Failed Signal

For those that Trade a Mechanical system, I was wondering when the trade goes against you, do you ever reverse your position, it would seem that it might be more profitable. Yes, I know that you should focus on risk before reward, yet it seems if you enter while the signal goes against after it breaches a certain point, it seems as though the trend is strong and thus a less riskier take on the trade, and you could at least pick up what you have lost in your stoploss, or cover your position if you have none. Of course if the trade whipsaws you wouldn’t bother with it, it again would have to be past a specific point. This may seem like revenge trading, but it seems logical, to me anyways. Of coure I am longer term, so It probably wouldn’t apply to scalping - that would probably be too risky. Anyways if you have any thoughts on the topic, or ideas/suggestions, anything will help. Thanks 4 the time!

As always Stay cool, take it easy eh!

I know of a trading system that does this, but only at key support/resistance levels. For example, if you had a double bottom and you went long, and then the market turns against you, close the original position and go short when the market breaks through the double bottom support level. This would have to be part of your trading plan, and then stick to it.

Eh, Tangara, much appreciated response! Yeah, what I would do for re-entering would have to do with something thing like support/resistance, but, I probably shouldn’t even of asked the question. Usually what I do is just research, test, then put into action whatever idea I have, however yesterday I felt kind of lazy since Saturday is what you call my “day of rest”.:smiley: Instead of studying it, I just thought of the next best thing!! Anyways thanks alot, and I did get something from your answer, so if the above sounds like it was useless answering my question, it wasn’t.

Stay Cool, Take it Easy!!