Buying and selling around the previous daily close
Posted: Tue May 15, 2007 8:10 pm
I've been practicing with a demo FX account buying and selling around the previous daily close. However, I'm getting whipsawed to death!
I do get the ethos from this board - take small pips regularly and don't be greedy.
Shown is a chart of today's trading (I use Amibroker software - the previous day's OHLC are plotted, starting from 13:00).
These are 1min candles, and the direction can change very quick - I feel like I'm chasing the price round.
I bought long at A as the price crossed the previous close, but immediately the price whipsawed at B and I lost money selling at C. The same continued to happen. It looks obvious looking at the chart, but these are 1min candles and by the time the candle has fully formed and I've sent my order off, the move can be over and the candles are reversing.
I tried the $Trillion strategy of buying/selling at the close/open with a SL of 7 pips and take profit of 5-10 pips, but this backtested terribly - I got stopped out many times by temporary corrections, and had very low %wins. Larger SL (20-30 pips) give higher %wins, but when a loss does come, all the past 2 weeks hard work is eliminated!
I've done the maths and can see how 10 pips a day could make me a living with my account size:)
But I'm lost... and would really welcome some help.
Thanks,
Alex
I do get the ethos from this board - take small pips regularly and don't be greedy.
Shown is a chart of today's trading (I use Amibroker software - the previous day's OHLC are plotted, starting from 13:00).
These are 1min candles, and the direction can change very quick - I feel like I'm chasing the price round.
I bought long at A as the price crossed the previous close, but immediately the price whipsawed at B and I lost money selling at C. The same continued to happen. It looks obvious looking at the chart, but these are 1min candles and by the time the candle has fully formed and I've sent my order off, the move can be over and the candles are reversing.
I tried the $Trillion strategy of buying/selling at the close/open with a SL of 7 pips and take profit of 5-10 pips, but this backtested terribly - I got stopped out many times by temporary corrections, and had very low %wins. Larger SL (20-30 pips) give higher %wins, but when a loss does come, all the past 2 weeks hard work is eliminated!
I've done the maths and can see how 10 pips a day could make me a living with my account size:)
But I'm lost... and would really welcome some help.
Thanks,
Alex