Quote:
Originally Posted by williama
djindyfx
Excellent! you got it and you are in the right track.
I will be responding to your e-mail
the link produces an error but if you just type Normal distribution in the search line in the wikipedia page you get to the link.
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Williama,
I look forward to future discussions with you about this method. To make my life a little easier (for manual Trading); I'm going to code an Indicator that will show the 4 lines, at a value that I can input, above and below the Daily and Weekly open. This indicator should help me back test (visually) the averaage price movements based off of the open price. I already have some base code to be able to do this. I will just need to edit it a little.
As far as all the people saying that this a "Martingale" trading style.. This is not a "True" Martingale system. Yes.. It can be considered a "Type" of Martingale system. You are not Doubling and trippling on the other side to gain profit becuase of a loss. You are Zeroing out. In order to maintain a Net zero loss if prices range between the +3 & -3 deviation. you have to add the same amount of lots and positions on the opposite side. If your Broker allows hedging, then you are not using any more capital as far as "Margin" is concerned. Yes, you are adding if the break out fails and retraces back past your center point but, you are not doubling or tripling on the other side. You are maintaining the same amount of lots.
I found a link that is less complicated than the wikipedia Site for the explaination of standard deviation(below).
[url=http://www.robertniles.com/stats/stdev.shtml]Standard Deviation[/url]
Martingale style betting
[url=http://vegasclick.com/gambling/martingale-betting-system.html]Martingale Betting System -- The Pros & Cons[/url]
DJ