I like to know your opinions about which trading instruments that trend most, and have least ranging as possible. I am working with a strategy that will work best in a market that trend as much as possible. So I thought first about Gold, but high spread and many ranging made me hesitant, so I thought to ask your opinion about it.
In fact my strategy is every new beginners mistake, and I know it, but I like to play with it until I either false completely or succeed somehow. As long as it is in demo no harm is my thinking. It is about opening trades in fixed lot size that is so small that you can stay in the market for months even if you not get any tp which is so impossible to think with such a strategy in a trending market. Taking small stop losses every time, and setting high take profits so to get my losses back.
But I need to try the most trending instruments, so I hope you will share your experiences and market wisdom with me.
Thank you
Well, not major Forex pairs - which should mean revert?
Not cyclicals - unless you have a timeframe well within a economic cycle?
Not commodities - unless you have a timeframe well within a commodity cycle?
You could look at Minimum Volatility ETFs such as £MINV to see if they appeal, or look at their fact sheets to see what their current selections are?
Similarly you could look at Quality (of Earnings) ETFs, such as £IWFQ , to see if those constituents suit you, or not.
Or you could look at Infrastructure Trusts such as 3i Infrastructure (LON:3IN) or Greencoat Uk Wind (LON:UKW) or Utility Trusts such as Ecofin Global Utilities And Infrastructure Trust (LON:EGL) - to see if they are stable enough - I suspect not.
But realistically if you are Long-only you are still going to be exposed to market risk in a sell-off - unless you construct a Long / Short portfolio? ... Which is a lot of work!
In normal times you might attempt to time the market with indicators such as VIX to alert you to move to Cash when VIX crosses above 20, and move back into investments when VIX falls below 16. But then these are not normal times, and VIX is still above 20 and has been for months!
