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Old 11-12-2008, 07:37 PM
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EURGBP Draw Down: Possible solution

I am looking at the Draw Down currently on the EURGBP. I have a possible solution that could help reduce the Draw Down.

Basically, we add RSI indicator on hard trends.

On the H1 chart, if you put the RSI indicator, if the line goes above 70, it stops placing new orders until it drops below 70. Or on the flip side, it if goes below 30, it stops placing new orders until it raises above the 30 line.

I have attached a pic that will better illustrate what I am trying to say. Using this, we would only see two order rather than 5 we now have on the screen.

So if RSI is between 70 and 30 that indicates ranging and we place orders like normal.
Attached Images
File Type: gif eurgbp with rsi.gif (71.8 KB, 2328 views)
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