The first job of the Trader is to design Trade Plans with Positive Expectancy that fits their beliefs. The second job is to execute and trade that Trade Plan using the right Position Sizing that meet Objectives, and feel good about it. It is my belief that if you consistently do these 2 things, you will have set a solid foundation to achieve your Objectives.
Tuesday, March 17, 2015
Entry Method #2: Buy the Wide Trading Range Support (Page 84)
Personally, I distrust VXX trade on the long side for the medium term trader using Daily candles to justify the wide trading range. VXX is a declining asset which tends to make new lows over the medium term, even if the original VIX doesn't. Very short term trade is fine, but the past month on hourly charts looks more like a Downtrend than Wide Trading Range.
this is VXX example in his position now
ReplyDeletePersonally, I distrust VXX trade on the long side for the medium term trader using Daily candles to justify the wide trading range. VXX is a declining asset which tends to make new lows over the medium term, even if the original VIX doesn't. Very short term trade is fine, but the past month on hourly charts looks more like a Downtrend than Wide Trading Range.
ReplyDelete