Algo trading means automated trading using scripts that uses technical charts as indicators or signals. Momentum trading is purely based on price actions within a short period and is totally independent of trend or any fixed levels like pivot points, previous day's close, today's open, etc,. Having said that, momentum can define a new trend or trend reversal. That's why I believe momentum trading can be adopted for all types of trading styles.
Successful rate is a tricky thing. Generally people bother onky about the hit rate of target and take it as success rate. Hit rate of stop loss being hit before it hits the target must also be considered. Then it becomes overall success rate or simply the actual success rate Momentum trading takes both the hit rates into consideration.
If reward is multifold than risk then a decent success rate is enough. But the real challenge in such strategies is to Control the hit rate of stop loss. When the success rate is higher then you will have the freedom to have a smaller yet consistant rewards. True success rate is the one which considers both the hit rate of target and the hit rate of stop loss.
You're trying to help others, great motivation Sir! Risk management is important but no need to set a target, seriously. You don't have control over price, so why even bother setting a target? People lose so much because they set a target to something that they don't have control over . It's like you have a crush on a pretty actress on a movie, you arrange a date with her by yourself, thinking that she will come to your dinner, holy shit, you're psychopath Sir !!!!!!!!!!!! Why don't you just follow the trend and exit when volatility reaches its peak Sir!
You're right. In other words, if you don't understand how market system works, you're basically gambling there. One big jackpot winner and lose twice much that later.
Momentum trading is one way of following the trend or trend reversal. For me market is unpredictable. Thus predicting is gambling. Momentum trading is timing based, rather than prediction, like playing tennis where players timing is important.
Seems very good trading way, but then next question is when good timing will appear due trend market very dynamic and unpredictable whether on news high impact or look session market
As per this strategy...right timing is when 1. First there is sufficient momentum 2. Next allow it establishing support level 3. Finally trade at Crossover Here the momentum is measured by price action (0.12%) and duration (within 20 minutes). Since there is sufficient momentum and sufficient support... 1. The probability of successful crossover if greater 2. The chances of sudden gap ups or gap downs is very less This makes this strategy a more profitable and safer one.
Thanks for detail explanation, so momentum occur only on duration twenty minute? and look on support and resistance area isn't