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Strategies & Market Trends : Dow Jones Futures -- A free paper trading service -- Ignore unavailable to you. Want to Upgrade?

To: David who wrote (574)	5/6/2000 5:15:00 PM
From: Patrick Slevin	Read Replies (1) \| Respond to of 797

"Reverse a Trade", that's interesting. Just a thought, you really need a entire set of rules for that. I know some position traders just flip on a pivot....they may Buy 1400 when it's moving up, Sell it when it's moving down, Buy it again and so on...... But if you are doing it without knowing why it could be Risk Sensitive. Just an observation. I think even position players do that when the market is trending sideways. It's kinda like a "Duh" method. "Well, it's going up so I'll Buy, it's Going down so I'll Sell...." In essence it's just trying to catch a trend. If you have a rationale then it could work out for you. Else, unless you have a pile of resource it could hurt. I'm a great believer in not grandstanding. It could cost you a lot of capital. That's up to you of course; I just think reversing just for the sake of reversing is best suited to markets like Bonds and not SP, DJ or ND markets. You might try to backtest your data and see what such a plan would have done for you in the past. Of course, you are the person who has to make the trade. My conservative bent is something I cannot conceal in my posts so I do not bother to try.