2
M1 Countertrend Scalping Strategy
- #5,422
- May 2, 2023 6:34pm May 2, 2023 6:34pm
- Joined Mar 2023 | Status: Trader | 1,007 Posts
without patience how can you be a trader?
- #5,423
- May 2, 2023 11:51pm May 2, 2023 11:51pm
- Joined Dec 2022 | Status: Trader | 3,299 Posts
long off support, then again as break of support failed to hold, targeting previous high, first upswing encountered resistance then fell right back down to entry level but then formed a beautiful double bottom which provided the extra fuel needed to reach my targets which were a bit higher but closed manually due to price action for a nice profit
risk must be managed objectively and not emotionally for better results...
risk must be managed objectively and not emotionally for better results...
every minute matters!
- #5,425
- May 3, 2023 12:20am May 3, 2023 12:20am
- Joined Dec 2022 | Status: Trader | 3,299 Posts
opportunism is an essential trait in trading!
every minute matters!
- #5,426
- May 3, 2023 12:24am May 3, 2023 12:24am
- Joined Dec 2022 | Status: Trader | 3,299 Posts
every minute matters!
- #5,428
- May 3, 2023 5:58am May 3, 2023 5:58am
- Joined Dec 2022 | Status: Trader | 3,299 Posts
every minute matters!
- #5,429
- May 3, 2023 7:11am May 3, 2023 7:11am
- Joined Dec 2022 | Status: Trader | 3,299 Posts
{quote} When I look at a dual RSI I am looking at a setting the standard indicator to a 7 period lookback and a 14 period lookback for the same time interval. The 7 period lookback responds more quickly to changes and becomes a leading indicator of market direction. You need to adjust the oversold / overbought to 80/20 instead of 70/30 so I leave both on the chart. In your example you are simply using the same 14 period lookback with a different time frame where what I show more about how the market is reacting. The two macd indicators show trend...
however, this is my interpretation of a leading indicator
here we have price moving up, RSI (brown line is also moving up so is not a leading indicator), but the MA on the volumes is moving down, dark blue line, and the light blue line is pointing down, if it wasn't for news i would of taken this trade - the volumes tracked with prices and lowering volume was a leading indication of lowering price
price is still going up but leading indicators still going down...
and the result!
every minute matters!
- #5,430
- May 3, 2023 7:41am May 3, 2023 7:41am
- Joined Mar 2023 | Status: Trader | 1,007 Posts
without patience how can you be a trader?
- #5,431
- May 3, 2023 9:20pm May 3, 2023 9:20pm
- Joined Dec 2022 | Status: Trader | 3,299 Posts
every minute matters!
- #5,439
- Edited 5:22pm May 4, 2023 3:40pm | Edited 5:22pm
{quote} You need help with math! You are confusing how you report with the result on your bank account! I take it back, partially. It isn't FIFO that is working against day trading in the US it is the wash tax rules. And the wash sale rule states you can't hold shares of that stock 30 days before or after the holding period you wish to claim them on a tax refund.
All I know is I sold, price went higher. When I hit sell again I instantly got this:
[NOTE:] The trade in the background is NOT related to the FIFO message btw.
- #5,440
- May 4, 2023 5:14pm May 4, 2023 5:14pm
{quote} that's draconian, are you sure? that would make this strategy is almost useless... you'd have to find another approach that follows the trend and allows you to average up, you can look up KoF's 1% strategy if your interested or consider this, if price moves against your original position. and you feel its a solid move, then look for an opportunity to trade that as well, then you protect your original position, make profit on the second, and continue trading in the opposite direction until it returns to your original position, after all,...
I might have found a work around.
"I don't mind so much that you cannot hedge, because I don't do it. But I am really against the FIFO rule.
To me, it does more harm than good. But that is almost irrelevant because I know how to get around it.
The trick is to use different sized lots. The rules state that if a previously entered position is of a different size than later positions, it is not subject to the FIFO rules.
Since Oanda allows nano lots (which is awesome because it significantly reduces your risk, especially in small accounts), you can enter different lot sizes without it significantly impacting your risk."
So as long as I average down in a different amount each time I should be golden. FIFO sucks! Also, (haven't actually tried it yet) seems like I should be able to buy lower than initial buy entry at same amount (cost averaging), but i can't sell higher than initial sell entry at same amount. Weird.
[EDIT:] As far as FIFO negating this method, when using cpfleger's system, it rules out a lot if not most runaway trends. My forward testing is still going great.
