Is The Trend Really Your Friend? | Forex Factory

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Is The Trend Really Your Friend?

  • #1
  • First Post: Dec 7, 2006 2:02pm Dec 7, 2006 2:02pm
I've always heard that "The trend is your friend", but my testing says that trading against the trend is more profitable that trading with the trend.

What general style of trading do you believe is most profitable? Comments are appreciated.
  • #2
  • Dec 7, 2006 2:14pm Dec 7, 2006 2:14pm
Quoting ForexASDF
I've always heard that "The trend is your friend", but my testing says that trading against the trend is more profitable that trading with the trend.

What general style of trading do you believe is most profitable? Comments are appreciated.

maybe you can share your "testing"

i follow the weekly trend ...its most definitely my friend
  • #3
  • Dec 7, 2006 2:19pm Dec 7, 2006 2:19pm
i treat a trend like a b*tch that it is...I will take advantage of every trade opportunity it presents me until it can't give out trades anymore..
  • #4
  • Dec 7, 2006 2:19pm Dec 7, 2006 2:19pm
Trading against the trend is like putting a fluffy white bunny against a pitbull.
  • #5
  • Dec 7, 2006 3:02pm Dec 7, 2006 3:02pm
Quoting Takisd
Trading against the trend is like putting a fluffy white bunny against a pitbull.
Yes, Trading against a trend is more profitable than trading following a trend. When you dont believe me, ask any failures in Forex Trading.

Trend is your friend.
Change Your Thinking. Change Your Life - JD
  • #6
  • Edited 3:23pm Dec 7, 2006 3:08pm | Edited 3:23pm
You may say that 'Trend is your friend' but will trend itself treat you like a friend?
Trend is your friend, but sometimes he betray you.
Trade the Possibilities
  • #7
  • Dec 7, 2006 3:08pm Dec 7, 2006 3:08pm
Quoting OrangeRoshan
Yes, Trading against a trend is more profitable than trading following a trend. When you dont believe me, ask any failures in Forex Trading.

Trend is your friend.
extreme sarcasm alert
  • #8
  • Dec 7, 2006 3:22pm Dec 7, 2006 3:22pm
Quoting Fisher
You may say that 'Trend is your friend' but will trend itself treat you like a friend?
Trend is your friend, but sometimes he betray you.
A Friend never betray you, unless you prefer to betray him again and again.
When you guys want to seriously succeed in Forex trading. Just follow the trend. This is my best advice. Failure in Forex is expensive.

Look at the charts, how many time can you win by betraying it?
Im giving this advice not as a sarcasm or a critic, but as an experience trader. Learn what works and what duplicates, this way, you will be closer to success.

Right or Wrong is not important. But becoming successful is more important. This is my last post here. LEARN TO FOLLOW THE TREND.
-end-
Change Your Thinking. Change Your Life - JD
  • #9
  • Dec 7, 2006 6:51pm Dec 7, 2006 6:51pm
I tried a lot of trading system, there are some stuff i learn i can share:


1- During a trend, trade the trend.

Finished.



No I'm joking. There is much more.



Hummm i just write a big page here and i don't know why, i erased it.

It resume by the followings.. Get a good MA.

Trade longer time frame.

Take summer off. (My dream!)

Less trades means less spread paid to the broker. Non negligeable fact.
Harmonics and Pitchfork using korHarmonics from TradingArsenal
  • #10
  • Dec 7, 2006 7:00pm Dec 7, 2006 7:00pm
Yes. I am your friend.

In all seriousness however, most of the the big boys are big because they trade as trend traders.

At some point, however, you either stop doing long term, because you have such massive amounts of capital that a ten pip move makes you a hecka large amount of money, OR, you stick as a trend trader because you don't want to be in front of the computer all the time -- one 300 pip move and you're done for the month.
Mr. Trend
  • #11
  • Dec 7, 2006 7:03pm Dec 7, 2006 7:03pm
It's funny that guys that know what works all talk strengly, never really saying what works for them. Are you so greedy your afraid there will be less money for you guys? Don't worry it's still to hard to setup for the commun des mortel.

Me i use AdvanceAMAv1.mq4. Come see manual backtest in my thread.

Click here for my journal. Check latest posts only.
Harmonics and Pitchfork using korHarmonics from TradingArsenal
  • #12
  • Dec 7, 2006 10:05pm Dec 7, 2006 10:05pm
To everyone, many thanks, even those who had their sarcasm level set to high. Sometimes I do that, too. I have been reading all of your replies and it appears that the consensus is that the trend is your friend. Mr. Trend tells me he is my friend. I may give him a chance. If anyone else wants to join in I will continue monitoring this thread.

As to the question from mxb if you want to know more about my testing, I will go into more detail and maybe you can tell me what I am missing in my backtesting. I am a computer programmer, a former CPA, and I have been trading stocks on and off for 7 years. I have more losses than gains, but the short period that I had gains I made them trading against the trend.

Merry Christmas to all and to all a good night.

Steve
  • #13
  • Dec 7, 2006 10:30pm Dec 7, 2006 10:30pm
Profitable trades by definition are always with the trend. Some people just get in sooner than others...
  • #14
  • Dec 8, 2006 6:17am Dec 8, 2006 6:17am
Why don't we make a nice thread for all the TREND follower where we can truly exchange what we are doing.
Harmonics and Pitchfork using korHarmonics from TradingArsenal
  • #15
  • Dec 8, 2006 7:44am Dec 8, 2006 7:44am
Quoting Thruline
Profitable trades by definition are always with the trend. Some people just get in sooner than others...
Thank you, Thruline. That is a sharp observation. When I have traded against the trend it is because I expected the trend to reverse and I would be trading "with the trend".
  • #16
  • Dec 8, 2006 9:41am Dec 8, 2006 9:41am
Quoting ForexASDF
Thank you, Thruline. That is a sharp observation. When I have traded against the trend it is because I expected the trend to reverse and I would be trading "with the trend".
<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o>My apologies if this is an obvious point, but It’s probably worth thinking about how trend relates to the timeframe that you’re trading, and what’s happening on both faster and slower timeframes. <o></o>

<o> </o>

For example, you may well be trading against the trend as seen on a 5 minute chart hoping for a reversal, but you’re your entry could well be with the 1 hour trend. I think that almost without exception my entries are almost always against trend in the timeframe from which I take entry signals. So technically Im trading both with, and against trend simultaneously !

<o> </o>

It might be worth re evaluating your statistics with this in mind. <o></o>

<o> </o>

Out of interest, how are you defining trend, by analysis of price action, or by one of those new fangled indicator things <o></o>


razzle</o>
  • #17
  • Dec 8, 2006 9:54am Dec 8, 2006 9:54am
Razzle

I usually look at trend based on a simple moving average of the price. I've looked at many of the "new fangled indicator things" and they usually don't shed any new light on the subject. It reminds me of a book I read once on the subject of technical indicators and the author said "How many ways do you want me to tell you that a stock is overbought or oversold?" I thought that was a memorable quote.

Steve
  • #18
  • Dec 8, 2006 5:56pm Dec 8, 2006 5:56pm
Hi all

The Trend is really very important. But, it can be relative in different time frames. We have to find right way, choose right time frame and follow the trend. That`s the way to make some pips.
I also can tell you:"You have to be in the right place at the right time"

GD luck
  • #19
  • Dec 8, 2006 10:19pm Dec 8, 2006 10:19pm
I trade in a contrarian fashion, short term off a 5 min. I like it because i'm in and out of trades, usually within 30 minutes. I also don't have to sit around waiting for setups, there's always another one around the corner.

I had a proven fx trader try to teach me to trade the trend off a daily chart. I didn't like it, the way this guy trades is he gets stopped out a shit load of times with a small loss, then makes 800 pips. It wasn't for me, though it obviously works for him.

The way I trade now is the way I naturally gravitated toward at the beginning of my fx career. I've found a way to make it work for me to a modest extent. I'm hoping as I continue down this path i'll get better.
How you act is more important than how you feel.
  • #20
  • Dec 9, 2006 1:43am Dec 9, 2006 1:43am
A person who drives the wrong way on a one way street??Me,dnt think so?
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