Finally, we have a Divergence!
but the break was welcome
The USDCAD H4 meets all the original criteria
of the system, but it doesn’t meet my extra rule
of 'must be at extreme top or bottom of Autofib
The advantage of this may be purely psychological
I could keep all my non fib trades on a separate
account to avoid outraging the entire Forex community,
but as I don’t care what they think I’ll include them
on my regular Results page.
However, if it becomes apparent that non fib trades
underperform the trades that meet the Fib filter
I will simply delete all non fib trades from my
records, winners and losers.
I actually have no reason to believe that Fibs make
any difference, any more than Stochastics.
I have every reason to believe that Divergence makes
as I write, another idea springs to mind -
I have never tested trades with Divergence but omitting
the missed weekly pivot rule
The thinking is that price ALWAYS hits the weekly pivot
eventually so ‘logically’ price must be drawn toward
the missed weekly pivot
Actually no that isn’t very logical at all
All levels will eventually be hit so that would include the
level where the missed weekly pivot is, whether its there
In other words, if I extend the horizontal lines of the previous
weekly levels that were hit and treat those lines as though
they had been missed and are ripe for hitting
Is price smart enough to know it’s already hit those levels?
This is crazy, as is the rationale behind most indicators.
I literally currently include the missed indicator rule
because the system has performed so well over
many years, but actually I have hesitated to exclude
the rule more to superstition than anything.
I am not a superstitious person
So I will test it out
Some trades on my results page will indicate ‘NF’ (Non Fib)
and others will indicate ‘NMWP’ ( No Missed Weekly Pivot )
Again, if I detect a definite bias one way or the other I may
amend the Results page.
Filters are great if they actually help to eliminate or reduce
losing trades, but no need to include them ‘just for luck’
I don’t want or need luck
Also, my main position is targeting 50 pips - this is usually hit,
plus small 20% of that Lot size will target the Median Line
in the MP value area and a third position will be 10% targeting
the second Median Line from the previous day’s value area.
Minimizing risk, as soon as 50 pip TP is hit I will bring the
second and third positions up to Break even. There should
be a chance that one or the other may be hit.
This will increase risk from 0.2% to 0.26% initially but in at least 70%
of trades the risk will return to 0.2 as soon as TP 1 is hit