“It is a day trading strategy based on VWAP with different timeframes…”

Feedback in:

Michael,

My father and I developed an edge—nothing really special [strategy]. It is a day trading strategy based on VWAP with different timeframes crossing as the indicator to get in (either long or short). We have been down the path of Elliot wave among other theories.

The problem I have is staying in on a trending move. I clear out way too early on winning trades. I get too itchy and take my money. We actually call it “give me my money strategy”. When we back test the strategy (I use Think or Swim), it will deliver anywhere between $3K and $5K a day in profit following the process (high beta; mega cap—usually in tech) yet I walk away with $500 or less.

I’ve boiled down my challenge to fear, something like the “fog of war” mentality. I’ve been trying to work on the psychology of trading but that damn amygdala gets in the way.

I just purchased the Trend Following and started to read it. I’ve listened to your podcast for the last several months. I enjoy the straightforward discussions.

Anyway, that’s my biggest challenge in trading!

Peace,
Scott

Nice, but bad news. A trend following path is far superior.

Filed under Trend Following