MOST PEOPLE TEND TO GO THE ROUTE OF APPLIED RULES AND STRATEGIES TO TRADING.
Lets have a Discussion on the times you broke all the laws and grabbed some extra pips.
Im Always Trading, All markets.
Cryptocoins Currency and Stocks.
Ive always found some methods to bring me success that maybe would be frowned upon.
E.g Trading against the Market Trends
Trading Large Volumes in Sideways Market.
Predicting*
I’D LOVE TO HEAR WHAT HAS WORKED FOR YOU GUYS. CHEERS
The losses ive taken when “breaking the rules” far outweigh the gains.
Here are a few things I do that have worked for me that other traders probably wouldnt do.
I dont add to winning positions w a few exceptions. I think most experienced traders recommend adding to a winning position as long as you actively manage risk.
I use multiple entry orders (usually 2) to average down on positions. Traders consider this adding to a losing position and I agree that it shouldnt be done.
In my case, I dont think of it as adding to a losing position because my strategy allows it. I dont do it out of fear or hope. I do it at pre determined levels to lower risk while maximizing profit potential. The biggest downside is that I lose potential profit if only 1 entry is triggered. The lower risk is more important to me than missing potential profit
Lets say the 4hr is trending down, but this down trend is part of a correction on higher time frames that are actually trending up. If price reaches a strong s/r level on the 4hr that is also a major s/r level on higher frames, this setup provides an oppurtunity to profit by fading the short term trend @ a great level if the the long term trend resumes at that level. Risk management and entering at only optimum levels is paramount of course. This is a low probability but low risk/high reward setup that will eventualy payoff when you catch a big movement and keep your losses small in the meantime.
In my eyes, even tho im trading against the trend on the shorter frames, im still trading with the longer term trends.
I do.
But I do because my backtesting and forward testing has shown that it makes me more profit than not doing so. That’s because quite often when a trade moves in my favour, it’s confirmed my entry and increased the odds of a further successful trade, and the risk-money I’m adding to the trade is actually going on with a higher expectancy than was true of the original entry.
I don’t.
But I don’t because if the trade has turned against me at all, since my original entry, I’d be putting additional money on with lower odds and worse expectancy.
I think the “moral of the story”, if there is one, is simply that we should all do what we’ve proven works best for us in the long run, to a high degree of statistical confidence?
Thanks a lot of the responses.
This discussion allows us to learn some new techniques which we can strategically use in certain situations which can render us very profitable.
I have always used multiple entry orders but on shorter trades where i have more control of my loss factors. Trading against the trend -This is recommended nowhere but i tend to do it alot, too much as a matter of fact. This is what brings the Most Profit on any day of the week.
As Charlie Said We should do what we’ve proven works- Trading with instinct is just as important but people tend to refer to this as predicting the market. I guess you need to do a little prediction sometimes.
I Would Love to Hear some other techniques you guys have tried which was profitable while BREAKING THE RULES.
Why do you think you have managed to have success while “breaking the rules”?
Is it a product of luck?