if everyone loses money, why not do the opposite?
- Thread starter 1a2b3cppp
- Start date
there are 100s of wrong ways to trade, which one do you do opposite of?
I don't know of any profitable RTM traders who are fading willy-nilly every break of the 1st std dev and then loading up with umpteen contracts as shown by the numerous dots on your image. You previously mentioned about getting in at a FEW different levels, this would obviously be the most prudent.
Below is an image of Friday, it shows two RTM trades based on a long bias. Yellow line is VWAP (exit), Magenta lines are 1st std dev (entrance) If you were using the close of a 10K bar as an entrance trigger the first trade had 1 entrance and the second trade had 2 entrances. This is an example but could certainly be back-tested and automated which I believe have been your expressed goals.
My RTM based trading systems all trade in conjunction with a larger trend - a directional bias for the day. Your ability to get statistics on different entry levels with various R:R ratios while filtering with daily bias' will show if this type of method is suitable for your personal risk thresholds.
Long bias possibilities - price above; yesterday's close, todays open, yesterday's VWAP yesterday's midpoint, yesterday's breadth or a specific breadth threshold, etc, etc etc...
Was there words in that post that were cropped out by mistake?
BTW I did forget in my prior post I was referring to triple tops. Not VWAP.
You missed the point. Trade management when you are already in the trade itself is just as important! Handle it poorly and it will cost you plenty. Correctly, and you will do just fine!
no i did not actually because every trade will begin as a loss.....yes it is accepte fact that trade management can turn some losing making trades into profit but not all
At each of the candles with circles above them on my chart is a point where price was 4, 8, 12, 16, or 20 levels away from vwap. I was just trying to gather statistics on how far it tends to get away. Why enter at 4 if it might go to 20 eventually in a bit?