Reverse Trading | Doing The Opposite of Every Losing Trade

What if you had done the reverse of every losing trade you ever had? The result would surely be a highly winning trading strategy – right?

In this “genius” experiment, we tested the idea of doing the opposite of a losing trading strategy.

We built two algorithms (or two EAs) – one called the “Master” and the other called the “slave”. The Master takes trades based on a highly aggressive strategy that loses more than wins – and the slave just reverses that i.e. it does the exact OPPOSITE of whatever the Master does.

What were the results of this experiment? See this video:

As the video shows, reverse trading is a really bad idea.

For one thing, your broker’s spread will mean that your gains on the “slave” strategy (or “slave” EA) will always be less (about 50% less) than the losses on the Master.

Secondly, it only takes one big winning trade on the Master to then evaporate the result or gains on the slave.

For more, feel free to try our trading service on www.leadingtrader.com

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