Disliked{quote} If each system has its own edge, then I can see how they could complement each other, i.e. one is profiting while the other is treading, or under, water. DavidIgnored
On the top of that, the buy/sell candles of any given time frame are almost equal numbers. Which means, one can buy in a downtrend and sell in an uptrend, without having any worries. This is what the range strategy does, being backed up by the trend one, in case the things go wrong, as they often do. It take an advantage of the counter-trend movements mostly. When the price gets the trend direction, you switch it off, cause it will not be in any help anymore. It will be a burden instead.
Wrapping the range strategy around the trend one does one, or more, of the following:
a. increases the profits, by adding some extra, unexpected otherwise, profit from the range closures
b. brings the trend's exit points a lot closer, based on the heavily reduced DD (range's profit), thus making the zero effect hard to come, is ever (more likely)
c. if one is not maximizing the P/L (not being greedy), will never ever being catch into a heavy DDs under whatever the circumstances there might be
I do know you do not like hedging. You might re-consider your attitude towards it. Hedging is damn good when you find ways to hedge the sells on top of the buys and the buys below the sells. This is how you lock down net profit. That is exactly what I am doing all the time. Then I close the counter trend trades at certain moments of time. That is all possible, due to the very good trend strategy I am using. I do know it will never fail me down, therefore I do cash in on some of the corrections, which otherwise would be very very risky to trade without something keeping your back (range vs trend).
David, I think, you have plenty of knowledge, based on experience. Considering this, you could come up with something really good, if you just throw away the widely spread concepts about the martingale and hedging, which are absolutely true, when referred to each one, individually, on their own, and embrace the unthinkable, till that moment, idea of combining them all together into a quite profitable bundle (sometimes).
One last thing. I am not interested in the exact candle formation on the chart. I only do follow the price itself. The price tells me when there is going to be a trend and which side the trend will go. The price also tells when there is going to be a range. These warnings are available in 6 to 48 hrs prior to the move. Usually it is in between 6 and 24 hrs, but I have seen 48 hrs warnings, too. One has to stay on the market open for 24/5 to be able to catch it. Based to those prior warnings, I do decide to close down or keep the range trades. However, not very good at, still learning...
Maadik Hugiis. IQ 69.