Edge: Should it work on them all
- Thread starter Rapunzel
- Start date
Absolutely
30 FX pairs is a lot.
it doesn't mean the more FX pairs you trade, the more opportunities there will be.
Just focus on the major FX pairs
a decade ago, things were very different;
there were major currency wars.
you can literally trade with the eyes closed and yet still earn $$$.
Look at Brexit news.
When there was Brexit news, GBP was very tradable.
Now it is over.
Nowadays, even if you open your eyes extra-wide, it doesn't mean
you can earn $$$.
Nowadays FX moves just a little & Opportunities come rarely.
Factor in all these and also have an understanding of macro fundamentals.
If you just use TA without any consideration of macro fundamentals,
don't expect to earn $$$.
I used to day trade major FX a decade ago.
Nowadays, I rarely trade major FX as there are other better things to trade.
it doesn't mean the more FX pairs you trade, the more opportunities there will be.
Just focus on the major FX pairs
a decade ago, things were very different;
there were major currency wars.
you can literally trade with the eyes closed and yet still earn $$$.
Look at Brexit news.
When there was Brexit news, GBP was very tradable.
Now it is over.
Nowadays, even if you open your eyes extra-wide, it doesn't mean
you can earn $$$.
Nowadays FX moves just a little & Opportunities come rarely.
Factor in all these and also have an understanding of macro fundamentals.
If you just use TA without any consideration of macro fundamentals,
don't expect to earn $$$.
I used to day trade major FX a decade ago.
Nowadays, I rarely trade major FX as there are other better things to trade.
Where are you active now. Which markets.
various Asian/European/US index futures,
commodities like copper, oil, gold, NG, and perhaps bonds
you probably on this oil tonight?
Although one eliminates noise by using the 1 hour bars, one also eliminates relevant data.
For instance if something happens to change your ultimate P/L (significantly over a significant number of trades) within a 1 hour bar, when does that happen? How does that happen? That is the data you need and is eliminated along with the "noise".
Causal relationships are difficult to find with a lot of noise. Assume "noise reduction" is a process that needs its own tuning.
KISS is no excuse for doing due diligence. It comes AFTER all the details are studied and understood, not before.
For instance if something happens to change your ultimate P/L (significantly over a significant number of trades) within a 1 hour bar, when does that happen? How does that happen? That is the data you need and is eliminated along with the "noise".
Causal relationships are difficult to find with a lot of noise. Assume "noise reduction" is a process that needs its own tuning.
KISS is no excuse for doing due diligence. It comes AFTER all the details are studied and understood, not before.
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