Using principles in a slightly different way
June 19, 2015 at 6:18 pm #1274John MurphyParticipant
As I work full time (with reasonable commutes at either end) I don’t have the capacity to trade during the day. However, I do trade Overnight Momentum Trader (OMT) so I wondered whether I could use the principles on this course to help me there.
I appreciate the trading rules are different but even so I felt that some of the principles would be valid. So, last Sunday I plotted major trendlines, support and resistance and Fibonacci levels on the daily charts. I didn’t use these as profit targets per se but more as guidance. What I mean is that when I looked at the potential trades on Monday I used the plotted lines to indicate whether I should go for the conservative target or the active one. My conclusion was that GBPUSD looked good for the active target and other pairs to keep conservative.
My results have vindicated this approach as the GBPUSD trade provided a good profit (enough to pay for the course as it happens) and the others all behaved as expected (except AUDUSD which quickly went to the Stop Loss).
Clearly (cliche warning) one swallow and all that but I do feel that this is an experiment persevering with. I just wanted to show everyone that the course does have wider value than the pure core strategy as presented (hopefully I don’t end up eating my words now!).
All the best
JohnJune 19, 2015 at 7:16 pm #1275
I think its fair to say that a lot of us have come from OMT to this course, and i think what you would need to watch out for is changing OMT to adapt to what you think the market is going to do next. The thing that makes OMT so powerful is because we are literally using the same methodology over and over again to turn profit, Once we start moving away from its solid structure we will miss out on times the market moves in our favour (and when the market doesnt). When we start adding in our interpretation based on indicators and such, there is no guarantee that that will happen.
Although am sure Rich would have a much better understanding of it haha
LewisJune 20, 2015 at 6:32 am #1276John MurphyParticipant
I don’t believe I’m moving away from the OMT rules, I’m just using more information to add some context. I will always use OMT as laid down and I’m not suggesting the indicators will change that. It just helps me decide how aggressive I want to be personally in my trading for a particular week.
Clearly, one week is by no means sufficient time for a trial and I’m not suggesting that Rich endorse it but I just wanted to show that what we’ve learnt isn’t necessarily wasted if we are not able to trade during the day.
All the best
JohnJune 20, 2015 at 10:03 am #1278Rich FittonKeymaster
Hi John & Lewis,
You both make good points here. It’s great to see the cogs ticking and you starting to think how the FXBA techniques might be applied in other ways 🙂
Lewis, you make a good point in that you’ll always risk affecting the integrity of a probability based strategy by over optimising. I wouldn’t tinker too much with the core OMT strategy… or let me rephrase that, there’s nothing wrong with experimenting and coming up with your own personalised approach, it’s just that once you move away from the rules it becomes something else, not strictly OMT. And that’s OK to do. It just means the trader would be moving out from underneath the umbrella of the core OMT strategy and experiencing different results accordingly.
John, I think by adding extra analysis to select your exit point isn’t stretching things too much. I’d keep a set of ‘control’ results (from the normal consistent & active settings) and then compare your variable target results against them over a period of time to see whether you are gaining an extra edge. Test, test, test – that’s how you can make personal breakthroughs!
Great to hear you’ve covered your costs of the course already from your extra layer of analysis this week 🙂 We’ll have to call your approach the OMT(FXBA) variant, or something like that 😉June 20, 2015 at 11:23 am #1279
John, I think we should definitely try a ‘OMT variant’ and then compare the results over time!
Cheers guys! 🙂June 20, 2015 at 11:37 am #1280
is it fair to assume everybody in this course has came from OMT rich? Just incase we are talking about it and people get confused?June 21, 2015 at 10:15 pm #1288Rich FittonKeymaster
No, not everyone will be coming to the Breakthrough Academy from OMT, here’s a quick explanation for anyone who might be scratching their head…
Overnight Momentum Trader (OMT) is a separate and standalone probability-based Forex trading strategy. You do not need OMT to trade in the manner taught in the Breakthrough Academy (OMT is a hands-off, end of day method) but if you did want to know more you can read the OMT info page here.June 22, 2015 at 12:59 pm #1294Simon DydeParticipant
I’m the same as you John, being an inveterate “optimiser” and I find it very difficult to accept someone else’s strategy without immediately tinkering! This probably comes under the category of discipline.
Words of wisdom from Rich and Lewis, I think. Add an”optimised target” column to your excel results sheet and the real answer to your question will reveal itself over time.
SimonJune 22, 2015 at 1:10 pm #1295
It is actually a good idea! Looks like the demo account is coming back out for a couple of months.
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