Daytrading. The illusion of a TREND

[athlonmank8]

Worthless. The trend is meaningful to an extent. I can't tell you why because Im not sure myself why. But if you understand how to trade it you can make money.

And im not saying your typical "upward buy all the dips trend".

Because you're riding that one up based on something else.

Im saying there's ways to get you in and out when those trendlines hold. However there's other forces at work.

I agree with you though. Trendlines are bullshit a lot of the time. But there's a lot that can contribute to that.

 

[athlonmank8]

I take back my comment. They're not entirely true. CD's comments on trend have bearing. My statement is incorrect when considering his view.

But most interpretations of "trend" are incorrect since different stages exist as CD stated (aka velocity).

There's a way to optimize levels of "trend". CD mentioned it briefly, however I want to see if anyone picks up on it before I mention it.

This thread has gotten good .

 

[alex.samant]

ok then, but do not forget we are talking about how relevant is "trend" for intraday trading

and let's try to keep in mind the adage:

Keep It Simple Stupid!

I know that you can have many ways to optimize the notion of a trend, but what about basic things like using probable stop levels for targets or trading gaps or reversal patterns?

Last but not least, trying to follow intraday trends... how much does it cost you to do that?

I am asking this because catching the "meat" of the trend intraday and having to set a stop that should allow the position to work out much of the time means a max 1:2 risk/reward...

 

[alex.samant]

ok, maybe not simple, but "minimal" should be a good word.

 

[PitchBlack]

Quote from alex.samant:

a max 1:2 risk/reward...

What do you call r1:2 risk/reward?

2 points stop and average profit per winning trade of 4 points?

But what if this is true but you have 85% winning trades? Because than the overal result might be that you can keep 80% of your gross profits when you deduct the losses. 80 profits with 20 losses gives a 1:4 ratio.

 

[alex.samant]

i still have to see that 85 percent system. intraday

 

[fearless9]

Quote from alex.samant:

i still have to see that 85 percent system. intraday

put yourself in the other guy´s shoes for a moment.

would you disclose an 85%+ winner on a regular daily basis.
and of equal importance..... would you disclose how you manage the other 15%

regards
f9

 

[alex.samant]

i take that back. i don't want to see an 85 pct sys. i want to improve mine. hehe

 

[PitchBlack]

Quote from alex.samant:

i still have to see that 85 percent system. intraday

This sentence explains clearly why i'm pro daytrading and you are not.
We don't have the same knowledge. And knowledge defines someone's opinion.

 

[Thunderdog]

Quote from alex.samant:

jack or no jack, his posts are pretty hi quality

Did you mean to write 'high quantity" perhaps? You do realize, of course, that he is proposing an always-in approach to intraday trading. Is this really something that you regard as being possible to do...profitably? If so, then that is quite a departure from your opening post. 180 comes to mind.