Have you tried using your higher time frame models on intra day scenario and see how they perform and vice versa for your intra day model? My system that runs on higher time frames not only outperforms on lower time frames but at the lower time frame it gets completely destroyed (talking about the 5min/15min)
Can a technical strategy be applied on any time frame? Eg 1min
- Thread starter iamnewuser911
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Not in my case, I started with monthly/weekly then daily/60 minute then skipped day trading as I couldn't find low enough losing percentages and went to scalping. I think of it more I was getting good in one area and needed more challenges. But your right as we get older, more drawn to allocating more toward longer term than intraday, in my case-can't hedge one minute bars which means risk is HUGE compared to longer term.
Automate is the answer, then you can spend all your time designing other methods.
It can be several factors, like the risk different? Something you doing differently in one than the other besides timeframe. My risk is actually larger in scalping than 60 minutes, but that is due to approaches in hourly of entering on support/resistance and scalping is a mixture of swing distances and not support/resistance, actually built most of scalping tech to keep breakeven percentages near 50% because I average down, but also keeping losing percentages low so profitable based on single contracts often times less percentage wise than breakevens, but my breakevens are actually seeking one ticks when time runs out as these methods require being out in so many bars.
What software program/language is your algo? And what brokerage company do you use it with? My broker does not support automatic trading, or I am not smart enough to figure out how to write my trading methodology into an automatic trading program and even if I can write a program in Excel, I don't know how to feed it into a trade.
Do you have any suggestions for me. Thank you.
I am curious about automation as well like ironchef, I trade spot forex, and have the same questions. Thank you
What do you consider a "longer time frame"? It seems that if the time frame becomes too long, it is no longer trading and is investing.
Why would they want to, the compounding is greater at second based timeframes and below, plus did not mention that as you drop under 1minute bars the patterns start to disintegrate, a 1sc pattern will look quite different from the equivalent 5mn pattern. Many of the solutions implemented by the providers are not very efficient and introduce "anomalies" in to the chain at low timeframes, basically poor methodology, architecture and programming which as already mentioned magnify when dropping down to these levels.
This is what I find fascinating about psychology, Handle123 states they trade long timeframes, I trade very low timeframes in forex with semi-automated algos but also 240mn & 1dy when something interesting happens, yet the question about low timeframe forex automation is directed at ... You really can see why 99% fail in the markets, funny world.
EDIT: Now I see, the difference between low probability high volume and high probability low volume trading, everyone wants high volume with high probability but sacrifice the probability aspect for volume, the retail mind, interesting, you learn something every day.
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Can you elaborate on this part? For example if I go down to 1minute there are usual gaps between bars etc. Why does these anomalies affect the setups since its based on supply demand as well? I'm not trying to argue here, really asking questions.
Since order flow and speed edge is non-existent for retail traders we need to design predictive models within a time series with measurable entries/exits. Otherwise you're just shooting in the dark. You can use retail platforms and brokers if you have a grasp on your stats and execution capability. Not easy by any stretch of the imagination. Most are better off pursuing other endeavors, and invest long-term in diversified assets.
That's part of the reason you're noticing what you're noticing. (I'm not arguing with what other people are telling you here, just mentioning something they haven't).
It's easy to assume that "trading is trading" and that the same principles and parameters apply to whatever you're trading, and that's valid, up to a point.
With spot forex, however, there are some additional realities predicated by the fact that you're not engaged in a real market, but only in an artificial one created by your own "broker", who is actually your counterparty, and especially when you're dealing with faster time-frames, that is relevant to the specific question you've asked.
There ain't no magic timeframe that works for everyone.
The question is more : what suits you?
You can trade 5 min, 15 min, hourly, daily or weekly period etc : if you are too impatient or too slow, at the end you will lose money.
My advice :
Choose your timeframe, and place your stops and take profits at a higher timeframe.
CM