To continue off of yesterdays post I have been vigorously back-testing this new system. I look at about 17 pairs on my swing trading frames so I decided see how I could I cut down my list so that I didn't have to back-test all of those pairs. Since this new model in a day trading model that I will trade from 6am-12noon I decided to only trade the European ans American pairs since those pairs will move the most during that time period (the London/US Session). While back-testing I also noticed that the strictly European pairs were not too profitable and that the major US pairs were. Out of the 8 pairs tested I have currently found 3 to my liking. After finishing this post I'm going to re-test USDCAD because I forgot to save the data, but if I can get a 4 pair portfolio to trade that would be good. The reason I think 4 would be a good amount is because I don't want to overwhelm myself with data. If i'm following and concentrating on too many pairs then I fear that I will lose the focus I need to trade them correctly. I'm very excited about it and I hope that this is something that I can use in the long-run to help supplement my swing trading.
I've learned that when I get bored I tend to try and force trades to happen. And when swing trading it's possible that I can go days to even a week without taking a trade. This can become very annoying especially when this is your full time job. I figure if I could trade a day-trading model as well, this will allow me to stay busy in the market and just allow the swing trading signals to come to me.
Lastly the big question is what if I get 2 opposite signals on the same pair? If this is the case I have already predetermined that the swing trading signal will always be taken over the day trading signal. I decided to do this because the swing trading moves are the bigger moves and signals on a higher time frame are always more credible than the ones on smaller time frames.