Hi! Wanted opinion on the strategy of sell when open = high and vice versa

deba72

Well-Known Member
#21
Trading is anyway a game of probabilities and we try to bring the probabilities of occurrences in our favour as much as possible with a consistent system and prudent risk management. Now, if anyone makes "guesses" and "predictions" part of his strategy, he is only helping the odds ( which is high anyway to begin with ) against him.

But this is NOT to say, people can't win with "guesses" and "predictions".. I personally know people who do it..day in,day out . But the million dollar question is whether such type of trading styles have a) repeatability b) consistency and c) scalability ?

If yes, these 'geniuses' should be saluted !
 
Last edited:

Shikamaru

What a drag!!!
#23
May have a visit on below link about Initial Balance High and Low
which is part of Volume profile setup, Strategy and methods are
already exists. May you can adopt or get some idea for your strategy

You can Calculate IBH and IBV for first 5 minutes or any time period
Commonly accepted is 20 minutes IBH and IBV after Open

http://www.ranchodinero.com/market-studies/breaking-out-of-the-initial-balance-range/

http://www.marketdelta.com/blog/2010/12/cbot-market-profile-examples/initial-balance-rotation-strategy-part-1-concept/

All the best
 

mohan.sic

Well-Known Member
#24
A simple backtest will show this strategy will bring you to an account blow up, tried doing it Quantopian, and the equity curve was at -32% after an year. Leave alone the trading costs.


A good strategy is a function of price, volume and volatility. A robust strategy will be function of all the 4 occurrences. Like

1. news, events, inter market analysis, intra market analysis, sector etc. (which make expectations)
2. Order book/Tape (orders)
3. Time and sales, order flow, volume (volume)
4. Price action (price)



Hope this helps.
Why is Fundamental analysis left :). Include it as fifth function and the strategy will be impregnable.
 

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