Counter Trend

Our Countertrend Strategy is looking for extremes in price movement with confirmation of volume divergence and or spikes in volume exhaustion. The strategy is simple and appeals to many of our traders as it buys low and sells high looking to capitalize on small stops and utilize the principle of letting the new or countertrend develop and trade a trailing stop. Our key to achieving success with the countertrend strategy is to recognize that we are trading against the trend. Therefore, there will be some days when these set-ups occur but are not effective due to the strength of the underlying market in its original trending move. To counter this we employ a loss circuit breaker on our strategy to ensure we are not trading against a strong trending day. Our other option is to employ a second strategy as part of our portfolio diversification that takes advantage of the strong trending days such as the trend trader, breakout trader or momentum pullback strategy. Average trade net profit: typically +$150 Risk to reward 3:1

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