Disliked3. On OB and OS I have to roll with Gann on this one. There is no such thing as OB or OS in and of itself. Don't sell something because it is at an all time high and vice versa.Ignored
IF we tried to apply the same strategy to a pair that moved 30 pips per day, playing a 10 pip brick with a 20 pip stoploss, wouldn't actually make sense...in that, by the time the trigger cleared and that spread was covered, we couldn't actually be sure if it would every make it to a prosperity stop...that is assuming that it is oscillating 30pips directionally per day...
So, going back to the pairs in trade, I am working with pairs who have now an ATR that this idea can actually function in...a little more weight on the coin, as it were.
IF we want to talk about OBOS, let's have a look at the indicators I have chosen and how they are actually being used while working on a real market application.
Strictly using Stochastics as an OB/OS indicator too would most likely see the account under a doubledown strategy get consumed as well...Sell, when price enters the OB area...but when and how often? Renko a chart up on 10pips, apply the 20 Stochs and have a look...in itself, the first run, or even what we seen on the AUD crosses during Kiwi Session last night would have seen this account blown seven ways from Sunday.
Let's too, take a look at just the CCI.
Strategize this and what are we looking at? Buying/selling the cross over? Buying/selling when it is in peak strength? Buying/Selling the fade?
We have to keep in mind that for the strategy to be applied, it has to be universally applicable, otherwise there really is no validity.
Let's take a look at what we do know. Market plays in 2 cycles, range and trend. If we come up with a strategy that works great in a range, it will typically get consumed by the trend. If we come up with a strategy that works well in the trend, we become equally as fucked when the chop hits as when the trend hit in the range.
So, really...all I am looking at doing is weighting my coin for a better than even distribution in my favor by utilizing the ranges of oscillation and apply reasonable expectation.
As for the death trade...well...I will need to see how many levels can conceivably be hit before I can effectively build a strategy around this...expectation on this...
1. Limit the max number of trades in the multiplier before restarting at the primary lot size.
2. Look to trade off market sessions.
3. Additional filtering that may limit the number of circumstances.
4. A combination of them all...
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!