A little background about me
I am an active trader, have been for several years now, almost exclusively in the forex and futures markets. Let’s just say I have lost enough money to know what doesn’t work. Currently I trade an intraday momentum strategy based on price action.
I have had a strategy in mind for a few weeks now that I would like to develop it with this community. Most of the Ideas this strategy derived from are from other treads on this forum … so if you see something that is similar to another thread, it is. I will try to give credit where it is due. Hopefully I can get some bright people involved especially Programmers and Active Traders.
The main theory …
I have studied some complicated technical analysis to no avail. IE harmonic patterns and neural networks … nothing was panning out. Then one day I came across some videos of a day trader holding a class about his approach to any market and anytime frame any condition … it was so simple and it really stuck with me. It is probably the most tried and true strategy there is. Momentum and Price Action…
Price makes a new low
Price reverts to the mean and retraces creating a lower high
Price then continues to falls after the buyers fail to rally the price
This has been the bases of my strategies for a few years now and I have some notable success with them
Now for the new stuff I would like to develop
I basically trade on the four hour chart and thirty min chart but I would like to build position over weeks and augment them with intraday positions
For example we short a pair on the weekly chart expecting to hold the position for a few months, several bars later we are deep into some profits and a week bullish bar closes , if momentum is still bearish this is an opportunity to sell high and build a greater low risk position on the pair.
So we build a Position only if we can buy low and sell high and only if we have gained enough profits to ensure a close to break even exit if the pair fails to follow suit.
I would like to trader this way over several time frames and over 28 pairs … while we build legs on the weekly and day charts, we take position on the four hour and thirty min charts to boost equity
As you can tell this would be hard to manage
Goals of development
Define entries and exits
Create rules to control drawdown
Develop tools to help manage the positions
If we can gather some interest I will continue with my ideas and strategies
Hope to hear from everyone
Landon
I am an active trader, have been for several years now, almost exclusively in the forex and futures markets. Let’s just say I have lost enough money to know what doesn’t work. Currently I trade an intraday momentum strategy based on price action.
I have had a strategy in mind for a few weeks now that I would like to develop it with this community. Most of the Ideas this strategy derived from are from other treads on this forum … so if you see something that is similar to another thread, it is. I will try to give credit where it is due. Hopefully I can get some bright people involved especially Programmers and Active Traders.
The main theory …
I have studied some complicated technical analysis to no avail. IE harmonic patterns and neural networks … nothing was panning out. Then one day I came across some videos of a day trader holding a class about his approach to any market and anytime frame any condition … it was so simple and it really stuck with me. It is probably the most tried and true strategy there is. Momentum and Price Action…
Price makes a new low
Price reverts to the mean and retraces creating a lower high
Price then continues to falls after the buyers fail to rally the price
This has been the bases of my strategies for a few years now and I have some notable success with them
Now for the new stuff I would like to develop
I basically trade on the four hour chart and thirty min chart but I would like to build position over weeks and augment them with intraday positions
For example we short a pair on the weekly chart expecting to hold the position for a few months, several bars later we are deep into some profits and a week bullish bar closes , if momentum is still bearish this is an opportunity to sell high and build a greater low risk position on the pair.
So we build a Position only if we can buy low and sell high and only if we have gained enough profits to ensure a close to break even exit if the pair fails to follow suit.
I would like to trader this way over several time frames and over 28 pairs … while we build legs on the weekly and day charts, we take position on the four hour and thirty min charts to boost equity
As you can tell this would be hard to manage
Goals of development
Define entries and exits
Create rules to control drawdown
Develop tools to help manage the positions
If we can gather some interest I will continue with my ideas and strategies
Hope to hear from everyone
Landon
Attached Image (click to enlarge)
