To trend or counter trend.

Discussion in 'Index Futures' started by trader2419, Feb 22, 2009.

  1. who feels that counter trend trading the ES on a intra day basis is alot riskier than trend trading if one is targeting 1-2 points per trader?
  2. define counter trend trading. I find that most of my successful trades are shorts, pattern recognition just fits my eye for shorting I guess.
  3. Neither is riskier than the other if you know how to distinguish btw the different kinds of price action.

  4. mean reversion will answer your question.
  5. Handle123


    On a well tested method, it doesn't matter what I think, I just trade the signal.
  6. Counter trend trading is more risky than trading with the trend .
    You need bigger stops than your target is .
  7. R. Raskolnikov

    Registered: Nov 2008
    Posts: 745

    02-23-09 03:58 PM

    Neither is riskier than the other if you know how to distinguish btw the different kinds of price action.

    I dont understand how you can say that the risk trading trend and counter trend is no different. the net order flow and the potential for price travel will always be with trend on your larger time frame chart. counter trend trading does not just seems to be a gamble unless you use multiple points if divergence and your lucky to not get rune over by hitting your stop. Impulse trend waves are much longer and quicker than the shorter retrace waves. Counter trend trading IMHO is is a waste of time if it is practiced EXCLUSIVELY. the PROBABILITY is not on your side and this is a game of probability. probability will always lie with trend. I do admit I do some CT only in range bound markets. but stil even in, lets say a 5-13 minute time frame for intra day that they may be trading in a range which may be good for CT. but when you consult a larger time chart we are always in a trend, say a 2 hour or daily chart. when i ct i try to be a least in the same direction of the larger time frame. so in essence it may seem like ct, but really its not. trend is ALWAYS less risky. always. and ct lends itself to a inverted risk reward ratio of lets say 2 point stop and 3-5 tick profit ratio. which is not highly probable in the long run and not a efficient way to trade. :)
  8. Neither is correct it all depends if you are fading the bigger trends or not.

    Intraday trends are usually short lived.

  9. ct fading is ok. if is ok it is a small part of your overall trend trading strategy. i just seem to see way too many people wash out pre maturely by solely taking ct trades. ct trading is for the more advanced trader that cannot control their themselves while waiting for the next high probability trend trade and for people comfortable with price action and divergence patterns.
  10. i just seem to bent on trend trading because i use color coded moving averages that change colors that show a uptrend, downtrend, and a flat condition on all time frames. so for me trends on the various time frames are clearly objective and closed to human interpretation.
    #10     Mar 11, 2009