A month of GBP/JPY through the eyes of ACD Methodology Mark Fishers ACD Methodology from The Logical Trader
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Sunday Jan 6th 2008: 2pm - 3am EST
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Comments for Jan 6th 2008:
Failed A-Down before rebound and an A-UP day.
Despite being a Sunday the system worked quite well, presenting
some decent pips for the short trading day.
Could the system have made you money today?:
1. Failed A-Down rubber band trade (long on failure of A-Down) would have done well.
2. A-UP signal confirmed at about 8:20 with a set of hammers to lock in a few pips at the successful piercing of the C-Level. Would prefer a confirmation closer to the A-Level but pips are pips.*
3. Failure to sustain price action above the C-UP is a good time to rubber band trade a short. You can't always expect price to run through the opening range so locking most of your profit at the top of the opening range is suggested.
4. Looking back at the day after the fact you can see 2 good opportunities to go long off of failed entries into the opening range. These trades are more risky so I would use smaller trade sizes to limit overall risk.
*- Mark fisher suggests Stops for A-UP should be set below the bottom of the opening range, and the inverse for an A-Down day. For currencies it's my opinion that on many days the risk is too great for such a range. The risk/reward ratio is unbalanced and unwise when relating to your C-Level take profit. Even if the system was right 90% of the time it just feels wrong to me to set a stop more than 50% further than your limit (take profit).
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