I have had the pleasure of training several traders over the course of 2 years. I have noticed first-hand the frailties of replicating my trading style on others. Instead of sharing my diverse trading strategies, I would like to set up a consistent weekly blog that presents a view (my view) on various FX pairs.
My hope is that some of you will benefit from this - whether it reinforces your thoughts/trades or presents you with an alternative precautionary view. As I hope to do this weekly, I would relish any constructive criticism and thoughts which I can address or incorporate into my future posts.
There are broadly two clusters of trading styles - break-out trading and range trading. The emphasis of my blog posts will
be on range trading strategies. I find range trading elegant; it has
pre-set take profit levels and stop loss levels.
As the slide below illustrates, the key ingredients of range trading involved three steps:
1. Identify ranges
2. Rank these ranges in a specific order
3. Apply simulation and scenario analysis to identify risk/reward ratios
To set the scene, the following analysis has identified ranges in trading days …