Mark.....
What would the stop loss be on this new grid system? You mentioned that we would place a trade in the other direction when we are stopped out, but I didn't catch what the stop loss would be.
I've played with grids quite a bit with only so-so results.
The reason I find the daily range methods interesting is because we have used some historical performance figures on which to base our "trigger" points.
Usually on the GBPUSD, if the price moves 50 or 55 points from the opening, it will not come all the way back. I think that Vegas quotes that around 70% of the time, for that pair, that is true. So that is where we start. Somebody here experimented with 60 or 61 also and found it workable. What we need to do is find the best range for the TP in order to smooth out our equity curve.
We could indeed straddle "breakouts" from anyplace on the charts, but I think for them to succeed more often than fail, they should be triggered using some historical patterns to gain any kind of edge.
I have the past few weeks had remarkable success using Micardo's trigger of 50 either way from the FXDD opening price. To a lesser extent with the Kamanda method of a smaller trigger on shorts.
I don't plan to trade on Thursday or Friday this week due to the NFP on Friday. Don't expect much movement on Thursday and the wrong kind of movement on Friday!
What would the stop loss be on this new grid system? You mentioned that we would place a trade in the other direction when we are stopped out, but I didn't catch what the stop loss would be.
I've played with grids quite a bit with only so-so results.
The reason I find the daily range methods interesting is because we have used some historical performance figures on which to base our "trigger" points.
Usually on the GBPUSD, if the price moves 50 or 55 points from the opening, it will not come all the way back. I think that Vegas quotes that around 70% of the time, for that pair, that is true. So that is where we start. Somebody here experimented with 60 or 61 also and found it workable. What we need to do is find the best range for the TP in order to smooth out our equity curve.
We could indeed straddle "breakouts" from anyplace on the charts, but I think for them to succeed more often than fail, they should be triggered using some historical patterns to gain any kind of edge.
I have the past few weeks had remarkable success using Micardo's trigger of 50 either way from the FXDD opening price. To a lesser extent with the Kamanda method of a smaller trigger on shorts.
I don't plan to trade on Thursday or Friday this week due to the NFP on Friday. Don't expect much movement on Thursday and the wrong kind of movement on Friday!
Don
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