Trading INVERSLY

Discussion in 'Trading' started by estrader, Jul 28, 2003.

  1. Let me see what kind of response I get for this:
    Since so many people are losing money trading, did anyone try to do the opposite, that is when you want to buy - sell, when you want to sell - buy. Thus you should be making more than you lose.

    So, any experience doing this, anybody?
    :p
     
  2. The spread will still kill you ...
     
  3. I am not talking about scalpin. More like day/swing trading.
     
  4. nkhoi

    nkhoi Moderator

    this was debated and the method included turn monitor upside down, use a mirror etc. but bottom line is you can't fade yourself.
     
  5. i've said this a while ago, but...

    i think most new traders trade worse than random.

    you might think they'd just go broke because of commissions and spreads, but think of how easy it is for people to lose their money. i don't know many people that sat down and studied the markets for years to find a great negative edge. it just happens. i believe a negative edge almost goes hand in hand with average human emotions.

    i do think you could make money trading inversely, however, your mind will know the buttons are reversed, so you'll probably still trade bad. plus, that's no way to trade, anyway. but i do think there might be something to it.
     

  6. Yes. But think about it, if every trade you make goes against you, do the opposite, so it will go in your favor.
     
  7. Today I was thinking I would have done better to fade my strategy, and wondering if there was a way to predict when it would reverse phase, but in past attempts to backtest a poor strategy in reverse they have still come out just as bad or worse.

    When I first started backtesting strategies in TS, I was rather surprised to find that most simple MA strategies had better results in reverse. I discovered this accidentally trying to optimize one. Thankfully, I've come a decent way since then, lol.

    In spite of the probably very normal beginner feeling that all your trades go against you, I believe it's more likely that entries are near-random, and that its the lack of trade management that sends beginner's P&L down the tubes. As we all know, almost every trade will go against you if you hold it long enough.
     
  8. Htrader

    Htrader Guest

    I believe the majority of mistakes come in the exit, rather than the entry. Sell winners too early and hold losers too long. Thus it oftentimes does not matter whether you go long or short. You will lose money regardless. And it is VERY difficult to try and trade against yourself when exiting a position.
     
  9. But what I am saying is you know how when you say buy a contract it may go against you a point or two, pretty much most of the time. So why not do a sell instead.
     

  10. The mind of a poor trader will still find a way to lose.
     
    #10     Jul 28, 2003