Often, trading system, developed and debugged, begins to unravel at times, after which the profit factor as suddenly restored. Richard Plackett has plenty of information regarding this issue. What is the reason for this behavior of the system? Most likely, the answer should be seek to explore volantilnosti market in certain intervals of work. System, perfectly illustrating its efficiency on a steady trend may begin to bear losses in flat. Conversely, the system built and debugged during the flat, will bring significant loss during the onset of financial calm. The economies of many States in our time of crisis, experiencing a period of crisis and financial stress. Headlines to track in intraday trading, to fix the result of the transaction to a possible characteristic of the news of the jump, if your trading system does not trend.
In the case of the trend of trade, should be monitored more global news, giving the market direction for some period of time. Such a flexible approach to trade, incorporating the market behavior in a given period of time instead of careless use of the same strategies in different market situations, can significantly reduce the losses by changing market phases. Market is volatile. We must learn to follow his rules and keep up with all the changes its behavior. Numerous techniques can determine the trend is highly likely to determine the moment when there is a switch from one tactic to another. The simplest and technically sound methods are based on the breakdown trend lines. Besides the use of both techniques simultaneously on different frames increases your chances. For example, Flat on the daily chart looks like a violent change of a few trends on the hourly time frame. So why not use both trade at a time? Such flexibility in the choice of tactics can increase the profitability of your work at times!