We received this article from one of our clients. Eugene G. writes about his trading style, which is based on counter trend trades.
Trading against prevalent sentiment is not always popular, most people and professionals may even deem it as risky. Riding a wave for all it's worth is no always the case in Forex and especially in today's volatile and dynamic market conditions.
I propose a style of trading that nearly always runs counter to underlying sentiment at any given time. Short surgical strikes can be more deftly dealt and show great returns and consistency if one knows what is to be scouted.
Intra-day trading is primarily a low risk model leaving overnight positions risk at the door. Entries are timed with market opening volatility and disregards minor news release conditions. Major economic event are poised to swing either way and staying out of those high risk scenarios can be avoided while still providing plenty of opportunities for the day trader.
Proper risk management is key and vital for building a model as such.
An example of such is the seemingly downwards trend of EURUSD 22 Jan 2019, by considering a reasonable retrace at key levels on daily charts, we can expect a retrace to form that may yield a profitable scenario. Momentum funding one directional moves tend to offer sizable retracement profitable opportunities. While entry and target selection are proprietary knowledge, I show you here a scenario where risk is small and payout is potentially acceptable and even rewarding when the bears on EURO step in on profit taking on the down trend.
Another probable scenario is on GBP/USD for Tuesday 22 Jan 2019
Thank you Eugen for this article.