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hypothetical Scenario - 1 indicator, 1 setup.
Started:June 22nd, 2011 (09:58 PM) by sidney7g Views / Replies:2,409 / 15
Last Reply:September 5th, 2011 (07:19 PM) Attachments:3

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hypothetical Scenario - 1 indicator, 1 setup.

Old September 5th, 2011, 05:08 PM   #11 (permalink)
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average per day

ThatManFromTexas View Post
With 5 tick range bars on TF about 10-15 times on a "normal" day.

so you are averaging 50 to 75 ticks profit per day?

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Old September 5th, 2011, 06:09 PM   #12 (permalink)
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... If you were forced at gun point to trade using only one Indicator you felt had the most statistical advantage to you, which would you use? ...

Many indicators can do a decent job provided you know where you want to make business on a chart. A trading system using two moving averages can provide a viable solution when they cross each other but again provided it's done where demand meets supply in greater quantity or vice versa where supply meets demand in greater quantity. You will often hear the expression location-location-location. This variable i call location should not be underestimated. You should find a way to identify where key changes in supply and/or demand occur on a chart and test your indicator at these junctures. An indicator usually performs much better when price visits a prior qualified level of demand or supply.

Do you need an indicator to see these levels other than price alone, i'd say a big NO, you don't. Key changes in demand and supply occur where a change of volatility can be identified or when a market gets out of balance. These areas are where you want to make business.

Failling to qualify these areas as valid zones of demand and/or supply is an error too often seen in my opinion. So your first quest might be to improve your ability to detect such key changes in demand and supply on a chart.

Once you have identified where you too want to make business then adding an indicator to the equation can help you systemize an approach to take advantage of the remaining demand or supply left in the area in question.

All this to say, focus first your attention on the developing market context where key market participants have opened positions or are closing their positions then wait for price to vist these regions before considering trading. You may find this appoach slow as it is a reactionary (extremely conservative) or passive approach but this is a path that delivers high probability trade setups with high reward.

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Old September 5th, 2011, 06:26 PM   #13 (permalink)
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Composite volume profile.

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Old September 5th, 2011, 06:31 PM   #14 (permalink)
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My spreadsheet...

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Old September 5th, 2011, 07:15 PM   #15 (permalink)
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sidney7g View Post

If you were forced at gun point to trade using only one Indicator you felt had the most statistical advantage to you, which would you use? If you had to use only one reoccurring setup or pattern to profit from with this indicator, which would it be? You can decide not to use an indicator but you still need a setup with some guidelines. You cannot use news releases or any outside fundamental information. You can only use one contract per trade and each trade cannot last over 30 minutes.

I'd appreciate it if you can include a picture of the setup or indicator. If you choose to back-test your strategy please post some statistics or log of trades.

Please refrain from digressing into any debate over the necessity of several indicators, this being holy grail searching, or any other problems/issues with this scenario outside of the specific question asked.

Thank you for your cooperation.

IF and only IF you have a gun pointed to my head

I would use the adaptable length regression tools that I created in an effort to automate. But they just don't match what you can do with a naked chart just reading the bars.

Favorite setup would be the European open trade combo usually with the e/u and 2 other pairs. But seriously, the market varies the approach to trip up the indicators.

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Old September 5th, 2011, 07:19 PM   #16 (permalink)
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Only 1?

A custom built TSI indicator. I'm not disciplined enough to use too many different indicators.

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