Managing Your Risk
Although it is not covered in my EA, but truly there is a difference in potential gain in the first trade. Normally after trending market in American season the first trade tend to be above 2nd deviation Keltner Channel or even more. It is not always happened at 20 (GMT), it may be later. But the point is our potential profit will be higher. You can make a back test, and you will find that the higher profit almost in the first trade.
And if we look to back test result, during 20-22 (GMT) trading time is the most profitable area. This is not meaning that we never getting loss during this time, but this is because our profit during this time is bigger then after 22 GMT. It is because the ATR value is still high during this time.
What an idea that may we apply in this situation is optimizing our Money Management. We can set our MM to give more risk during bigger profit time or trade, and start reducing our risk after that.
2 komentar:
I agree.. and a stoploss would be hit only when in 20-22 the market is retracing and then bounces (after shocking news or big player movements).... to get around this we can maybe disable the EA programmtically during big news events? What do you think?
That is possible to do. But that is not my catch here. Because a good sideway trading should come after big trend. Only the EA doesn't know what kind of trade its first trade, is it correction or retracement.
What a perfect condition if first trade is correction, and after zigzag move, price make flag move and time for ea to scalp.
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