Time Frame analysis

Grey1

Senior member
2,186 178
What is the correlation between Time frame and success rate?

If you are trader who trades for living you should be able to address these issues to come out on top by the end of the year.. ( of course you can ignore them and stick to a single time frame such as Intra_day and let your capital erode bit by bit ..)

1) Risk diversification using fractal time frames?
2) Multi time frame asset hedging
3) Risk minimization

I suppose what I am trying to say is :-

If you had £100K and tried to live off of it for the rest of your life, how would you trade the market using various time frames in a way to be hedged against undesirable risks ?
 

madasafish

Well-known member
470 5
"( of course you can ignore them and stick to a single time frame such as Intra_day and let your capital erode bit by bit ..)"

I trade intra day
1. It is composed on multiple time frames .. as I suspect you well know.:)
2. It is profitable.

I trade DAX on 1 minute using a combination of 1-5 minute frames analysed in 1 minute and I dont hedge, have a win rate of 62% and average win versus loss points ratio of around 3.7:1.

Having said that strategies vary if we are in a bull or bear market or an trending day or oscillating or just plain flat...

Risk minimisation: only take low risk outcomes..

i.e do not buy at the top of a keltner channel..do not sell at the bottom.. and don't trade flat situations, have trailing stops and always have stops and targets with the broker so if you do get a connection failure you don't end up down 10ES points as I once did (the market recovered and I closed +1 but that's another story and pure luck..)


As far as £100k , I don't need that to trade with only 10% is enough to produce a very respectable return..:)
 

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Grey1

Senior member
2,186 178
Mad,
Thanks for the comments.. It must be my poor English but what I was pointing at asset diversification over multiple time frame and not Multiple time frame anlaysis of trading strategies.. ( yes I know it well.. Used to teach it myself at one time )

How ever I feel to address your claim of 62% success rate with a R/R of 3.7 is not acceptable to me.. If you did have such a strategy then your out put with only 10K would result in over 600K in less than 100 trades if you use 2% of your total capital in each trade..

The chart below is the result of Monta carlo simulation of 100 trades using your claims..
 

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madasafish

Well-known member
470 5
"How ever I feel to address your claim of 62% success rate with a R/R of 3.7 is not acceptable to me.. If you did have such a strategy then your out put with only 10K would result in over 600K in less than 100 trades if you use 2% of your total capital in each trade"

That's quite acceptable to me:)
 
 
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