Hello my friends. I’m looking to create a new customized strategy and I would like to use Reversal Trading or DCA. My first customized strategies use Stop Loss and this time I want to make it different. Which one is better in your opinion?
Hi Yitek, thanks for your post. I can’t tell you which one to use as it’s a personal call, but I will tell you something: Reversal Trading (RT) is not easy to understand, and I have seen a lot of people frustated when using it because they didn’t understand why the bot behaved like it did. Definitely it’s not a good idea to run settings that you don’t understand. If you understand how RT works and you like it… it’s your call:
The image you can see above, represents RT flow when running the bot with any strategy except with Bollinger Bands.
In the case you run RT with Bollinger Bands, the flow would be like this:
Summarizing, personally I don’t like RT and I prefer Dollar Cost Average (DCA).