For now you can test that concept if you want. Try paying the government 40% to click a mouse for 7 years, if you can last that long. Then try being a combat medic, with maybe even a little SF action. You might see things a little differently. Then see if you want to go back to clicking mice and staring at large monitors for long hours, and maybe even some charts too. (I'm giving you some hints here to help you correct your comprehension errors. I couldn't help myself.)
This is a graph of noise/vs ATR for the last 5 years of weekly data on AUD/USD. Stop losses need to be just large enough to allow for expected noise and if noise is relatively the same and range increases it should increase our profitability.
Most people can think past anything outside of their own circumstances and reality so I wouldn't bother lol. How are those those noise band indi's working out. I'm not an "elite member" so I don't have access to any webinars and stuff. Are they plotted on top of Opening ranges or are they fixed to the open price? If they are fixed to the open price, the only thing I would have a concern with is how fast they adjust to volatility. You will have those days that are super volatile, the Opening range size would adjust appropriately and you would be ok! If they are plotted on top of the OR, they def seem appropriate!
They are drawn off the open. I've plotted a bunch of A levels on top of noise bands and they are so close I really doubt it matters. I think of them more as A levels that I know how to calculate and can write a formula for than anything else. Regarding volatility, I've noticed days when the opening bar takes out the noise level can lead to some of the best trend days. I'm figuring out some stat software and then I'm going to test for correlation between pivot range size and that days range. That could be interesting.
Nice, ya i feel you on the a values. It is hard to know exactly why they are the numbers they are. They are surely backtested for each individual market by fishers team and applied. I've found a nice set of ranges and levels for stocks on an intraday basis. Here's a trade in POT today. I'm looking at these levels everyday and you wouldn't believe how often they mark the low of the day or in this case the for next two hours. Nice trade here risked about 15 cents to make 30. Of course you must only fade under certain conditions and not fight the trend. All pretty mechanical and more of a grey-box approach than anything. Good to know that this noise level indicator is similar...at least I can look at it and see how the a levels may be calculated.
I'd be very interested in knowing the stats between wide pivots and range days. I don't have the ability to test something like that, need to learn eventually! With the wide pivot range=wide range. The "range" added to the pivot is nothing more than the high+low/2. So you are in essence just looking at the prior days range. Toby Crabel has done some work on narrow range days, but it is very simple and I haven't found alot of use for it. I'd be much more interested in know what Size pivot range would be optimal for range expansion. Comparing a sample of pivot ranges to a rolling ATR, and seeing what size pivot as a percentage of ATR works best! I see a correlation with narrow range days and trend days, but the NR4, NR7 distinctions miss out on alot of the best trend days! Good ideas, I look forward to seeing some your work!
Well AUD/USD is breaking down already for the month. If it gives a good price action entry on the daily chart I will initiate a short position. The breakdown only gives a bias. I'm not going to post trade size because it doesn't matter. (it is small though lol). Too many people on this site focus on $$ figures instead of methodology. It is a sad fact that Neke's journals are some of the most popular ones on this site. All he does is post some big numbers. There is absolutely nothing to learn from that. Do yourself a favor and focus on technique, not $$. My goal right now is to learn a routine and methodology that I can scale up as my income and account size increase. My goal is definitely not to make money. Remember my aim here is to beat normal investment returns with a minimal amount of time involved. IE Daily charts only. I think starting with a daily charts only approach is a good idea for most people. Once that timeframe is mastered one could consider moving to 4 hour charts or something. Too many people jump straight to daytrading. I did and it was a bad way to go.
This lifestyle is a trap. Don't fall into it. Think about what you're actually doing -- shedding another innocent trader's blood in order to line your trading account. Stop this evil immediately.