Friday, 27 July 2012

The Turn

One of the most important parts of trading, like poker, is The Turn. The Turn is the point where the trend - the trend of the one chart that I'm trading - changes direction. Catching The Turn gives you the biggest and safest ride. The Turn usually happens with a reversal and then a pullback and then another thrust in the direction of the new trend. I wait for the first pullback in the direction of this new trend.

Translating that into an algo gives me a big edge. I can elect to just trade that first pullback and ride it until it ends, scaling out as I go. Or I can try and trade every pullback in the trend direction, all in and all out.

Here's how Flo did it today. As the Great One used to say, "How Sweet it Is!".

No comments:

Post a Comment