Buy-Zone Problems

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xtremeforex
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Buy-Zone Problems

Postby xtremeforex » Fri Jun 03, 2011 10:22 pm

Hi Tro,

I have now been profiting quite steadily with two strategies.

One is a high-frequency trade-entry strategy, that literally enters hundreds of trades a day.

This is my main strategy because the Buy-Zone (my secondary strategy) has a few problems which I am going to discuss.

Some of these problems - could - be errors of in own understanding.

I would prefer to call the BuyZone a Horizontal-Line strategy, because of the way it utilizes price action with horizontal lines.

I have automated BuyZone to see it perform over long-term backtesting and it performs - decently -.

My analysis has shown that one of the key components for buyzone winning in the long-term is the adjustment of variable TP's, constant SL and a Trailing stop. It can NOT win with a fixed TP.

However, it is unclear as to - when - and by - how much - these TP's and Trailing stops should be adjusted. When the buyZone fails, it is often when a trade was in profit but TURNED into a loss. Is this why you discourage using BuyZone in an automated format? Because the Human can take profit - when possible without the complexities of AI-based TP's?

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Humble
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Postby Humble » Sun Apr 08, 2012 1:42 am

TP is usually take profit and SL is stop loss. Good luck on your journey.
Is price closing higher or lower than something? Simple yet powerful question. ..MO


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