Quote:
Originally Posted by dobro
Phil -
In commodities this type of future orders is called a straddle but I believe forex considers it a hedge and this is being banned by the NFA. Am I correct on this? I suppose one could just note or draw lines at the 10 pip above and below and enter an order when one is hit, assuming one is not sleeping at the time. Maybe an audible alert could be used for this.
Any comments would be most welcome as this is a simple strategy anyone could use and I'm going to set up an IBFX demo and try it. Thank you. d
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Hedging involves selling and buying at the same time, this strategy doesnt do that, it only involves selling when the price hit the short position, and if it bounces back to the long position, u close the short position and open a long position, if the long position bounces back to the short position then you will close it and you will wait till the next week. Seems a pretty good swing technique for me and will be trying it.However, thread starter, you said you risk 2 % per trade, actually its 2x2%=4% if you close out both long/short at a losing position. I saw in your backtest results the most consecutive losts was around 6-7 losts, but 1 win make up for those small losses
