favorable to adding exposure and, alternatively, to protect against downside risk when necessary. The trend in a risk ratio typically leads the market and can forewarn of volatile times ahead.
The inputs for the ratio are editable and therefore applying the GoNoGo Trend® concept to alternative ratios is wide open to exploration. An investor can use GoNoGo Charts® to better understand any investment vehicle or security and enhance their analysis by adding GoNoGo Risk® for any ratio in a panel directly below.