trading strategy

[jarnottuk]

I have a simple trading strategy that I would like an opinion on, it's as follows:

1)Take the opening day price of currency pair and end of day close of any currency pair
2) calculate average of these two on http://www.calculatorpro.com/average-calculator
3) from open of following day aim for the average of previous days' open and closing average.

 

[wackypete2]

In spot forex there is no real open/close since it's a 24 hour market. Your opening price for the new day is almost always going to be at or very near the closing price of the previous day. Using the previous day's average price as you calculate it will always be going against the direction of the previously closed candle. In a series of consecutive up or down days you will be constantly tring to swim against the trend each day.

Check the picture of AUDUSD daily candles from december of last year to current. I highlighed to areas will you would be losing almost every day. Your few winnning days in those periods between don't offer too much profit at all.

You can try backtesting it on MT4 to see how it does.

Peter

 

[TheBramble]

I have a simple trading strategy that I would like an opinion on, it's as follows:

1)Take the opening day price of currency pair and end of day close of any currency pair
2) calculate average of these two on http://www.calculatorpro.com/average-calculator
3) from open of following day aim for the average of previous days' open and closing average.

I really don't think we need a url to divide open plus close by 2.

Aim in which direction? What's the rationale? How do you know when it's either up or down of the previous day's close and by that time what's left to make much of what's left?

Simple doesn't even get close....

Do you have anything definitive?

Have you any reasonable sample of test results to make a statement?

Or is this something you just dreampt up. sounded good, so you thought you'd lay it on us to see if there was anything in it?

 

[wackypete2]

I really don't think we need a url to divide open plus close by 2.

I use my handy abacus I keep on my desk.

Peter

 

[Trankuility]

Why are you asking for our opinion? If you think it will work, try it. Over and over. Then you'll know.

 

[cedricm]

That is the purpose of a forum, to share best practice and question new one.

 

[Trankuility]

The purpose of a forum is irrelevant. It doesn't matter what our opinion of his proposed method is. All that matters is him testing it to find out for himself.

 

[cedricm]

It is not irrelevant, there is a purpose on why everyone is here and that is
1.for the reason I have stated above.
2.to have brand new idea to improve / sharpen their trading skills.
And 3. to save time / money on testing method that someone else may have used in the past.
Well at least that's why I am here for and not to debate on the usefulness of the forum...

Cedric

 

[Trankuility]

Ok, you win.

 

[wackypete2]

It's irrelevant anyway. The OP made 5 posts in 11 years and has not returned to comment further here. He's just a troll with affiliate links. Check his other posts.

Peter