Sunday, October 13, 2013

Re-optimising systems to IC Markets

I haven't been successful in my attempts at scalping for the past few weeks. It is the devil of trading. I'll continue to attack this challenge during my spare time, but I want to refocus my energy on what I'm good at - designing mechanical swing trading systems. But I've also learnt a few useful lessons.

1) Different pairs behave differently between sessions. The EURJPY seems to possess the most consistent volatility between different trading sessions (Tokyo, London, New York). European-focused pairs such as the EURUSD and EURGBP, on the otherhand, experience more dramatic changes in volatility as sessions change or overlap.

2) The lower timeframes can benefit from higher timeframe technical analysis. This is something that you can't do with higher timeframes. For example, if I trade the 5M timeframe, I can benefit from 1H, 4H and daily TF technical analysis. However, if I trade the daily or weekly timeframes, I can't really use the monthly or yearly charts since these are shaped by fundamentals, not technicals. This is a possible source of edge for lower timeframes. 

But now that I'm using a commission-based broker, I need to tweak my current systems a little bit.

UPCOMING SIGNALS

I only see one trade that looks interesting, a pinbar on the weekly NZDUSD chart.


I'll be aiming for a reward of 0.25R, based on my Cernesus system. 

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