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Can we do Day Trading and Swing Trading Together ?

DRFXTRADING (DRFXTRADING)
Dec 19 2014 at 12:47
169 posts
People have been debating whether you should trade one style or another every since Retail Trading began. Given that Day Trading is done short-term and Swing Trading is done every once in awhile, cant they complement each other?


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CrazyTrader (CrazyTrader)
Dec 19 2014 at 14:08
1718 posts
If you day trade your swing trade.... it's like you are scalping your day trading... which is good too.

growthera
Dec 19 2014 at 15:22
86 posts
my main strategy is a kind of swing trade, but yes indeed I do take shorter term day trades within these multi-day swings. The danger however is that then these multiple trades are all in the same direction, so I must take care the total leverage per position does not exceed my own guidelines. In general I agree the 2 styles complement each other, and if the systems are well chosen shoudl smoothen the curve. I have not found good tools yet to properly evaluate the effects of multiple strategies in one account. By effects I mean proper money management so that risk is managed within my limits.

CrazyTrader (CrazyTrader)
Dec 19 2014 at 15:36
1718 posts
Make it easy... create dedicated account for both strategy

growthera
Dec 19 2014 at 15:40
86 posts
well yes of course. Now what I would like to analyze though is the total of the combined 'virtual' system. How does it fair to my usual system tests? Guess I can always create a file with the combined trades and analyze it as if it were one. I am the kind of guy that analyzes a system for 6 months or so before I go live with anything. I also know that system A + sytem B behaves differently then each system analyzed seperately (correlations and stuff...). seperate accounts would indeed be the start...

DRFXTRADING (DRFXTRADING)
Dec 20 2014 at 12:32
169 posts
CrazyTrader posted:
If you day trade your swing trade.... it's like you are scalping your day trading... which is good too.


..basically getting small pieces of the larger move, hoping they add up..sounds good on paper...if it can be done, would get faster gains in half the time....

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DRFXTRADING (DRFXTRADING)
Dec 20 2014 at 12:37
169 posts
growthera posted:
well yes of course. Now what I would like to analyze though is the total of the combined 'virtual' system. How does it fair to my usual system tests? Guess I can always create a file with the combined trades and analyze it as if it were one. I am the kind of guy that analyzes a system for 6 months or so before I go live with anything. I also know that system A + sytem B behaves differently then each system analyzed seperately (correlations and stuff...). seperate accounts would indeed be the start...


good idea to test...wonder how practical it would be to do both versus just one...if I am used to fast moves, might get impatient and break my rules when Swing Trading...could also be too patient with Day trading and let trades pullback unnecessarily..turn a winning into a losing one quickly..

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mavericks
Dec 22 2014 at 07:29
110 posts
Ha Ha :) Guys listen to professional advices from succesful trader Crazytrader, it will sure get you tooooo far :)

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Andrew Button
AndrewButton
Jan 03 2015 at 10:42
12 posts
growthera posted:
my main strategy is a kind of swing trade, but yes indeed I do take shorter term day trades within these multi-day swings. The danger however is that then these multiple trades are all in the same direction, so I must take care the total leverage per position does not exceed my own guidelines. In general I agree the 2 styles complement each other, and if the systems are well chosen shoudl smoothen the curve. I have not found good tools yet to properly evaluate the effects of multiple strategies in one account. By effects I mean proper money management so that risk is managed within my limits.


Hi Growthera, I am Interested to know if you are ever long & short the same pair at the same time with that swing strategy? Obviously you would be more heavily weighted either (net long or net short) depending on where the market cycle is currently swinging. If you get my meaning - I'm assuming you will be buying at swing lows & selling at swing highs.

I ask as I use a swing strategy that also has a day trade (shorter term profit taking element built in).

growthera
Jan 03 2015 at 13:11
86 posts
Andrew, indeed I can be long & short at the same time, on the same currency. I do this on some accounts. The account I share here on Oanda does not allow hedging, but I use it on other private accounts. The swing strategy (RobustReturn) itself does not go L&S at the same time. It happens when the short term day trade is against my swing trade. It is not hedging, but rather applying 2 different strategies at the same time.

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