Columba wrote:LeM --
You mentioned earlier that larger BZs would be good, more successful. Makes sense to escape the whipsawing around some open number. At some point price is moving away. I have been looking at this matter without too much confidence since most pairs might need a slightly different BZ range perhaps based on the ATR.
I knew a guy who set up a BZ at +/- 25 on each side of the open. A basket of pairs. Worked well for awhile until the daily ranges receded to some smaller number. The daily range of many pairs could argue for the larger zone and leave ample room for a TP of some size. Maybe 25 is too high, though.
I suppose the issue here is to escape some amount of whipsawing while not establishing the zones at too wide levels. A delicate balance I think. Of course, TRO has sorted out statistically that the 8-10 on each side works pretty well. It seems to be for you!
You have successfully set your BZ to your 0000 (my 1900). I have waited for the Tokyo open another hour later which is not especially convenient for your time zone. It also quiets down the spreads a bit more.
I have tried opening later in my evening on a set and forget basis as I head off to sleep. Mixed results on a small sample. This is really creating a new BZ at a non-traditional time (Einstein, I suppose, only with wider zones). The 2100 hour candle, and often 2200 also, on Asian and Pacific pairs tends to be a decent mover. I like the AJ on this. Big spread on the GA, but it moves. Of course, the GN is more of the same with an even higher spread. If you get the direction right you can absorb the spread here (usually).
Have you formed any tentative conclusions yet . . . I'm afraid my approach is more trial and error than rigorous analysis.
Just wondering where you might be on this.
TRO has already come in on this, you've had your wrist slapped , so all good (I'm not the one he slapped, so I'm fine! )
What I would have said anyway, is that I have absolutely zero interest in re-inventing the wheel. The amount of work done by TRO is good enough for me and I didn't once consider re-running the stats of any kind on the BZ.
For me, I am happy to make use of the indi and let it do its stuff. When I say I have adjusted sizes, all I am talking about is multiplying by 10-factors for pairs like The DAX, so I get the same line spacing across the board. I am also only really interested in the first line, so not the zone itself, as such.
I also should point out once again, that I am not running the subtleties of entries that JHX uses on his thread (I didn't even know there were these kind of entries!). All I am doing is entering the trade as price crosses that first line and taking what I can get. I don't actually even need the second line if it comes right down to it.
I use directional bias in the form of only trading away from the weekly open.
I have also only made note here of the first move. There have been many, many, times when I could have had multiple entries on the day.
If I get to the point of running this seriously, then I would no doubt look at adding a counter-trade element if price entered, failed to make the profit and then retraced. However, I'll cross that bridge when I get to it.