Statistically 80% of the time the market is not trending.
I’m wondering if somebody developed so far a profitable strategy trading in sideways market ?
I’m wondering if somebody developed so far a profitable strategy trading in sideways market ?
Statistically 80% of the time the market is not trending.
I’m wondering if somebody developed so far a profitable strategy trading in sideways market ?
The key is adjusting stops and profit targets to fit the range of the time period. For instance, I trade a lot off the 1 hr charts and find that a 50 pip profit is a good place to exit 1/2 of my trade, and a 30 pip initial stoploss is usually sufficient (sometimes even less depending on the techs.) However the same issue on the 4 hr or 30 minute would require different profit targets and stops to be "efficient." I put that in quotes because no matter how "efficient" one tries to make their system (usually in back testing) the market will find a way to outdo them.
One key element of trading that it has taken me over a decade to "own" is that I can NEVER get the top AND bottom exactly. I may get one or the other, or I may come close to both, but I've become quite content with a chunk out of the middle and since becoming satisfied with that, my trades have gone from mostly unprofitable to profitable on a regular and consistent basis.
Chris
I’m wondering if somebody developed so far a profitable strategy trading in sideways market ?
The key is adjusting stops and profit targets to fit the range of the time period. For instance, I trade a lot off the 1 hr charts and find that a 50 pip profit is a good place to exit 1/2 of my trade, and a 30 pip initial stoploss is usually sufficient (sometimes even less depending on the techs.) However the same issue on the 4 hr or 30 minute would require different profit targets and stops to be "efficient." I put that in quotes because no matter how "efficient" one tries to make their system (usually in back testing) the market will find a way to outdo them.
One key element of trading that it has taken me over a decade to "own" is that I can NEVER get the top AND bottom exactly. I may get one or the other, or I may come close to both, but I've become quite content with a chunk out of the middle and since becoming satisfied with that, my trades have gone from mostly unprofitable to profitable on a regular and consistent basis.
Chris
- Joined Mar 2004 | Status: Magic Man | 3,220 Posts
Statistically 80% of the time the market is not trending.
I’m wondering if somebody developed so far a profitable strategy trading in sideways market ?
the real trick is finding the indicator that tells you that you are in a range. i know of only one, and it starts with an A.
Relax and be happy.
- | Joined Mar 2004 | Status: Valued Member | 211 Posts
sideways market is when you want to use a reversal type strategy. something that sells on overbought conditions, and does the reverse for the buy.
the real trick is finding the indicator that tells you that you are in a range. i know of only one, and it starts with an A.
- Joined Mar 2004 | Status: Magic Man | 3,220 Posts
Merlin with your every post I mine a small quality of gold. Ok master should I be overly concerned about the lag or be happy to grab a part of the middle? Actually just knowing that the market is in a range should save me a ton of money for my trading style
but just so you know, i am only helping you for my own personal benefit, because i know one day you will be a rich trader and give me some money
as for your question...grab the middle, and have a strategy that tries to grab the beginning too. dont try to exploit every market opportunity with a single strategy. it could take 5 or 6 strategies to cover all market conditions.
Relax and be happy.
sideways market is when you want to use a reversal type strategy. something that sells on overbought conditions, and does the reverse for the buy.
the real trick is finding the indicator that tells you that you are in a range. i know of only one, and it starts with an A.
Do you think it is possible to use Kaufmans' ER as an indicator to indicate range/trend as well?
Statistically 80% of the time the market is not trending. I’m wondering if somebody developed so far a profitable strategy trading in sideways market ?
Al Brooksif range is wide, can even swing part of position, allowing some pullback, but targeting higher R:R
Statistically 80% of range breakouts fail, so even this single observation can make money in ranging markets if properly exploited
in the end, all come to early identification of trend transitioning into range and it can be achieved by reading PA
- Joined Jul 2013 | Status: Gone | 1,106 Posts
{quote} Merlin with your every post I mine a small quality of gold. Ok master should I be overly concerned about the lag or be happy to grab a part of the middle? Actually just knowing that the market is in a range should save me a ton of money for my trading style
Sorry, but I have no use for the ADX. Great for those that do though. Too slow and too unpredictable for my strategy. I only use tools that are accurate. I learned many years ago to not force something to work just because I want it to work. I sifted through my indicator analysis and chose only the tools that worked most of the time. Then designed my system. Along the way I have made adjustments sure, but I never made any money until I targeted the middle of the range. When I stopped opening trades at perceived highs, and closing trades at perceived lows, and instead allowed a more loose interpretation of market activity dictate my entries and exits, I began to profit on nearly every trade. I don't get all the pips, but I also only lose 1-2 trades a week, and those are generally limited to the spread. If you closely analyze the action between the high and low (low and high), you will discover that in most cases, there are still flat zones before price actually moves vertically into profit. If you target your signals to the end of the flat zone and the beginning of the most profitable movement, rather than the "high" and "low", then you will find yourself only trading when the market is moving in your predicted direction. In more simpler terms, you need to measure to a point just beyond the high or low and then trade from that point to the next point on the other side.
Good Luck.
You cannot be extraordinary by being normal
