maybe i was kidding around. i am really really bad when it comes to trading.
i pay close attention to your NFV and i am amazed almost every day for the last few months. but being amazed and trade it successfully are not the same
. occasionally i do throw a swing at it using NFV as my main guide but generally i am nervous to trade somebody's else signal.most often this is how i use NFV/SPX divergence. if i have a busy day with many stock trades: long, short, short, long i may accumulate too much on one side (long or short). at that time i am getting worried about being overexposed to one side so it really helps to know where NFV is pointing out. I can hedge my total exposure based on NFV and go on trading. Because NFV often does not converge the same day, i use it to hedge swing positions that i have some flexibility when to exit.
i think for somebody who reads nitro's thread one approach is to wait for a large divergence ~20pts, enter and just wait for convergence. also it is good to be prepared to add a couple of times and to sit through ~5% drawdown from the first entry. with smaller divergencies one has to use stops, maybe other rules, etc if the bankroll is limited. in addition dealing with smaller divergencies is dangerous because one is dependent on the updates from nitro through the day. but smaller divergencies are helpful if one use them to hedge his portfolio as i wrote above.
