Might need more concentration to waiting rally, if likely already missing these rally might better another chancesI purposefully did not included a chart in thread, because the chart pattern can be anything.
As far as the entry rules are concerned, do not assume anything other than what is mentioned in the strategy. Just look for the Rally->Wait->Crossover sequence.
70% success rate Forex intraday strategy
- Thread starter rajesheck
- Start date
I purposefully did not included a chart in thread, because the chart pattern can be anything.
As far as the entry rules are concerned, do not assume anything other than what is mentioned in the strategy. Just look for the Rally->Wait->Crossover sequence.
Sir but without chart illustration it is not clear to understand...anyway, how do you identify whether a rally or new trend (reversal)? what indicator or proxy do we need to use to identify that? because everyday currency pair moves differently and since you're talking about crossover, Yen's different to other big currencies, and normal crossover rule don't work. Lastly, how is it possible to know whether there was a rally or trend after your strategy fails, is there like if this fails, then it indicates that there was a rally or there was a trend? is there something like that in your system something like volatility or liquidity measures ?
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The strategy works best within 60 minutes from the rally.
I leave the exit strategy to traders, which includes choosing your trading style (trend, scalping, range bound) and risk (stop loss) reward (target) ratio.
Sir, 60 min time frame is riskier than using higher time frames, so does your strategy generate reliable and greater income?? (is NPV is positive? since your strategy has a fixed system). There is a trader who uses 4 hour time frame and she has lost ($60,000) in the past 6 years so far...so I am concerned about the risky side.
Thanks for your questions.
Just imagine letter "N" for chart pattern of momentum strategy.
Rally can be seen as a micro trend. Draw two guidelines on your intraday chart so that whenever there is a significant movement you can measure and identity the rally. When the market opens calculate 0.12% pips on the open price. The duration between the two lines must be within 20 mins and price action 0.12% or more.
Trend traders wait for the price to float for a specific period above a certain level and then enter. This is a 50:50 situation, whatever may me be the timeframe, because there is no significant edge in it.
In momentum trading we need to enter only at the point of crossover with two compressed timeframes (within 20 mins and within 60 mins) which is a 70:30 situation, because the compression is a significant edge.
Risk reward ratio and exit strategies, I leave it to trader's preferences.
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As per this strategy...right timing is when
1. First there is sufficient momentum
2. Next allow it establishing support level
3. Finally trade at Crossover
Here the momentum is measured by price action (0.12%) and duration (within 20 minutes).
Since there is sufficient momentum and sufficient support...
1. The probability of successful crossover if greater
2. The chances of sudden gap ups or gap downs is very less
This makes this strategy a more profitable and safer one.
Hello rajesheck,
thank you for your effort to put together this thread. I've read it through with high interest. Having said that, I still do not understand, what you mean by that "Crossover". Could you please elaborate on the term "Crossover"?
Thanks and regards
mcquak
Jusr small note move of 0.12% would mean target price 1.0012 not 1.12.
When I went to school, a rally from 1.0 to 1.12 was called 12%, not 0.12%. Must be this "new math", I suppose ...
