GU is both ranging and trending/breakout out:
(**To see the chart text, you'll have to double-click on the image to enlarge it**)
Red boxes = failed mean reversion trades (3) (first set's entries/exits on far left missed just by a few pips each time, LOL, ie. whipsaws)
Blue boxes = successful mean reversion trades (2)
Red ellipses = failed SAR breakout trades (on failure of mean reversion trade) (1), ie. here we target the 1.0 ADR line when the mean reversion at 0.5 ADR line trade is stopped out.
Green ellipses = successful SAR breakout trades (on failure of mean reversion trade) (2)
NB: none of these trades were taken (these are looking retrospectively at two randomly chosen major charts/pairs). Flexibility to change parameters is key, as you can see here. (Narrow misses on the left).
Jury is out whether it makes sense to SAR, but if we can fiddle with the parameters, maybe SAR at failed mean reversion trades will work.
http://i46.tinypic.com/2rqoqkn.gif
(**To see the chart text, you'll have to double-click on the image to enlarge it**)
Red boxes = failed mean reversion trades (3) (first set's entries/exits on far left missed just by a few pips each time, LOL, ie. whipsaws)
Blue boxes = successful mean reversion trades (2)
Red ellipses = failed SAR breakout trades (on failure of mean reversion trade) (1), ie. here we target the 1.0 ADR line when the mean reversion at 0.5 ADR line trade is stopped out.
Green ellipses = successful SAR breakout trades (on failure of mean reversion trade) (2)
NB: none of these trades were taken (these are looking retrospectively at two randomly chosen major charts/pairs). Flexibility to change parameters is key, as you can see here. (Narrow misses on the left).
Jury is out whether it makes sense to SAR, but if we can fiddle with the parameters, maybe SAR at failed mean reversion trades will work.
http://i46.tinypic.com/2rqoqkn.gif