The name may be a little misleading because I actually want to talk about the duration of a position rather than the direction.
I think most will agree that although the market may obviously be trending this very instant, doesnt necessarily mean its going to be doing so in the next second. Who knows when its going to reverse or start going sideways. As a result I'm wondering what the best strategy might be to combat this phenomenon? If you open lets say one position per signal and hold it until the signal expires then you are risking not enjoying profits from the entire move as the price might reverse quickly and your exit signal might occur post such a move, resulting in this sudden move eating into your hard earned profits. So I'm wondering whether other people have looked into what the best strategy would be... whether it be to open just one position as I described or open lets say 1 position per bar and close it at the end of the bar as long as the signal is still showing an up trend for example in which case you would be buying every bar and then start selling when the signals pointing downwards. So it's sort of like a scalping strategy but going with the trend... like a series of scalps with the trend so to speak. Obviously the system can't be as simple as that as even in an uptrend theres retracements etc etc... but from a hypothetical point of view what do you think would/should be the better strategy?
I think most will agree that although the market may obviously be trending this very instant, doesnt necessarily mean its going to be doing so in the next second. Who knows when its going to reverse or start going sideways. As a result I'm wondering what the best strategy might be to combat this phenomenon? If you open lets say one position per signal and hold it until the signal expires then you are risking not enjoying profits from the entire move as the price might reverse quickly and your exit signal might occur post such a move, resulting in this sudden move eating into your hard earned profits. So I'm wondering whether other people have looked into what the best strategy would be... whether it be to open just one position as I described or open lets say 1 position per bar and close it at the end of the bar as long as the signal is still showing an up trend for example in which case you would be buying every bar and then start selling when the signals pointing downwards. So it's sort of like a scalping strategy but going with the trend... like a series of scalps with the trend so to speak. Obviously the system can't be as simple as that as even in an uptrend theres retracements etc etc... but from a hypothetical point of view what do you think would/should be the better strategy?