I don't think you should define your trading before your trading defines you. In other words, don't trade everyday because you want to daytrade, trade everyday if and ONLY if you have setups or whatever your strategy implies. If you define your trading before hand, you will overtrade and lose.
Day trading is losers game
- Thread starter oilfxpro
- Start date
If you know how to counter trend trade , u can make money consistently.
Winning soccer teams don't always play the best technical game , often they play defensively in their own half , they play less possession yet come out winning by scoring the vital goals.They only need a few minutes in a game to score the goals. , yet they could play ugly football and come out winning .
Look, two things.
There is trending and there is mean reversion. There is nothing else.
If you countertrend trade, then you are in error. Trying to catch a falling knife, as it were.
You should have a mean reverting strat, and a trend strat. That is all you need.
There is trending and there is mean reversion. There is nothing else.
If you countertrend trade, then you are in error. Trying to catch a falling knife, as it were.
You should have a mean reverting strat, and a trend strat. That is all you need.
Counter trend trading has a negative edge , trading with the trend is the most profitable IMHO.There are not enough strong trends in day trading , to day trade profitably by relying solely on trading trends..
The advantage of trading trends is there is the force of the market is with you , the stop losses can be much smaller in trends , the rewards can be much bigger because the price wants to move , and it wants to move in a particular direction.
I did some simple back testing yesterday, to see average number of strong trends weekly .The testing strategy was look at price at midnight , place a buy order 50 pips above and a sell order 50 pips below.On average there were 170 trending trades a year , on euro /usd , tested over 10 years.There might be more than 170 , by adding 1/3 more trades *70 = 23 , therefore potentially there are about 200 trends a year , some of these happen overnight , so day trader may be limited to 120 potential day trending trades .The 1/3 trades are reversals which form into trends.Average 2 strong trending days in a week for day trading IMHO.
I will now work on the mean reversion strategies , I already have some of them.
You seem to reason too rigidly. Who and when has proven that counter trend trading has negative edge? What kind of counter-trend trading is meant? What sort of entries, analysis, position management?
This is serious business, leave superficial rants and theories for losers, please (I assume you are not the one).
Quote from cornixforex:
You seem to reason too rigidly. Who and when has proven that counter trend trading has negative edge? What kind of counter-trend trading is meant? What sort of entries, analysis, position management?
This is serious business, leave superficial rants and theories for losers, please (I assume you are not the one).
Have you ever had posts examined by an independent third party for waffles and beans?
Here are the simple test results with several variations.Most trading against this test would be simple counter trend trading.