Forex strategies - page 2
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If at about 14-16 (Alpari TP time) range 2. is near/ slightly above (say, +/-10 pips) range 1. - at this moment we open with stop-loss, say 50 pips inside the range
The range is a channel, a line, to put it crudely. By 14.45(let's say) "band 2" may be
Approaching/slightly exceeding.
Of course, you have to catch the moment when simultaneously true:
1. price is near the boundary of the current daily range,
2. the width of the current daily range has reached/exceeded the average daily range of the previous 60 days.
Sometimes, I personally, for example, refer to the width of the daily range of yesterday - the last number in the second line of the Comment(....) operator.
I see, thanks for the comment! And then there's this:
в этот момент открываемся со стоплосом, скажем 50 п. внутрь диапазона.
Am I interpreting this phrase correctly, that we hope to catch a profit lying inside the daily range and hope not to grab a sucker lying outside the boundaries of the same range?
I see, thanks for the comment! Also this:
at this point we open with a stoploss, say 50p inside the range.
Am I interpreting this phrase correctly, because we hope to get a profit inside the daily range and not to catch a loss outside the same range?
Exactly right. Once again, however, I emphasize - the current day range width must be bigger or equal to the average range width of the previous 60 days.
A loss, then, will occur if the 60-day average daily range will be exceeded in the current day by the value of the stop loss - and this indicates the appearance of new strong trends.
New trends in price behaviour are not frequent, so a loss can be experienced painlessly.
If at about 14-16 (Alpari TP time) range 2. is near/ slightly above (say, +/-10 pips) range 1. - at this moment we open with stop-loss, say 50 pips inside the range
What does the TP shortening mean? Is it possible to calculate the range by summing the High - Low for 60 days and dividing the obtained amount by 60.
Is it possible to calculate the range by adding up High - Low over 60 days and dividing the resulting amount by 60.
Well that's obviously the case. It is hard to think of anything else. Generally speaking, this range can be called an average daily volatility of the instrument.
And speaking of the stop loss, it would seem more logical to use it not in the absolute value (50 points), but in relative terms: you can take a certain percentage value of the current symbol price or a percentage value of the average volatility. The same concerns TakeProfit, if its usage is planned. Then we will have a universal system suitable for any symbol
As a follow-up to the topic... See, with this approach, we have (at any given time) 3 channels:
Purpose of the first channel is clear - for it "waiting for setups". For the latter two, in general, also waiting, but what is their relationship to each other? Wouldn't it be reasonable to combine them into one channel (according to some algorithm), call it something like TrueRange and then wait for the set to trade by correlating the widths of this TrueRange and the current channel (#1 in the list above)?
As a follow-up to the topic... See, with this approach, we have (at any given time) 3 channels:
Purpose of the first channel is clear - for it "waiting for setups". For the last two, in general, also waiting, but what is their relationship to each other? Wouldn't it be reasonable to combine them into one channel (according to some algorithm), call it something like TrueRange and then wait for the set to trade by correlating the widths of this TrueRange and the current channel (#1 in the list above)?
Not much of an observation so far. Here is the information about yesterday's day, ratio Range_over_60_day/ Range_achieved_for_the_day:
new zealand - 102/71 0.69
canadian - 108/69 0.64
euro - 157/151 0.96 +
franc - 145/163 1.12 +
pound - 177/122 0.69
yen - 142/142 1.00 ++
The task of collecting statistics on this ratio begs to be done. It may be possible to find instruments that are relatively stable in this ratio.
Although it is unlikely. These values are only some reference points - at the current moment it is always useful to know where we are.
The price, of course, moves as it pleases, but it has its approximate movement during the day - the average daily range.
Significant exceeding of this range is likely to indicate an impending global move.
Apparently, any trading strategy needs to take into account this rather specific limit on price movement during the current day.
As a follow-up to the topic... See, with this approach we have (at any given time) 3 channels:
Purpose of the first channel is clear - for it "waiting for setups". For the last two, in general, also waiting, but what is their relationship to each other? Wouldn't it be reasonable to combine them into a single channel (according to some algorithm), call it something like TrueRange and then wait for the set to trade by correlating the widths of this TrueRange and the current channel (# 1 in the list above)?
I think we should open a position if:
1)the time has reached the set time;
2) the width of the current day channel has exceeded the average channel width;
3) formation of an hour bar in the direction inside the channel.
I also think that the number of daily bars for which we calculate the average width of the channel and the time should be set in external variables and their optimum values should be searched for.
Only I still don't understand," what is the TP Alpari time" - server time or something else?
Only I still don't understand," what is Alpari's TP time" - server time or something else?
TP - Alpari trading platform time, i.e. trading server time...
ширина канала текущегоего дня превысила среднюю ширину канала
Highlighted - WHAT channel? Yesterday's? The 60 day channel? Some sort of vinaigrette of both together (you know, average width of both, or something)? Further, if we take a specific channel, say, the 60-day one, and refuse from any "vinaigrettes", then there will be no "average". Obviously, such a channel has well-defined and static borders at any given day. These borders will be slightly corrected only in the next day. But if we are inclined to create some conditional TrueRange, its boundaries can be floating at each moment of the current day (though they can be static again; it depends on the algorithm that generates this TrueRange).
I see, thanks for the hint! So, here is the idea: let's name the set of ratios of each instrument as 145/163=1.Let's call it TrueRange and display it on the chart along with standard (and clear) channels (there may be 10 or more ways; the first and the easiest one is to put it on your subchart, but it may also be attached to the quotes and put it on the "main chart"), to observe its, TruRange's, "turns" (in other words - to collect statistics graphically; then maybe it will come to figures when we understand what kind of regularities we are searching for) and make conclusions. How's the plan? :)
but it has its approximate limits for movement during the current day - the daily average range