Trading Strategy based on round numbers

Hi everyone,
I have been trading full-time for the past 2.5 years and am based in a small trading office in central London/UK. I am currently producing scratch results with one 5M strategy, trading around 25 times a week. Whilst I continue trading my existing strategy, I am looking to develop a new strategy.

I am looking at trading on the basis of round numbers in several FX pairs and some indices (DAX, FTSE, CAC, SPX). This has been on my list of things I wanted to do for some time.

Rather than going at this alone, I thought it might be good to join forces with somebody else on this task. Thus if you have traded using round numbers in the past, or are presently doing so, or like the idea of getting together to develop this strategy, then please get in contact with me.

Thanks in advance,
George

 

I do use round numbers as support/resistance, but that is just one of the levels that I use

 

Oh boy, I can't believe what crazy ideas some people are following... ;-)
If it works, then be happy...

 

Oh yeah. It was a good idea to buy when we breached the 2k (DotCom or the ES actually) What's the intuition ? Mean Reversion ? Fade the Etrader that reached 1K like ?

 

I use round numbers also but mainly as a confluence but they also seem to work well when price is exhausting and aiming for a number

 

You may have accumulated your wealth from somewhere else... but you cannot call yourself that you're a consistent profitable trader if you don't know about round numbers in trading markets.

 

I might be going out on a limb... I dunno.. But I'm gonna assume that he knows about the importance of round numbers. But developing a trading strategy on a theory of round numbers is far too risky and not so rewarding. And it's already so well studied that I find it hard to give you an edge in trading. But then again I can't say for sure because it's just at first glance so to speak, but if you can find some way on how it works other than using it as support and resistance, then please let me be the first to know so that I can study it.

 

Round number has an edge if you use them with other technical analysis indicator. For example, spy is trying to break 200 point and traders know there will be some strong resistance in this point. It actually does. This happens not only for round number 200 but for 100 day moving average and strong line of resistance at that point. Using round number as a trading strategy, your odd for winning is low relative to risk you are taking.

 

^pretty much what i said

 

Many thanks for all the replies - that's much appreciated!

To clarify - like some of the other posters stated, I have also paid attention to round numbers in my existing strategy, but am now looking to actually make the round numbers aspect the central component of a trading strategy. Yes, am planning to take some other technical aspects into account.

So I am particularly interested to hear from anyone who has worked on something like that (and is willing to share/discuss), or would be interested in doing so.