Im fairly new on this forum and to trading (just under 2 years now).
Ironically, I came up with this same concept, started looking around the internet and found the BZ on babypips hehe.
Anyways, not gonna take credit since it already exists, but ive been testing the open range breakout around smaller TF's such as 15m.
Using very tight aggresive stops and no TP. I use a trailing stop.
So far its early to see if its worth continuing with, but the more i think about it the more i see that all we are doing is spacing out our trades around specific time intervals
We trade price BASED on time. We arent trading price by itself.
I did close to 300 trades in around 12 days and grew the demo account by 35%+ with 0.35% risk/trade.
then i started 'fidling' and testing different things and everything went pear shaped
Heres something to consider. When price is moving fast, you need to be fast placing pending orders. The lower the TF the faster you must be, and the broker gets fussy with 'minimum distances' for pending orders on MT4.
I recently posted on forexfactory to see if anyone would like to help with building a pending order ea of sorts, that would allow this concept TRO has shared, to be taken to the next level.
I attach the link so as to make it easier.
In summary: This 'concept' has huge potential, IF one is capable of limiting the max trades taken per day, and the max risk taken per day in TOTAL and ONLY TRADE when volatility is high and if possible, directional.
Why? Because it introduces consistency in TIME.
For example, say you set a max of 4% loss per day.
Then you calculate the max trades PER BAR you will take.
Then you divide the max trades by the max daily risk and what do you get? The OPTIMUM %R per trade.
This will give you something like:
"I will trade 4 hourly bars, which gives me a MAX trades of 8 (2trades per bar) which means my optimum %risk per trade will be 0.5% per trade.
Once I have traded my 4 hourly bars, win or lose, im DONE for the day."
Consistency in TIME, combined with precision entries.
Just some thoughts
PS heres the thread (nearly forgot hehe): http://www.forexfactory.com/showthread. ... ost4633257