A very simple question – how to choose Intraday Forex trading strategies?
It is evident, that of multitude of intraday trading strategies, there always should be the one that suites current markets the best. But how do we define the current state of the market to pick this best strategy?
E.g. a successful trader and writer Raghee Horner, when asked of what is going on now in market X, always replies “on which timeframe?”. In her best-selling book (Forex on Five Hours a Week: How to Make Money Trading on Your Own Time), she uses her own market phase indicator – The Wave – to define what strategy to use. Swing or breakout etc. See our review here.
However, this approach is mostly applicable to longer timeframes – the Wave uses 39 periods.
For day trading, we don’t have enough time to wait. By the time the most intensive trading time is over we can only have 1 bar on H4 graph or 5 bars in H1 – to say nothing of the Wave…
So we need other methods to make our decisions.
Choosing Intraday Forex Trading Strategies Concurrently
Our idea is simple. If we don’t know what the current market state is (is this ever possible?) the logical conclusion is that we don’t know what strategy is the best. All should be equal.
So it follows that it makes sense to run all of them – at the same time!
While flawlessly logical, the end result sound silly, dosn’t it?
However, for automated intraday trading this makes full sense.
Due to fast order fill strategies don’t exclude each other.
TO BE CONTINUED