The Chaos Theory

I am now backtesting intraday methods instead of going for longer/bigger gains. Even with small targets still maintaining reward:risk ratio of 2:1, ive tested many scalping methods during first 2 months of trading and i found it difficult hard to use(ya, partly im a nub). It was too fast for me on 1-min timeframe and i can remember using java charts(sux!). Now, thanks to FXDD with their uber charting s/w, i find it easier to follow these intraday rules. This one have some sort of chaos theory in it, ok i love playing Chaos in WH40K.

This method uses AO(good thing FXDD hv em), volume indicator and 3 EMA setting to identify main trend, use it pairs with low spread like eur/usd or gbp/usd(brrr), not "the beast!". 3 days of testing gave result of at least 70% win, im ok with taking away 3-5pips, sometimes 10pips with 20 is my max target gain. Max stop loss is 10pips. Still doing more tests, especially when to or not to trade. Eyeing how usd moves also helps to estimate entry/exit.

Last nite, most yen crosses took a beating. Had my eyes on the usual pairs-gbp/jpy and usd/jpy.Beast found support at 4hr 38.2% chart, 400pip movement! usd/jpy went as low as 120.90, but looks like they have recovered to levels as of last week. A lot of trade opportunities, i only took few slices.