How to detect Range

[Business]

Hello

I use an automated trading strategy which is a trend following strategy.
This strategy applies on forex, UT 1 minute, and trades from 5 to 10 pips.
My question therefore concerns the Day Trading & Scalping
How can my strategy automatically filter periods range over which it loses money?
Which indicator(s) use?
What is the best solution?
Thank you in advance for your advice!

 

[bnaimy]

Hello

I use an automated trading strategy which is a trend following strategy.
This strategy applies on forex, UT 1 minute, and trades from 5 to 10 pips.
My question therefore concerns the Day Trading & Scalping
How can my strategy automatically filter periods range over which it loses money?
Which indicator(s) use?
What is the best solution?
Thank you in advance for your advice!

When you find that out, then let use know cause that would be something
The only way you could find a way around it is this, use a volume profile that
takes a few weeks of data and then use a price increament that suits that market.

This way you will know whats the range low and the range high, and therefor you have defined the range. After that, its all a matter of how you program it to trade it, fairly simple. But keep in mind that a range does not define direction in the market, so that one you should think about.

But as for as volume profile goes, it works like this...once range low gets tested and holds, then price will head up to the range high again, but first make a small stop at the point of controll in the range itself.You need to figure the rest out yourself, i wish i could tell you more..but im to busy at the moment. Dont bother with googling about it, there is not much info about this. Just Test it out and finetune it to your market.

Best of luck to you
WIth kind regards
Bashir Naimy