Yeah that’s what I did, reversing my trades of course changed my ratio to 1:2
Another reason why not to trade the reverse of a losing system is EA’s are a fine example, you can get an EA which on todays 5 yea backtests totaly sucks, so the thinking could be lets reverse the trade criteria variables so it trades in reverse therefore it should make big profits.
That doesnt work either because the reason it sucked on backtests was it was a system that was optimised to work on price action that performed well by chance over its original backtest time period, usually the past 2 years before it was released.
Then the next few years those circumstances that caused it to perform well were not repeated, so in future years it is trading on pure chance and pure chance rarely wins anyone anything, except by pure chance lol
what you’re describing, then, is what dealing desk brokers are all about. they’re the ones on the opposite position…
Well as I mentioned before, my ultimate point is that I will need to dynamically use different strategies depending on market conditions. At least 2: 1 for market with no trend, the other for trending market. The hard part is figuring out the market conditions.
I thought that the opposite positions are simply other traders? Brokers only give you the tool to trade with, and the price for that is the spread. Which is the only way they are making money. At least that’s how I’ve always thought it works.