A question has been buzzing in my head for the last week and I would like, Steve, Macman and other experienced traders to comment on it.
In light of the recent market conditions (Uncertainty, volatility and long trends) should we be trading a COUNTER trend strategy at all? The trends are getting longer and longer, although they do retrace (as per Bob`s observations) but these retraces are not often and unless you enter at the exact point just before the retrace actually happens the gains are not enough to offset the DD.
IMHO we should avoid counter trend trading for a good while (maybe 6 to 12 months at least). I would be grateful to have your thoughts on this.
Kind Regards
P.S. We had some retrace today and the DD has reduced quite considerably compared to yesterday. However, with big news in few hours time it is anyone`s guess.
In light of the recent market conditions (Uncertainty, volatility and long trends) should we be trading a COUNTER trend strategy at all? The trends are getting longer and longer, although they do retrace (as per Bob`s observations) but these retraces are not often and unless you enter at the exact point just before the retrace actually happens the gains are not enough to offset the DD.
IMHO we should avoid counter trend trading for a good while (maybe 6 to 12 months at least). I would be grateful to have your thoughts on this.
Kind Regards
P.S. We had some retrace today and the DD has reduced quite considerably compared to yesterday. However, with big news in few hours time it is anyone`s guess.