Hello again, Norm
• Two days ago, you were asking about stretching The 3 Ducks into a [B]higher-TF/position-trading[/B] system, using the W-D-H4 charts, or even the M-W-D charts, instead of the original H4-H1-m5 charts. I argued against that way of applying The 3 Ducks, based on nothing more than my intuition, and my own brief experience with trying to do exactly what you were asking about.
When I tried what you’re proposing, it didn’t work for me, and I assumed that my experience was typical. Therefore, I assumed that it won’t work for you, either. I could be totally wrong about that, and maybe I should have softened my tone in speaking about the idea.
• Now you’re asking about position trading in general, and that’s a much broader topic than simply asking whether you can reconfigure The 3 Ducks to accomodate position trading. Regarding this broader topic, I would suggest that the decision to pursue position trading, as opposed to any other style of trading, is guided [I]more[/I] by the temperament, lifestyle, and time availability of the individual trader; and [I]less[/I] by considerations of relative profitability (as displayed on your wall chart), or the desire to avoid market “noise”.
There is a huge difference – in time spent and in energy spent – between trading the lowest TF’s and trading the highest TF’s. The trader who is attracted to scalping generally cannot succeed as a position trader. And vice versa.
I suspect, from having corresponded with you over many months, that you lean toward position trading, because it suits your temperament, and because you see it as fitting comfortably into your lifestyle in a way that a more active and time-consuming trading style would not.
If I’m right about that, then position trading is definitely where you should focus your attention, concentrate your study, and develop your trading skills. I’m just not convinced that The 3 Ducks methodology is the best one to apply to position trading.
I believe that longer-term (as in position trading) currency prices are driven more by fundamentals than by technicals. I’m strictly a technical trader. I have very little confidence that I can comprehend fundamentals accurately enough to apply them to trading. Therefore, I’m not temperamentally suited to position trading. And that means that I’m not the right person to advise in depth on position trading.
When you asked about SMA’s on higher-TF charts, I felt comfortable fielding your questions, because they involved only math. I think I should have helped you sort the math, and then left it at that – without editorializing on position trading.
You need Andy’s advice on how (or whether) to apply The 3 Ducks to higher TF’s. I think that, somewhere in this thread, Andy has addressed that question, but I don’t have a link to direct you to. I note that on page 2 of his ebook he specifically states that The 3 Ducks methodology is applicable to any currency pair, and any market – [I]but, he doesn’t say any time-frame.[/I] Make of that what you will.
I’ll wrap this little monologue with one other comment.
You mentioned that there is much less “noise” on higher TF’s. I would add that:
One trader’s noise is another trader’s buying (or selling) opportunity. It’s all a matter of perspective.