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Reverse Trading

  • #1
  • First Post: Feb 27, 2013 1:42am Feb 27, 2013 1:42am
Trading opposite direction is the good indicator, when you think UP then sell vise versa....Collect some popular indicator and check the confirmation then open a trade in opposite direction you will see the magic.

Remember don't be greedy.
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  • #2
  • Feb 27, 2013 9:08am Feb 27, 2013 9:08am
I think only work when you swing the trade with target more than 20 pips and use a low spread broker,. cmiiw
  • #3
  • Feb 28, 2013 12:03am Feb 28, 2013 12:03am
Quoting jone
Trading opposite direction is the good indicator, when you think UP then sell vise versa....Collect some popular indicator and check the confirmation then open a trade in opposite direction you will see the magic.

Remember don't be greedy.

Can you post more trading examples ?
  • #4
  • Feb 28, 2013 11:14pm Feb 28, 2013 11:14pm
Doesn't work and I'll tell you why. You need an edge to get any profits out of the market - if you believe indicators are mostly wrong, you have an edge provided you can work out an appropriate stop and take profit....opposite signal for example. But what I've found is that in the long run it's 50/50, and an easy way to prove it to yourself is to run it through a mechanical backtest. So net-wise all you'll be doing is losing yourself the spread/commission over time. There is no way to cheat the system with simplistic ideas like this.
  • #5
  • Mar 1, 2013 1:20am Mar 1, 2013 1:20am
Quoting Kanzler
Doesn't work and I'll tell you why. You need an edge to get any profits out of the market - if you believe indicators are mostly wrong, you have an edge provided you can work out an appropriate stop and take profit....opposite signal for example. But what I've found is that in the long run it's 50/50, and an easy way to prove it to yourself is to run it through a mechanical backtest. So net-wise all you'll be doing is losing yourself the spread/commission over time. There is no way to cheat the system with simplistic ideas like this.
Totally agree with you mate.
  • #6
  • Mar 4, 2013 9:59am Mar 4, 2013 9:59am
i agree with Kanzler.
don't get trapped with indicators. you should remember at least that you trade the price, not some bullish/bearish reversals in RSI or whatever. if indicators look fuzzy & complex sometime, it's not because they are smart but because they plot the price logarithmically.
  • #7
  • Mar 21, 2013 8:08am Mar 21, 2013 8:08am
I ever try this a long time ago in my strategy tester. I changed the code in my expert advisor, I changed long order into short order and vice versa. But this reverse trading still doesn't give better results.


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  • #8
  • Mar 22, 2013 3:19am Mar 22, 2013 3:19am
Reversing RSI and Stochastics was working very well with ETFs back in 2009 hitting over 80% positive Profit Factors but has dropped off badly since then, for example, buy when it crosses below HighZone 70 and sell when it crosses above LowZone 30. I updated it's performance but never had the nerve to trade it. It drops way off with stoplosses. I used to trade ETFs like DIA and SPY for years doing well, but in the last 15 years I read an article that they can be filled with all kinds of iffy stuff now.
  • #9
  • Mar 23, 2013 11:16am Mar 23, 2013 11:16am
Quoting jone
Trading opposite direction is the good indicator, when you think UP then sell vise versa....Collect some popular indicator and check the confirmation then open a trade in opposite direction you will see the magic.

Remember don't be greedy.

this has to go down as one of the dumbest ideas out there.... and as you are marked as a commercial member it makes me worry what your are selling in the industry.

first up it will not work, just the same as trading RSI will not work that is not a system just an indicator.

the only way to use an indicator successfully is to understand what it does mathematically, once you understand that you can proceed to work out WHEN to use the indicator because all indicators only work for certain market profiles and not all market profiles.

once you consider that concept you will realise that doing the opposite of what an indicator does is completely against all the mathematical principles of that indicator and therefore the indicator has no purpose and will not yield results when used in that way because the mathematics is completely wrong even if used in the right market profile.
  • #10
  • Dec 23, 2020 12:18pm Dec 23, 2020 12:18pm
Knowledge is the most important thing ion the forex market to make money. If you want to become a good trader int he forex market, you have to learn all the basics of forex properly.
  • #11
  • Dec 31, 2020 7:25am Dec 31, 2020 7:25am
First step is becoming skilled. For study you can start with babypips school. After that read different books on technical analysis and trading psychology. Along with study, practice in demo account.
  • #12
  • Jan 3, 2021 1:23pm Jan 3, 2021 1:23pm
If you take your time to observe traders then you will always realise that traders habev a tendency of buying more than selling. It is not that they are making accurate predictions but just that most people usually believe the the market will rise more thatn will fall. Also people are generally not interested in looking at things from the negative point of view. They would rather wait for it to drop the buy rather than sell when it is high up and then it drops. That is why reverse trading might help because most of the time people lose because they buy more than they sell. You need to take it easy and hope for the best interest of what you do.
  • #13
  • Jan 18, 2021 9:37am Jan 18, 2021 9:37am
I'm a beginner in forex and would like to if reverse trading is profitable? And can beginner use this method to trade?
  • #14
  • Jan 24, 2021 1:48pm Jan 24, 2021 1:48pm
Proper timing is very important. Profit depends on timing. If you trade from swing low or swing high after daily analysis, the chances of loss are less. If the trade is opened in the middle of a movement, it is not possible to maintain risk rewards and money management properly. That is why trade timing is very important.
  • #15
  • Jan 27, 2021 1:19pm Jan 27, 2021 1:19pm
Trading opposite direction of RSI or Stochastic indicators is the same as using "trend trading" with moving average signals.
  • #16
  • Jan 27, 2021 2:50pm Jan 27, 2021 2:50pm
Quoting Kanzler
Doesn't work and I'll tell you why. You need an edge to get any profits out of the market - if you believe indicators are mostly wrong, you have an edge provided you can work out an appropriate stop and take profit....opposite signal for example. But what I've found is that in the long run it's 50/50, and an easy way to prove it to yourself is to run it through a mechanical backtest. So net-wise all you'll be doing is losing yourself the spread/commission over time. There is no way to cheat the system with simplistic ideas like this.
I agree with you too. I don't like indicators from the beginning of my trading career.
  • #17
  • Jan 28, 2021 5:26am Jan 28, 2021 5:26am
Quoting Robertstarc
Proper timing is very important. Profit depends on timing. If you trade from swing low or swing high after daily analysis, the chances of loss are less. If the trade is opened in the middle of a movement, it is not possible to maintain risk rewards and money management properly. That is why trade timing is very important.

True. You need to have a good understanding of the market to find good trading option.
  • #18
  • Jan 28, 2021 12:40pm Jan 28, 2021 12:40pm
Trading in the market with emotion can be very dangerous. If you want to become a good trader you have to control your emotions. You can control your emotions by practicing on a demo account more and more. It will help you to get confidence and trade fearlessly.
  • #19
  • Sep 7, 2021 8:04pm Sep 7, 2021 8:04pm
Quoting jone
Trading opposite direction is the good indicator, when you think UP then sell vise versa....Collect some popular indicator and check the confirmation then open a trade in opposite direction you will see the magic. Remember don't be greedy. {image}
Is it good for a newbie in forex trading?
  • #20
  • Last Post: Sep 20, 2021 8:11pm Sep 20, 2021 8:11pm
Quoting waseemji
{quote} Is it good for a newbie in forex trading?
In my opinion, a reverse position is used in long-term trading and it is suitable for long-term trading. Using this system, you reverse trades when one position ends, but you keep a close eye on your stop loss.
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