I was thinking on very small scales, price varies within several pips all the time. If you place a trade with limit of 1 pip, it will practically always win even considering 3 pips spread. Is it not possible to predict that the price will eventually move at least 4 pips before going all 50 pips to stop an opposite way, with close to 99.99% certainty?
If you make it 50:1pip risk reward ratio you will only need 98% win ratio to break even. It doesn’t seem unrealistic considering you only need for the price to move 4 pips every time, while having 50 pips of “backup” space.
It seems to me that if you place trades at consistent circumstances (ie: short when stochastics is up, the last 4-5 bars are green and there is a downtrend) you should be fine.
Tell me why this wouldn’t work.
Needing 98 of 100 trades to be positive just to break even should be enough to dissuade you…
Demo it, and there will be no need for further explanation.
I do agree that looking for small gains can be profitable. But you will need a far more reliable entry signal than just looking for overbought/oversold stochs.