Quote:
Originally Posted by jlpi
I have a question concerning the method with the jump of some pairs from one half to the other half of the list.
As the pairs have a different pip value and a different volatility, I guess that the probability that some pairs "jump" is much higher for some of them than for others. This probability should be somehow linked to the factor volatility*pip value.
Do your practical experience confirms that?
If it is so, have you tried to use a kind of "normalized" list, opening a different lot size depending on the volatility*pip value factor?
It is just one thought because maybe it is anyway better to give more weight to the pairs with higher volatility. Just wanted to know what is your experience about this matter.
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Agreed that some pairs are volatile enough than the rest. My comparison i base merely on the profit for a certain trading period and i found that its a good enough tool to determine the moves. Also it is true that some pairs are hyperactive than the others, my strategy designate this pairs as the extreme pairs,because they normally settles at the extremes of the columns, while other we designate as the Moderates or the Mild pairs which normally settles at the middle part of the column. More stable than the extremes. It doest mean the the Mild pairs will always be mild they sometimes become hyperactive themselve and you can finf them at the extreme locations but eventually over long term they settle to their usual middle spot. In fact this stages of moves are a great trading opportunity for us. If at some point that the Mild pairs stray over the extremes, then we can bet that it is going back to its usual seat. Same is true with the Extremes that wonder around the middle part of the column. Some users of this method use that technic of trading only pairs that stray to their usual spot. It is in my experience that this unique characteristic of pairs helps us in determining our trades. I would not have them having equal qualities which would greatly reduce my identification of their intent. Hope that explains. I stole one of the indicator in the other Forum and i attached it here for purposes of explanation.
More reading about this system on the FF forum.
Julius