The question is, can’t we take advantage from it?

Sure we can, as long as we are correct about predecting that the market will stay in that range while our trade is open. My point is, that this is not ‘market-neutral’, like claimed by some authors. If price leaves the range and starts to trend, we loose.

Now think about using two equal sized o…

[Read more]

Once I’ve thought that hedging would be the solution for everything. … That would work fine for some time. But in the long run the market will reach an extreme state …

That’s the point: relying on hedged grids consisting either of limit or stop orders, is a pseudo-strategy heading straight for the annihilation of the account. If your entry s…[Read more]

To hedge or not to hedge?

Pro hedging: http://www.forexfactory.com/showthread.php?p=6544091#post6544091
Contra hedging: http://www.forexfactory.com/showthread.php?p=8868124#post8868124

My personal conclusion: from a pure system developer’s perspective, I would always follow the contra arguments. When it comes to highly leveraged trades in…[Read more]

Before addressing R:R, like announced in my earlier post, let me come back to expectancy with another link. Hanover @ FF put together some conclusions on the ‘area of tension’ between expectancy and possible attempts to increase it by MM / TM methods here:

http://www.forexfactory.com/showthread.php?p=2240127#post2240127

The rest of that thread…[Read more]

Your position handling and trade management will only influence your results if you overcome the 0.5 threshold (you make more than wins than losses).

Absolutely correct! Trade management and money management will not turn a losing strategy in a winning one, on the long run. If the expectancy of your pure entry and exit strategy is below 0.5, you…[Read more]

Side note, sorry if it is slightly of course but hedging for me is the answer to SL, material for another video

Good point! The old discussion: why hedging if you could also exit your original trade and re-enter it later, when you would close your hedge?

Talking about EAs: when looking at hedged trades from a system developer’s perspective, which…[Read more]

I’d like to come back to Ron Black’s CLEAR Method indicator much discussed here as well as in the main thread. Recently I stumbled upon a video showing an interesting approach to utilize CLEAR in a more sophisticated way than proposed here before.

Note: that YouTube video is posted by a company, linking to their commercial website. Please don’t…[Read more]

I believe that there is no such thing as an ‘optimal setting’ for a Stoch indicator. After you’ve identified ‘your’ optimal setting for the moment, be sure it has changed a few bars ago or is changing now or will change during the next following bars. Market is too fast for such an approach.

What smallcat described is the typical Stoch ambiguity.…[Read more]

@Saver0:

What you saw is how NZD news affects GBPUSD. The ratios of the price change between NZDUSD and GBPNZD and GBPUSD should give an indication as to the “value” of NZD priced into GBPUSD.

Interesting thought. If we follow up on this, let’s not forget that the strength of bonding (economic, political, …) between any two currencies will als…[Read more]

Hi Saver!

Good to see you back again!

I’m not sure what you mean exactly by ‘synchronize’.

I tried to spot correlation between currencies with CIX. There ARE currency correlations around news events, but:

not always in the same direction
not always the same pairs

I think for digging deeper here we would have to leave the field of pure…[Read more]

Ok, so we have a different perception of that Theorem as related to practical trading.

I see it as a theoretical construct, ignoring intrabar price action for the sake of simplification, used as an example to state that even some randomly chosen real numbers will show certain ‘patterns’ with high probabilities. Please note the term ‘randomly…[Read more]

#BREXIT @ CIX

They really did it in their glorious little island … I did not expect that.

How does CIX reflect the British exit decision intraday?

GBP down -1050 points and recovering towards -600 points.
EUR down -120 points and recovering back to normal (yesterday’s open).
USD up +200 points and stabilizing at +100 points.
JPY up…[Read more]

#BREXIT @ CIX

They really did it in their glorious little island … I did not expect that.

How does CIX reflect the British exit decision?

GBP down -1050 points and recovering towards -600 points.
EUR down -120 points and recovering back to normal (yesterday’s open).
USD up +200 points and stabilizing at +100 points.
JPY up +500 points…[Read more]

#BREXIT @ CIX

They really did it in their glorious little island … I did not expect that.

How does CIX reflect the British exit decision?

GBP down -1050 points and recovering towards -600 points.
EUR down -120 points and recovering back to normal (yesterday’s open).
USD up +200 points and stabilizing at +100 points.
JPY up +500 points…[Read more]

This preceding post was marked as ‘inappropriate content’. I could not find anything inappropriate, so I removed the mark.

s.

The preceding post was marked as ‘inappropriate content’. I could not find anything inappropriate, so I removed the mark.

s.

Ok,

It’s just that the pics are so tiny I hardly can identify the details.

Good luck!

s.