Anomaly, Speculative and Conquer
| What is the reason (basis) for the Anomaly, Speculative and Conquer trades? Do they follow trends, go against trends, etc? Let's break down each one of the Forex trading systems we trade to give a brief overview of each method. Anomaly: Is a momentum based method which seeks to ride the current trends momentum (defined by the previous' day price bar which is the signal bar). Conquer: Is a trend following method which only takes trades in the direction of the trend (trend defined by the True Trend indicator) and while taking a swing position in the direction of the trend (Zero Line Cross entry) also takes multiple secondary entries (Drop In entries) each time the GBP/JPY becomes overbought against a down trend or oversold against an up trend. Speculative: Seeks to take advantage of ranging markets and market whipsaws. How do the Anomaly and Speculative trades work together, is one trade made in case the other is going in the wrong direction, etc.? The Anomaly and Speculative do work closely together. We know that markets act in one of two ways; trend or consolidate. By combining the two methods we are able to profit most of the time from either market behavior. Method A is going to have days it is stopped out so on the days we seek to profit from Method B. Because both initial trades are taken in the same direction it is also likely both methods will take profit during the same day. On trading days that whipsaw or retrace the Speculative Order 2 will go onto profit further and on days that trend Order 2 on the Anomaly will go onto profit. All of the trading systems we trade work together as a whole so it helps to view them as individual Forex trading systems (always following the rules of each) and as one complete system. |
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