I have over many posts given a clear and extremely detailed method to profit from FX… The simplest of strategies…
One poster comes along and asks which cross to use?? After the “edge” of using XAUUSD has been detailed and posted over half a dozen times…wtf is that…
You come along and tell me I’m incorrect with my pip count *&%$# and then question the trading strategy, only we find you haven’t paid attention to the cross you are instructed to use either…
I’m now waiting for someone to come along and tell me that I’m using the wrong Font in my posts…
Reminds of that scene in Wolf of Wall Street near the start where Jordan is explaining the concept in the dinner and all the guys are going on about lesbian nuns, Amish Buddhists and people that don’t want to be rich… Frustrating
If you like the concept but are uncomfortable with that specific aspect of it then experiment with a directional filter. Your stomach, risk appetite & confidence might not match that of Mr Jungle, therefore use the framework as it’s presented & tweak it slightly to see if it offers you something positive.
There’s no law says you can’t experiment. If it doesn’t work in your favor then drop the addition & return to the drawing board.
Keep everything else as it is, retain the moving averages on the appropriate timeframes, but add in a confirmatory requirement that you will only take long positions off the 5 minute chart moving average trigger when your instrument of choice (gold in this example) is clearly trading with bullish momentum.
The opposite scenario for a bearish slant on the week.
Your confirmation of a directional bias might be your instrument trading above the prior day (and/or week) high as is the case on gold this week.
That translates to you only triggering long positions north of the 5 minute mov average [B]& ignoring all crosses to the south[/B] until & unless gold trades south of its previous day low and/or is confirmed by the mov average on your 1 hour chart.
When that double bubble combination matches up you’re good to take positions short through crosses on your 5 minute moving average, ignoring all long crosses.
Instruments such as gold are very reactive to market forces & can often turn on a sixpence, so bullish pressure from Mon thru Wed can sometimes turn tail & by mid Thurs could well be threatening multi-day lows, in which case your 2 combination bias (prior day lows + 1 hr mov average ) would come into play.
Your results or activity levels probably won’t match Mr Jungle’s but you might find you reduce your whipsaws & blood pressure into the bargain.
The only way you’ll discover whether or not something like that offers you potential for positive expectancy however is to give it a whirl.