lets turn this thread into a strategy research laboratory. Only constructive criticisms are allowed.
I have this idea that I want to share for more input and tweaking.
I am of the opinion that risking only 0.5% or 1% of my trading account per trade if I have a trading system that is at least 55% accurate will always keep me in business.
That said I thought about divergence trading (Regular and hidden) as an intraday trading tool on the 15 minutes timeframe using 20pips stoploss, 20pips takeprofit and close by opposite signal.
I assume that the trading time starts from 8am (GMT) and ends 5pm (GMT)
The only challenge with this approach is that it is time consuming (you need to stay put behind your computer all day)
So lets get started ( your contributions and constructive criticisms are very welcome)
You can use any oscillator of your choice.
Assuming that you want to use stochastic, make sure that you wait for a momentum cross to happen (when you spot divergence) before you take a trade)
"I am of the opinion that risking only 0.5% or 1% of my trading account per trade if I have a trading system that is at least 55% accurate will always keep me in business."
About this, I fully agree with you, because if you look global market research, then by all major companies, such risks and leave.
I will not argue this.
Now moving on to the research, Hidden divergence has a high win ratio, so what if we consider trading only Hidden divergence signals.
In another forum some one suggested on the H1 timeframe for intraday trading.
I have been busy researching and I just came up with another theory.
I will start with the intraday approach and then move on to the swing approach.
1.Trading hours (for intraday trading) 8am (GMT) to 5pm
2. Take profit = 60pips, stoploss = 20pips
3. Enter only when a momentum cross happens after spotting divergence ( hidden or regular)
4. Exit by opposite momentum cross (only after divergence is spotted before price hits either takeprofit or stoploss).
5.Risk less than 2 % of your equity per trade.
Now lets get started with Examples:
Use this button for images please :