Reverse the trade to get back loss

[doubledoubledoublecup]

I spent huge amount of time with S&R in the 90's, found one way to be profitable and hundred of ways to be worse than going with trend. Clearly when in chop, S&R will chop you to death.

You can come up with trend system, backtest over 10k sample size, watch for "mean" average of losses, so if mean ave is six losses in a row, take seventh trade. So you are missing all the S&R losses and waiting for trend to kick back in.

Not sure if I understand what you are saying by missing all the S&R losses. Do you mean in range, S&R tend to overshoot therefore reversing trade is bad idea?

 

[MarkBrown]

Concinnity

In other words it works for people who already know how to trade at a high level and are consistent, strong mentality and properly funded. If you're just flipping it because you're down "x" and had no edge to begin with, than it's pointless. The reason is clear because you need the first edge to be one, because once you see that edge failing and you know it normally doesn't than you can flip because you expect an outsized move in the opposite direction due to that setup failing.

 

[legionx]

I do my very best not to because market might just decide to go into a range. Also just wait for a setup but not the mentality of “I have to make back my losses.”

 

[BuzzTrader]

Recently I was hit by the idea of "reversing the trade to get back loss" or "when you get stopped out it's the best time to reverse your trade"

Personally I had bad experience with such a trading strategy, it is not uncommon that the market would stop you out on high/low tick before going back to your original direction. But some trader seems to be able to improve daily win rate by doing it, and I read some Market wizard featured traders have used this strategy as well.

So often you use the reverse key, and is that part of your strategy? In what condition do you reverse your trade or is there any filters and rules you have for reversing your trade.

Go 1x when the momentum is low and go 3x when the momentum picks up a round trading hours.

 

[SimpleMeLike]

Recently I was hit by the idea of "reversing the trade to get back loss" or "when you get stopped out it's the best time to reverse your trade"

Personally I had bad experience with such a trading strategy, it is not uncommon that the market would stop you out on high/low tick before going back to your original direction. But some trader seems to be able to improve daily win rate by doing it, and I read some Market wizard featured traders have used this strategy as well.

So often you use the reverse key, and is that part of your strategy? In what condition do you reverse your trade or is there any filters and rules you have for reversing your trade.

Good Morning doubledoubledoublecup,

I personally understand your feeling on stop and reverse. You happy when it works and sad when it does not work.

You just have to do it all. I am sorry, I just do not have an answer for you but to keep on clicking.

My answer for everything is to simply keep on clicking the Buy and Sell Button, eventually something will make money.

Click buy or sell button, or go to be hungry every night. You have no choice.

 

[Sekiyo]

It's a bad idea. Here the reason & the rationale:
One should always have a fresh list of trade candidates. This list should be sorted (scored & ranked). One should trade from that list only, not do any "reversing the trade". B/c by that you turn yourself 180 degrees around. This is not healthy One should keep direction and specialize in one direction only...

How many times I reversed short at the bottom xD

Wow what a move against me !
Gotta reverse $$$

Reverse.

Going opposite.
Damn … If I held I’d be in profit.

Me with twice the loss.

Better to take a small loss
Clear your mind. Reassess the situation.

 

[hilmy83]

Reversing works for very specific type of trading. You don't just reverse cause your trade is in loss. There is such thing as vol decay