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Main types of short term trading strategies - breakouts, trends, counter-trend

Discussion in 'Trading Strategies/Systems' started by IB12, Jan 11, 2011.

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  1. IB12

    IB12

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    Hi all,

    I'm usually a swing and position trader so my knowledge in this area isn't as strong.
    I'm trying to understand the shorter term mindset, and I'd just like to know what are the main types of trading strategies for short term traders.

    As far as I can tell there are 3 or 4 main strategies:
    1. Breakouts
    2. Trading with the trends on higher-highs (lower-lows) and
    3. Counter-trends or trend reversals

    Are there any others?

    Any help from short term traders/scalpers would be greatly appreciated.
    Thanks.
     
  2. Trembling Hand

    Trembling Hand Can be found on the bid

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    In order of importance

    1. Counter-trends or revision to the mean
    2. Fading Big d!ck flicks
    3. Price pattern trades ie fading gap opens etc.
    4. Trading with the short term trend (no longer than say the dominate Morn or Avo trend) on higher-highs (lower-lows)




    somewhere

    way

    down

    here

    112. Breakouts
     
  3. tech/a

    tech/a No Ordinary Duck

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    1 Breakouts.

    Somewhere

    way

    down

    here.










    111. Counter-trends or revision to the mean
    112. Fading Big d!ck flicks
    113. Price pattern trades ie fading gap opens etc.
    114. Trading with the short term trend (no longer than say the dominate Morn or Avo trend) on higher-highs (lower-lows)
     
  4. sinner

    sinner

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    Contentious issue.

    Trade FX here so certain instruments tend to be more reliable with certain setups than others.

    EURUSD breakouts around the time Frankfurt/London come online, I want to hold these as long as possible.

    GBPUSD mean reversion in "after hours" (i.e. good signals usually come after London shuts up shop or during Tokyo), these are short short term.

    Great performance for both recently. Normally one strategy will outperform while the other makes small losses, but I'm not complaining.

    The arrows on the second chart are a simple 2 bar mechanical setup.
     

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  5. satanoperca

    satanoperca

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    And it all comes back to 50/50 chance based on personal preference, as good a coin toss. LOL

    Good luck to all.
     
  6. tech/a

    tech/a No Ordinary Duck

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    Each have their place.
    Just pick one and become very good at it.
    But DO SOMETHING.
     
  7. sinner

    sinner

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    In the sense that you never know precisely what is about to happen on any given trade after you place it, sure 50/50.

    But an edge over a large enough sample of trades is an edge nonetheless. The win rate might be worse than 50/50, so what!
     
  8. IB12

    IB12

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    Sorry if I sound ignorant, but what is a "Fading big d!ck flick" strategy?
    I tried to search on Google and got "No results found for "Fading Big dick flicks"

    Thanks anyone.
     
  9. Tyler Durden

    Tyler Durden

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    Sorry for being naive, and I'm sure there's a very good reason for this, but why not just buy 1 cent shares and sell when it reaches to 2 cents, thereby doubling your money?
     
  10. tech/a

    tech/a No Ordinary Duck

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    Well because in 11/1/10 there were 57 stocks below 1c
    Throughout the year only 4 stocks reached 2c
    Just tested it.

    So if we had $1k on each----
    For interest the 4 reached
    4c
    2c
    5c
    10c
     
  11. satanoperca

    satanoperca

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    Sorry Sinner, my comments were a little tongue in cheek,just goes to show, there is more than one way to skin a cat and T/A has summed it up perfectly.

    Good night.
     
  12. Boggo

    Boggo

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