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Cable trades based on statistical probability
Just want to throw this open for discussion. Maybe it's been done before but maybe someone can add something to it.
I've been reading the "Vegas wealth builder II" document and, ignoring his trading system, just focussing on the way he breaks down data on GBP/USD starting on page 5.
The interesting stuff is on page 22. Read if you're interested then continue reading this...
...OK? Now if we assume from the data that when the price goes off by say 40 pips from the open (2100 GMT), the bigger chance is it continues in that direction instead of coming back to the opening price. Couple that with having a bigger t/p than s/l and the potential is there to see.
So we take the open price, add and subtract 40 (my figure), straddling the open in effect, set the s/l at 40 (back at the open price) and let the t/p go to the end of day OR a t/l of, say, 80. We can automate this using the Amazing EA.
I've attached the files we need to get started below. Hope some people can jump in with comments and also tell me if this has done and shown to fail before. I like it because it's using price action and solid stats. Appeals to me.
(the .set file is for a GMT broker - you'll have to change the "21" if your broker time is different).
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