Which is your style, Follow or Counter the trend

Discussion in 'Strategy Development' started by bighog, Dec 15, 2005.

  1. bighog

    bighog Guest

    Just curious, especially for daytraders, what is it you look for daily?

    I prefer to follow the trend. I saw the thread where another person prefers to go against the trend. Seems to me that is like driving your car in reverse and doing donuts on the freeway.......:eek:

    Not saying the divergence trader is wrong, just wondering how many others drive like that to the profit store......:D

    PS, myself it is short-term futures (just to clarify)

    PSS, trading is done for the year..............cutting out early this year.
  2. My style of trading is with the trend. I day trade futures. I prefer to try and jump on a moving train, instead of trying to stop it. It's all a matter of personality. I know plenty of "against the trend" traders who do very well.
  3. i trade the trend. More fun.
  4. She who must be obeyed and the Trend are my two best buddies.
  5. I run 7 systems - 3 trend following and 4 counter trend. Limit losses, let profits run (nice cliche) and seem to do OK consistently.
  6. jessop


    Both - the bread & butter plays are the mini-intraday reversals - the real risk/reward opps are the strong continuation signals at 10-60min TFs
  7. BigHog,

    Although I don't know what thread your talking about in reference to that Divergence trader that trades against the trend...

    You can be a divergence trader that trades with the trend.

    Example...lets pretend the 60min chart is in an obvious uptrend.

    You can take a Bullish Divergence trade on the 5min chart into the direction of the overall trend.

    Yet, trend analysis is very different from one trader to the next.

    I just want to show that just because someone saids they trade reversals or trade divergence...it doesn't imply that they are counter-trend traders.

    By the way, I prefer to follow the overall trend and if I do counter-trend trade against that overall trend...I will reduce my position size substantially to minimize my risk exposure.

    (a.k.a. NihabaAshi) Japanese Candlestick term
  8. Agyar




  9. bighog

    bighog Guest

    Ok, the fella that says he uses separate systems with different objectives makes sense, i will buy that. Do you have separate accounts for the separate systems? Since i am not a system trader i am wondering how you do that.....:) By that i mean say for instance you are in the trend following system and you are long and the system still has you in the long. OK?

    Then if you are running different strats, and a so called reversal divergence pops up which says to "go short young man",.....How is that issue resolved?

    must be separate accounts....:D
  10. Current market position = net position of all systems combined.

    What's the problem?

    #10     Dec 15, 2005