Hi risky,
Thanks for your sharing. I wonder though if trading Awesome only is profitable just as is. Some traders developped their own system (Ashfx is one of them) based on it and there must be a good reason for that. I think that all lagging indicators need help to give good probability signals.
I didn't test it thoroughly, but I would add to check for a higher timeframes to make sure the entry is compatible with the overall trend. Like if you get a red bar above zero in the 15min TF, make sure that there is also a red bar in the 1 hr TF at the same time. Otherwise, don't enter the trade.
Also, to compensate more for lagging effect, I would take only trades where there is a divergence occurring. In the picture enclosed, there is such a situation. A divergence on a long signal below zero level on 15 min TF and a blue bar on the 1 hr TF. There might not be that many signals, but they will be more reliable in my opinion. You could look at three or four currency pairs and get your share of trades every day. That way if you want to trade just the AO indicator. Combinations of TF that can be used are 1min-5min, 5min-30min, 15min-1hr, 30min-4hr and so forth.
Just my opinion.
Chamane
http://i43.tinypic.com/20tf1qg.gif
Thanks for your sharing. I wonder though if trading Awesome only is profitable just as is. Some traders developped their own system (Ashfx is one of them) based on it and there must be a good reason for that. I think that all lagging indicators need help to give good probability signals.
I didn't test it thoroughly, but I would add to check for a higher timeframes to make sure the entry is compatible with the overall trend. Like if you get a red bar above zero in the 15min TF, make sure that there is also a red bar in the 1 hr TF at the same time. Otherwise, don't enter the trade.
Also, to compensate more for lagging effect, I would take only trades where there is a divergence occurring. In the picture enclosed, there is such a situation. A divergence on a long signal below zero level on 15 min TF and a blue bar on the 1 hr TF. There might not be that many signals, but they will be more reliable in my opinion. You could look at three or four currency pairs and get your share of trades every day. That way if you want to trade just the AO indicator. Combinations of TF that can be used are 1min-5min, 5min-30min, 15min-1hr, 30min-4hr and so forth.
Just my opinion.
Chamane
http://i43.tinypic.com/20tf1qg.gif