levels defined and were on the daily time frame, lets take a look at the other two factors at work. Trading a blind setup is no different. This would produce less trades, but would reduce trading costs, and might make profits lumpier but also more probable. Lets finish up with some of the more important points to keep in mind as you begin practicing this strategy. The following chart shows how all of the pieces work together to form the blind setup on nzdusd. Total Return, maximum Drawdown, average Daily Return, eUR/USD.20 -27.69.0240. However for our statistical analysis here, we can use defined amounts. Notice that we are also moving to breakeven as soon as selling pressure builds on a retest of key resistance.
Also, after every day where the price went down, we bought that pair. This of course, can change over time depending on factors like seasonality and volatility. As I mentioned before, the big players can make serious money trading this way, and it is a major advantage that market makers have over retail traders. First, lets get into the first factor of confluence that we need when trading blind.
Notice that the daily range of the setup candle was 173 pips. We arent day trading forex vs stocks out to prove or disprove quantitative research here. While it isnt always necessary to go back this far to find levels of interest, it can be advantageous especially if you are unsure about the significance of a level. By doing this we can get an idea of what is probable and thus put the odds in our favor. This is why everything we do here is based on the 4 hour and daily time frames. Before we dive into the details I want to make one thing very clear. And from a traditional sense of how we trade price action (pin bar at key level) they probably dont have much in common, especially when referring to ADR. Using a pending order for a blind entry while you arent around can get you in a lot of trouble really fast. To remove an indicator from the chart, one has to execute its context menu commands of Delete Indicator or Delete Indicator Window, or the chart context menu command of Indicators List Delete.