This past months have been great for pairs trading ,even with the chaos happening on the markets on the euro situation .Despite falling and rising,we kept booking more pips on eurgbp, albeit a much slower pace since we trade H4,one thing i noticed is that trades are getting fewer and more infrequent..this happens to narrowing range and crazy market movements. We did switch to H1 and even 15min to execute trades. But 15min tf is a unsafe but for quiet markets .I wont recommend even myself to trade those tf.
Due to this, i made experiments for EURUSD , i scoured the forums for information regarding hedging. One thing they did was booking the profits while at the same time ,reloading orders using limits orders,and closing the danglers which is losing positions gradually. I found that this shows promise , either a trending markets or ranging markets.It is a combo a both systems together, although i used a little MA to give me basic direction. This also in line with what a trader said. " Trading is not trading itself, but managing positions". A bit vague,but the philosophy behind is somewhat true. Will keep you posted.
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