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Create a backlog of testing data. 10 years of
PSAR
settings at.0009 * .2
for 1 hr.- 30m & 1hr chart
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- 10 years of
PSAR
settings at.009 * .2
for 1 min- 30 min & 1 hr chart
- 30m & 1hr chart
-
The idea is to calculate current market vector acceleration (VA). Not just speed.
- Current VA should be taken from taking the limit of change between 1 hr all the way down to 1 min.
- The speed will then be cross referenced back to the database of price tests we've conducted.
- We'll find the most optimal settings for our indicators based on those 10 years of data.
- Then adjust the settings accordingly.
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The Stoploss
- Take a profit amount for each trade. Something small. Think semi-high frequency.
- Evaluate best stop loss on historical price action speeds.
If PSAR
is .009 at .2 and the market speed is +15 pips/1m
then the highest probability of success is having a 10 pip stop loss & profit target should be 13 pips.