2019. I'd been trading heavily five years by that point, and had learned how to normalize cost across trades, and isolate a specific alpha with a set of hedges. 42%! My best year. Then I got too cocky, and made a big stupid FOMO bet during COVID, and lost it all and then some. I got wild, and didn't diversify properly. This year I've moved back to what I was doing in 2019. I made back everything I lost, and I'm up 13% a/o Friday.
How do you not chase? Buy low, sell high is my recommendation. Not easy to execute on when high and low are relative, and not absolute. I use a highpass filter followed by an Inverse Fisher Transform, in order to try and get a better than 50/50 chance of a price reversal entry point.
highpass filter followed by an Inverse Fisher How do you set your stops? Got a chart to post? https://somanytech.com/high-pass-filter/ https://robotwealth.com/using-digital-signal-processing-in-quantitative-trading-strategies/ http://traders.com/Documentation/FEEDbk_docs/2010/10/Vervoort.html
Trade that worked(today): Trade that didn't work(before chased then hoped it would go back ): Light Blue is long, Gray is short. I understand, I have tried swinging before but holding overnight is a problem for me, I might be using to much size when I swing. Appreciate the help. If we mean backstop as, stop losses I do not. Thanks.
Stop loss levels are a whole 'nother topic. more to the point was whether you like to backstop your entries with a support level from which price might rise / a resistance level from which price might drop.
Well I did have a plan, I wanted to buy at the low that was just made(breakout level), but like I said I like confirmation it happened then I waited if I should buy and doubting myself. I guess I broke my plan and it headed higher and broke a new high then I chased into it. I now am buying at levels I plan to buy at, and if they fail I exit for a small loss or gain based on price action.