Thursday, August 18, 2011

Counter-Trades? I've been asked a question...

As the volatility rises, we place small attempts at "Counter-Trades". These are trades that are placed contrary to the trend. We set these up as traps for "The Whip Saw". They start out very small and are placed with discipline in a "pyramid manner'. We expect to take multiple minute losses as they are taken out. As the trend starts to exhaust itself out, we begin to place larger blocks with tighter stops. Eventually, we are totally counter-trend after a significant rise/fall. This is a derivative of George Soros's "Theory of Reflexivity". As the rubber band gets "flexed" more and more past reality, we position ourslves increasingly with larger amounts of "Counter-Capital"- When the the trend is "snapped" back to reality- We make a huge profit. It takes lots of skill to execute properly. We are attempting this move in here. Not for the faint of heart.

Wish us luck!