Sticking to a View

...until it's been proven wrong is an important part of trading. Sometimes a position needs a little more time than usual. yesterday was one of those times.

This is a followup to yesterday's post. The first pic shows that FavFib line being reached and bounced off before RTH began. The second pic shows how that same FavFib line can be faded during RTH, the first time it gets touched.

Yesterday was the 3 year anniversary of the start of the blog. Thanks Rino for your good wishes. It seems a lifetime ago. The markets are still in this state of transition. Volumes, volatility, HFT have all changed and are still changing. Discretionary traders are complaining because they are getting lost in the noise. The key is to have a rigid methodology but to be able to vary the details to fit the context. For me, identifying the trend and then trading the pullbacks is that rigid methodology. The other details are just me using my discretion.

When you look back in the blog to October 2010 and read forward, that basic theme stays intact. I've tried to show lots of ideas about how to deal with the context - using your discretion. Most traders try to mechanize their trading. That's OK if you are satisfied with the results from mechanized trading. I am in many cases and that's why I have FloBots. But when I want the highest win rate and profitability - green most days - I trade as a discretionary trader.