Been dependable and thinking a strategy fool proof,when things start to go.wrong that when the neurosis might start to kick in
right
in our case this is a demo account play money
but i do want to find out if this strategy can make some profit or no
let s find out
I would be pretty confident it will make money and the equity curve will be positive though lumpy. This will continue until the day when your ranging chart turns into a trending chart, when the equity curve will drop like a stone.
Unless you insert some form of circuit breaker rule which exits everything. How often this is triggered will then determine whether long run this is sufficiently profitable to be worth the risk, effort and considerable tied up margin.
in this case i am thinking about letting the buy trade hold on to the sell trade until the stone hits bottom and market go in a range this based on true FACT that market is 70% in a range
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I think this will do what every mechanical hedging strategy I’ve seen does, and work well for a time but crash spectacularly and wipe everything out in one day.
I can’t foresee any mechanical hedging strategy being robust long term. However with knowledge and correlated markets, I can see hedging being very profitable. That is what hedge funds do after all.
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It’s because most retail traders do everything half-arsed… Instead of really looking at how to protect themselves in these markets… Most have nothing but a Stop Loss and a prayer for risk management.
As I displayed in a post over 4 years ago… You find the top and the bottom of the ranging channel you are trading and Close All once these levels have been breached…
Any Price Action outside of these predefined levels can be deemed as a breakout or trend…
It’s not Rocket Science… Just needs research, development and perseverance.
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You just lock loss and spend money on spreads, the market can’t be gamed lol
Which broker do you work with?
you mean brokers can’t be gamed
Why did you choose USD/JAP then isn’t the choice of instrument important??? Thought you explain why you chose the pair
actually I look for a double wide top or a wide double bottom
Fine ,the pair may well range this week or abit of a reversal, but the dollar is obviously in bull trend overall just making your strategy maybe abit more precarious
maybe dollar is strong but this strategy does not care about all this data because it is a short period investment maybe max over a week period
again we are in testing mode
you suggest setting up a stop loss and hope it wont be hit
Lol I’m not getting involved keep up your tests though see how you do
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