Trading the "anti" with Remek!

As you know from previous videos, the 'anti' is the first pullback following a trend change. Here is an example of how we trade this typical setup. Practice recognizing it in real time, just like we did in the video. Here are the main steps:

  1. Notice the divergence, a potential indication of weakness of the long trend on the 12:3, the Confirmation Chart. 

  2. Notice the several failed attempts to break higher on the 8:2, also a possible indication of the long trend getting weaker.

  3. Notice the red background on the 8:2, the Trading Chart, another indication of the long trend's possible weakness.

  4. Based on the above, we make a hypothesis: IF price turns below the previous high, we will regard it as an 'anti' and we will want to be in that trade, short. As price moves up, we switch to SHORT mode, and simply wait. The hypothesis will be valid as long as price turns below the previous high. (IF price breaks higher, we'll simply disable the system, and make other plans.)

  5. In this case, price does turn below the previous high a few minutes later, at which point the Remek! System automatically will get us into a short trade, since minutes before we switched the system to SHORT mode, anticipating the setup.

  6. We're managing the trade, either manually or automatically, or with a combination of both (which is the case in this video.)

  7. We missed the last few seconds in the video, but we were stopped out with a profit on the price inflection. Here's the video:

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This is one of the three setups that we trade. They occur wiith predictable regularity. The 'anti' trade has a positive expectancy based on a large number of trades. Practice executing it with precision. Practice emotional detachment: if our hypothesis turns out to be not true (i.e. price breaks higher), we simply disable the system and look for the next opportunity. Same thing if we get stopped out with a loss. That will happen too.

Mindful trading!

Risk Disclosure: Futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.