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How To Manage Whipsaws In Your Trading

Originally published at: https://optimusfutures.com/tradeblog/archives/how-to-manage-whipsaws-in-your-trading/%20

This article on Whipsaw Trading is the opinion of Optimus Futures. It eventually happens to every trend-following trader, especially those implementing an always-in-the-market trading strategy. You enter the market anticipating a strong trend only to see it reverse unexpectedly. You then switch from long to short, hoping to catch some momentum. But then the trend loses steam, reversing yet again. By this time, you realize you may be in for a “sideways” market or stuck in a trading range. Every time the market’s direction reverses, a good chunk of your trading capital goes with it. Enter the whipsaw trading environment…