DislikedYou are wrong... More bigger time frame you trade bigger the risk and draw down and trade time... Small fishes can not absorb that... More you stay in the market more risk too...
Rainbow chart is different... You can capture the whole daily move by staying in 5 sec... max 30 sec... Think about it?Ignored
However, I must respectfully disagree on one point. As what you have outlined here is not a system but rather an entry method, the matter of risk and drawdown are not even a function of anything being discussed here, especially time frame. These are a function of position sizing, among other things, and thus are unrelated to your method.
Risk is a totally separate component of a trading system on its own, and I determine this myself, as does each trader for himself or herself. Risk, for a wise trader, is determined before the trade is entered--thus, if I risk 0.5% of my account equity on a trade, for example, it does NOT matter what time frame I trade on, and thus it's untrue that a lower TF implies a lower risk.
I agree that trading a much smaller TF avoids exposure to adverse events. And the big advantage of a smaller TF (which can also be advantage for an unseasoned trader) is that it provides many more opportunities than a larger TF. This is primarily why I'm interested in doing it, and this is why I really appreciate you bringing this great method to my attention--I had been using GMMAs before, but I really do like your ideas...!! (see, I even changed my "subtitle" to reflect that! :-)
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