I’m in the process of attempting to adapt a Forex scalping strategy with about a 90% daily success rate to more of a quasi-swing/day trade hybrid with similar outcomes. But at this point I’m not even close to reaching my goal. And yet, I believe I have all the pieces in place to get me to my destination rather quickly.
The system rests on a handful of simple moving averages selected on the basis of statistical probability rather than established norms. As with scalping, I trust the secret to success will be in using these moving averages to buy and sell assets when the statistical odds of price behaving as forecast is at optimal levels.
Toward that end, I created the above graphic to help me employ an almost automated-like approach to interpreting the indicators rightly. It will assist me in quantifying the duration and degree of movement as price transitions from one category to another, but only after establishing precise, well-defined parameters for assigning price to one category as opposed to another.
Using this tool, it should not be too long before it is fairly obvious which moving averages and types of transitions are most significant, and in turn, when and when not to enter positions if the goal is to virtually eliminate losing trades.