I second Vonasi on his opinion that shorter timeframes are too noisy and that the trades need some space to grow. When I started I also thought it would be “safer” on shorter timeframes with tighter stops and so on but nowadays most (if I think little closer almost all) of my successful strategies run on daily bars.
I will look into this but it feels like if I step up to let´s say 15-60min I also need more Money on my account.
A 1 Hour Daily breakout stategy may be my next project.
I will look into this but it feels like if I step up to let´s say 15-60min I also need more Money on my account.
That unfortunately is a fact of trading life. If you trade on daily bars then price will move further than it would in just one minute but it will be much easier to guess which way it is most probably going to move. If you trade weekly bars it becomes even easier to be right more than you are wrong and so on – but there is a direct link between size of bank account needed, length of time frame traded and probability of making a profit.
The ideal trader has all three – a big starting balance, lots of patience to trade long time frames and the third one he can work out more easily thanks to the first two. Once you have probability on your side it is possible to win more than you lose. You just have to learn to sit on your hands more and wait a day or two for a trade to develop. It isn’t as exciting as 1 minute trading but it is more exciting than losing money minute by minute.
I understand perfectly what you write. I did a test on 1 Hour but it seems that I don´t have enough data to make anything of it. Changed to 15min and I have already a decent strategy that I will run on my demo account.
I suspect that it might not be my strategies that are all wrong, it may be me, I stop them before they have the chance to run long enough to show their true potential.
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