This is a powerful strategy, but being able to switch from trend to counter trend effectively is easier said than done.
2
M1 Countertrend Scalping Strategy
- #9,362
- Aug 25, 2023 8:55pm Aug 25, 2023 8:55pm
- Joined Dec 2022 | Status: Trader | 3,241 Posts
every minute matters!
- #9,370
- Aug 26, 2023 2:26pm Aug 26, 2023 2:26pm
{quote} very true, i've been trying unsuccessfully to emulate his trend following skills since he posted, i have to keep working on it a lot harder! thanks for the explanation on your chart, even though it helps, it is still difficult - the platform has custom capabilities via thinkscript, perhaps there is an indicator that can plot the entries and exits a bit better? there is also the concept of "virtual" hedging that could be employed for FIFO compliance...
I have no clue where it's going
- #9,374
- Aug 27, 2023 7:40pm Aug 27, 2023 7:40pm
- Joined Dec 2022 | Status: Trader | 3,241 Posts
every minute matters!
- #9,375
- Aug 27, 2023 7:49pm Aug 27, 2023 7:49pm
- Joined Dec 2022 | Status: Trader | 3,241 Posts
weekend BTC scalps - very little on offer, but i'll take it!
every minute matters!
- #9,376
- Aug 27, 2023 10:58pm Aug 27, 2023 10:58pm
- Joined Dec 2022 | Status: Trader | 3,241 Posts
M1 GBP scalps - following the trend?!
entered two orders long after bounce off ema200 forming a higher low and price holding above ema20 anticipating uptrend to produce a higher high targeting break of previous resistance observations, price continued to hold above ena20 then broke and held above ema50...
a big candle as a trend is forming is a sign that the trend will resume, a big candle after a trend has run for a period of time signals the end and a reversal - also look for price action signals that lead me to a reversal for exit cues, for now i have fixed targets...
ema9 then ema20 start to cross ema50, but then price breaks down below the ema's and breaks the trendline but stalls at support, now forming a new trendline as it passes back up through the ema's but then it breaks the new trendline and holds below it, then it breaks below the ema's including ema200!
but not for long from there it bounced again as it did when i entered however, this time there were much bigger candles to start the trend and very big candles to end the trend, hitting my targets in between, still so much to learn!!!
anyway, the right thing to do would be to take a loss if price breaks and holds below ema200 and starts a downtrend then start looking for countertrend or downtrend continuation opportunities, it did not do that in this case, and i have seen chhico hold in the same manner confident that price would return to profit and rather than use fixed targets i should try and follow the price action until and look for climactic candles such as in this trend reversal for an exit signal appears
entered two orders long after bounce off ema200 forming a higher low and price holding above ema20 anticipating uptrend to produce a higher high targeting break of previous resistance observations, price continued to hold above ena20 then broke and held above ema50...
a big candle as a trend is forming is a sign that the trend will resume, a big candle after a trend has run for a period of time signals the end and a reversal - also look for price action signals that lead me to a reversal for exit cues, for now i have fixed targets...
ema9 then ema20 start to cross ema50, but then price breaks down below the ema's and breaks the trendline but stalls at support, now forming a new trendline as it passes back up through the ema's but then it breaks the new trendline and holds below it, then it breaks below the ema's including ema200!
but not for long from there it bounced again as it did when i entered however, this time there were much bigger candles to start the trend and very big candles to end the trend, hitting my targets in between, still so much to learn!!!
anyway, the right thing to do would be to take a loss if price breaks and holds below ema200 and starts a downtrend then start looking for countertrend or downtrend continuation opportunities, it did not do that in this case, and i have seen chhico hold in the same manner confident that price would return to profit and rather than use fixed targets i should try and follow the price action until and look for climactic candles such as in this trend reversal for an exit signal appears
every minute matters!
- #9,377
- Aug 27, 2023 11:06pm Aug 27, 2023 11:06pm
- Joined Dec 2022 | Status: Trader | 3,241 Posts
M1 GBP countertrend scalps - couldn't resist, countertrend is still my favourite!
every minute matters!
- #9,378
- Aug 28, 2023 12:07am Aug 28, 2023 12:07am
- Joined Dec 2022 | Status: Trader | 3,241 Posts
M1 GBP countertrend scalps - just some more!
entered three orders short on previous resistance targeting return and break of ema200, initial attempt stalled at support
and returned to resistance levels and entered another two orders, second attempt failed at support levels again so cost averaged up another order but that was a waste as price continued to resistance levels, so cost averaged down a final order as resistance holds then breaks price through support levels inculding ema200 and into targets!
entered three orders short on previous resistance targeting return and break of ema200, initial attempt stalled at support
and returned to resistance levels and entered another two orders, second attempt failed at support levels again so cost averaged up another order but that was a waste as price continued to resistance levels, so cost averaged down a final order as resistance holds then breaks price through support levels inculding ema200 and into targets!
every minute matters!
- #9,379
- Aug 28, 2023 5:50am Aug 28, 2023 5:50am
{quote} i'll try these suggestions next time i run the sim as well...
Interestingly, here's a KoF trend-following video and he's using a naked chart. In the video he says "the indicators are in my head."
Inserted Video
- #9,380
- Aug 28, 2023 6:51am Aug 28, 2023 6:51am
- Joined Dec 2022 | Status: Trader | 3,241 Posts
{quote} Next time you're on the sim, try averaging with a naked chart. I counter-trend traded the EMAs for so long that when I see them, I instinctively want to go counter-trend. Turning them off removes this bias and helps me see the chart more clearly. I still toggle them on occasionally though. Interestingly, here's a KoF trend-following video and he's using a naked chart. In the video he says "the indicators are in my head."
M1 GBP countertrend scalps - managing a tight range...
short off resistance, targeting a break of ema200, price finds support and moves back into resistance a couple of times
then breaks resistance as it bounces off ema50, a new resistance level forms and a third order is taken, but that is also
broken but also doesn't hold - it then bounces off ema200 a couple of times so looking to reverse if it breaks and holds above my last order...
and it doesn't - instead it bounces off ema200 for a third time, but only as far as resistance, then a fourth push down tries very hard but fails again and bounces back above my last order and holds, time to reverse!
as you can see, the reversal process gets very complicated and documenting it is difficult, but in short, the goal is to
first close all in one direction, then commit to closing all in the other direction to end the sequence, all while protecting
margin and making profits in between... the reward is well worth the effort!
every minute matters!