That's the million dollar question. if you know the answer the real hard work is done.
Counter-trend with trend following
- Thread starter Long_or_Short
- Start date
That's the million dollar question. if you know the answer the real hard work is done.
Trading is like swimming.
If you swim against the stream, you will:
· Advance very slowly, not at all or even go backwards
· Waste lots of energy
· Have to struggle to not drown
· Finally give up or even drawn
If you swim with the stream, you will:
· Advance fast
· Advance even if you only float instead of swimming
· Waste no energy at all
But there are always people that prefer doing things the difficult way.
Find the trend and profits will come automatically
If you swim against the stream, you will:
· Advance very slowly, not at all or even go backwards
· Waste lots of energy
· Have to struggle to not drown
· Finally give up or even drawn
If you swim with the stream, you will:
· Advance fast
· Advance even if you only float instead of swimming
· Waste no energy at all
But there are always people that prefer doing things the difficult way.
Find the trend and profits will come automatically
The RSI with MA suggestion is not even a 2 dollar bet answer.
As a peron graduates from one level of money velocity profitability to the next a lot of changes occur with regard to monitoring.
The idea of trading a counter trend within a trend was not remotely addressed so far in this thread.
Another good example of this was DBPhoenix's adament refusal to consider trading countertrends as "not ever worth it at all underany circumstances"...
The thread originator's acceptance of the Maestro's commentary (not advice in any sense) is unfortunate.
The first steps toward making an additional segment of profits using the countertrending potential of the market involve three factors: trend analysis, market pace analysis and volatility considerations all in that respective order of importance.
If anyone wants to amplitfy the value of a properly defaulted RSI (notice Maestro does not have the proper default already*), it is used with a properly adjusted VOLUME MACD. You can google my commentary in the early and mid 90's on this where it was used as a replacement for A/D derivation.
In periodic functions the best bet is using the derivative of the third harmonic. when even harmonics are dominent, you will find the counter trend trading is automatically subsummed in the primary trend trading. Under this specific condition a collection of entities can be rotated through right after the square wave like price formation has made its move. This is the traditional leader lagger sector trading situation where second harmonics dominate.
This post is in support of upgrading the level of dialogue and minimizing the more or less sophomic mediocre crap.
*I made this measure "unobtrisively" based upon his failures in other areas
Quote from oldtrader:
"A Trend-Antitrend Trading System - In this section we explore the trend-antitrend system, designed to switch automatically between an antitrend mode and a trend-following mode.
--- Beyond Technical Analysis (Tushar S. Chande)"
To see the markets as I do I am beyond the technical aspect...it's called hard work and dedication. But to implement a method using counter trending with a trending system is best left alone to individuals with dynamic sense of how the markets work.
Excuse me for posting in a sophomic manner, but I beg to differ harmonics is not the only way to use a counter trending/with trendng....utilizing a different time series between a long term position and hedging on a shorter time frame is also one of the keys but which timeseries on the trending and counter trending I will let you guess. I already wrote the code and back tested it the equity curve ended being tad well let's say a vast improvement and drawdowns was cut down more than a third, MAR improved from 2.23 to 2.90. So apologize for this sophomic crap.....harmonics hmmmmmm.....I can only guess you analyze charts
^^^^^^^
Good points Spike500.
5 year trader;
Ther are lots of ways to measure a trend and like most all of them.
Including but not limited to;
higher highs
higher lows
higher close
and a multitude of time frames with higher highs....
For downtrends ;
lower highs
lower lows
lower close and so on.
Like an occasional countertrend [swim against stream]do it smaller/less frequent.
Trends are one of the most profitable study areas.
I have studied this and have found not enough significance to my liking....but the existence of trends is proof the market is not random.
Quote from murray t turtle:
^^^^^^^
Good points Spike500.
5 year trader;
Ther are lots of ways to measure a trend and like most all of them.
Including but not limited to;
higher highs
higher lows
higher close
and a multitude of time frames with higher highs....
For downtrends ;
lower highs
lower lows
lower close and so on.
Like an occasional countertrend [swim against stream]do it smaller/less frequent.
Trends are one of the most profitable study areas.