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I don't see anything that's countertrend at:
http://24.0.100.173/mb/countertrend.htm
By my definition, countertrend means, as Bob describes below, "fading the
trend". Countertrend means going opposite the direction that the market is
moving. If the last pivot was from down to up, then, if you're trading
countertrend, you're selling. If the last turn was from up to down, you're
buying. There's not a single trade like that at:
http://24.0.100.173/mb/countertrend.htm
The Omega Man
Some call me the Gangster of Love
----- Original Message -----
From: Bob Fulks <bfulks@xxxxxxxxxxxx>
To: gmtac <gmtac@xxxxxx>
Cc: <omega-list@xxxxxxxxxx>
Sent: Saturday, June 05, 1999 6:48 PM
Subject: Re: System's & just two question for MB
> At 1:59 PM -0400 6/5/99, gmtac wrote:
>
> >But maybe I am wrong on what countertrend means.
>
>
> It does seem counter intuitive but can make sense.
>
> If you wait until a clear uptrend is established to buy into some markets,
> such as the S&P futures, it is hard to get filled and the slippage can be
> very large. Buying put or call options with the trend is also very
> expensive because of the higher implied volatility.
>
> So if you can figure out a system for buying just before the downtrend
ends
> (countertrend?), you get fast fills and negative slippage. Also options
are
> much cheaper since the implied volatility is much less.
>
> If the trend is clearly up, who is going to be a seller? This is
> particularly true if you are trading many contracts.
>
> So trading against the trend, or more accurately just before the end of
the
> last trend, can be more profitable than trading after the new trend is
> obvious.
>
> Bob
>
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