not necessarily the return on your capital is a function of the strike rate, RR and the amount of opportunities that present.
False. Unless the larger trader is a non price specific (typically utility or hedge) they will look to execute on value for themselves or their client. This is typically via a fill algo (but can be manual) of which there are many types. eg. vwap, growler. A growler is a simple BTD fill algo which is buying value in a range.
Trends are inherently reliable compared to most other chart patterns. R/r is readily improved in a trending position by pyramiding, something which would not often be possible with a ranging position (or any other chart pattern based trade, unless it happened to evolve into a trend). Pyramiding once profit equals initial capital risk and adjusting stops accordingly does not incur any additional capital risk.
Please educate me as to why institutional traders 'buy anywhere' and are price insensitive. Here is a clue, you can't because they don't just buy anywhere only a small subset of them do.
Thank you for your well written and detailed post. I look forward to your argument that selling high in a range is a dumb thing to do. thanks.
My argument is it lets me take plenty of opportunities at low risk. What I mean is I only make trades off daily charts, finding that the constructs on these such as range boundaries, channel boundaries, support and resistance, trump those on 4H, 1H or lower. Of course lower and lower and lower time-frames might make my entry look premature (or late, depending on which way you look at it) but to coin a phrase, where do you draw the line?
So how are you going to know it's in a range? Do you have all the prices for the past few months memorized?