Discussion in 'Strategy Development' started by aus_SPIder, Aug 30, 2006.

  1. hi guys im new to this forum adn pretty new to trading in general. I trade the australian/asian indicies (nikkei and SPI)

    I notice that there are 2 main trading "methods" out there: following the trend and going against the trend. also realise most of the people in this website utilize trend following strategies. Just wondering whether trading both a trend following strategy and a counter trend strategy simultaneously would yield better results.

    i trade a math based counter trend strategy and have never really had much success with "following the trend"

    comments appreciated.
  2. 1. Think twice about trading the SPI, unless you only trade it during Australian hours and not US hours. It is one of the most illiquid futures markets out there.

    2. If you adopt both strategies make sure you are taking at least 80% of your trades with the trend. For me, I think it is better to do 100% trend trading strategies (much more reliable). However, these comments are based on trading the ES. I once read the SPI is more of a gap and fade market so countertrend methods work better with that particular market.

  3. yeah what u say is pretty true. i find that the countertrend strategies works much better in aus market then nikkei. I live in aus so i trade during the day, but the opening/closing gaps consistently murder me if i trend follow
  4. Hello, identify the CounterTrend and trend following suitable trading hours. Exemple : for equity futures, you can use countertrend systems in the first hours and trend following in the afternoon.