Re Pipskateers’ answer to Don555

Don555 asked a question on the Forex Factory thread and Pipskateer answered him, see below.  I have put my answer at the end.

don_and_pips

 

The most important thing to bear in mind is that the trades have very small stop losses and use high leverage if you are using the accumulation method of money management.  Therefore the thing you don’t want is gaps!  This means that you want 24 hour instruments, the other issue is that this system doesn’t work so well on all instruments, for example I find the best is EUR/USD, followed by the Eur/JPY and the AUD/JPY and the EUR/AUD, the worst is the GBP/USD.  I am going to be back testing  this Christmas to filter the currency pairs again and I will probably end up with 5 or 6 pairs.

So in answer to the question does it work with Nymex, the answer is have you back tested it, are you protected from gaps and does it have a good spread and are you able to use high leverage if you want to?

 

See my post on protecting from weekend gaps!

http://10xroitradingsystem.com/protecting-against-weekend-gapping/

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