Does fear help maximize profits when markets go down?
Posted: Tue Apr 20, 2004 1:12 am
Whenever the markets go down and market participants experience fear, my trend following strategies performed significantly better in terms of both profit factor and percentage profitable.
This phenomenon has been happening over and over again, and I've been adding positions when trend velocity increases on the down side right after I took the short entry points.
Overall, it added some values to my equity curve. Does fear help trend followers when markets go down or create a better environment for short entry points ?
Does anyone experience similar P/L patterns when trading trend following strategies ? I feel that it's easier to pull money from the market whenever buyers experience fear.
Just wondering what the turtles believe on this subject and does it make sense to trade bigger on short entry points, if both back testing and forward testing indicate that the strategies perform better in terms of proft factor, win/loss ratio, and percentage profitable ???
Do you guys believe that position size should always be symmetrical, even though we know that uptrends and downtrend do not behave the same way ???
Forum Mgmnt, what do you think ?
Many thanks!!!
This phenomenon has been happening over and over again, and I've been adding positions when trend velocity increases on the down side right after I took the short entry points.
Overall, it added some values to my equity curve. Does fear help trend followers when markets go down or create a better environment for short entry points ?
Does anyone experience similar P/L patterns when trading trend following strategies ? I feel that it's easier to pull money from the market whenever buyers experience fear.
Just wondering what the turtles believe on this subject and does it make sense to trade bigger on short entry points, if both back testing and forward testing indicate that the strategies perform better in terms of proft factor, win/loss ratio, and percentage profitable ???
Do you guys believe that position size should always be symmetrical, even though we know that uptrends and downtrend do not behave the same way ???
Forum Mgmnt, what do you think ?
Many thanks!!!