Hey guys!
I come here today asking for opinions on this one subject I've been stuck on.
Now I have been back testing Cypher patterns on the 15min time frame of AUDUSD and I found a lot of patterns however some were very big patterns and some were very small and other were "normal".
Now these big patterns were clearly visible on the 1h time frame and the small ones were clearly visible on the 5min time frame.
So I decided to put in a rule that says that If I can see it clearly on the 1h time frame it should be traded on the 1h time frame and if the 1st profit target is less than 15 pips I would not trade it on the 15 min time frame.
Now in my back testing I found 70 patterns in 2013-2014 41 of which were profitable which is 58% ish I think out of the top of my head.
Now before I removed the patterns according to the rules I had 131 patterns. I did not check the profitability on those.
Now I've started looking trough 2014-2015 data and I have gone a month without big enough patterns now.
Is limiting the size of the patterns you trade a good thing or a bad thing?
Am I crippling myself or is what I'm doing good?
Are patterns sometimes too big or too small to trade on the 15min time frame?
If any experienced pattern traders would kindly answer my question that would be nice!
Thanks
AntiVi
I come here today asking for opinions on this one subject I've been stuck on.
Now I have been back testing Cypher patterns on the 15min time frame of AUDUSD and I found a lot of patterns however some were very big patterns and some were very small and other were "normal".
Now these big patterns were clearly visible on the 1h time frame and the small ones were clearly visible on the 5min time frame.
So I decided to put in a rule that says that If I can see it clearly on the 1h time frame it should be traded on the 1h time frame and if the 1st profit target is less than 15 pips I would not trade it on the 15 min time frame.
Now in my back testing I found 70 patterns in 2013-2014 41 of which were profitable which is 58% ish I think out of the top of my head.
Now before I removed the patterns according to the rules I had 131 patterns. I did not check the profitability on those.
Now I've started looking trough 2014-2015 data and I have gone a month without big enough patterns now.
Is limiting the size of the patterns you trade a good thing or a bad thing?
Am I crippling myself or is what I'm doing good?
Are patterns sometimes too big or too small to trade on the 15min time frame?
If any experienced pattern traders would kindly answer my question that would be nice!
Thanks
AntiVi