FOREX QUANT

January 11, 2008

Trend Following the Intraday FX

Filed under: Uncategorized — by TraderMade @ 9:41 am
Tags: , , , ,

I am going to base the following view with a certain definition of trend following: entering trades when the market start to go in a certain way, maintaining the open trades as long as the market still move in the same direction, and finally exit the trades when the expected trend discontinued. Purely following. The purest form of this strategy can be seen in Curtis’ white paper that was able to be downloaded freely in his website several years ago. Another form of a pure trend following system can be found in Michael Covel’s first book.

So..
In my experience, trading intraday in the FX market by purely following the trend like that, wouldn’t work as good as when we do a pure trend following system in the daily timeframe. The volatility behavior of the intraday price movement would kill the system by producing too many whipsaws. Even if we used some advanced entry technique to exploit a running trend by using multiple entry like what the turtles do, the wild volatility in intraday FX market is a beast can not be tamed with that prescription.
Using a pure trend following system to trade the intraday FX market would be like asking Mr. Bean cleaning your office desk. It would be such a terrible mess. lol.

Intraday market has its own characteristic, thus need to be handled with different approach.
Would elaborate more into that in another posts next time.

(*)

4 Comments »

  1. FOREX Signals, One of the disadvantages of FOREX trading is the time investment needed to monitor the markets for advantageous entry and exit points. There are lots of great Forex trading strategies and Forex trading systems but to say there’ s only one, would not be a true statement. Mainly major banks, international organizations and some other are doing well in currency trading. Basically, currency trading involves four main variables: currencies, exchange rate, time, and interest rate.

    Comment by Cuban Currency — June 2, 2008 @ 8:23 am |Reply

  2. I find that there are ways to trade forex with auto matic software and i heard there plenty of good ones,but i feel trading the forex personaly with some guidance from auto systems is the solution

    Comment by santhosh yadav — June 19, 2008 @ 2:39 pm |Reply

  3. I agree with you intraday trader market has its own characteristic, thus need to be handled with different approach.
    as an intraday forex trader we must have a good knowledge and good approach to make profit in forex industry

    Comment by pitchfork forex — July 31, 2008 @ 5:16 pm |Reply

  4. People say you cant make money trading intraday… but thats rubbish! Each day the trend is either up down or ranging. Its just a metter of determining where you will enter and exit. I trade longer time frames, but I also trade intraday very successfully too. Its harder, but its very rewarding when you learn how to do it!

    Comment by shinny — August 18, 2008 @ 11:19 pm |Reply


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