Triple-zone Strategy

Discussion in 'Journals' started by expiated, Dec 2, 2018.

  1. expiated

    expiated

    My statistics suggest that it would be highly unusual for USDCAD to continue falling below 1.3253, so I'm putting my stats to the test by purchasing an in-the-money call contract with an awful 2:8 win-to-loss ratio, a strike price of 1.3260, and expiry only one hour away...

    ScreenHunter_2756 Dec. 07 07.04.jpg

    UPDATE: In this instance at least, my stats were supported by the outcome, which brings my accumulative total back up to $407.25, but still short of $442.75.
     
    Last edited: Dec 7, 2018
    #21     Dec 7, 2018
  2. expiated

    expiated

    AUDJPY is too close to the strike price, which means I cannot afford to risk waiting until expiry to exit the trade, which means I'm going to come up short of finishing this week ahead of where I ended last week at $442.75.

    ScreenHunter_2759 Dec. 07 11.54.jpg

    Nonetheless, I'm happy just getting close to breakeven ($439.50) since I was not simply trading a plan this week, but was still in the process of experimenting, testing theories, and gathering/synthesizing information.

    I believe I have now, at last, finalize an extremely narrow band of moving averages to signal/confirm reversals in the general, overall, intraday trend.

    I also have a specific moving average for gauging the depth of pullbacks in this trend that also doubles as a trigger for entering positions when rates are exiting pullbacks.

    Moreover, I have a specific moving average for tracking the overall short-term trend, and another for monitoring fluctuations within this trend.

    I also have a set of simple moving average envelopes that precisely define typical price ranges during periods of low, medium, and high liquidity/volatility, and another envelope that borders what is usually the maximum day range.

    This should constitute everything I need to continue trading like I was trading today, which is likely the height of the pseudo-swing version of Numerical Price Prediction, I began developing two or three weeks ago.

    So today should mark the end of the beginning and next week's activity ought not to include any other major unknowns, provided I now truly do have all the additional information I needed.
     
    #22     Dec 7, 2018
  3. expiated

    expiated

    I was using the aqua moving average to signal/recognize reversals in the general, overall, intraday trend. But it turned out that this indicator was a bit too sensitive to less than significant fluctuations. It appeared that adding the red moving average might be a good way to confirm such reversals, but after trying out a number of other indicators I had lying around, I discovered that the lavender and midnight blue moving averages also avoid false positives/head fakes, but did so while confirming reversals with much less lag.

    New Lines.png

    Accordingly, next week I will be entering positions based on these two indicators rather than the aqua moving average.
     
    #23     Dec 7, 2018