Somewhere recently I wrote that I rejected the two-hour measures that had been serving as a backbone of my system on the grounds that, like the 60-minute moving average, it was too sensitive and susceptible to more-or-less temporary intraday price fluctuations, and that I was therefore replacing it with the three-hour baseline instead. Well, in the process of carrying out the above quoted task, I looked at a 15-minute chart that was loaded with five-minute indicators which had been plotted without my having adjusted any of them, and began eyeballing the resulting graphics as I whittled away anything that did not seem to fit base on my subjective "naked eye" observations. When finished, I went back and began figuring out the numbers, and found that the technique which emerged from this experiment was one that relied on a 3½-hour baseline and price range envelope along with the eight hour measures I have been leaning on for the past couple of weeks. It is on the basis of these parameters that I purchased the following (insane) 1:10 reward-to-risk ratio Nadex in-the-money binary put option which should expire with a positive outcome in the next eleven minutes... ...and this approximately 7:10 reward-to-risk ratio Pocket Option at-the-money binary call option which also resulted in a payout... This approach suggests that the best time to enter positions is when the slope of the eight-hour baseline on a 15-minute chart is above or below a positive or negative 0.2247 respectively (on the lower panel indicator) and the slope of the 3½-hour baseline is above or below a positive or negative 0.2466, or especially if it is above or below a positive or negative 0.46. (Unfortunately, such conditions have not existed [manifested] for the past three days.) It also lends itself very nicely to a protocol where I simply check my charts once at the top of each hour (i.e., one hour charts that transfer all the parameters from the 15-minute configuration) and enter positions if and when the structure of a given pair at the start of the hour evidences an ideal setup.
Test/verify the prospect that so long as the upper or lower band of the 24-minute price range envelope at 0.10% deviation remains outside of the upper or lower band of the 60-minute price range envelope at 0.14% deviation, you are looking at a bona fide breakout with significant/substantial momentum. Along those same lines, test for when the 30-minute temporal support or resistance level is outside of the 8½-minute price range at 0.07% deviation.
It needs to be the 15-minute measure rather than the 30-minute measure. The upper or lower band of the 34-minute price range envelope at 0.14% deviation remaining outside of the upper or lower band of the 60-minute price range envelope at 0.14% deviation appears to be valid as well. So, at this point, you have... The slope of the eight-hour baseline on a one-hour chart (NOT a 15-minute chart) is above or below a positive or negative 0.2247 respectively (on the lower panel indicator) The slope of the 3½-hour baseline is above or below a positive or negative 0.2466, or especially if it is above or below a positive or negative 0.46. The upper or lower band of the 24-minute price range envelope at 0.10% deviation remains outside of the upper or lower band of the 60-minute price range envelope at 0.14% deviation. The upper or lower band of the 34-minute price range envelope at 0.14% deviation remaining outside of the upper or lower band of the 60-minute price range envelope at 0.14% deviation. The 15-minute temporal support or resistance level is outside of the 8½-minute price range envelope at 0.07% deviation.
I tried an in-the-money trade in the midst of the New York session this morning rather than at the end, so that I would only have to wait around 40 minutes instead of 3 hours and so the reward-to-risk ratio was about 2:10 as opposed to 1:10, and things were looking pretty good at this point, with approximately nine minutes left to go. But, just before expiry, price doubled back radically, almost to the point of snatching the $17 payout right out of my hands...
I'm going to try a Nadex Knock-Out here, which is essentially like a traditional Forex trade with a stop loss, except that I will be making a lot more money per pip, which also means that I would potentially be losing a lot more money per pip as well. At least my reward-to-risk ratio is a justifiable 7:3. Still, I'd rather purchase a call spread where one is never taken out of the trade no matter what, but the placement of the nearest Call Spread floor is way too far away. The only problem with this trade is that USDCHF has a bearish day-to-day trend, so I have to hope the pair climbs during the Tokyo and at least the first half of the London session so I can realize a decent profit before the rate starts to drop back down again. If it doesn't pull back at all...well...that will just be too bad for me.
I see no indication whatsoever that USDCHF is going to pull back at all. What's more, the 1¾- and 8½-hour baselines that were heading north at the time I purchased the contract are now heading south. Consequently, I'm going to close this position now for a -$8.00 loss... I'd love to purchase a Call Spread instead, but USDCHF is presently at 0.9136, and the contract with a ceiling at 0.9130 doesn't start generating a return until the rate falls below 0.9119, and that's STUPID! Of course, I could purchase the contract with a ceiling way up at 0.9255 and it would start to generate a return immediately at 0.9134, but that defeats the purpose of buying a Call Spread in the first place.
Today I'm going to begin testing a very low-maintenance, pseudo Martingale Strategy in preparation for when my binary options partner and I go live in January. Since the maximum expiry offered by PocketOptions is four hours, and given that EURAUD is presently evidencing two bearish one-hour Heiken Ashi candlesticks on the "far" side of a bearish eight-hour baseline, I'm going to purchase a four-hour binary option put contract based on a belief that the rate is "destined" to fall. It this contract is not profitable, but conditions remain bearish at expiry, I will purchase a second four-hour contract to make up for the loss from the first and also provide me with a little bit of profit to boot. But, if the second contract also results in a loss, I will conclude that something is haywire with that particular asset and I will cease trading it for the day rather than continue throwing good money after bad. If this works often enough between now and January 19, 2022 that I develop full faith and confidence in the strategy, I will increase the stakes by several multiples of a dollar. And if not, I will resume doing what I was doing before. Good grief! This isn't EURAUD. It's one of those phony currency pairs. It's currently 6:30 PM on the Pacific Coast. So, why isn't Pocket Options offering any real currencies right now? This is so lame!