Firstly thanks to Zebulon for coming up with this 50 pips system and sharing it with everyone. I have been trying the different variations out and have come up with a slight adaptation. I'd be interested in your thoughts.
In general, on cable, the price tends to 'rest' in the 50s and then make a move over 00s before coming to rest again in the 50s, either 100 up or 100 down. Obviously it sometimes touches the 00 and then retraces back, but in my observations 66% of the time it completes the move.
At present, according to my sma we are in a rising market. So. place a sell order for 1 lot at the ***50, e.g. 15250. When the price increase to 15300, place a buy order for 2 lots. If as predicted it continues to 15350 we are 1 lot up. However if the price drops from 15250 to 15200 place another sell order at 15200 in the hope that it will continue to 15150.
This is how the various scenarios play out;
15250 - 1 sell order - rises to 15300 - 2 buy orders - rises to 15350 - 50 pips profit.
15250 - 1 sell order - drops to 15200 - 1 sell order - drops to 15150 - 100 pips profit
15250 - 1 sell order - drops to 15200 - 1 sell order - rises again to 15250 - break even
15250 - 1 sell order - rises to 15300 - 2 buy orders - drops again to 15250 - 150 pips down - this is the only scenario I cannot reconcile which is why you need to play it according to the sma of your choice.
If the sma indicates we are in a declining market we need to reverse the above, i.e. start with a buy for 1 lot and if it drops reverse to a sell order for 2 lots.
Thoughts please?
P.S. - I am currently long with 2 lots at 15300.
In general, on cable, the price tends to 'rest' in the 50s and then make a move over 00s before coming to rest again in the 50s, either 100 up or 100 down. Obviously it sometimes touches the 00 and then retraces back, but in my observations 66% of the time it completes the move.
At present, according to my sma we are in a rising market. So. place a sell order for 1 lot at the ***50, e.g. 15250. When the price increase to 15300, place a buy order for 2 lots. If as predicted it continues to 15350 we are 1 lot up. However if the price drops from 15250 to 15200 place another sell order at 15200 in the hope that it will continue to 15150.
This is how the various scenarios play out;
15250 - 1 sell order - rises to 15300 - 2 buy orders - rises to 15350 - 50 pips profit.
15250 - 1 sell order - drops to 15200 - 1 sell order - drops to 15150 - 100 pips profit
15250 - 1 sell order - drops to 15200 - 1 sell order - rises again to 15250 - break even
15250 - 1 sell order - rises to 15300 - 2 buy orders - drops again to 15250 - 150 pips down - this is the only scenario I cannot reconcile which is why you need to play it according to the sma of your choice.
If the sma indicates we are in a declining market we need to reverse the above, i.e. start with a buy for 1 lot and if it drops reverse to a sell order for 2 lots.
Thoughts please?
P.S. - I am currently long with 2 lots at 15300.
