Disliked{quote} There is no significance to the open line in my example. No lines are magical. The significance is how random walks/random walks with a levy flight behave around any single point that remains constant. Its not about the line, its about how the stochastic process moves around it.Ignored

I was not familiar with the term lévy flight but looking it up it would appear to be a random walk but with a heavy tailed distribution. Assuming that you mean that each step on the walk is random but the distribution is skewed to one side (heavy tail on one side) giving an edge I'm not sure how this idea of lines in the sand makes any sense.

Using the idea of a 5 pip stop with what is now apparently an arbitrary line as an entry doesn't make sense because say you enter long and then price was to move up by 1 pip. At this point you'd be at a new "line in the sand" which is equally as valid as your previous "line in the sand" and so you'd have to move your stop loss up by 1 pip. Equally if the price went against you by 1 pip you'd still be at a "line in the sand" which was just as valid as the entry and so you'd have to move the stop loss down by a pip. Essentially meaning the stop loss could never get hit and basically did not exist.

In other words if the entry is totally arbitrary and you are only concerned with action around a fixed point, every time price moves it's a new fixed point. This concept makes no sense to me at all unless you consider some lines as more valid than others. Also there is no edge to gain just by looking at how a random walk moves relative to a fixed point.

Not to mention that if you believe that price action is modelled well by a random walk with a heavy tailed distribution then that is something you'd have to demonstrate to have confidence in.

Am I missing something here?

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