If somebody has an experience of copying losing strategy with reverse?

[JSSPMK]

I'd have thought fading a noob when his position starts going in the red would be a moneymaker.

 

[doggyfx]

All you need is a consistent-losing strategy. If it is consistent, all you have to do it turn it around. The problem is, it is equally hard to find a consistently losing strategy and a consistently winning strategy.

In the long run its somewhere near breakeven (- spreads). And managing odds on the timeline is really hard, especially understanding the risk (unknown universal methodology of its calculation, and decision in the environment of permanent lack of information) warrants there is no winning strategy in trading at all. Just follow the crowd.

 

[carrer]

I have tested many strategies that perform fairly consistently poorly with both regular and reversed signals.

1. Have you factored the commissions?
2. Can you provide the equity curve (backtest) of the said strategy.
3. SL and TP should not change. Only the buys and sells are reversed.

 

[fordewind]

It`s a dead end, as retail traders do the right things 95% of the time, but blow due to overleveraging.

 

[Eurokopek]

Yep - during oil's big bull run and collapse between 2004-2009 a trader with $100K account could've become a millionaire by buying Donchian breakouts to 25,50,75,etc day high/lows and using an xx day exit.....however, if they would've continued to follow that strategy between 2010-2016 they would've lost every penny they made, plus their initial $100K.

I think the lesson here is that if you want to trade Donchian breakouts on the daily chart, you better make damn sure that there is a big bull market coupled with hysteria (think Bitcoin) in the market you are applying it to. Understanding what type of strategies work in the market you are currently in is key.

If I know that it's an oil's big bull run, why don't I simply go long or buy the dip? I don't understand the point of strategies predicated on knowing the market direction.

on topic: a consistently losing strategy would be an onleveraged strategy. Unleveraging it will not help you.

 

[Option_Attack]

Used to be a guy here, look up "marketsurfer," that had losing system after losing system. Most failed spectacularly and could usually be reliably faded. Don't know where he went, tho.

Good trading to all.

 

[1a2b3cppp]

How are you guys saying the opposite is not just switching purchases and sells? What else would it be? Go long where you went short and close the position in the same place.

 

[algofy]

1. Have you factored the commissions?
2. Can you provide the equity curve (backtest) of the said strategy.
3. SL and TP should not change. Only the buys and sells are reversed.

1 and 3 yes...2 no, I only save things that seem to have a high likelihood of working.

 

[Pekelo]

Used to be a guy here, look up "marketsurfer," that had losing system after losing system. Most failed spectacularly and could usually be reliably faded.

This is actually a very good point, position trades are the best candidates for fading, specially if the trader martingales... The martingaling part just shows that he is being wrong but sticking with the position...

 

[victorycountry]

99% technical analysis traders (also known as uninformed trader) lose. There is no way you can convert the gambling into a strategy. Win lot, lose lot, or win small, lose small, all will depends on luck