At least for now (if it's proven workable), these are the theoretical positive implications:
1. It can deal with ANY market condition - the only exception is perhaps a crazy market (problem more broker-related than market).
2. As the positions would be semi-hedged, nett draw down should be minimal, another implication of this is that we would only need a small standard account if we only trade 1 pair (gbpjpy would be the ideal pair) - should only need around $3,000 in a standard account.
3. At least theoretically, there is almost NO risk in trading this way;
4. As we do NOT care where the prices moves, it makes no difference whether it goes up or down, so long as the price MOVES - the more the better, even if it dips 500 pips - and hence, even the most stupid trader in the world would profit from it as no analysis in whatsoever form would be needed;
5. In scenario 1, 2 & 3 as per my earlier post, the 'combined' (Buyer & Seller trading together) strategy is guaranteed to work - in scenario 4 & 5, theoretically in a ranging market, there would be a drawdown period (but nothing to worry about as the positions would be semi-hedged) and so long as the price moves in one direction thereafter in a substantial manner without triggering any further new orders in the opposite direction, it should generate a nett positive gain.
Wow, I am so excited, if only I am a coder I would not sleep tonite until I get the EA coded. If this theory truly bears out in reality, this is truly mind boggling!!!
1. It can deal with ANY market condition - the only exception is perhaps a crazy market (problem more broker-related than market).
2. As the positions would be semi-hedged, nett draw down should be minimal, another implication of this is that we would only need a small standard account if we only trade 1 pair (gbpjpy would be the ideal pair) - should only need around $3,000 in a standard account.
3. At least theoretically, there is almost NO risk in trading this way;
4. As we do NOT care where the prices moves, it makes no difference whether it goes up or down, so long as the price MOVES - the more the better, even if it dips 500 pips - and hence, even the most stupid trader in the world would profit from it as no analysis in whatsoever form would be needed;
5. In scenario 1, 2 & 3 as per my earlier post, the 'combined' (Buyer & Seller trading together) strategy is guaranteed to work - in scenario 4 & 5, theoretically in a ranging market, there would be a drawdown period (but nothing to worry about as the positions would be semi-hedged) and so long as the price moves in one direction thereafter in a substantial manner without triggering any further new orders in the opposite direction, it should generate a nett positive gain.
Wow, I am so excited, if only I am a coder I would not sleep tonite until I get the EA coded. If this theory truly bears out in reality, this is truly mind boggling!!!
