Are "momentum" strategies possible? That is, catching a continuation of a strong move ...
Who knows about these simple strategies:
if price has changed more than the "X" threshold in N minutes, then open a position in the direction of the move and wait for take profit or stop loss.
I would be grateful for any comments.
PS
I have modelled this strategy myself.
On history there are such parameters, however, if you continue into the future, nothing particularly good comes out.
For example, for February-April 2015,EURUSD,
for N=8 min, X=8 pips, TP=SL=50 pips
Earn 2,000 pips.
However, the problem is that sitting in a position for a long time is a sign that this is a random earning.
If we run these parameters for a year and a half of history from the summer of 2013 - there will also be plus 1792 pips, but all earnings are mostly at the end of the term.
Greetings all!
What has always amazed me about the financial markets is that you can always find evidence of what you are looking for. Try to say that any indicator or idea is not applicable - and I will give you examples where it can all work. Only paradox is one thing - still the ratio of winners to losers will not change.
Greetings all!
What has always amazed me about the financial markets is that you can always find evidence of what you are looking for. Try to say that any indicator or idea is not applicable - and I will give you examples where it can all work. The only paradox is that the ratio of winners to losers will not change anyway.
because it's all going to be on history
Assuming yes, but there is another side to it, the market is exactly as we imagine it to be, just as an optimist imagines his success, and a pessimist imagines his failure. The market, like our world, is multifaceted.
So, are "impulse" strategies possible? - Yes, are "impulse" strategies not possible? - Yes! That's how we get the answer.
As a rule, the spread widens considerably when there is a strong velocity movement. Market makers and brokerage companies make money on this, but they have the advantage of opening with low spreads.
I don't know how they earn, I think that what traders and companies lose is enough for them and the spreads will not bring them considerable profit. Maybe you and/orZogman have more information on these things, I do not care.
Clarification. It seems obvious to me that when the news comes out, the spread widens a lot, the price goes a considerable distance in seconds to the order accumulation area, where they open or close their positions. In an attempt to jump on the train, some of this movement will also eat into the spread. Roughly the same as was the case with the franc, but on a much smaller scale.
However, I am not saying for sure that it is impossible to earn on impulse, I do not know the answer to this question, as I have not tested this strategy. I just shared my thoughts about what will prevent it.
It concerns the work inside the candle. As for what the author asked, if the price passes a certain threshold in N minutes. I can say the following:
I checked the strategy when one candle passes a certain value, there is no fish there. The point is that there is no standard movement. In some parts the excess will mean the continuation of the movement, and in other parts it will be an extremum followed by a reversal. And there is no overweight to one side or the other.
True, when the price passes the threshold in N minutes, I cannot say anything here, as I have not checked this construction.
checked the strategy when one candle passes a certain value, there are no fish there. The point is that there is no standard movement. In part an excess will mean a continuation of the move, and in part it will be an extremum followed by a reversal. And there is no outweighing to one side or the other.
On what data have you checked? Can you be more specific?
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Who knows about these simple strategies:
if price has changed more than the "X" threshold in N minutes, then open a position in the direction of the move and wait for take profit or stop loss.
I would be grateful for any comments.
PS
I have modelled this strategy myself.
On history there are such parameters, however, if you continue into the future, nothing particularly good comes out.
For example, for February-April 2015,EURUSD,
for N=8 min, X=8 pips, TP=SL=50 pips
Earn 2,000 pips.
However, the problem is that sitting in a position for a long time is a sign that this is a random earning.
If we run these parameters for a year and a half of history from the summer of 2013 - there will also be plus 1792 pips, but all earnings are mostly at the end of the term.