LD Lossdog Research
strategy

Fading the Move

2 matching records.

Trade idea

Trade idea Fading the Move

The speaker is testing the effectiveness of fading a market trend, which involves betting against the continuation of the trend. The strategy is based on the idea that trends can be overbought or oversold, and fading the move could capitalize on potential reversals. The speaker acknowledges that the strategy has not yet worked, but they are continuing to monitor its performance.

View full notes
StrategyFading the Move
Time horizonShort-term, as the speaker is testing the strategy over a week.
Entry / triggerMarket is trending upward, but the speaker is fading the move.
Target / exitUncertain, as the speaker is still testing the strategy.
Invalidation / stopIf the trend continues, the fade strategy may fail.
SpeakerSaul
Risks
  • The trend could continue, leading to losses
  • Market volatility could impact the effectiveness of the strategy
Fading the Move
medium confidenceVerify in video at 06:12 ↗
Trade idea

Trade idea fading the move

Fading the move involves betting against a trend when the market reaches a price extreme or a point of capitulation. The strategy is based on the idea that all trends eventually reverse, and the key is to identify the timing of that reversal. The example given is shorting Microsoft on Thursday and Friday, with the goal of a 1-2% decline. The trade is considered a swing trade, not a long-term bear market bet. The risk is that the trend may continue, invalidating the trade.

View full notes
Strategyfading the move
Time horizonShort-term, typically a few days to a week.
Entry / triggerIdentify a price extreme or point of capitulation in a trending market.
Target / exitA short-term reversal, such as a swing trade, with a target of a 1-2% decline.
Invalidation / stopIf the trend continues without reversal, the trade may be invalid.
SpeakerScott
Risks
  • The trend may continue without reversal
  • Timing the reversal is subjective and can be difficult
  • Market volatility may affect the trade outcome
shortshortFading the Move
medium confidenceVerify in video at 44:15 ↗