Range Breakout: Conclusions

So I’ve finished up my research on the breakout strategy described in the previous post. While I think it has some merit, I couldn’t find a configuration that produces a sufficiently high expectancy for me to run it long time. I did find acceptable configurations for AUDUSD, AUDJPY, GBPAUD, and GBPJPY. If you email me, […]

Breakout: A different kind of trend strategy

The previous trend categorization work is being put on hold. I’ve spent a little bit too long on this and there is so much to look into in FX, I don’t want to get bogged down on a particular idea. Overall I think the trend categorization idea is great, because it will allow a strategy […]

Preventing Whipsaw – Using a longer moving average?

Can we possibly utilize a third, much longer time frame MA to prevent whipsaw and loss trades? Possible ideas are Only trade in the direction of the trend indicated by the longer MA If the longer MA has a flat gradient, we are in a sideways market so avoid trading. Add envelopes to possibly switch […]

Research

Pair Trading “The strategy monitors performance of two historically correlated securities. When the correlation between the two securities temporarily weakens, i.e. one stock moves up while the other moves down, the pairs trade would be to short the outperforming stock and to long the underperforming one, betting that the “spread” between the two would eventually […]