SG
There is 3 type of market
1 Trending
2 Range Bound
3 Volatile
In My opinion it is very difficult to predict which market going to happen in next few session
If one know prior then in forum it self one can get good Trading strategies for each market.
You asked
why can't Traders be patient for a Trend to emerge....!!!
Let us took my own trading experience in last 2 months
I Lost more then 230 Pts in Nifty in Last two months using trend following system because of whipsaws
I expected a bounce back in nifty( up to the broke 200 daily MA and 5135 happened today)
My Trend following system gave sell in 5256 ( if I wait for a trend I would miss the trade)
OK If I Stopped Trading after a couple of whipsaws ( which cost 90 Points) and shorted @ 5125
Let us see the comparison
5256-5125-230= 99 Pts nett Loss
For Patient Trader Loss 90 Points
In this case there is no different between two
But most importantly I stayed along with the system even in very difficult situations which gave me very good confident on that system
If I stayed out side I may not shorted today Expecting some pull back in Monday
If Monday nifty goes down I would happy in both cases
If nifty jumps above 5135
In first case I wont much bother since my entry price is 5256
In second case I would feel some uncomfortable since my entry price is just 5125
I think I have answered your question
There is 3 type of market
1 Trending
2 Range Bound
3 Volatile
In My opinion it is very difficult to predict which market going to happen in next few session
If one know prior then in forum it self one can get good Trading strategies for each market.
You asked
why can't Traders be patient for a Trend to emerge....!!!
Let us took my own trading experience in last 2 months
I Lost more then 230 Pts in Nifty in Last two months using trend following system because of whipsaws
I expected a bounce back in nifty( up to the broke 200 daily MA and 5135 happened today)
My Trend following system gave sell in 5256 ( if I wait for a trend I would miss the trade)
OK If I Stopped Trading after a couple of whipsaws ( which cost 90 Points) and shorted @ 5125
Let us see the comparison
5256-5125-230= 99 Pts nett Loss
For Patient Trader Loss 90 Points
In this case there is no different between two
But most importantly I stayed along with the system even in very difficult situations which gave me very good confident on that system
If I stayed out side I may not shorted today Expecting some pull back in Monday
If Monday nifty goes down I would happy in both cases
If nifty jumps above 5135
In first case I wont much bother since my entry price is 5256
In second case I would feel some uncomfortable since my entry price is just 5125
I think I have answered your question
I want to share my views , as a trend trader we have only two option
1- Trending
2- Or Non Trending
We are only interested in Option-1 we will active to trade when there is a Trend
Again to trade the Trend we have two option
1- Reacting to a Trend
2- Or Expecting a trend
I think both approach are valid we decide according to our temprament
we may design a system which will tell us there will be a trend soon this will fall in option 2 catagory or
we will react after trend has already established which is option 1 ......
In my view Quadra is the catagory 1 system ....( I may be wrong )
in this system we will trade the trends after it has been established i.e
50 EMA slope decide the trend
then 3 wilder average get us into the established trend pointing the triger candle
This is my view on the system