Daily Bias, Backtesting and a Loss Recap

Daily Bias, Backtesting and a Loss RecapLeçon 4 sur 135 min de lecture

Never the other side

Trading against your own written direction, including the version where you have a private opinion that price is stretched, and the only kind of loss worth taking.

Before the second market, one rule from the morning is worth stating, because it is what the rest of the day runs on.

The written side stands

Module 44 covered the trade taken against your own line. This is the version where the pressure comes from your own analysis rather than from a moving candle.

You read the charts, you wrote buyer, and you also privately think price has run a long way and is due to fall back.

Having a second opinion about your own reading is not a reason to trade it.

Stretched is not a signal

Price that has travelled a long way in one direction is often called overbought, meaning stretched after a long run.

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