Home Trading Strategies How To Ride Massive Trends In Bull and Bear Markets

How To Ride Massive Trends In Bull and Bear Markets

How To Ride Massive Trends In Bull and Bear Markets

hey hey what’s up my friend so in today’s episode right you’ll learn all about writing massive trends right that others can only dream of so remembered right back in my prop trading this so I was you know buying dolly and there was this particular trading set about I call it the falls break so price basically broke out and I believe he was on me either the one or 12 or timeframe there was a false break set up a support so I bought it right just part of my trading setup and I went along and I read hope the MiGs day I remembered right Dalian it just exploded up higher and it OC hey what’s going on man because I saw the usually when you’re trading like one of the first few things that you love like lock on to see is your PNM IP now just shut up right in the green basically and I was wondering what happened yeah I realized BOJ intervene the market no and yet let their $1 in to exploded up higher and I happened to be right there at that point in time right just nice re to catch the huge wave and if you ask me right you can see in a way I was lucky because I have no idea that BOJ is gonna intervene at that point in time I have no idea right that debt trading setup that I took right then look like just like any other trading setup there will be the one right to let me write a massive trend in the market and I believe I did particular trick I achieve about a one to forty five or one to fifty risk to reward right meaning if you risk one dollar you can make fifty dollars in written so there was a very big winner for me and today right I wanna share with you a few lessons right about trend following and if you wanna adopt this method right this method of trend following then these few things that I’m about to share with you is important number one if you’re not right massive trends and market you cannot have a target profit I know this sounds you know logical but some traders just don’t get it for example if you know I bought dollar yen and I’m happy with let’s say a 50 people argot there’s no way there’s no way that I’m gonna write a trend because when you have a target profit in essence what you’re doing is saying to the market okay this is enough man you know don’t give me any more profits let me just just book my profits and get off the tree now that that’s not wrong right you’re coming from a swing trading perspective that’s fine but if you are trying to write a trend in the market you know you cannot have a target profit because you are limiting your profit by having a target profit so as a trend follow up if you want to write massive trends in the market the only way to do so is to have a trailing stop loss so what I mean by trailing stop loss is that as the market moves progressively in your favor you will drill your stop-loss and kind of you know lock in profits along the way so let’s say the market goes from $100 220 or less your trailing stop loss could be let’s say hundred and ten dollars for example okay you’re giving it a $10 buffer wiggle room right to move right if you hit 210 then you exit the tree does it make sense so that’s a trailing stop loss number three if you’re right massive trends in the market you’ve got to expose yourself to many different markets because you’re starting right you just have no idea and wish upon a time which markets are going to train okay so if you really want to increase the odds of capturing a trend riding a trend you want to expose yourself to different markets trade Forex trade bonds trick agriculture commodities equities trick all these different markets from this different sectors and that would really increase the odds of you capturing a trend let’s just imagine this let’s say you only trade euro dollar pound dollar Aussie Canadian you rosy and a few currency pairs combat to a trader who treats 50 different markets let me ask you who has a better chance of riding a train clearly is the one who who treats more market right so that’s the thing right you have to create a variety of markets don’t limit yourself to just a handful of markets because you know that really is not putting the odds in your favor number four all right since you know that you have to trade a lot of markets then this is where your risk management comes into play because you have no idea which market is gonna trip often the market breaks out the falls break up and it goes back into a range and that’s why you must risk right a small fraction of your trading capital on each trade if you ask me right anything more than 1% is too much 1% below right that’s a good benchmark to consider whenever you put on a trade and hoping those treat you know becomes a monster winner take for example right reach and Danny Caesar one of the hit he’s the hit for total traders and if I’m not wrong he actually you know when into a serious drawdown with the trend following methodology and if you ask me it’s because he was risking about 2 who risk on any Street and I find it that’s way too aggressive so if you’re not right trends in the market you’ve got to bring down right your wrists but rate level because you have just no idea right when you capture a trend even if you might be trading 40 or 50 markets you still have no idea right when a trend will come so that’s the fourth thing right you must risk a fraction of your trading capital and finally right the fifth thing I want to share with you it’s something that I’ve discovered recently right based on the sharings of and aundrea Unger so he says that different markets would have different behavior and he shared a very simple back test to to figure that out right so what you did is that whenever the price breaks above the previous day high you call long and you hold a long position until the price breaks below the previously low and then you come shot right and you keep doing this or this back test over and over again with how much data you have and what you realize is that if a market has trending behavior the equity curve will slope up over time and if a market has a mean reverting behavior meaning when ever breaks out of the previous day Heinen goes back into range you will have a negative equity curve so I’m running across up different markets Forex futures and I realize that yes different markets have different trending behavior based on a time frame than your trading as well and what I realize is that markets like pound dollar pound em go these are trending markets meeting their they have a tendency to trend better than markets let’s say Aussie Canadian or maybe markets like a bond markets okay so this is what I found so that’s another thing to consider if you want to write trends in the market okay you can also consider i focusing on markets I did have a tendency to exhibit a trending behavior so that’s that’s pretty much it right for today’s episode hope you got some value out of it with that said if you enjoyed it hear that thumbs up button subscribe to my youtube channel the link is below click subscribe and I will talk to you soon you


Please enter your comment!
Please enter your name here