Always-in Trading

[mysticalchemist]

HI,

Just to ask is anyone using always-in trading. Where you take a position in the market, and just keep reversing the position as price reverses.

I've been considering it as a very short time frame - scalping mode. Entering a trade, waiting until it has turned, and then reversing it.
It is almost like trading renko bricks or kagi charts.

Problems I see are in very narrow chop. (Spread and commission eating any profit)
The good bit is that you should capture large moves, and be on the right side!
Also you have to be pretty certain price is reversing before you reverse the trade. Always looking for confirmation that you are wrong to reverse trade.

I just feel it might be a psychologically better system to trade.


Peter.

[dchappy]

Sounds like Tro's buy zone .

[dojirock]

Been there done that.... chop chop.......
Just my 2 cents.

you need to have a point of reference in conjunction with what you see as a reverse.
I know when I trade, the price I want in at is my point of reference. Trading what you see is all it takes but
you must have a point of reference outside that sight. I know when im wrong I can reverse and get my loss back
almost every time due to price can only go up or down...not both ways... momentum is the invisible force, then a line,
then waiting to see that reverse cross your line......thats all it takes.....

doji

[mysticalchemist]

I'm going to start trying it tonight. It just appeals as I am top & bottom picker, tend to hold my lossers too long, and overtrade. All common trading mistakes, but the more I try to correct them, they still keep rearing their ugly heads sooner or later.

Trading always-in should satisfy my urges in a profitable way - I hope!

My main account is with LMAX via Fastbrokers in the states, so I am also stuck with FIFO.
I've been trying 20 second bar charts, and on them reversals seem pretty easy to spot.

Always-in seems to solve the issues..
Only one trade at a time. (FIFO)
Pick tops and bottoms.
Losing trades to be quickly reversed. (Not hanging on to loosers)
No waiting for a trade entry. (Overtrade)

I'll give it a go and see how it works out.
I don't mind if my broker gets a big slice of the profits, just as long as there is enough left for me.

Peter

[seedling]

Not with real money at first surely. Or at most for pennies??

It sounds like you need to work on your urges, trading 20 second bars... is that not asking for overtrading? Something best left to a robot perhaps.
Though patterns are everywhere, trade what you see.

What I am seeing from your posts is that you are in dangerous territory in your head.
I would even consider this a troll post but I know how some people are
You'd probably be better designing an algorithm if this is the type of thing you want http://www.wildbunny.co.uk/blog/2013/03/15/algorithmic-trading-for-dummies/Then do some extreme sports for thrills.

Did you read any psychology books? Mark Douglas?

Good luck.

[mysticalchemist]

I did give it a try, and found two different problems.

When I am scalping fast charts, I always look at the longer timeframes first, and decide on a direction to trade. I don't switch directions during a trading session. In this case I was trading AUDUSD and with a RED RAT short bias.
Started trading normally, and once I had half my days profits, I switched to reversing my trades rather than exiting.

It was not good.

I normally trade with limit orders, only using market orders to get out fast if needed. Reversing my trade meant I was using market orders all the time, and that meant usually at least a 1pip difference in price on both entry and exit, and that was making it hard to get a profit. Add in a couple of losses, and I was going backward fast.

Stopped my little test, and went back to "normal" trading, and this is where the other issue showed up. Now I couldn't pick a trade to save my life. Just had to close the terminal and take a break. I'm putting it down to my aging brain not being fast enough to switch between bear and bull modes. Normally I only trade one direction per session, and I get good at picking the turning points for that mode. Having to suddenly juggle between bull and bear trades just was too much. It created confusion and put me right out of the zone.

An hour later I went back again, and found I was back in the zone, and could trade OK. (Made up some of the losses from the test.)

It was an interesting experiment. Maybe too short, but it did show the problems of the mode when using it for quick scalping.

[aliassmith]

I believe one of our edges is that we choose
when we play the game. Being always-in makes
you play even when probability is low. With a high
degree of accuracy you would have to pick every
swing, which is unlikely.