Against the trend

[karl6666]

The trend is your friend. In an uptrend, why not sell the highs also, surely we are missing extra pips, somebody must be selling somewhere !!

Why not ride the wave in both directions,with stops, does anybody do this, is it profitable. Im talking a bit more than scalping, say 10 - 30 pips



Karl
:smart:

 

[tomorton]

I do this on the FTSE100 via spreadbetting. The rules strictly speaking say ignore the sell signals in an uptrend but I find it rewarding to take all the signals in both directions, then just filter out the losers early with a tight stop-loss. This particualr rule is more important than a brilliant entry as you have to be prepared to have more losers and to be trading more.

 

[bbmac]

The trend is your friend. In an uptrend, why not sell the highs also, surely we are missing extra pips, somebody must be selling somewhere !!

Why not ride the wave in both directions,with stops, does anybody do this, is it profitable. Im talking a bit more than scalping, say 10 - 30 pips



Karl
:smart:

I trade against the prevailing trend as often as I do with it. This thread discusses the techniques used to do so; http://www.trade2win.com/boards/for...comprehensive-trading-system-methodology.html

The first doc on Post 1 Page 1 and the Part 1 and Part II docs on Post 74, Page 10, explain the techniques/set-ups used.

Conventional wisdom has it that top and bottom picking is a fools game but trading against the trend can be as high in probability of a successful outcome as trading with trend but you have got to realise that often times as you say above the opportunities can be retraces/pullbacks in trend as opposed to outright reversals of trend.

G/L.

 

[karl6666]

BBmac

Excellent, thanks lots of time and effort put in there


Karl

 

[Mr.J-Arthur]

I guess I would say I'm against the technique of going "against the grain."
Rarely am I contrarian.

I don't scalp, it's not even profitable compared to riding the trends. Why scalp for 30 pts when you can hit 100-2000 pts on these eur/usd trends?

Someone said, "it's like picking up $20 bills in front of a bulldozer" which couldn't be more true.
I usually use a 10 min chart with a 500 sma. When my 3sma breaks out of the 500, I go long...break down, I go short. Follow each and every signal and you won't get in "trouble."

It's basically just following momentum...and the people who SELL into a rally...have tremendous size, and they have no choice but to average into their position (tens/hundreds of millions). Otherwise they will drop prices to fast by flooding the market, and like in poker....it becomes a "tell" and momentum traders piggy back.

 

[Pippy5000]

Trading against the trend is unwise.. end of story. The price action constantly moves and you don't need to constantly ride it. If you trade with the trend and the trade becomes underwater you have a good chance of it becoming positive again.. If you trade against the trend and the trade becomes underwater your chances are slim.. Also, why would you want to trade in the direction with the smallest amount of profitable pips? I always hear people lamenting the fact that they missed a 100 pip movement.. Who cares? It will move 100 pips tomorrow and the day after that and the day after that 24 hours per day 5 days per week.. Choose your trades wisely and you will consistently make money.. Spit into the wind and you'll most likely just erase any gains you may have made trading with the trend.