I'm curious if you have ever looked into Larry Connors swing trading. He scales in 3 to 5 times on a close of the day basis, when the RSI(2) is below 20? Exiting above 80. A reversion to the mean startegy to swing 3 or 4 days. He had a daytrade version, but I did not take that course. I found I did not like holding overnite. I've tried scaling in on a daily basis, and your explanation helps me understand what I was doing wrong. I'm sticking with the trend as much as possible now, but thank you for the thread.
The following user says Thank You to rpm123 for this post:
Thanks rpm123, I will look at Larry Connors' trading. My intraday scaling is kind of a replica of my swing trading but with different instruments and timing. I don't like holding overnite neither, I would like to discuss later a trend following method with similar rules, I assume that if you can manage counter trends than going with the trend is much easier.
Sometimes things are not going as planned, in this case I had 6 contracts shorts on CL, the PA never reached the target at R, new buyers were coming in (see TL on GomCD) and I decided to close the trade in advance avoiding a loss as the market went up afterwards. + 144 USD
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The following user says Thank You to redratsal for this post:
I think so too. Using a pyramiding progressive scheme should theoretically be less risky and more profitable if you are following the trend than if you go counter-trend. Also, you can get some profit early in your campaign of trades following the trend which should be less stressfull.
The following user says Thank You to trendisyourfriend for this post:
Stress, as far as I am concerned, is related on how confident I am with the method, it' also a question of habits and subjectiveness, the level of stress you can handle might change from day to day according to external factors as well. With regards to trend following strategies they occur less often and therefore you don't want to miss the opportunity, you need to be ahead of market, whereas in counter trends the action already occured, it's rather a question of timing. You can combine both methods but you would end up over trading, and normally it is not a good practice. Generally speaking we can call the methods with any fancy name we wish, bottom line it's always a question of bid and ask that we buy and sell at the right price and at the right time.