Attachments: Counter-trend trading

Counter-trend trading

#721
Nov 10, 2015 7:02am Nov 10, 2015 7:02am

Dimi.A
Joined Feb 2015 | Status: Senior Member | 399 Posts

Quoting Ullen

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{quote} The most important part of trading is to stack your probabilities. If my other analysis says that a pair has to correct an error below, and this analysis tells me that i should sell, i have higher probability for a good entry.

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Great thread Ullen. I also counter-trend myself and I have way more wins when counter trend trading than trading with the trend.
Even though it can be a bit more painful and stressing when counter-trending I find it a lot more productive than just trading with the trend!

Hope to see more updates and posts mate. Keep this thread going!

#722
Nov 10, 2015 8:24pm Nov 10, 2015 8:24pm

warbee
| Joined Jun 2009 | Status: Trader | 148 Posts

subscript.

#723
May 8, 2017 7:44am May 8, 2017 7:44am

Monokl
Joined Feb 2012 | Status: Trade like Water | 3,403 Posts

Why Ullen no info?

really miss

Let Market Tell You

#724
Oct 10, 2019 11:42pm Oct 10, 2019 11:42pm

Abade
Joined Aug 2016 | Status: Trader | 536 Posts

Actually "Counter-Trend" is nothing more than an anticipated move on a lower time-frame (a smaller "trend").

I have been optimizing and testing over 1500 indicators on a "stop-and-reverse" fashion on D1 charts, and i have noted some things:

a) It's harder to over-optimize a counter-trend strategy, whereas trying to "catch the trend" most of the time results on dissapointing OOS.

b) Less volatile pairs are better for this kind of counter-trend trading such as EURUSD, USDJPY, AUDUSD (GBPJPY is a lot harder in my experiments).

c) most indicators will give you a positive outcome when reversed and parameters are set to "small" lengths (ie: Periods of 20 or less):

Attached Image (click to enlarge)