Might need more concentration to waiting rally, if likely already missing these rally might better another chances
Sir but without chart illustration it is not clear to understand...anyway, how do you identify whether a rally or new trend (reversal)? what indicator or proxy do we need to use to identify that? because everyday currency pair moves differently and since you're talking about crossover, Yen's different to other big currencies, and normal crossover rule don't work. Lastly, how is it possible to know whether there was a rally or trend after your strategy fails, is there like if this fails, then it indicates that there was a rally or there was a trend? is there something like that in your system something like volatility or liquidity measures ?
Sir, 60 min time frame is riskier than using higher time frames, so does your strategy generate reliable and greater income?? (is NPV is positive? since your strategy has a fixed system). There is a trader who uses 4 hour time frame and she has lost ($60,000) in the past 6 years so far...so I am concerned about the risky side.
Thanks for your questions. Just imagine letter "N" for chart pattern of momentum strategy. Rally can be seen as a micro trend. Draw two guidelines on your intraday chart so that whenever there is a significant movement you can measure and identity the rally. When the market opens calculate 0.12% pips on the open price. The duration between the two lines must be within 20 mins and price action 0.12% or more. Trend traders wait for the price to float for a specific period above a certain level and then enter. This is a 50:50 situation, whatever may me be the timeframe, because there is no significant edge in it. In momentum trading we need to enter only at the point of crossover with two compressed timeframes (within 20 mins and within 60 mins) which is a 70:30 situation, because the compression is a significant edge. Risk reward ratio and exit strategies, I leave it to trader's preferences.
Yes I think beside as trader having system trading like as seeking momentum trades i think also need use risk reward ratio and determine exit point also depending risk reward that used
Hello rajesheck, thank you for your effort to put together this thread. I've read it through with high interest. Having said that, I still do not understand, what you mean by that "Crossover". Could you please elaborate on the term "Crossover"? Thanks and regards mcquak
When I went to school, a rally from 1.0 to 1.12 was called 12%, not 0.12%. Must be this "new math", I suppose ...