During the 1st few days 1 loss will wipe out the account, unless youre starting with large diversified account
1.8% Profit per Day Compounded over 220 Days
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My previous post had an error in that it implied that the crimson-colored swing line is used as a measure of who is in control of the market…the bulls or the bears. In reality, the setup uses three “significant” groups of moving averages—not two.
(It also includes two additional shorter-term frequently fluctuating moving averages for timing entries and exits. But that would be getting into the weeds, and I want to stick with the bigger picture here.)
The above moving averages are the actual lines I’m using. The blue cluster or “legs” tracks the more immediate price direction and includes short-term trends that conflict with the general direction in which price is headed at the intraday level.
The crimson-colored swing line tracks the more immediate price direction at the intraday level without conflicting with the ultimate or eventual intraday destination.
The black cluster serves as the final arbiter of who is in overall control of the market—the bulls or the bears—and therefore confirms when the crimson-colored swing line is in harmony with overall market bias or sentiment (or whatever fundamental factors happen to be controlling price action at the moment). But it can also be a bit lagging, signaling reversals in control somewhat belatedly compared to early warning forecasts suggested by the crimson-colored swing line.
(It also includes two additional shorter-term frequently fluctuating moving averages for timing entries and exits. But that would be getting into the weeds, and I want to stick with the bigger picture here.)
The above moving averages are the actual lines I’m using. The blue cluster or “legs” tracks the more immediate price direction and includes short-term trends that conflict with the general direction in which price is headed at the intraday level.
The crimson-colored swing line tracks the more immediate price direction at the intraday level without conflicting with the ultimate or eventual intraday destination.
The black cluster serves as the final arbiter of who is in overall control of the market—the bulls or the bears—and therefore confirms when the crimson-colored swing line is in harmony with overall market bias or sentiment (or whatever fundamental factors happen to be controlling price action at the moment). But it can also be a bit lagging, signaling reversals in control somewhat belatedly compared to early warning forecasts suggested by the crimson-colored swing line.
I entered a USDJPY long position based on an upward reversal in my short-term violet-colored trend line, stating at the time that the move was aggressive and that it would be wiser to wait for my crimson-colored “swing line” to hook to the north as well. I then abandoned that trade when the piece of self-advice I chose to ignore turned out to be true. I subsequently entered a short position seeking a conservative five pips worth of profit based on my assigning the most significance to the crimson swing line, which was still sloping downward.
As it turns out, I could have realized a gain two or three times that size, so I might eventually prohibit myself from seeking anything less than 10 pips per trade, and I will definitely have to give serious consideration to never again trading against the crimson moving average (only hand-drawn approximations appear in the above image).
As it turns out, I could have realized a gain two or three times that size, so I might eventually prohibit myself from seeking anything less than 10 pips per trade, and I will definitely have to give serious consideration to never again trading against the crimson moving average (only hand-drawn approximations appear in the above image).
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