difference between tops and bottoms ?

Quote from diversions:

I have been trading a reversal strategy for about 4 months I have been taking about 2 trades a day.
I have one set up I know inside and out and I look for it in basically all of the tradable symbols
Index futures currencies oil gold etc

I looked into my trade station trade manager and I found that I had a profit factor of 224
On my longs and 118 on my shorts. I knew I was doing a lot better going long but the disparity surprised me
My setup cant be back tested because it involves multiple time frames and plenty of subjective interpretation
I am trying to figure out if I should just drop shorting altogether. Which would make life a lot easier or will things eventually even out ?
In other words is fading like buying in reverse or is there an innate difference
I am hoping some one can give me an informed answer as for theorizing I can do that well enough on my own
Thanks in advance for your time

Trading a multiple time frame basee setup about 2 times a day gives us a clear picture of your trading fractal. Interestingly, others do that here and are making the same errors as you are.( See redneck and talontrading, for example)

You are entering and exiting to make money. The amounts of money you make is differerent from the amounts you lose on a given direction. One direction (long) has better results than the other (short) by a factor of almost 2.

Is it a market matter or a trader matter? You use a symmetric set of edges so you can eliminate the market as having something wierd about it (the market). That leaves you RN and TT in the same boat with a trader issue.

Check the slower fractal than the one you trade. If on your multichart view, you can discover that you do not know when the slower fractal is still in progress or at the end of its progress, Why could this cause the imbalance you have? You may think and be influenced by what you think is a symmetric condition of the market.

It is apparent to me that you take trades in a very imbalanced way, vis a vis long or short, because you cannot figure out the trading context of taking a trade AND more important, exiting an edge you believe you have.

So the main problem you have is determining how far along the next slower container is relative to the container you trade upon. In technical trading language, you take more retraces short than you take reversals long. This means more often you are exiting from a non dominant move than you are exiting from a dominant move.

The group of traders you can be id'ed with (by common mistakes) do not use all the market informantion available especially while in the market. This is why you do not, as a rule determine at their very beginning, the difference between a retrace and a reversal. Not knowing this you can "believe" while in a trade, that it is trending (going in the dominant direction) when it is actually not.

The consequence is that you lose more on short trades than you lose on long trades.

To increase your skills. always keep conscious of the slower fractal's status (how far it has progressed). Second, refine your edge that you use to be able to use it in dominant price moves and use in in non dominant prices moves, knowing the difference for each application. The "holding" comes early in the trade and the exit is the later concern.

Your very basic operational failure is that you associate increasing volume with long trades and not with short trades. With short trades you associate decreasing volume. The way this pans out for you is how you look at volatility of bars and how you regard overlap of adjacent bars. you see both as a gravity function. Such is not the case.

You lack the saved data on your trading to see, simply, how "long" in duration trades are for you. There are four types of trades involved: the combination of winning and losing and long and short. If you sorted them on Excel, you would immediately see how biased you became over the last four months. Emotionally, you are learning to stay on the sidelines most of the time. Too bad.

Your suspicions are correct about short trading. The values you quote of your trading are improprerly stated. 118 isn't 118.

Lots of work to do. Too bad.

If you do not understand what I've said, don't worry about it.
 
In an uptrending market, my experience is that the reversals when they show up often drop hard and fast before reverting to trend. You just need to be a little more nimble and remember not to overstay your welcome.
 
Quote from No.Heat:

Good commentary, no wonder most of my shorts end up in pain and the longs just cruise by.

No Heat


Sure, because by definition you are trying to pick the top when shorting against a strong uptrend.

As opposed to re-entering a short during a downtrend, where your entry is not an effort to pick the very top of the recent price action but rather to get in harmony with the downtrend.
 
Quote from Gabfly1:

The difference between tops and bottoms? I think Playboy make have some helpful illustrations. Education can be fun.

lol I was just about to make a similar post.....as my wife's brother would say:

"I got along with my last boyfriend because one of us was a top and the other a bottom.....my new one and I often clash because we're both tops"
 
“Trading a multiple time frame base setup about 2 times a day gives us a clear picture of your trading fractal”
I don’t have a specific fractal I work with. I look at a trend then go about discovering the highest time frame therein that is producing some sort of “signal” or crack
What ever that time frame maybe in whatever form it maybe -time –tick –volume - becomes my “working dominant fractal”
“when the slower fractal is still in progress”
The value of an edge is not merely in it’s efficacy it is in it’s efficacy times it’s frequency –which is why a casino will do real well even with a small edge.
The amount of times you can get into a trade and after some time the dominate timeframe is still in progress are very rare. Maybe once or 2 times a month.
Therefore I am left never knowing what is a retrace and what is a reversal . the market will not give up that information up very often unless it has higher concerns at hand so to speak.
However if I am to put off the instant gratification of small wins and hold out –assume- for the “ reversal “ rather then the “retrace” just looking at the trades I have already taken I would only win 35 percent as often as I do now but my wins would be about 6 times greater then the present so that maybe the issue is emotions and delay of instent gratification. That comes with time.
I do appreciate your input though I must say your volume comment is off the mark as I do not look at it in my trading
 
Quote from jack hershey:

...snip

Your very basic operational failure is that you associate increasing volume with long trades and not with short trades. With short trades you associate decreasing volume. The way this pans out for you is how you look at volatility of bars and how you regard overlap of adjacent bars. you see both as a gravity function. Such is not the case.

...snip

Jack, would you expand on how you analyze bar volatility and bar overlap? Thanks. -SK0
 
Quote from diversions:

sorry again wrong pic that is old data the new pic is of recent oil action
people say this cant be done so i don't know if i am doing something very right or very wrong


OP,

Not being an ass – but have you ever considered trusting your eyes and getting on board with the trend?


Early on, like you, I traded pivots – very successfully too for the most part….

But then I kept noticing how much of the main move I was missing – oh and maybe I should also mention – I had my ass handed to me a couple of times too (it happens with this style)

I still trade em on occasion – but I have a “very” deep respect for what can, and eventually does happen

Nothing else it’ll make you good at using stops - or going broke if you don’t


eta - Your signals may be very reliable now - but the mkt will change - always has, always will...

Regards

RN
 
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