DislikedDon't take offense to this, but you can't have your cake and eat it too. When backtesting, you have to be as realistic as possible. If you were actually trading this method, would you have taken this trade? I'm sure there were several signals where price approached the 1.5 std deviation line that were not included in the backtest because they didn't go for hundreds of pips or would have shown a loss. If this trade would have showed a loss, would you have included it in the backtest?Ignored
As I have said, I am only human, and when it comes to forex I could only hope for the mechanic nature of a computer program.
I too am a big fan of Steve Nison. If you ever have an opportunity to attend a live seminar with him, take advantage of it . . . it's a real learning experience.
Thanks for the clarification. All the trades I questioned make perfect sense if using candlestick techniques. I just wasn't sure how they melded with your system, but I think if you combine the two, you'll have a real winner.
One thing to consider if you close out half your lots at the mid-line: You will have less 100-pip losers, but some of your huge winners would have much smaller if half your lots were closed at the mid-point. You may want to do some additional back testing on which way works best.
I would LOVE to see Steve Nison. I'm only 5 chapters into his book, and there is some great stuff here! I think once I am finished I will have a better idea of how these 2 methods could mesh well.
I was thinking instead of half lots, using 2 lots, so that way the pip value will be the same as it would be now.