fx: combining strategies.

the challenge i have right now is to generate profit in relatively low volatility conditions. the two strategies i’ve been testing previously both have their issues. the increasing/decreasing strategy is costing too much in paid spreads, and the catching trends strategy is quite a sure loser in a long term. thus, to combine the two strategies mathematically, where it is clearly defined in which conditions to switch the strategy, is a challenge. for the initial test run i picked those conditions from my mind, relying on the experience in analysing random fluctuations for over twenty years, but the values may need to be changed depending on the results, adjusting to the particular behavior of forex, if it does behave differently from randomness, in a large scale.

even as the low/medium volatility is not the best for trading currencies, as of now i prefer to stick to the selected somewhat stable currencies and to figure out how to generate profit with the low volatility and slow trends, instead of betting on risky currency pairs with high volatility. some time ago i wrote that i don’t expect to find anything new, but i may have been wrong with the opinion that nothing new is to be found in my own formulas.. there are countless ways to combine the formulas and some combinations may still be hiding beneficial surprises in them, which i had overlooked previously.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s