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> Re: Counter-trend quantitative systems
> Do you lean toward some smoothed indicator or a statistical approach?
I use a combination of both in some models where a market is very liquid and
its volatility predictable.
1.) a slightly momentum indicator (which I track the slope of) to keep me
out of trouble
2.) a raw fast oscillator indicator that is used opposite of what you might
think (trend direction)
3.) and statistics of where to sell covered put or calls against open
position profits
4.) and last but most important, a backup plan money management (not stops)
I don't use stops
For markets like the SP
if position trading
1.) momentum, don't fight the mo
2.) slope of a trend indicator
if day trading
1.) statistics mostly by themselves, more pain = more gain not for the faint
of heart.
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